Positive Transitioning April 2021

Financial Literacy Issue 7 Tips to Paying off Debt

Is a Credit Union Right for You?

Colorado State Resources

In This Issue The Financial Literacy Issue April 2021 Letter from the Executive Director Word of the month Colorado state resources 7 Tips to Paying off Debt Credit Unions

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Letter from the Executive Director April is Financial Literacy Month. Financial literacy is the ability to understand and use various financial skills, including personal financial management, budgeting, and investing. Unfortunately, many of us don’t get the proper financial literacy training as a kid. As we get older, it doesn’t take much to get in a hole – especially if you’re still learning how to play the game.

There’s an entire industry that preys on people who don’t know the game or are digging themselves out of that hole. Fees and interest add up, and companies charge A LOT of interest for people who have made minor mistakes.

Big banks will take any opportunity to charge fees for you to manage your money, so we included an article on credit unions. If you are trying to get back on your feet or rebuild your credit, a credit union can offer better tools and options.

You may have come home to a pile of debt, whether or not you went in with any. Paying off debt is a pain in the butt regardless of how much money you make, but it is especially hard for someone reentering society with a low wage job repairing their credit. We included an article on debt repayment that can help.

We hope you enjoy this issue Sincerely,

Porche Proffit

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Masthead and Contributors Editor-in-Chief, Porche Proffit Editor, Ericka Foster

Contributors Contributing Editor, Lakia Goodman Writer, Maggie Allen Writer, Natalie Rodriguez-Steen Positive Transitioning Inc. is a non–profit organization that provides information and resources for individuals reentering the community after incarceration.

In addition to this magazine, Positive Transitioning Inc. offers a 24-hour Resource/Listening Line that services all 50 states. The Resource/Listening line is staffed by life coaches, and provides individuals with the immediate support and resources they may be needed during reentry.

Positive Transitioning Inc. also provides individuals life coaches that will assist them in every step of the reentry process: housing, education, employment, vocational training, obtaining government benefits, veteran assistance, medical management, sponsorship, financial stability, family reintegration, and legal assisting.

Currently Positive Transitioning Inc. is entirely web–based as we are hoping that this makes it easily accessible for anyone to access from anywhere.

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Generational wealth

Generational wealth refers to any kind of asset that families pass down to their children or grandchildren, whether in the form of cash, investment funds, stocks and bonds, properties or even entire companies.

Build something that outlives you.

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Colorado State Resources The resources below are organizations that specifically address the needs of people reentering society. Additional organizations that focus on issues such issues as employment, education, mental health, and substance abuse rehabilitation may not be included in this list. Doing HIS Time www.doinghistime.org/barnabus-about This faith-based organization has two programs to support criminal justice involved individuals and their families. The first program, Barn-a-bus provides low-cost, weekend transportation from Denver to most Colorado prisons. The other program 72-hour fund, provides clothing, ID cards, and toiletries to help re-entrants with the basic needs required to begin to get back on their feet.  Focus Re-entry www.focusreentry.org/ Focus Reentry has two programs to help former inmates – they offer a mentoring program as well as a support service for those initial 72-hours upon release.  Second Chance Center, Inc. www.scccolorado.org Established in 2012, Second Chance Center, Inc. (SCC) is a Colorado based nonprofit organization offering case management, mentoring, and vital resources to assist formerly incarcerated individuals in reestablishing their lives and becoming successful members of the community.  The Empowerment Program www.empowermentprogram.org WAGEES Programs provide re-entry services to people who have been, or are about to be, released from a correctional facility. Through this program, The Empowerment Program and Stout Street Health Center work together to provide medical, behavioral health, and vocational support services, free of charge. Current Re-Entry Services include case management, supportive services, integrative health services, medications, MAT Program, and healthcare. WAGEES is for women who live, or will live, in the Denver-Metro Area.

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National Resources  American Civil Liberties Union (ACLU) aclu.org/issues/prisoners-rights Prisoners’ rights to read, write, speak, practice their religion, and communicate with the outside world are often curtailed far beyond what is necessary for institutional security.  CareerOneStop careeronestop.org/Site/american-job-center.aspx Located across the country, American Job Centers can help you look for work and offer job search workshops, free computer access, and more.  National Alliance on Mental Illness nami.org/ The purpose of NAMI Alabama is to provide support, education, and advocacy for persons with mental illnesses, their families, and others whose lives are affected mental health disorders.  National HIRE Network hirenetwork.org The goal of the National H.I.R.E. Network is to increase the number and quality of job opportunities available to people with criminal records by changing public policies, employment practices and public opinion.  National Reentry Resource Center (NRRC) nrrc.csgjusticecenter.org Funded and administered by the U.S. Department of Justice’s Bureau of Justice Assistance (BJA), the National Reentry Resource Center (NRRC) is the nation’s primary source of information and guidance in reentry.  U.S. Veterans Administration va.gov/ABOUT_VA/index.asp Most veterans who are in jail or prison will eventually reenter the community. VA’s HCRV program is designed to promote success and prevent homelessness among Veterans returning home after incarceration.

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7 Tips to Paying Off Debt

By Ericka Foster A lot of us owe somebody some money. And for most debt collectors, the clock doesn’t stop running on that debt. For the secured assets like cars, phones, and cable, default on that debt means repossession, collections, and a credit score that goes into the toilet. Then there are the unsecured debts – child support, credit cards, and court fees. Those debts pile up often accruing interest. By the time the person is released, those costs have added up. If you’re lucky enough to have someone on the outside paying the bills, you may owe family and friends.

There’s an added responsibility of probation and parole fees, and default of those fees could land a person right back in prison.

More and more states are charging fees at every step of the incarceration process – including probation and parole. At the same time, someone just being released is likely offered minimum and low wage jobs. How do you pay stacks of debt with no money? It can feel like one is drowning trying to get out of debt.

1 First things first, you have to get honest about the numbers. When you are guessing, the number can feel bigger than it really is. Knowing the actual numbers may give you some kind of relief. Being clear about the debt, and then prioritizing who needs to get paid is the first step.

It takes a lot of courage to get real about your debt, so pat yourself on the back for taking the first step.

2 When you have a limited income, it will be intuitive to start to decide who can get paid and who can’t. For example, it may be easier to pay off the $500 to your mom, but if you don’t pay the state by the due date, the consequences will set you back even farther. Setting those priorities can give you a framework for your budgeting decisions.

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3 It is a tightrope walk to pay probation and parole fees while trying to get back on your feet.

There are social services and nonprofits can give you far more assistance than you will get in this article – they know the ins and outs of local regulations. They’ll have relationships with places you owe money and they’ll know the tricks to wading through the challenges. If there are amnesty programs, grants, or scholarships, a case worker can be your best friend.

4 If you had debt before incarceration, be sure to check the statute of limitations on consumer debt in your state. Bill collectors won’t tell you so, but you may not be legally required to pay that debt back. That is the easiest debt to get rid of.

5 For the consumer debt that you do owe, you can reach out to them directly to negotiate a means of repayment. You can also consult a credit counseling service.

Just be sure to choose a reputable credit counseling service that doesn’t charge you for their services.

6 Say yes to work. It is short-sighted to say that working more will solve your problems. That’s BS. But, working more may make you feel more in control of your debt.

7 Plug back into the system. There’s a natural instinct to try to fly under the radar – get paid in cash, close the bank account, put assets in another person’s name. But you are on the road to re-entering society. As you want to get a better job, a car, a home, -- rebuild your life. At some point, someone is going to check your credit score and credit history. So plugging into the system now, will start to build a track record of a new life.

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Entering the World of Banking: Credit Unions

By Natalie Rodriguez-Steen

Credit unions are memberowned institutions that seek to serve their members rather than seeking to earn a profit and can be a great alternative to banks. Credit unions, because they are member owned, require membership to join. Once one becomes a member, the credit union can often offer higher saving rates and lower fees in comparison to a traditional bank. Credit unions, however, may be more limited on financial products it can offer to its members. For those who are returning to their communities following incarceration, credit unions could be better suited and more approachable for building credit and learning how to manage finances than a traditional bank.

Credit unions, like banks, offer checking and saving accounts, money market accounts, home loans, auto loans, small-business loans and credit cards. Credit unions also typically offer direct deposit, mobile banking, ATMs, and overdraft protection to make managing money and saving easier. Some credit unions even will reimburse members for fees charged by ATMs that are outside of the credit union’s network. Credit unions also typically provide protection for deposits to help insure against losses that may occur. Credit unions, unlike banks, are nonprofit institutions. This allows credit unions to be more personalized, more member focused, and typically smaller. This can be particularly beneficial for those who need support and guidance from a financial institution to learn, develop or expand money management skills.

It may sound like credit unions are the perfect solution to big banking but before one can join a credit union- membership is required. There are many different types of credit unions so membership requirements can vary but typically credit

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unions might require a potential member to work for a certain employer, live in a particular area, be a part of a particular group, or have a family member that is already a credit union member. Some credit unions still allow membership even if a person does not meet the traditional requirements if they are willing to pay a small fee. For example, PenFed Credit Union allows individuals to join through Voices for America’s Troops or the National Military Family association and pay a one-time-only nonrefundable due of $17. In order to determine if a credit union is right for you, it is always good to research the institution including its requirements for membership.

Credit unions can be a great option for banking and money management but for formerly incarcerated individuals there may be some hurdles to overcome before opening an account. Formerly incarcerated individuals may be unfamiliar with certain banking technology and may vulnerable to fraud or scams.

Reentry services, particularly those that focus on financial literacy and independence, are particularly helpful in understanding how banking has or hasn’t changed since release and providing guidance to make the process easier. Reentry services may also be able to connect formerly incarcerated individuals with employers who offer credit union membership through employment. Another important step is obtaining the relevant documentation such as birth certificates, social security card or other forms of identification.

If one does not have access to those, USA.gov offers guidance for replacing those items or it can be useful to contact a local legal aid for help navigating the replacement of important government documentation. It is also important to obtain a permanent address. Reentry services can be particularly helpful in finding housing or individuals can obtain housing through a halfway house or family/friends. P.O. boxes can be useful for having a consistent address for mail but typically require a fee to maintain.

Even with these hurdles to obtain membership, credit unions are particularly beneficial as they typically offer lower fees and better interest rates. Credit unions may also be more willing to work with individuals who have poor credit or have difficultly qualifying for loan. As credit unions are known for being more personalized and smaller institutions, it may be easier to explain a specific financial situation or problem that may arise.

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