News from the Saline County Extension Center
 

July-August 2004

In this issue:

Summertime is home Improvement Time

Checking Out Your
Credit Report

Never Stop Learning

Build Wealth Not Debt

Thriving in
Saline County Newsletter Index

Human Environmental
Sciences Extension
Newsletters
 

Thriving in
Saline County
is written by:
Dr. Cynthia Crawford
Family and Consumer Economics Specialist, Saline County
Extension Office
660-886-6908
crawfordc@missouri.edu
153 S. Odell,
Marshall MO 65340
 

Summertime is Home Improvement Time

Have you been watching any of the home improvement shows on TV? I find them fascinating. They can demolish, design, paint, shop and landscape in an hour or less. The boards they cut always fit and there are no distractions as the people harmoniously work together to create.

We like to do home improvement projects, but they sure don’t as smoothly as they do on TV. “We’re not good, but we’re slow,” is our motto at home. Still, this kind of work is rewarding and can be a great stress reliever (or generator, depending on how the project is going).

For many of us our home is one of the best investments we’ll make. Why wait until you are ready to sell your house to make improvements and repairs? Do them so you can still enjoy them!

Ronn Phillips and Bobbi Hauptmann with the Environment Design Department of the University of Missouri-Columbia remind us that some home renovations and remodeling projects make more economic sense than others.

The following projects yield the highest paybacks for their investments (assuming your choices in colors, material and design are successful):

• Painting and décor, interior 73% return
• Kitchen renovation 72% return
• Bathroom renovation 68% return
• Exterior painting 65% return
• Flooring upgrades 62% return
• Window/door replacement 57% return
• Main floor laundry room 51% return
• Fireplace added 50% return
• Basement renovation 49% return
• New furnace or heating system 48% return

Plant trees that will shade your house in the summer and lose their leaves in winter to allow sunlight to reach your home. Consult the Master Gardeners in our office for help with energy-efficient plantings.

Dr. Cynthia E. Crawford,
Consumer and Family Economics Specialist

Checking Out Your Credit Report

If you haven’t reviewed your report yet in 2004, this is your friendly reminder. As many as 25% of credit reports contain errors. Identity thefts are often discovered by reviewing credit reports.

Don’t skip this! It is how I found out a man in Florida was fraudulently using my Social Security number and good credit report a few years ago.

Your credit report is overused
It certainly is appropriate for lenders to use your credit report to determine whether to loan you money or not. More and more, though, employers are reviewing credit reports of prospective employees. Insurance companies may review credit reports to determine whether to hire a person, if they will issue insurance policies and what premiums to charge. Appropriate or not, be aware that more and more people are interested in what your credit report contains.

There are three credit bureaus. When placing a call, be aware that these numbers reach a fully automated system. When contacting the Credit company on line you may fill out your request, learn additional information sources and have your credit report sent electronically.

Equifax 1-800-685-1111
www.Equifax.com
One complementary report per year
$9 fee beyond first report or see * below
Reports from all three companies available for $29.95
Your credit score available for additional fee

Experian 1-888-397-3742
www.Experian.com
Provides single report from their company * or all three reports, plus your credit score for $39.95.

TransUnion 1-800-916-8800
www.TransUnion.com
Has varying fees for single report, depending on which state you reside in. MO’s fee is $9 for this company.

First American Credco 1-800-637-2422
Provides a three company report.

*FREE Credit reports may be obtained if:

• A company has denied you credit based on your report and you request the report within 60 days of that denial.
• You are unemployed and plan to look for a job within 60 days, are on welfare, or if your report is inaccurate because of fraud.

Dear Cynthia,
Why would I want to pay for my credit report ? I was watching TV this weekend and there are websites and 800 numbers where I can get a free credit report.

Thanks for writing. Now repeat after me. “If it seems too good to be true, it probably is.” I think you’ll find that in order to get a “free” credit report, you’ll be automatically signed up for a year’s credit monitoring service for between $50 and $100 or will be buying some other good or service for an inflated price. This is much more than the cost of checking your credit report on your own.

Hi Cynthia,
I enjoy your radio consumer updates on KMZU radio several times each day. I thought you said something about a new law that makes credit reporting companies provide a free copy of my credit report each year.

Thanks for listening! We write and record 144 radio cuts each year. The Fair and Accurate Credit Transaction Act is being phased in. People in Missouri and other Midwestern states will be eligible starting March 1, 2005. This may be the last year you have to pay to check your credit report.

Never Stop Learning!

One of the things I appreciate about working for the University of Missouri is the constant encouragement to never stop learning. I study financial management at least 30 minutes a day, 7 days a week. We are also urged to attend professional meetings.

At the National Association of Financial Counseling and Planning Education in Savannah Georgia last winter, National Columnist Michelle Singletary was one of our speakers. (You may read her column in the Sunday Kansas City newspaper.) At that time she was talking about setting financial goals for 2004.

We have now passed the mid-point of 2004. What goals did you set for 2004 and where are you in the process of achieving them?

Of those responding to a survey conducted by Intuit, 61% listed better money management as one of their top three goals for 2004. Nearly 60% said, “shrinking their credit card debt” as their #1 financial goal. Other significant responses included saving for retirement and saving for children’s college.

The good news is that there is still 1/2 the year to make major, positive progress on your financial goals.

1. Write down your financial goals for the rest of 2004. Once you have a plan, it becomes harder to squander your money says Singletary.
2. Commit to educating yourself about financial management. We have great unbiased, high-quality information available through the Saline County Extension Center. We have nothing to sell! Also, I think you’ll be impressed with the classes we’re offering starting in September through the end of 2004. The next issue of this newsletter will have specifics. I can also suggest other sources of quality financial information.
3. Don’t try to be a money saving martyr. Eliminating entire expense categories, such as eating out, rarely works. Instead try trimming various expenses by 10% here and 20% there. We have two publications you can request from the Extension Center that give you more than 100 ways to save money. A little bit here and there can make a huge difference.
4. Save something. If saving 10% seems impossible, start with 5% or even 2%. Save something!

Build Wealth, Not Debt

About 70% of Americans sometimes live “paycheck to paycheck” and consumer borrowing has reached all–time highs. Personal saving has shrunk in the past 25 years and too many Missouri people are in shaky financial situations.

Missouri Saves is a statewide initiative through University of Missouri Extension. Anyone who agrees to work toward a savings goal such as home ownership, an emergency fund, school tuition, retirement or debt repayment can become a Missouri Saver.

Savers are challenged to increase their savings and decrease their debt. I can’t assure you building wealth is painless, but I can assure you that it is important.

Even saving small amounts can add up. For example, by saving 50 cents a day from pocket change, a person can accumulate $15 per month that can be added toward a savings goal.

Key Savings Strategies

• Pay off high-cost debt. The best investment most borrowers can make is to pay off consumer debt with double-digit interest rates.
• Buy a home and pay off the mortgage before you retire. The largest asset of most middle-income families is their home equity.
• Participate in a work-related retirement program. Too many employees turn down free money from their employer by not signing up for a work-related retirement program such as 401(k) plans.
• Outside of work, save monthly through an automatic transfer from checking to savings.

It costs nothing to become a Missouri Saver. You will receive a quarterly newsletter with savings tips and strategies. Call our office for a brochure with details.