2008 Spring Newsletter

President's Message

It’s finally Spring!  I don’t know about you, but after this treacherous winter, I couldn’t be happier to see the snow melt and the sun shine. 

In the finance world, not everything is quite as optimistic.  Sub-prime mortgage loans have certainly been in the public eye recently.  Every time you turn on the TV, you hear about how mortgage loans were made using lower qualification standards, often times putting consumers into homes they could not afford, resulting in a rash of delinquencies and foreclosures.  Some communities have even seen the real estate values decrease as the market became flooded with foreclosures.   Sadly, what seemed like a great deal for many consumers has turned into a nightmare.  I am pleased to report that in the interest of our members and communities, credit unions stayed far away from sub-prime mortgages, never putting members in a risky sub-prime situation.  Credit unions will continue to provide members with value by offering more traditional financing options for homes that are more affordable based on the person’s income.

Another type of lending may lead to similar circumstances, albeit on a smaller scale.  72 month or longer vehicle loans have started to emerge as a means for consumers to afford bigger, more expensive cars.  The problem is that in 3 or 4 years when you want to trade in the vehicle, you may owe much more than what the dealer is willing to give you as a trade, which essentially means you’re “upside down” in your loan for much longer than you should be.  You may find that you cannot obtain financing to close the “gap” between what you owe and what your trade-in is worth AND be able to buy another vehicle.  The moral:  buy what you can afford.  Sometimes it’s not as glitzy or as luxurious, but you’ll be happier with the financial results in the end.

Finally, be sure to scrutinize the Annual Percentage Rate, or APR, of any loan you sign.  The lower the APR, the lower total interest you will pay on that loan and the lower your monthly payments too.  You can find consumer loans—even short term loans—for well below 18% APR.  Don’t be suckered by payday lenders that may offer short term loans with interest rates of 500% APR or more.  A little time and effort spent researching the right loan for your needs could save you hundreds of dollars—and stress—over the years.

Avoid these common pitfalls by dealing directly with your credit union.  At WEA Credit Union you’ll find knowledgeable and courteous staff to discuss your needs.  Stan Williams is the go-to guy here at the credit union.  Give him a call to discuss your lending needs—new loans or refinances!

In other credit union news, we are pleased to annouce our website has undergone a makeover.  We hope you find the new site easier to navigate and more enjoyable to use.  Be sure to check it out!

Until next time,

Mark Schrimpf
WEA Credit Union

2008 Spring Newsletter Contents

> President’s Message
> Holiday Hours
> National CU Youth Week
> Website Features
> Membership Drive

Newsletter Archive

2007 Fall Newsletter

2008 Winter Newsletter