WEST LAFAYETTE, Ind. — A Thursday (March 26) workshop sponsored in part by the Purdue University Cooperative Extension Service will teach attendees how to help themselves and others better manage debt.
The Identifying Resources for Dealing with Debt Management workshop will begin at 6 p.m. in Ivy Hall, Room 1106, on the Lafayette campus of Ivy Tech Community College.

The workshop is for anyone who is interested in debt management, including human resource professionals, bankers, educators, social workers, church counselors and managers.

Workshop topics will include self-help, credit counseling, debt management plans, debt consolidation, bankruptcy, debt negotiation programs and judgment-proof plans.

“Anyone who is interested in learning about debt is encouraged to attend,” said Kathy Murray, Purdue Extension educator, Tippecanoe County. “In this time of financial hardship, we understand that it can be harder than normal to climb out of debt. This workshop will teach participants ways to help those around them deal with debt and also how to deal with their own debts, should they have any.”

Some of the covered topics will include self-help, credit counseling, debt management plans, debt consolidation, bankruptcy, debt negotiation programs and judgment-proof plans.

“When it comes time to think about credit counseling, some resources may be more helpful in certain instances than others,” Murray said. “We want to give participants the tools to help themselves and others make informed decisions when it comes to dealing with debt. We will have a panel of experts, including attorneys, on hand to talk about debt management.”

Identifying Resources for Dealing with Debt Management is sponsored by the Tippecanoe Area Economic Education Coalition, with resources and speakers provided by Purdue University Extension, Purdue Employees Federal Credit Union, Family Services Inc. and Lafayette Area Resource Academy.

The workshop is free and open to the public. No registration is required. For more information, contact Murray at 765-474-5330, murrayk@purdue.edu.

WEST LAFAYETTE, Ind. — At a time when finances and the economy are on the minds of most, Purdue University Cooperative Extension Service is offering a free financial management curriculum to the public.

“Focus on Financial Management” is an eight-part curriculum that includes financial planning advice and worksheets that help people organize financial goals, understand the ways they spend money, prepare and use net worth statements, manage risk, understand savings and investment options, use credit cards more wisely, deal with financial challenges, and plan for retirement.

“This program is a great resource for people who want a better understanding of their finances – what they have and don’t have, what they need and what might need tweaking,” said Cindy Barnett, Purdue Extension family resource management specialist. “It’s important to realize that it’s difficult to make the best financial decisions without first understanding all of the assets you have, so these publications help individuals take stock of those assets.”

In addition to offering the course publications on the Web, some Purdue Extension offices around the state present the program in their communities.

“When county offices host the program, they bring in a speaker to each session to talk about the topic at hand, then participants spend time working in small groups,” Barnett said.

Those interested in participating in a live course should contact their local Purdue Extension office for more information about if and when “Focus on Financial Management” is being presented.

“The key to financial management is understanding that getting finances in order takes time and effort. It’s not something that can happen in one evening,” Barnett said. “But, you have to start somewhere, and that means doing a little bit at a time and setting goals for yourself.”

The “Focus on Financial Management” curriculum is available for download through Purdue Extension’s Education Store at http://www.ces.purdue.edu/new/

WEST LAFAYETTE, Ind. — In today’s economy, a Purdue University specialist says now is the time to cut back on credit card use and to start paying off some of those outstanding debts.

“When purchases are made on credit, the consumer commits future resources to paying off that debt,” says Elizabeth Kiss, Purdue Extension specialist in consumer and family sciences. “If something bad happens financially, such as a job loss or family emergency, and income is already committed to paying for past purchases, that’s when the trouble really begins.”

The first step to reducing that debt is to take a look at spending.

“Stop charging,” Kiss says. “Then figure out the largest amount you can allocate from each paycheck to start paying down outstanding debts.”

Kiss also recommended making more than minimum payments, if at all possible.

Cut back on credit card usage and pay down existing debts.

“It’s tempting to pay the minimum each month, but the more money put toward those debts now, the sooner they will be paid off and the less expensive they will be,” she says. “If payments are made consistently, progress in reducing debts may be seen in only a couple of months.”

For example, if a cardholder has an outstanding balance of $1,000 and a minimum payment of 2 percent at 18 percent APR, it would take seven years and 10 months to pay off the balance. If the cardholder increases the minimum payment to 3 percent, it would cut in half the time it takes to pay off the balance.

Consistent payments also are important because just one late payment can cause credit card interest rates to skyrocket.

“Not only can late credit card payments make that rate increase, but some cards have universal default terms that increase rates if the cardholder makes late payments on any of their bills—including electric, water, etc.,” Kiss says.

For those with multiple outstanding credit card balances, Kiss says there are a couple of options for deciding which card to pay down first.

“Some people will start with the card that has the lowest balance so it can be paid off quickly,” she says. “Others will start by focusing on the one with the highest interest rate. It’s really just a matter of what works best for each individual cardholder.”

Another thing Kiss recommends is that consumers consider using part of their tax refund to pay down credit card debt.

“As we look forward to tax refunds, it’s never a bad idea to put some of that money toward reducing credit card debt,” Kiss says. “But, it’s also a good idea to put some of that money in savings for an emergency and of course it is OK to use a little bit of it to have some fun.”

Finally, Kiss says it’s important to keep an eye on credit card terms. Many banks are changing these terms and, without paying close attention, consumers may not realize it.

“A term change we’re seeing right now is that card limits are being lowered,” she says. “This means that some consumers who were close to their limits are now automatically over the limit, which often results in hefty fees.

“Just be sure to review the terms often, and if those terms aren’t working for your particular situation anymore, it may be time to consider whether or not another card would be better.”

For more information on credit card debt reduction, Purdue Extension offers the free fact sheet, “Getting Rid of Credit Card Debt.” It can be found at http://www.ces.purdue.edu/extmedia/CFS/CFS-714-W.pdf .

WEST LAFAYETTE, Ind. — Purdue Employees Federal Credit Union (PEFCU) invites the Greater Lafayette community to visit any PEFCU branch from 9:00a to 5:30p, on Thursday, January 29, for a no-cost, no-obligation credit report review during its first in a series of educational branch “lobby days”. Prior to attending the lobby day, individuals may access their credit report from CreditReportAmerica.com.

Every time someone applies for a new credit card, a mortgage or other loan, and perhaps even insurance or a job, his or her application is judged in part by a credit score, which is a three-digit number determined by an individual’s credit history. It is important for individuals to understand what comprises their credit history and how to read their credit reports because consumers with lower credit scores often pay higher interest rates on loans because they are considered riskier customers.

PEFCU Member Service Specialists will be available during the January 29 lobby day to help PEFCU members and non-members review and understand their credit reports. PEFCU Credit Counselors are also available for free one-on-one sessions and educational workshops. Individuals may learn more at www.purdueefcu.com, or by calling 765.497.3328 or 800.627.3328.