Suze Orman to Larry King: CUs have great rates
WASHINGTON (12/14/09 CUNA)–Credit unions offer better rates on credit cards, personal finance guru Suze Orman told Larry King on Larry King Live Thursday.
King asked Orman if credit unions are a better option for those interested in transferring their credit card balances to credit unions from a bank.
“Yes, yes, yes, yes,” Orman said. “Credit unions–especially ones that are federally chartered–the maximum interest rate they can charge you is 18%. Now, while that may sound like a very high interest rate, the truth of the matter is many of these banks today are charging 29.99% interest.”
“So here is what I am suggesting. I think the United States of America–all of you should start looking into credit union credit cards and do a balance transfer,” Orman said.
She suggested consumers visit creditcardconnection.org, a new site that offers information about financial institutions offering credit cards. Users can enter in their zip codes to find credit unions, Orman said.
Give SIU Credit Union’s credit cards a try. Compare our rates and fees to your big bank card to see the difference. Apply today and start saving.
Membership Pays
Deborah Piquard receives a $500 Visa Gift Card from credit union President and CEO Dennis Schaefer. Piquard won the new member referral program award.
Credit Union members were asked in October and November to refer their friends and family to the credit union for membership. If they did, each person received $10 and a chance to win a $500 Visa gift card, just in time for the holidays.
How To Get A Business Loan
When you apply for a business loan, you’ve got to complete a lot of paperwork. And that’s only the beginning. After you complete the application package, it goes to the lending institution’s loan committee. Follow the 5 Cs of business credit to get your application noticed:
1. Character: This includes your personal history, reputation, and (often) your relationship with the lender.
2. Capacity: This refers to the cash flow, liquidity, asset/liability structure, and net worth of the borrower and guarantors.
3. Collateral: Your loan should be adequately secured by collateral that is acceptable to the bank, at an acceptable margin.
4. Capital: Lenders want to see a proper capital structure that doesn’t leave the bank with undue risk exposure.
5. Conditions: You should be able to demonstrate a thorough understanding of relevant industries, the economy, and any other related conditions.
The five Cs are the elements loan committees evaluate in order to mitigate their risk. They don’t ensure that all the loans institutions take on are 100 percent risk-free. Rather, they help to identify where the risks are, to determine if risks are layered with other risks, and to spot areas of strength that can reduce risks that may be present.
There are three steps you can take to encourage a favorable review of your application:
1. Communicate your business plan clearly.
2. Make it evident that you have a solid plan for using the funds.
3. Provide high-quality, current financial information.
Having a detailed, complete application is also important. Many committees look for seven basic elements during reviews. These elements are straightforward but often overlooked by potential borrowers:
1. Be specific about how you plan to use the funds. “Working capital” is not an adequate explanation.
2. Show a well-defined source of cash repayment, supported by documented performance.
3. Define two or three alternate sources of repayment that do not involve liquidation of the pledged collateral.
4. Provide an analysis of collateral throughout the term of the loan, in terms of value and liquidity.
5. Include a solid, objective analysis of all risk factors, including a believable “worst-case scenario.”
6. Summarize the qualifications of the guarantor, including relevant risk analysis, to demonstrate that the guarantor is a willing and capable source of repayment.
7. Anticipate questions from the committee and provide concise, credible answers.
SIU Credit Union is here to help you along the way. Contact Angela Williams-Barke at 618-457-3595.
Factsheet: Holiday Depression and Stress
The holiday season can be a time full of joy, cheer, parties and family gatherings. But for many people, it is a time of self-evaluation, loneliness, reflection on past failures and anxiety about an uncertain future.
What Causes Holiday Blues?
Many factors can cause the “holiday blues”: stress, fatigue, unrealistic expectations, over-commercialization, financial constraints, and the inability to be with one’s family and friends. The demands of shopping, parties, family reunions and house guests also contribute to feelings of tension. People may also develop other stress responses such as headaches, excessive drinking, over-eating and difficulty sleeping. Even more people experience post-holiday let down after January 1. This can result from disappointments during the preceding months compounded by the excess fatigue and stress.
Coping with Stress & Depression During the Holidays
- Keep expectations for the holiday season manageable. Try to set realistic goals for yourself. Pace yourself. Organize your time. Make a list and prioritize the important activities.
- Be realistic about what you can and cannot do. Don’t put the entire focus on just one day (i.e., Thanksgiving Day). Remember that it’s a season of holiday sentiment, and activities can be spread out to lessen stress and increase enjoyment.
- Remember the holiday season does not banish reasons for feeling sad or lonely; there is room for these feelings to be present, even if the person chooses not to express them.
- Leave “yesteryear” in the past and look toward the future. Life brings changes. Each season is different and can be enjoyed in its own way. Don’t set yourself up in comparing today with the “good ol’ days.”
- Do something for someone else. Try volunteering some of your time to help others.
- Enjoy activities that are free, such as taking a drive to look at holiday decorations, going window shopping or making a snowperson with children.
- Be aware that excessive drinking will only increase your feelings of depression.
- Try something new. Celebrate the holidays in a new way.
- Spend time with supportive and caring people. Reach out and make new friends, or contact someone you haven’t heard from in a while.
- Save time for yourself! Recharge your batteries! Let others share in the responsibility of planning activities.
Can Environment Be a Factor?
Studies show that some people suffer from seasonal affective disorder (SAD), which results from being exposed to fewer hours of sunlight as the days grow shorter during the winter months. Phototherapy, a treatment involving a few hours of exposure to intense light, is shown to be effective in relieving depressive symptoms in patients with SAD.
Other studies on the benefits of phototherapy found that exposure to early morning sunlight can be effective in relieving seasonal depression. Recent findings, however, suggest that patients respond equally well to phototherapy when it is scheduled in the early afternoon. This has practical applications for antidepressant treatment because it allows the use of phototherapy in the workplace as well as the home.
For More Information:
For help finding treatment, support groups, medication information, help paying for your medications, your local Mental Health America affiliate, and other mental health-related services in your community, please click here to access our Frequently Asked Questions and Answers. If you or someone you know is in crisis now, seek help immediately. Call 1-800-273-TALK (8255) to reach a 24 hour crisis center or dial 911 for immediate assistance. Printed with permission: © “Mental Health America”
http://www.nmha.org/go/information/get-info/depression/holiday-depression-and-stress
Making a Difference with Pat’s Kids
SIU Credit Union is a proud supporter of Pat’s Kids. Click here to hear a message from Pat Benton from Magic 95.1: Credit union Members
Donations are being accepted at any SIU Credit Union Branch Location through December 10. 100 percent of proceeds go to providing Christmas to sexually and physicall abused children in Southern Illinois.
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