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2013 Annual Gathering: Workshop#10A: Reaching Back to Offer a Hand Up

2013 Annual Gathering: Workshop#10A: Reaching Back to Offer a Hand Up

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Materials presented at "Reaching Back to Offer a Hand Up," a workshop at the 2013 Catholic Charities USA Annual Gathering in San Francisco, Calif.
Materials presented at "Reaching Back to Offer a Hand Up," a workshop at the 2013 Catholic Charities USA Annual Gathering in San Francisco, Calif.

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Published by: Catholic Charities USA on Oct 10, 2013
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A Division of Catholic Charities of Northern Kansas

COSBY SHOW VIDEO

◦ REGULAR PEOPLE – NOT AS EASY AS WE’D LIKE TO BELIEVE OR AS POSH AS PEOPLE BELIEVE IT IS TO LIVE ON ASSISTANCE

THIS WAS MY LIFE:
◦ 1. SINGLE, NO DEPENDENTS ◦ 2. SINGLE PARENT OF NEWBORN ◦ 3. MARRIED, NO CHILDREN ◦ 4. MARRIED, NEWBORN CHILD

 THE

EVER-PRESENT ISSUE OF FUNDING MIXED WITH NEW ISSUE OF ADHERING TO BANK REGULATIONS

THAT ALMOST WASN’T…

Daughter of Director in Payday Loan Debt “This can’t be the only way…”

“Is this a widespread problem?”
Something has to be done about this… Chance meeting at a training…

KAREN HAUSER OF CC-SALINA AND KIM MOORE OF UNITED METHODIST HEALTH MINISTRY FUND. WHAT IF THERE WAS A WAY TO LEND PEOPLE MONEY TO PAY OFF THESE LOANS THROUGH A LOW-INTEREST BANK LOAN THAT WOULD BE GUARANTEED BY FUNDS “GRANTED” THROUGH AN OUTSIDE SOURCE? BRILLIANT IDEA AND TYPE OF PROJECT THAT COULD GARNER SUPPORT FROM THE FOUNDATION’S BOARD

CATHOLIC CAMPAIGN FOR HUMAN DEVELOPMENT
APPLIED FOR AND RECEIVED FUNDING TO HIRE A COORDINATOR AND A PART-TIME FINANCIAL ADVOCATE IN SUMMER OF 2012 LYDIA STARTED IN EARLY SEPTEMBER CLAUDETTE BEGAN LATE SEPTEMBER

 

WHAT WAS… LOCAL BANK IN 5 COMMUNITIES (Concordia, Manhattan, Junction City, Hays, Goodland) CC – SCREENERS & CASE MANAGERS UMHMF - $100,00.00 IN GUARANTEE FUNDS

 

WHAT WAS… DEFAULT TRIGGER ONLINE NOTICE TO UMHMF FOR PAYMENT OF REMAINING PRINCIPLE 10% LOSS ($10,000.00) IMMEDIATE SUSPENSION OF PROGRAMS SUPPORT BY UMHMF

SADLY, FROM HERE THINGS RAPIDLY BEGAN

TO FALL APART ON US AT EVERY LEVEL…

BANK AFTER BANK AFER BANK AFTER BANK…
DOESN’T MEET REGULATIONS FOR BANKS…DIDN’T MAKE SENSE TO BANKS….IF GOING TO LEND WITHOUT “REAL” COLLATERAL WHY DO WE NEED CATHOLIC CHARITIES…

WHAT TO DO…WHERE TO GO…

QUICK THINKING • CHANGE GAME PLAN FIND ALTERNATE ROUTE TO GET PROGRAM GOING

QUITTING IS NOT AN OPTION…REFUSE TO FAIL NEW VIEWPOINT…STARTING A NEW BUSINESS IN NEED OF INVESTORS SELL THE PROGRAM AS DIFFERENT THAN NORMAL SOCIAL SERVICE PROGRAMS HAND UP…NOT A HANDOUT… CONSUMER REQUIREMENTS & INVESTMENT

 

WHAT IS… SUNFLOWER BANK (Manhattan, Junction City, Hays, Salina) CITIZEN’S NATIONAL BANK (Concordia) CC – SCREENERS & CASE MANAGERS: Certified Credit Counselors UMHMF - $25,000.00 GRANT APPROVED IN JANUARY

 

WHAT IS… CC MATCHING FUNDS $25,000.00 – APPROVED BY BISHOP & FINANCE CMTE ACTUAL DEPOSIT ACCOUNT AT BANKS SO LOANS COULD BE SECURED BY THE DEPOSIT DEFAULT TRIGGERS APPROVAL OF WITHDRAWAL FROM DEPOSIT ACCT – PRINCIPLE ONLY 2 SIGNERS BEFORE WITHDRAWAL OF FUNDS

MORE BANK FRIENDLY OPTION

MUCH MORE STRINGENT DUE TO 50% DECREASE

NEED FOR FINANCIAL LITERACY AND INTENSIVE CASE MANAGEMENT

OUR GOAL IS TO EMPOWER PARTICIPANTS AND COMMUNITIES TO FIND JUST SOLUTIONS TO ISSUES OF POVERTY. EMPOWERING COMMUNITY MEMBERS GIVES THEM A VOICE AND NARROWS THE SOCIAL AND ECONOMIC DISTANCE BETWEEN DIVERSE GROUPS.

INDIVIDUALS DO BETTER AND LEARN MORE WHEN THERE IS A SENSE OF BUYIN TO PROGRAMS SO WE HAVE SPECIFIC REQUIREMENTS FOR EVERY CLIENT WHO IS APPROVED FOR EACH ASSET DEVELOPMENT PROGRAM. WE CALL IT THE

TRIANGLE OF SUCCESS!

1. 2. 3.

MONEY SCHOOL LEADERSHIP CIRCLE/SUPPORT GROUP (MONTHLY) FINANCIAL COACHING (MONTHLY)

TEACH A MAN TO FISH…

Financial Literacy Curriculum  4-Hour Class  Developed by Catholic Charities of Fort Worth  Covers all the basic information  Interactive Classes to engage participants

Support group for financial health Allots group time for community members to bring specific areas of expertise to group Diminishes shame and embarrassment associated with debt Gives members the lead in the groups so issues discussed are member-driven Promotes understanding of debt being a community issue

Individualized budgeting  Coach provides education and insights, but consumer does the heavy lifting and is responsible for the results produced.  The coach is the educator and protagonist, but the consumer is always the decision-maker and action-taker.  Final push of financial empowerment

IN THE WORDS OF NELSON MANDELA: “OVERCOMING POVERTY IS NOT

A GESTURE OF CHARITY. IT IS AN ACT OF JUSTICE. IT IS THE PROTECTION OF A FUNDAMENTAL HUMAN RIGHT, THE RIGHT TO DIGNITY AND A DECENT LIFE…”

IT STARTS WITH FINANCIAL LITERACY AND ENDS WITH FINANCIAL EMPOWERMENT!!!
THE TOOLS AND THE OPPORTUNITIES… PROVEN WAYS TO LIVE WITHOUT FINANCIAL STRESS

“The only man who sticks closer to you in adversity than a friend is a creditor.”
-Unknown

CAN CATHOLIC CHARITIES MAKE A DIFFERENCE IN THE LIVES OF THE WORKING POOR?
YES, WE CAN…WE MUST!!!
“Speak up for those who cannot speak for themselves, for the rights of all who are destitute. Speak up and judge fairly; defend the rights of the poor and needy.”
Proverbs 31:8-9

YOU PAY US FOREVER TO PAY YOU TODAY…

THEIR MOTTO…


• •

Not a bank loan Borrow enough to get to next payday Operate under variety of titles Take postdated checks, debit card information as collateral. Large fee for the loan, which puts the interest rate very high, some rates are as high as four hundred percent.

 Interest

rate can be charged over each fourteen-day period.  Law states only have two payday loans taken out at a time.

Since payday loans in Kansas are capped at $500 the maximum fee that can be charged is $75. These fees are included in the interest rate – FREE STANDING SITES

SO, WHAT WILL THE KLPP DO FOR CONSUMERS?

     

MICROLOANS UP TO $1000.00 LEGITIMATE LENDING SOURCE PAY OFF PREDATORY LOANS HELP ESTABLISH POSITIVE BANKING RELATIONSHIP STRONG FOUNDATION OF FINANCIAL LITERACY PROMOTE BEHAVIOR CHANGE THROUGH INTENSIVE CASE MANAGEMENT

ESTABLISH A RELATIONSHIP WITH A “REAL” BANKING INSTITUTION  HELP TO BUILD OR RE-BUILD CONSUMER’S CREDIT  ACCESS FINANCIAL LITERACY COMPONENTS AND LEARN VALUABLE TOOLS REGARDING FINANCIAL EMPOWERMENT

IF THE GOAL OF CATHOLIC CHARITIES IS TO REDUCE POVERTY WE MUST START EMPOWERING OUR CLIENTS IN THE AREA OF FINANCE

“The borrower is servant to the lender.”
-The Bible
HOW CAN WE EXPECT OUR CLIENTS TO HAVE THEIR FOCUS ON GOD AND FAMILY WHEN THEY ARE LIVING IN FEAR OF DEBT?

DEBT = STRESS STRESS = INCREASED SUSCEPTIBILITY TO:  Heart Disease  Diabetes  Common Infections  Obesity

COMMON COPING MECHANISMS FOR DEALING WITH STRESS:  Excessive Alcohol Consumption  Illegal Drugs  Overeating

 

DEBT = STRESS Financial Stress is leading cause of divorce Correlation: Personal debt and increased levels of anxiety Correlation: Personal debt and increased reports of depression Correlation: Personal debt and cardiovascular problems and other mortality rates

Stress takes away ability to focus on important stuff:
1. 2. 3. 4. 1. 2. 3. GOD CHILDREN WORK RELATIONSHIPS

When a parent is financially stressed:
CHILDREN SUFFER FAMILY UNIT SUFFERS COMMUNITY SUFFERS

A 2009 STUDY FOUND EVIDENCE OF A RELATIONSHIP BETWEEN ECONOMIC INSTABILITY AND AN INCREASE IN SUICIDE

CONSUMERS IN DEBT TO PAYDAY LOAN COMPANY CONSUMERS IN NEED OF FINANCIAL LITERACY

.

COMMUNITIES AS A WHOLE

OUR CLIENT’S STORIES OF THE DESTRUCTIVE JOURNEY THROUGH PREDATORY LENDING…

• CURRENTLY HAS TWO PAYDAY LOANS • HAVING TO MAX OUT 2ND LOAN TO PAY OFF FIRST LOAN • WIFE HAD LOAN BUT PAID OFF • WIFE HAVING TO GET NEW LOAN TO PAY BILLS • BOTH ARE SIGNERS ON ADDITIONAL TITLE LOAN ON VEHICLE

APPLICATION DENIED DUE TO AMOUNT OF DEBT AND LACK OF INCOME SUFFICIENT TO PAY KLPP MONTHLY PAYMENT

 

  

ELDERLY CHURCH MEMBER TOOK OUT PAYDAY LOAN TO AFFORD MEDICATIONS COMING TO CHURCH TO ASK FOR HELP UNABLE TO AFFORD MEDS & BILLS 6-12 MEMBERS IN DEBT TO PDL/TITLE LOANS

   

 

OBVIOUS DISTRESS WHEN CAME TO CC STARTED WITH COUNSELING DIFFERENT PROGRAMMING HELP DOING WELL AND WILL GRADUATE FROM COLLEGE IN DECEMBER NEW MEMBER OF KLPP-SPECIFIC BOARD TIME TO GIVE BACK AND SHOW OTHERS IT DOES GET BETTER

CATHOLIC CHARITIES OF NORTHERN KANSAS – MAIN OFFICE – 425 WEST IRON AVE. SALINA, KS 67401
CLAUDETTE ALMARAZ – KLPP COORDINATOR LYDIA LOWE – EXECUTIVE ASSISTANT/FINANCIAL ADVOCATE
calmaraz@ccnks.org llowe@ccnks.org

OFFICE PHONE: 785-825-0208 CLAUDETTE’S CELL: 785-643-3928

www.ccnks.org

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