Illinois partners with Pennsylvania ‘iBelong’ campaign

Hawthorne Credit Union is a member-owned, not-for-profit, financial cooperative serving the financial needs of our members.

As a cooperative organization, Hawthorne exist solely to meet our members’ financial needs, not to make a profit off of them. In fact, after expenses are paid and reserves are set aside, credit unions return their "profits" to members in the form of lower loans rates, higher savings rates, and free. On the other hand, for-profit financial institutions primarily exist to generate profits for a relatively small group of stockholders at the expense of their customers.

The Illinois Credit Union League (ICUL) will partner with the Pennsylvania Credit Union Association's (PCUA) "iBelong" media campaign to increase credit union awareness in Illinois.

The Illinois Statewide Image Awareness Task Force has met since last year to develop a program to increase credit union awareness among Illinois consumers. After reviewing several state campaigns, the task force chose iBelong.

"Pennsylvania developed a top notch campaign that we believe will play well here in Illinois," said ICUL Chairman Carl Sorgatz. "Between the research and all the elements that have been created, we feel this is an initiative our credit unions will get excited about and support."

The task force hopes to eliminate misconceptions about credit unions; increase consumer interest in doing business with credit unions; enhance credit union image among lawmakers; and complement and lay the foundation for individual credit union marketing.

"We can begin to change the way Illinois consumers think about credit unions," said John Bratsakis, ICUL vice chairman and task force chairman.

Shredding: What to shred, what to keep

Hawthorne's Shred It Days get rolling again in a couple weeks - on Sat. Feb 2, we'll hold our first of 8 Shred It Days this year. They'll be held the first Saturday of every month (except July, when we're cooking up a special event, to be announced later.) For a full list of our events this year, visit eHawthorne.org. You can bring up to 3 boxes of materials to shred - don't forget your old credit cards - they can be shredded too!

Many members have asked us how to decide how long they should keep documents and what to keep and what to shred. Here's a guideline from the Consumer Reports Money Adviser, January issue and the Credit Union National Association (cuna.org):

YONKERS, N.Y. (1/8/08)—If getting rid of clutter and unnecessary paperwork
is tops on your list of things to do this month, make sure you know what you
can--and can't--shred, and when it's safe to do it (Consumer Reports Money
Adviser January).

Bills. Keep receipts for large purchases, and shred the rest after payment clears your credit union, and after the return or refund period expires.

Credit card receipts. Keep them for one year in case you need to return defective goods, then shred them.

Credit card statements. If they contain tax-related expenses, keep the statements for seven years in case you're audited by the Internal Revenue Service. Otherwise, keep them for one year and then shred them.

Credit union monthly statements. Keep monthly statements that contain tax-related expenses for seven years. Otherwise, keep them for one year and then shred them.

Investment account statements. Keep year-end statements for seven years, but you can shred monthly or quarterly statements as new ones arrive.
Retirement statements. Keep year-end statements for your 401(k), individual retirement accounts (IRAs), and Keogh plans until you retire or close the account, and keep Form 8606 if you've made nondeductible IRA contributions. Shred quarterly statements after you receive your annual summary and verify that everything is correct.

Pay check stubs. Shred the stubs after you receive your annual W-2 and verify that the information is accurate. Keep the last paycheck stub of the year.

Tax records. Keep a copy of all 1040 tax forms permanently. Remember: The IRS has three years to audit your return, but if you underreport your gross income by 25% or more, the IRS has six years to challenge it. And if you file a fraudulent
return or don't file one at all, the IRS can go after you at any time.

One final tip: Cut down on the amount of paper that flows into your home. Register with the Direct Marketing Association at the-dma.org, and opt out of preapproved credit card applications at optoutprescreen.com; you'll see a dramatic decrease in the number of preapproved credit card offers and other direct mail pieces that fill your mailbox.

Also, sign up for estatements! That reduced the number of monthly statements you'll need to shred!

New Year’s Resolutions that can help

Your wallet might be looking a little empty after the holiday season and I know that some of you are probably a little stressed about the balance in your bank account. Don’t be afraid to admit if you’re avoiding the mailbox because you know that pretty soon that big credit card statement will arrive.

My holiday shopping this year was a little less painful than usual because of my trusted Hawthorne Christmas Savings Account. I emptied it out already to help cover the bills that have already arrived, but on New Years Day I started getting an early start on my 2008 holiday shopping by depositing $50 into the account.

My Christmas club account is a savings account at Hawthorne that I can deposit money in to throughout year to effortlessly build up a nice gift fund. In November the money automatically gets deposited in to my savings account and I can go shopping without having to worry about paying for everything.

The holidays at my house are usually very stressful with too much going on and out-of-town house guests. However, each year I am trying to find new ways to alleviate some of the tension.
How, you might ask?

You can reward yourself financially by making some of your New Year's resolutions geared toward handling your finances or debt better. You can do it, trust me. This year one of my resolutions is to work on better organization and management of our finances.

Here's a list of seven strategies taken from the Consumer Credit Counseling Service that may help you. Good luck and Happy New Year!

1. Balance your checkbook each time you receive a paycheck so you don't spend more than the amount you make.

2. Have a filing cabinet or a secured box, handy? Well, you will need one to store financial statements. Make separate files for bank statements, tax documents, credit card bills, medical information, mortgage statements and other important records.

3. Create a monthly budget to determine your monthly income and recurring expenses. Focus on items such as rent or mortgage payments, utility bills, food, transportation costs, tuition savings, entertainment and personal grooming.

4. Ok, so once you've set up the budget; prioritize the expenses and spending based on your needs and wants. If you have any funds left after the monthly expenses are paid, split them between paying down your debt, for instance pay high-interest credit card bills and loans, and stash the money away in savings.

5. Create a varied savings plan. Make regular deposits in an interest-bearing account and don't pass up your employee-sponsored benefits like retirement and flexible spending accounts.

6. Stay aware of debt trouble. Problems can occur when you start falling behind on bills like mortgage, rent, or utilities or start using credit to buy items that you should buy with cash.

7. If situations like these occur, don't suffer in silence. Call your creditor and let them know you are having problems. It's possible that you just may be able to reach an agreement with your next payment or negotiate a lower interest rate.

You may also want to consider a Debt Management Program. If you have over $5,000 in debt then a debt management program may be for you. Hawthorne’s Balance Financial Fitness debt management program can help.