Iowa State University Extension

Problem:
Most of us have some debt; many of us make minimal payments on credit cards, house mortgage and car payments. A few of us know exactly how long it will take to pay off those debts (especially when making minimum payments), or just how much we are paying in interest. Interest rates have recently increased on credit cards and people are looking at "opting out".

Response:
The Family Resource Management Field Specialist conducted 2 sessions at two different plants in Crawford and Dickenson County . These were on-site, five-hour individualized consultations on using the PowerPay Way . The Health Fairs provided vital health, nutrition, parenting, and financial information to participants. It was presented in a very easy atmosphere where the participants are welcome and free to ask questions. Many participants shared how they had been drawn into the payday loan cycle and how hard it was to get out of it. Several others stated they had seen advertising on car title loans. A scenario of $1,000 balance on Magic Credit Car with $10.00 payment (17.5% interest); a second credit card(Spend Thrift)had a $1,500 balance with a $25.00 payment (16% interest) and $10,000 car loan at $300.00 payment were calculated (15% interest). It would take 99 years, 11 months to pay off and total interest would be $16,544.95.

Impact:
Comments from participants ," This is really a great program! Wow, I'd be dead before I'd get it paid off! ... that's unreal!" Over 140 participants attended these plant sponsored events. 50 participants, per site,indicated that they were going to send for free money saving analysis.

Other ISUE Staff Involved:
Renee Sweers, Family Nutrition and Health rsweers@iastate.edu; 712-276-2157;
Rhonda Rosenboom; Family Life rrosenb@iastate.edu 712-957-5045;
Denise Wyland; Family Nutrition and Health dwyland@iastate.edu 712-472-2576

Community Partners Involved:
Polaris; Smithfield (Farmland); various other local community partners

Contact:
Jan Burk
Family Resource Management Specialist
Clay County Extension
110 W 4th Street, Ste 100
Spencer, IA 51301
712-262-2264
janburk@iastate.edu