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Previous Newsletters:
Upcoming Classes
Click on name of class for more information
June 1, 8, 15, 22 - Juab
4-H in the Park
USU Extension in Juab County will be sponsoring "4-H in the Park" to be held at the Nephi City Park on Tuesdays from 10:00 to 11:30 a.m., and at the Levan City Park from 12:15-1:30 p.m., June 1, 8, 15, and 22. These activities and classes are free of charge and for all youth ages 6 and up. Please make other arrangements for younger children. The June 1st activity will be Bicycle Registration / Obstacle Course and Fun with Finance/Money Games.
4-H in the Park will also be held on June 2nd (9, 16 and 23 also) at the Mona City Park from 12:15-1:30 p.m. Our activity for this date is also Bicycle Registration / Obstacle Course and Fun with Finance/Money Games. No registration is necessary. Call the Extension office with any questions, 623-3450. We'll see you at the Park.
June 2 - Washington Co.
IDA Financial Management Training Course
The IDA Financial Management Training Course for Washington County, UT.
This is an eight hour course and each class is a continuance of the previous class. YOU CANNOT REGISTER FOR ONE CLASS - YOU MUST ATTEND ALL 8 HOURS TO COMPLETE ONE FULL COURSE. You are required to complete the full course prior to submitting your IDA application.
June 8 - Price
IDA Financial Management Training Course
These classes are restricted to people living in Carbon, Emery, Grand, San Juan, Uintah, Dagget, and Duchesne counties.
This is an eight hour course and each class is a continuance of the previous class. YOU CANNOT REGISTER FOR ONE CLASS - YOU MUST ATTEND ALL 8 HOURS TO COMPLETE ONE FULL COURSE. You are required to complete the full course prior to submitting your IDA application.
June 12 - SLC
Opening the Door to Home Ownership Class
Are you looking to buy a home but don't know how to get started? Come learn how to: prepare financially, determine the right home for you, find 1st time homebuyer grant programs, shop for a realtor, lender, title company, close the deal and handle life as a home owner. Call 801-468-3179 to register. *This class is also available online
June 10 - SLC
June 22 - SLC
June 23 - Taylorsville
Small Steps to Health
9-Part Series
Join us for a fun series to help you achieve your health and wealth related goals! Cost: Class FREE, $15.00 - for book "Small Steps to Health and Wealth™" used in class.
Register: Call 801-468-3179 to register to reserve a spot and pay for book.
The Path to Change = Learn the importance of monitoring your progress, how to track personal goals, find ways to overcome obstacles, and create the appropriate rewards for behavior change.
For more upcoming classes
Click Here
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Questions or Comments?
Email ann.house@usu.edu
If you have a specific financial question, call our Wealth Coaches!
1-800-350-9899
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Don't know where to begin?
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Finance Classes are Enlightening and Motivating
I participated in both the IDA classes and the "Opening the Door to Homeownership" class. The IDA class was excellent because it opened my eyes to my relationship with money, the psychological aspects, not just the practical aspects. I found it very enlightening and motivating. I learned the practical skills to successfully budget and eliminate debt. That is also where I got signed up to join Utah Saves and I'm so glad to have the newsletter and the reminder/motivation it provides. The home-ownership class was very informative and between that and my own research on HUD.gov, I felt completely ready to take on a mortgage. Without it, I think I would have felt overwhelmed. My husband and I have occasionally attended the seminars Utah Saves offers and have found it to be a fun, cheap date night that gets us on the same page about finances. Thank you for offering these great classes!
Sincerely,
Hillary Murphy |
Send us your stories!
We would love to hear about your experiences with taking finance classes. Send your stories to ann.house@usu.edu.
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What's Your FICO® Credit Score?
By Al Bingham
Since the inception of the credit crisis three years ago, many changes have occurred. by which credit is analyzed and offered has changed systematically for every lender. Those changes have become more and more noticeable to the average consumer each day. Some changes are market reactions to this crisis while others are government generated. The rules have changed and questions abound as to what are the best strategies to manage your finances in today's challenging credit and economic environment.
The FICO® credit score was one of many causes of the mortgage meltdown and the collapse of the credit markets. As you may recall, anyone with a 720 credit score could practically be approved for many types of loans three years ago regardless of the household income. As a result, losses accelerated for many lenders as those consumers with even high credit scores could not always keep up with the payments.
As a result of the trillions of dollars in losses, the FICO® credit score has been both deemphasized and reemphasized by many users. The FICO® credit score is no longer the dominating factor that it once was for loan approval. Many other criteria are brought into play before financial services are offered.
The fallout from this crisis has resulted in tighter standards for most companies. What was an acceptable credit score at 620, 680 or even 720 in 2007 is no longer the case today. Financial service companies are demanding a much higher credit score for the same services offered three years ago. An acceptable credit score of 620 in 2007 is equivalent to a 680 today. A 720 credit score before the crisis is now demanding a 760 score. All along the FICO® spectrum, lenders, insurance companies, landlords and even medical service providers are demanding higher credit scores before services are offered.
In addition to the TARP and the government takeover of several lending institutions, Congress also wrote new laws affecting mortgage and credit cards. In 2009, Congress passed the C.A.R.D. Act (Credit Card Accountability Responsibility and Disclosure Act) which was supposed to provide greater protections and disclosures to the consumer. There are some positive changes from this law.
The C.A.R.D. Act provides many consumer protections:
- Billing statements must be sent at least 21 days prior to a payment due date.
- The payment due date must be the same day each month.
- Anyone under 21 must prove their income before they can be approved for a credit card.
- Credit card companies cannot raise interest rates for all of the following circumstances:
- The first 12 months of a new credit card.
- When a promotional rate is offered, rate must be the same for at least six months.
- When a payment is 30 days late.
- When another account is at least 30 days late.
- Must provide at least a 45-day notice to increase an interest rate.
Unfortunately, this law was one of the poorest written laws to come out of Congress and the "unintended consequences" of the bill have been felt by practically everyone. Where are the unintended consequences in the C.A.R.D Act - you may ask? Credit card companies are now issuing 45-day notices of an impending interest rate increase to practically everyone who now misses a payment. The first sign of financial trouble is when a payment is missed. So, credit card companies are now just shutting down that consumer's credit card when a payment is missed. Lastly, lines of credit have been closed and interest rates increased for many consumers, especially those with less than stellar credit scores.
Members of Congress who pushed this bill failed to recognize that lenders still must continually evaluate their risk and they cannot entirely eliminate all the actions they take against consumers - it is their money (some contend that it the taxpayer's money) and they are trying to prevent further monetary losses. As a result of the C.A.R.D. Act and the new role of a FICO credit score, the cost of financial related services has skyrocketed for those with less than an average credit score.
We first surveyed credit card companies, mortgage lenders and insurance companies in 2005 to analyze the cost of financial services for a range of credit scores. These costs declined from 2005 to 2006 the first year over year survey we completed. That decline was short lived however. Credit related costs increased into 2007 and then took a dramatic increase of 30 to 40% in 2008 and once again in 2009. For the average household, the extra cost of financial related services is hundreds of dollars extra each month with a less than stellar credit rating. It shows up in mortgages, credit cards and auto loans. The increases appear in higher auto, life and homeowner insurance premiums. Landlords, doctors and hospitals are all utilizing credit scores even more. With incomes stalling and even declining, a high credit score is even more important. The costs of a credit score are hidden, but they are real.
Whenever I review a person with a credit score below 760, I always ask for their insurance premiums and interest rates on credit cards, auto loans and mortgages. They often fail to realize the extra costs associated with these types of financial services because they think everyone else is paying a similar amount. The extra costs are substantial. If they can increase their credit score in the coming weeks, they are usually successful when they return to demand lower premiums and interest rates.
What can you do to protect yourself? Have you checked your true FICO® credit score recently? Do you know where you are? If you are less than a 760 credit score, do you know what to do to increase it to that upper level? What steps can you take?
With all the new laws, government regulations and changes in markets, everyone has to be more attentive to their credit and financial situation. Even if you are debt free, there can still be a cost to a less than stellar credit score. If you need help raising your FICO® credit score or have a question, you can email me (ABingham@Repmtg.com) or call me (801) 261-9300. It is better to know than not to know.
Are you taking the steps today? Now is the time to know.
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A Green Lawn on a Budget
Gardening » Certain maintenance practices will reap the most return.
By Maggie Wolf
Special To The Tribune
Updated: 05/28/2010 05:29:38 PM MDT
From aeration and fertilizer to mowing and watering, having a green lawn can eat up a big part of the summer budget.
Cutting back on spending, however, doesn't mean your yard will become the neighborhood eyesore. The trick is knowing which maintenance practices reap the most return.
Aeration »Core aerators remove small cylinder-shaped cores from the lawn, allowing water and air to reach the soil below. The process helps reduce thatch, a spongy zone of dead and living grass roots found between soil and grass. Thatch that is thicker than 1/2 inch harbors fungus, promotes weed growth and absorbs water that would otherwise soak into soil. Spring is the best time of year for this important maintenance practice, and many independent entrepreneurs will aerate your entire lawn for as little as $30. It's worth the cost.
Mowing »Avoid cutting the grass too short and removing the clippings. After the first one or two mowings, raise the mower deck a notch and start using the mulching blade. Taller grass grows deeper roots, and deeper roots can reach moister soil. Green clippings act like a slow-release fertilizer for your lawn. Homeowners use 50 percent less nitrogen fertilizer when using a mulching mower, plus they save time by not stopping to empty the mower bag. During the hottest summer months, raise the deck high enough for grass blades to grow 3 inches tall.
Water »Most Utah homeowners apply twice as much water as their lawn needs. Kentucky bluegrass, which is used for most Utah lawns, only needs about 24 inches of irrigation water all summer. Homeowners should run the sprinklers long enough to apply 1/2 inch water every three days during June, July, and August. During May and September, run sprinklers the same amount of time, but only every six days. By watering only as much as necessary, the average homeowner can save more than $200 on water bills.
Weed and pest control »A healthy lawn keeps weeds at bay and requires only minimal spot spraying. Avoid fertilizer-plus-herbicide products. They are less effective and more expensive, and they can damage nearby trees and shrubs.
A few insects are usually tolerable unless the lawn is unhealthy. Always identify the insect and know for certain if it is the cause of damage. Use an integrated approach to keep the pest population tolerable. Consider the risks when applying insecticidal poisons to lawns where you, your children and/or pets live.
Fertilizing »If your lawn is in good shape, nitrogen fertilizer is probably all it needs. Two 20-pound bags of ammonium sulfate will cover about 2,500 square feet of lawn per year-- a cost of about $30 plus a spreader.
The typical lawn-spray company visits your yard about once per month, applying fertilizer, herbicide, insecticide and possibly fungicide treatments. Costs range from $50 to $100 per treatment for $400 to $1,000 per year. A do-it-yourself routine can save $350 to $950 in a single summer.
What's on sale this month?
This month look for specials on indoor furniture, small electroics, summer sports gear, and outdoor plants.
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*Utah State University Extension is an
affirmative action/equal opportunity institution.
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