Live Better by Centric FCU
Live Better by Centric FCU
The 411 on Loan Assistance
Can managing your finances during the back-to-school season save your sanity? Join us as we uncover valuable strategies with Lynette Kovack, Centric's Solutions Recovery Specialist, who reveals how skip-a-pay and loan deferrals can ease financial stress without harming your credit score. You'll gain insights into scrutinizing bank statements to cut unnecessary expenses and the power of a well-crafted budget that puts you in control. Lynette and I discuss the often overlooked costs of school supplies and extracurricular activities, offering practical advice to help you navigate this financially demanding time with confidence.
Experiencing a job loss or medical expenses? Discover the array of financial relief options Centric offers to support you through both short-term and long-term hardships. Learn the benefits of early communication with your credit union and explore refinancing options that come with a 90-day no-payment grace period. We also emphasize the unique advantages of being part of a credit union and Centric's unwavering commitment to its members, regardless of their financial situation. Stay connected with us by subscribing to the Live Better podcast and following Centric Federal Credit Union on social media for ongoing tips and updates.
Welcome back to an episode of the Live Better podcast with Centric. I'm your host and Centric Senior Vice President of Marketing, kelly Green. I'm so excited that you're here with us. Every month, we post a new episode where I'm joined by a guest to chat about finances and all ways that you can live better. Subscribe today so that you never miss an episode. Live better. Subscribe today so that you never miss an episode. Joining us today on our Live Better podcast is our Solutions Recovery Specialist, lynette Kovach. Today she'll be joining us to talk to us about all things. 411 on skip a pay and loan deferrals. So, ms Lynette, welcome back. Hi Kelly, it's good to be here. It's so good to have you back. This is just great. Our listeners have so enjoyed leaning into your expertise and the things you have to share with them, and I'm just so grateful that you're back with us today talking about a similar topic, but something a little more specific to ways we can really help our members live better.
Speaker 2:I really enjoyed it. Kelly, I've had a lot of people I know that have kind of reached out. You know that I was able to point in the right direction, so that's kind of a neat thing, you know. You know you really are helping them live a little better.
Speaker 1:Even just in conversation, people just don't know what they don't know, and I think I'm grateful that we have the podcast, which allows us to have like a level of outreach that may not you know folks may not have ever heard about it or even had a conversation related to anything of loan deferments or other solutions that might be available to them. So by us just having a conversation, you sharing your expertise, that carries a lot of weight. People trust you, they love what you have to say and I'm ready to dive into some things today, really, and talking about things like skip a payment and loan deferrals Right, because really and truly, there are some really unique benefits.
Speaker 2:Oh, very much they can help. They really can help, you know, help keep your credit on track and kind of relieve a little pressure during a time that's a little stressful.
Speaker 1:Oh yeah, as this the schedule of this podcast to really roll out, you know what a lot of folks in this, in this particular area, are listening area primarily with the members that we serve. They're going back to school. Our listening area primarily with the members that we serve.
Speaker 2:They're going back to school, yes, and it's costly, right it is. I, you know I don't have any children, but I have friends with children and grandchildren and I see those. I see those lists that come on with all the school supplies they need.
Speaker 1:I know it's so interesting. So I have an elementary student and a middle school student and my daughters One we already had. You know, elementary they provide that well in advance, but then for the middle school you have to wait until you meet with your teachers before you get those. So we have the new list now, you know, and so we're committed to go this weekend to pick up those final items that she may need, and we're just fortunate enough to be able to do that. You have to make a plan for what may come up, and I think so often with inflation, but also the way I think a lot of us maybe live above our means.
Speaker 2:We do. We like to go out to eat a lot more than we should, or have our nails done or off, and then we should.
Speaker 1:There's a lot of little things when you get down to it and what I always share with people if they're interested in just kind of seeing. They're like gosh, I have so much more month left out of my paycheck and if you just take a second and review your bank statements you know from the previous month it's incredibly telling. Yes, where your money's going.
Speaker 2:I looked one time at just the little subscriptions that I had and I had over $100 in $599 and $799 subscriptions, a lot of which I didn't even use. So what'd you do about that? I canceled the ones I didn't use. You never went back. I never went back.
Speaker 1:Yeah, I'm telling you, it's so wild. So one of the things that I recognized when we did this so we went on a journey Kelly Brantley is actually a Dave Ramsey certified counselor and she works with our credit union, so this has been about 12 years ago for me and one of the things she asked us to do when we were working with her was to pull our bank statements. So, of course, that's what I did. I went on the MyCentric mobile app and pulled our statements just to take a look at it and the money we were spending on dining out. I was embarrassed.
Speaker 1:It's like this is ridiculous it is, and now it's so much more, yes, and so those are some things I feel like we really had to identify. Um, understanding the behavior that we have with money instead. Of. This is what she told me, and I love this. She said instead of you know your money, telling you where it's going because that's what it was doing as I'm reviewing my statement oh boy, it had a nice little narrative there but instead, tell your money where to go, and when you really align with a budget and you name every dollar, your savings goals will be achieved.
Speaker 1:Yes, you'll likely pay off things sooner than what you plan, but for those that may be listening to that are thinking I'm struggling, you know, back to school, really and truly. There's some, there's some data behind this that says that the cost of going back to school now supersedes the cost of Christmas. I can believe it, oh, wow, yeah, I can believe that, yeah. So, with that in mind, parents are or guardians really are hit up right now, probably desperate lending credit cards, payday loans, things of that nature, while they still have the responsibilities of additional loans that maybe they're worried about not being able to pay. Right, so if somebody's in those situations, could you share with them what's maybe an opportunity for them, maybe, if they need to forego a payment.
Speaker 2:Oh, yes, because we have a skip a pay program. Yeah, so you know you do pay a fee. There's a small fee for that, but it allows you to have the rest of that payment that you would have made. You know, if you have a 400 car payment, that leaves you 365 dollars of your car payment to go towards those school supplies. So it may help you do that without having to to miss a payment that wasn't planned to miss. And with a skip a pay, it's not going to hurt your credit. Um, you know it's's going to keep you in line. You're not going to be past due trying to catch up that next month, that's right. So there's so many things that you know it can help you with.
Speaker 1:I love what you said, that it's not anything that is going to hurt your credit.
Speaker 2:Right. It is not going to hurt your credit because we're going to push the due date forward, so you're not going to show on your credit that you were 30 days late and so it's a wonderful opportunity to have. It gives you that immediate financial relief that you need. You know it's very stressful when you're not able to pay your bills and you know you're dreading because you know the phone calls are going to start right, so it'll keep you from getting those phone calls and the letters you know collection letters and things like that. So it can really help make it a more peaceful time.
Speaker 1:Sure, well, and with a skip a payment, like you mentioned, I want to make sure that our listeners understand, when you mentioned that there's a $400 loan payment, that there is a fee to participate with that skip a pay. So would you go into detail about what that fee would cost someone? That fee is $35. Okay, and so there are, if people have a conversation about that. So there's a few things that that would the skip a pay is available. Right, so it's really. We don't actually offer a skip a payment program for credit cards. That's not a thing that we offer at current, but what about anything like a car payment?
Speaker 2:It's going to be like your car payments, a personal loan, your ATVs, that kind of thing.
Speaker 1:It's not available for a mortgagee, See and so that's even so, that is something that's great, because your average car payment now is anywhere between five and six hundred dollars, right? So if that's an opportunity that could be available to members, really I encourage them. You know to call, speak to someone here, whether it be a solutions recovery specialist like you, or even a loan officer a loan officer.
Speaker 2:You know you can talk to one of the CSRs in the center. You can call into my centric and get that set up. So there are a lot of different ways that you can do that, and it's a really good thing to have in an emergency. One thing to keep in mind, though there is a limit of how many times you can skip a payment during the life of the loan, so you want to be sure that you're using that when you really need to. Yes, and there's also you have to have a certain amount of time. You know, between skip a pace, you can't do one this month and the next month, that's right. So that's kind of when a deferral may be a better option. If it's not just a short term emergency, like back to school yes, so you know it may be a job change, a job loss, it might be some medical, unexpected medical expenses, something that's going to be a little bit longer term.
Speaker 1:So that's when a deferral might be a good option for you, because that can be done for 60 or 90 days, see, and that is so fantastic because both of those options that you're mentioning the skip a payment and the loan deferral they do not negatively impact your credit. No, they don't, Because you're having conversations with the members and because the member has elected to say hey, I'm waving a flag, I'm struggling financially, I've had a life situation occur, I've maybe made some bad choices, maybe overspent on certain things, whatever that might be, and that's okay. But there are options that are available and the only way really we can share that is if members contact us about those things.
Speaker 2:Yes. So as soon as you realize, as soon as someone realizes that, hey, I'm going to be a little short, you know I've got these expenses. Don't wait till the payment is past due. As soon as that becomes known that you know it's going to be a problem, reach out. Yeah, reach out to someone and let them know. That way we can keep those things from happening, Keep your credit score where it needs to be. Yes, and if it's a longer term issue, then your credit's not ruined and we can look to see if there are any other options later see, that's, that's fantastic and just.
Speaker 1:I want our listeners to know, and even if you're a member or even not a member, and say one of the things that members can do is even take a look at what loans they already have with us and say, hey, I'm having a financial emergency right now, right, what are some options for me? Right, speak specifically to loan deferral options. Ask for a skip, a pay if it's something that's a short term emergency, like you're mentioning. But for those that may not be members, let's look at refinancing your loan. We at Centric offer you've heard a lot of different financial institutions say, hey, 90 days no pay and it's a special promotion At Centric we offer 90 days no pay. That's not a promotion, that's just who we are. So if there's a situation you know and you want to refinance your loan, let's see if 90 days no pay is an option for you.
Speaker 2:Oh, that's a wonderful option. Yeah, it really is. It kind of meets that. Need you know that you don't have to pay that right away. Yeah, Kind of help you get back on your track, back on track.
Speaker 1:Absolutely Get back on your feet, because I think about the working families who maybe they've had a car accident and their insurance company didn't pay enough to cover the full cost of that vehicle, right, so they go in to try to purchase another vehicle to replace the vehicle lost. There's going to be some funds that they're going to have to roll over into a new loan, yeah Well, so that payment, that payment, might be a little bit greater than what they're used to. So you think about what are some things that they can do. If you delay that very first payment for a period of time, that helps you. Okay, let me see what I can do.
Speaker 1:To do I need to sacrifice a subscription? Right? Do I need to save up? You know? So I understand what are some lifestyle changes that I'm going to have to make. So there's some options that are out there, and the only thing I just share with folks is you know, a credit union is someone. We exist for members. Our members are our owners, yes, right, yes, that's right, and they own a share of our company. They have a voting right at our annual meeting, yes, so it is so important that you know if our members have an opportunity, something that's coming to pass and they feel like maybe they're in a financial hardship. Come talk to us.
Speaker 2:That's the most important thing they can do, because we are there truly. I know Centric. You know I've been with them a long time before I ever came to work with them, and so they've been there. They've been there for me through some tough times, that's right.
Speaker 1:Same here and that's like I said whenever we first started. Now I've been here this is my 12th year here at Centric and I actually did not bank at a credit union until I started working here and I didn't really understand the difference between a credit union and a bank and what I was able to determine and it just really you kind of see it play out. You just come visit and you talk to people and the conversations are just a little different. And I'm genuinely not knocking banks that is not what this conversation is about at all. But what we exist for here at Centric is we exist to help every member.
Speaker 1:Yes, we don't care about your status, your financial status. We don't care if you own a company or you don't own a company. I don't care if you work part time, you're a single parent, don't care, you know. We just want to know what is your circumstance and what is your financial goal, and how can we be a partner in achieving that success?
Speaker 2:yes, because we can help them walk through that. We can help them hair. You know, centric, I found myself at 59 years old buying a home by myself. Yes, and I mean it was. It was a scary thing, and you know the they were so wonderful and helped me through that process and just assured me all the way through. It's so comforting, isn't it? It's very comforting, talk about it. And you know, I'm very proud now to be able to say I have my own home, it's all mine.
Speaker 1:Well, but this is so great, though. I love you sharing that because you feel so safe and secure with talking about your personal finances and choosing Centric, your employer, to finance your home.
Speaker 2:I can't imagine you making another choice.
Speaker 1:I couldn't agree. I could not agree more because I feel the same way. My husband and I we built our house and Ashley, who is the owner she's actually our vice president of mortgage here at Centric. We started our conversation with her and we ended the conversation with her. Yes, she provided the loan for us to build and then the final mortgage for us, and it was just again. I work here. I didn't bother me sharing my financial situation with her Right, because I know that she is professional, my information is secure and she's not going to allow me to get into a financial situation that would negatively impact my family. That's right, and I trust her so much, you know, with saying, hey, here's the solution. I think this is great, you know, just really offering you know, maybe when we need to consider something differently or if we're right in alignment, right, and that means a lot.
Speaker 2:Well, it's the guidance. Yes, it's not just somebody trying to say yes to a loan, that's right, because they want to make a loan. I mean, it's truly guiding through the process of what's going to be the best for you, and that's. I can't imagine not having that experience that I've had. I don't even remember how many years I've been with Centric now. Really, yeah, I'm trying to remember when, at probably about 18. Yeah, and so that's so great.
Speaker 1:Yeah, you've been through the long haul, through the changing, everything you know and a lot of people think with a credit union you have to work at a certain location, you have to have a family member, that is, you know, a partner somewhere where you can actually become a member. But actually our field of membership has expanded to so many different parishes in Louisiana and Arkansas.
Speaker 2:I know that's so exciting.
Speaker 1:It's so exciting it is and just because we started to support the employees at the paper mill and it has expanded so much. You know, we just started with a few people who put together their money and said, hey, we want to start this credit union. And that was just a few folks that did that and now we're right at 40,000 members.
Speaker 2:Isn't that incredible? It's amazing In the time I've in the time I've been here, the growth has been phenomenal. Yeah, it's so good. I think we've doubled even the number of employees the time that I've been here Absolutely the short time I've been here.
Speaker 1:So it's amazing and you know not being. We are not for profit organization the profits that we actually receive through loans and so forth. What we do is we pass that along to our members. That's how we're able to pay such a great you know interest rate on our savings and our checking account.
Speaker 2:That's right, and offer things you know for such low fees.
Speaker 1:Yes To our members Like the skip, a pay option yes, I mean, you don't get that. No, everywhere you don't. You really don't, you don't. And especially talking about a loan deferral. You know, I think there is just this taboo really kind of around saying, hey, I've got a financial situation. I realize that that might be embarrassing, but you know what? That's? Just something a lie we've created. You know, I don't want anybody to feel like if they're going through a financial hardship, there is nothing to be embarrassed about.
Speaker 2:We've all been. We've all been. All been there, yes, and sometimes more than once. Absolutely, you know, and there's a lot of curves in life that we have to go through and, um, you know, reaching out to someone and just you know, letting them know what's going on, that's right, the first step and it's the hardest step. You're right, it is the hardest step, but it is so worth what you'll get from just sharing. That's right. I think that's one reason I'm so free to share kind of my life is because I know it helps other people. That's right, and so, you know, benefit.
Speaker 1:Yeah, and just being open and honest, and I think that's why our listeners have responded so well to your conversation, ms Lynette, really and truly because you are truthful, you're genuine and you have been in the business long enough to earn so much respect.
Speaker 1:I think anybody that's talked to you for a period of time I know you personally too, so you know I have a, I have a. The listeners may not be as lucky as I am, but it's just a real, real joy to know that we have people here in our organization that haven't done this for years and years and we have to walk through hardship, and I think that that was like holds a lot of credence with a lot of people when they're like, okay, hold up, now You're not just have all these answers or what. Have you never went through a hardship? No, we know it, because we have the T-shirt, we can talk about it. You know that old saying we do so. It's like we can go through it. You know we get it and we have the scars, we have the memories from financial hardships, but it's so great to come out on the other side of it when you have a financial partner like Centric, to be right alongside you side of it, when you have a financial partner like Centric to be right alongside you.
Speaker 2:Well, you know, I had a really big life change that resulted in my financial situation changing, and Centric has just held my hand and walked me through that whole process and I'm just so thankful for that.
Speaker 1:Yes, Well, I'm thankful for you and for you taking the time to share this expertise with us with me and our listeners, and I just I really want to thank our listeners so much for just hanging in here with us for our podcast, and I invite you all to tune back in next month for another episode. We really just don't want you to forget to subscribe to your favorite podcast platform. Just we don't want you to ever miss out on helpful tips, and so like us on Facebook at Centric Federal Credit Union, and find us at MyCentric on Instagram, Pinterest, TikTok and YouTube. For all of today's information. Feel free to check us out at MyCentricorg. And, as always, Centric is federally insured by the NCUA.