Consumer Action shares resources with extension educators

Educators from across Wisconsin, representing more than 22 counties, joined a teleconference to learn more about Consumer Action’s resources for helping consumers survive and thrive during these difficult economic times. After describing the origins of the agency and its commitment to economic justice, Consumer Action’s Sol Carbonell began by discussing financial literacy through an asset building perspective. “Income helps people get by, assets help individuals move ahead,” Carbonell said. She continued to describe how owning assets give families more choices overall and enable them to weather economic crisis with more ease. “When more than one fifth of the population cannot survive 3 months without a job, an economic recession threatens both the financial stability of our country and our families. It is critical that we as educators continue to strongly emphasize those practices and behaviors that will ensure consumers can retain and protect the assets they currently have, particularly their homes,” said Carbonell during her presentation. She mentioned the many resources that Consumer Action offers to assist educators with foreclosure prevention efforts, including materials that address real life scenarios and explain in detail the options facing homeowners. Consumer Action also offers a Successful Homeownership module in its popular MoneyWi$e series that includes interactive activities for consumers and a complete lesson plan for trainers. While many local and national efforts have focused on helping consumers retain their assets, some groups have begun to turn their attention back to the basics of debt management. Suddenly unemployed and deeply into debt, thousands of consumers are struggling with how to prioritize their debts, create a budget they can stick to, keep their credit from being completely ruined, or recover from bankruptcy or foreclosure. Wisconsinites are no exception. Extension educators in the state are dealing with an increasing demand for assistance managing debt and establishing or re-establishing successful relationships with financial institutions. Carbonell urged the educators to review the latest issue of Consumer Action News, which focuses on Debt Management Plans, among other timely topics, and to warn their clients about potentially fraudulent offers from for-profit agencies that sell “do-it-yourself” debt management kits and attempt to steer consumers away from reputable credit counselors. Participants reviewed the structure and components of two MoneyWi$e modules, Banking Basics and Rebuilding Good Credit, learning how these multilingual training materials can be used to educate consumers on essential money management skills. During one activity, Carbonell walked participants through a Sample Consumer Report provided by ChexSystems, often utilized by financial institutions when evaluating a consumer interested in opening an account. Carbonell also delved into credit reports, particularly the high incidence of errors in the reports, as well as the consumer implications of the latest FICO model. “The FICO 2008 model, which according to the industry will be a better predictor of risk, along with the tightening of the credit market, means that now, more than ever, consumers will have to be absolutely certain about the information that appears on their credit reports and immediately dispute incorrect items,” said Carbonell. “Not doing so could not only negatively impact a consumer’s ability to get new credit, it could also influence their standing with a current creditor and lead to a rate increase,” she added.