>>>
>>> BUYING A CAR AND GOING THROUGH THE PAPERWORK, AND
PRICE HAGGLING IS EXHAUSTING.
BUT IF YOU HAVE A LOW CREDIT
SCORE IT OFTEN MEANS HAVING TO
ACCEPT A HIGH INTEREST RATE.
SOMETIMES AS HIGH AS 30%.
A NEW PROGRAM HELPS YOU
REFINANCE HIGH CAR LOANS WILL
GETTING CREDIT COUNSELING,
PROVIDING LOTS OF CUSTOMERS
WITH INFORMATION AND NEEDED
FINANCIAL RELIEF.
FINANCIAL RELIEF. WE WELCOME VICE PRESIDENT OF
COMMUNITY DEVELOPMENT, MARK
MINICKIELLO.
MINICKIELLO. AND EXECUTIVE DIRECTOR OF
SOUND OUTREACH JEFF KLEIN.
GOOD TO HAVE YOU BOTH HERE.
>> THANK YOU.
>> IT SUCH A GOOD IDEA.
IT'S NOT JUST RELIEF BUT THE
KIND OF EDUCATION YOU NEED TO
STAY OUT OF TROUBLE AFTER THAT.
>>
>> THAT'S
>> THAT'S RIGHT. THAT IS THE PLAN.
IT'S A PIECE OF THE PUZZLE.
WE WERE -- HARBOR STONE IS A
NONPROFIT COOPERATIVE, A CREDIT
UNION AND WE ARE EIGHT CDFI, A
COMMUNITY DEVELOPMENT FINANCIAL
INSTITUTION.
INSTITUTION. THAT WAS ACHIEVED BECAUSE WE
HAVE A MISSION OF SERVICE TO
LOW INCOME PEOPLE.
A LOT OF PEOPLE COMPETE FOR
GOVERNMENT GRANTS AND WE WERE
ABLE TO GET ONE IN 2017 TO WORK
WITH SOUND OUTREACH.
I KNOW WE WILL HEAR MORE ABOUT
THAT.
THAT.
THAT. THIS IS ONE OF THE PRODUCTS AS
PART OF THAT PARTNERSHIP.
IT ALLOWS US TO REALLY
ACCELERATE PEOPLE'S FINANCIAL
EMPOWERMENT AND REALLY WE ARE
EXCITED TO BE HERE TODAY AND
LET VIEWERS KNOW ABOUT IT.
>> AND MOVE PEOPLE TO A BETTER
PLACE OR THEY GET TO MOVE
THEMSELVES TO A BETTER PLACE.
THE RESTART PROGRAM.
HAVE THIS COLLABORATION COME
ABOUT?
ABOUT?
ABOUT? >>
ABOUT? >> A GREAT QUESTION.
SOUND OUTREACH IS IN TACOMA,
WASHINGTON.
WASHINGTON. WE WERE KIND OF A NORMAL
NONPROFIT, SERVING PEOPLE WITH
THINGS LIKE ACCESS TO PUBLIC
BENEFITS, I CAME FROM THE FOOD
BANK WORLD, I STARTED TO
WONDER, HOW CAN WE HELP PEOPLE
SORT OF AVOID GETTING TO A
PLACE IN THEIR LIVES WITH THE
NEED TO ACCESS THE BANKS OR USE
FOOD STAMPS?
FOOD STAMPS? WE STARTED A FINANCIAL
COUNSELING PROGRAM.
COUNSELING PROGRAM. OUR COUNSELORS MEET ONE-ON-ONE
WITH INDIVIDUALS.
WITH INDIVIDUALS. WORKING ON THE CREDIT SCORE,
REDUCING DEBT, WE REALIZED
THERE WERE LOTS OF PEOPLE WHO
COULD BENEFIT FROM A LOAN.
BUT HAD INSUFFICIENT CREDIT AND
OR THE VEHICLE LOAN FOR EXAMPLE
WAS WAY UNDERWATER.
SO WE NEEDED A PARTNER.
A FINANCIAL INSTITUTION PARTNER
TO DO THAT.
>> THE FACT THAT YOU ARE DOING
THIS GIVES ME SUCH HOPE BECAUSE
I THINK WE ALL KNOW HOW EASY IT
IS FOR PEOPLE TO GET INTO
TROUBLE.
TROUBLE.
TROUBLE. MY SON USED TO GET CREDIT CARD
ACCEPTANCES BEFORE HE HAD A
JOB.
JOB.
JOB. I
JOB. I WOULD THINK, WHAT ARE YOU
DOING?
DOING?
DOING? AND THEN YOU RACK UP BILLS AND
BEFORE YOU KNOW IT YOU'RE IN
THAT SITUATION WHERE YOU HAVE
30% INTEREST AND OUR IN A HOLE
AND CAN'T GET OUT OF IT.
HOW DID YOU DEVELOP WHAT YOU
WANTED TO DO?
WHICH PART INFORMATION IN WHICH
PART RELIEF TO HELP PEOPLE GET
INTO A BETTER PLACE TO LEARN
HOW TO MANAGE THEMSELVES GOING
FORWARD?
FORWARD?
FORWARD? >> FOR US IT WAS ABOUT REMOVING
BARRIERS.
BARRIERS.
BARRIERS. OUR COUNSELORS WOULD BE IN THESE
CONVERSATIONS WITH PEOPLE AND
CREATING RELATIONSHIPS OVER
TIME.
TIME.
TIME. SO
TIME. SO IF THERE IS A NATURAL WAY TO
GET YOUR CREDIT SCORE UP, A LOT
OF PEOPLE JUST DON'T KNOW THE
RULES.
RULES.
RULES. >>
RULES. >> HOW WOULD YOU KNOW IF YOU
HAVEN'T HAD A CHANCE TO LEARN?
>> I'M A 45-YEAR-OLD ADULT AND
I DON'T UNDERSTAND THE RULERS
BUT MY COUNSELORS DO.
THEY ARE SUPERSMART.
THEY CAN HELP PEOPLE UNDERSTAND
HOW TO BOOST THE CREDIT SCORE
AND WHAT THAT MEANS FOR THEIR
FINANCES.
FINANCES.
FINANCES. IF AN APR ON A LOAN COMES DOWN
YOU CAN SAVE A COUPLE HUNDRED
DOLLARS PER MONTH.
IF YOU REDUCE YOUR DEBT YOU
HAVE MORE EASE IN YOUR LIFE
WITH YOUR FINANCIAL CHALLENGES
YOU HAVE TO FACE.
>> WHICH IS GOOD FOR
EVERYTHING.
EVERYTHING. YOUR EMOTIONAL OUTLOOK.
QUITE SO TIGHT.
>> THAT SCARCITY MINDSET CAN
AFFECT DECISION-MAKING.
AFFECT DECISION-MAKING. EFFECTS OF PEOPLE FUNCTION IN
THEIR DAY-TO-DAY LIVES.
TRUTHFULLY, IT IS HARDER AND
HARDER TO MAKE ENDS MEET IN
PIERCE COUNTY AND KING COUNTY.
WE LOOK AT THINGS LIKE HOW MUCH
YOU SPEND ON CHECK-CASHING FEES.
IF YOU CAN'T ACCESS A BANK
ACCOUNT.
ACCOUNT.
ACCOUNT. SOME PEOPLE CAN SPEND UP TO
$1000 PER YEAR IF THEY DON'T
HAVE ACCESS TO A BANK ACCOUNT.
YOUR ALREADY LOW INCOME, THAT
COST A LOT OF MONEY.
WE LOOK AT THE VEHICLE LOANS
PEOPLE ARE PAYING $600 PER
MONTH AT 29% INTEREST.
HOW COULD WE HELP THOSE FOLKS
WHEN THE VALUE OF THEIR LOAN IS
$20,000 BUT THE CARS ONLY WORTH
$10,000.
$10,000.
$10,000. >> YOU START OUT UNDERWATER AND
GET MORE UNDER.
WHAT IS A CONSUMER EXPERIENCE
WHEN THEY COME INTO THIS?
>> IT'S KIND OF A WRAPAROUND
EXPERIENCE AS JEFF MENTIONED.
THEY WILL WORK WITH A SOUND
OUTREACH COUNSELOR AND THEN
THEY ARE MATCHED WITH PRODUCTS
UNDER THIS GRANT HELP THAT
COUNSELING PROGRESS.
COUNSELING PROGRESS. AS YOU MENTIONED, MARGARET, SO
MANY PEOPLE FELL INTO A LOT OF
HIGH INTEREST LOANS AROUND THE
RECESSION.
RECESSION. IT'S KIND OF A SPIRAL.
IT'S HARD TO DIG OUT.
WHILE THEY ARE WORKING WITH A
FINANCIAL COUNSELOR FROM SOUND
OUTREACH WE CAN REFINANCE THE
HIGH INTEREST LOANS, BECAUSE WE
ARE WORKING IN THIS
PARTNERSHIP, IT DOESN'T MATTER
IF THEY HAVE LOW CREDIT SCORES,
THEY HAVE SHOWN THE COMMITMENT
TO WORK ON THAT WITH THE SOUND
OUTREACH COUNSELOR.
OUTREACH COUNSELOR. >> IT DOESN'T GO TO NOTHING,
IT'S SOMEWHERE IN THE MIDDLE.
BECAUSE THERE ARE COSTS
INVOLVED IN DEALING WITH THINGS
THAT ARE UNCERTAIN.
RIGHT?
RIGHT?
RIGHT? YOU'RE NOT GOING TO GET OUT OF
A 30% LOAN 282% LOAN.
GOING TO GET SOME RELIEF.
>> YOU ARE GOING TO GET RELIEF.
THE INTENT IS TO FREE UP MONEY
IN THE BUDGET TO CONTINUE
WORKING ON IMPROVING YOUR
CREDIT SO THEY WILL BE BETTER
OFF AT THE VERY END.
THEY WILL HAVE THE FINANCIAL
EMPOWERMENT.
EMPOWERMENT. >> IT LOOKS LIKE MORE AND MORE
YOUR CREDIT SCORE IS A PROXY
FOR A LOT OF THINGS.
EMPLOYERS ARE CHECKING THAT.
COLLEGES CAN CHECK THAT.
DIFFERENT THINGS YOU APPLY TO.
THIS IS SOMETHING THAT AFFECTS
ALL AREAS OF OUR LIFE.
NOT JUST OUR FINANCIAL LIFE.
>> PEOPLE DON'T KNOW YOUR
CREDIT SCORE IS OFTEN TIED TO
EVEN YOUR CAR INSURANCE
PREMIUM.
PREMIUM.
PREMIUM. IT IS BEING USED TO DETERMINE
HOW MUCH YOU PAY MONTHLY.
>> IT'S SO WEIRD BECAUSE WE
HAVE THESE CREDIT SCORE OUTFITS
THAT NONE OF US SIGNED UP FOR
YET THEY HAVE THIS INFORMATION.
THAT CAME CHANGES, WE HAVE TO
BE AWARE OF IT.
AS FAMILIES GET A BUDGET
TOGETHER AND LEARN BETTER HOW
TO MANAGE THINGS AND GET SOME
EMOTIONAL AND FINANCIAL RELIEF,
HOW DO YOU FIND THEY REACT TO
THAT?
THAT?
THAT? >>
THAT? >> IT'S INTERESTING BECAUSE
IT'S SORT OF, WHEN YOU HAVE THE
KNOWLEDGE AND INFORMATION, AND
YOU ALSO HAVE A FINANCIAL
COUNSELOR WAS REALLY A COACH
AND A CHEERLEADER, NOT SOMEONE
TELLING YOU WHAT TO DO, BUT
GIVING YOU INFORMATION, OUR
COUNSELORS TALK ABOUT HOW THE
PEOPLE THEY ARE WORKING WITH
JOSI, I HAVE THIS EXTRA MONEY
ON MY TAX REFUND, I HEARD YOUR
VOICE, AND I NOTED GOING TO DO
WITH IT.
WITH IT.
WITH IT. SO THEY DON'T GO OUT AND SPEND
IT ON THINGS THEY DID BEFORE.
THE BEST EXAMPLE OF THIS
RELATIONSHIP IS AUTO
REFINANCING, WE HELP SAVE AN
INDIVIDUAL $200 PER MONTH ON
HER AUTO LOAN.
AND SHE PUT MONEY AWAY IN
SAVINGS WITHOUT TELLING HER
FINANCIAL COUNSELOR AND WHEN
HER TIRES WENT OUT ON HER
VEHICLE SHE HAD MONEY TO
REPLACE THE TIRES.
>> THAT IS LIFE-CHANGING.
IF SHE WERE DRIVING AROUND WITH
A PREDATORY AUTO LOAN AT 29%,
UNDERWATER HIM ALONE AND HAD
BLOWN A HER TIRES SHE COULDN'T
GET TO WORK.
SHE CAN'T IT WORKS CAN'T PAY
BACK THE LOAN.
SHE CAN'T PAY BACK THE CAR LOAN
THE CAR GETS TAKEN AWAY AND
THAT SHE REALLY CAN'T GET TO
WORK.
WORK.
WORK. BUT
WORK. BUT SHE SAVED MONEY FROM THE
AUTO REFINANCE, SHE PUT IT AWAY
FOR A RAINY DAY AND IT CAME IN
HANDY WHEN SHE NEEDED THE MONEY
AND SHE CAN STILL CONTINUE
GOING TO WORK AND START SAVING
MORE MONEY FOR THE RAINY DAY
FUND.
FUND.
FUND. >>
FUND. >> I CAN ONLY IMAGINE THE
DIFFERENCE IN HER WELL-BEING,
BEING ABLE TO DO THAT SUPPOSED
TO KNOWING YOUR LIVING ON THE
BRINK OF DISASTER ALL THE TIME.
THANK YOU BOTH.
TO FIND OUT MORE ABOUT THE
RESTART AUTO REFINANCE PROGRAM
YOU WILL FIND A LINK ON OUR
WEBSITE.
WEBSITE.
WEBSITE. FOR MORE ON HARBOR STONE CREDIT
UNION PLEASE VISIT THEIR WEBSITE
AND WE WILL HAVE THAT
INFORMATION AS WELL.
WHEN WE COME BACK IT'S ALL
ABOUT