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Show Hilltop 4 TIME S HILLTOP TIMES Aug. 1, 2013 FTAC presentation gives basics on financial health BY MARY Lou CORNY Hilltop Times editor C olette Geiss and Lorrie Perkins, Airman and Family Readiness Center staff, presented information to First Term Airmen in FTAC on July 29 that anyone might find useful. The room full of Airmen learned about basic spending plans, otherwise popularly referred to as budgets, and other useful information on how to obtain a good credit rating, how to check your credit report, and why a good credit score is important. "Everybody has their own comfort level when it comes to money," said Geiss as she responded to questions about the benefits of paying for everything with cash. But as she pointed out, if you never pay for anything with credit, that can hurt you when you go to apply for credit for larger purchases, such as vehicles or mortgages. For example, an individual applying for a car loan of $16,000, with no credit history, could possibly pay $470 a month versus $245 a month for someone with a good credit history. In this particular case, the difference is the amount of interest charged due to the difference in credit scores. The Airmen found interesting differences when they were divided into four groups and each given a sample financial scenario where they had to make some basic choices about such expenses as transportation, housing, food, entertainment, savings and retirement savings. The Airmen agreed overall in terms that they knew what they "should" be doing, and had an easy time coming to their individual group's decision. Geiss replied, "It's just whether or not you can follow through, isn't it?" There were nods of agreement in the classroom. Geiss pointed out that at any time an Airman or military family needs some assistance in setting up a basic spending plan or financial advice, to come in and sit down with the staff financial counselors at the center. "I hope you would feel comfortable doing that," she said. Financial counselors at the center can look up credit reports and scores without it affecting the three free financial credit reports everyone is entitled to by law from the three major credit reporting agencies - Experien, Trans Union and Equifax. To access these free credit reports, go online to annualcreditreport.com . She said it is a good idea to check it three times a year (every 4 months) to watch for errors or fraudulent use of any accounts. Geiss reported some of the benefits of different types of cards, for example the Military Star Card gives a discount for gas on base and at the food court. She did advise however, to use caution when taking on debt, that just starting small with one card can help you start building a good credit history. She recommended "doing their homework/ research" to compare different banks and credit card companies available for differences in annual fees, overdraft charges, cash advance charges, interest rate differences and other financial incentives/penalties. "There are websites available that will help you compare benefits," she said. Sometimes there are other advantages, for example, earning "points" or frequent flyer miles with various airlines, or getting baggage fees waived. In this case, if someone travels frequently, the financial benefits to having the card might out-weigh the cost of an annual fee. Geiss recommends, "If you miss a payment due to not receiving a bill or just have circumstances preventing you from making the payment, contact the creditor right away and work with them. Often times they will remove any late fees and typically won't report late payments until the 60-day point." Late payments past 60 days will most likely have a negative impact on your credit score, she reported, so make all your debt payments on time. "I can't emphasize enough that you will want to choose your credit wisely," said Geiss, "based on your own personal circumstances as well as how disciplined you are financially." She also reviewed debt to income ratios. To figure this out, you take the sum of your monthly debt payments and then divide them into your monthly net take-home pay. So MARY LOU GORNY/Hilltop Times Young Airmen gather in groups to talk about a financial spending plan example in a First Term Airmen Center course on finances on July 29 in the Airman and Family Readiness Center. asked to contact the Airman and Family Readi- ness Center. Getting help early on, before getting into serious trouble financially, can pay off for all. Any civilians who need assistance with finances or their own individual spending plans, or assistance with credit questions, budgeting and other suggestions to help with finances are advised to check with their EAP representative, at 800222-0364 or go online to: www.F0H4YOU.com . • Hill AFB Job Openings Site Airman 1st Class Zachary Stoehr, 649th Munitions Squadron, answers a survey during the FTAC course while his wife, Stephanie, holds their son, Landon. Spouses were invited to the financial class as well, and were presented with totebags of information. say you had a monthly income of $1,000 and $250 monthly debt payments. That would amount to 25 percent, which is about 10 percent higher than what creditors like to see. Most creditors will take this into account when they are looking at whether or not you are a good credit risk. "Negative information can stay on your credit report for seven to ten years," said Geiss. "So it takes a while to turn a bad credit score around as someone works to recover their good credit." Another program available to all Airmen when they come into the military is the Servicemembers' Civil Relief Act. This may enable a service member to get any prior service interest rates on debt reduced to 6 percent. To get assistance with lowering those interest rates, contact the base legal office. For more information, all military members are Internal civilian announcements are posted on the USAJOBS web site. Announcements for bargaining unit positions are posted any week day. The website is www.usajobs.gov . On the home page type "HILL" in the box titled "What". In the box titled "Where" type "UT" and hit the Search Jobs button. To view all vacancies that are currently open, under "Refine Your Results", top left hand section, select the "Jobs for Federal Employees" bubble. In back-to-school time! FREE 2nd FRAME " A:„ ieg BUY C NTAC LENSES ONLINE AT www.MILITARYCONTACTS.net 'Second free frame must be of equal or lesser retail value as the first frame. Customer only pays for the lenses and extra features. Complete pair purchase required on both pairs. Second free frame must be purchased with the first pair and at the same date and time. No dispensing fee. Cannot be combined with any other discount, coupon or insurance plan. All eyeglass and contact lens purchases require a current, valid prescription. Offer expires 08/31/2013. ©2013 National Vision, Inc. EXCHANGE CONCESSIONAIRE Visit us in the Base Exchange Building 412 801-776-3368 Eye Exams Available by Dr. Michael Larsen Independent Doctor of Optometry • TRICARE accepted. • Appointments are available. • Walk-ins are welcome. Colette Geiss, Airman and Family Readiness financial adviser, divides the Airmen in the FTAC class into four groups for a financial spending plan exercise. |
