Morehead, KY– Frontier Housing is encouraging consumers in its service area to come in to its Morehead office for a personal financial review following a new national survey that found that nearly one-out-of-three adults, more than 70 million people around the country, have no emergency savings.
“Emergency savings are an important buffer against unforeseen crises, whether a person is a homeowner or a renter,” said Sherry Farley, President & CEO of Frontier Housing. “Relying on credit cards or high-cost, short-term loans from payday lenders or title companies could quickly compound a consumer’s money troubles.”
According to the survey by NeighborWorks® America, an affiliated nonprofit of Frontier Housing, approximately one-out-of-seven consumers would use a title loan or a payday loan to pay for a major purchase. These loans are extremely expensive, with annualized interest rates that often exceed 100 percent.
Recently the Consumer Financial Protection Bureau found that 80 percent of payday loans are rolled over into new payday loans instead of being paid off.
“We’re in the midst of National Financial Capability Month and all of us here at Frontier Housing want to help consumers build a plan for a stronger financial future,” said Farley.
Although the recession is over, unemployment and underemployment are still big issues in the Kentucky communities served by Frontier. Data show that home foreclosure is closely related to loss of income or reduction in income.
“No one wants to fall behind on their mortgage or enter foreclosure,” said Farley, “But we know that more than 60 percent of foreclosure cases are because of lost or reduced income. Having a strong financial plan in place that includes emergency savings can be a buffer when a serious financial crisis occurs.”
More information about the financial education programs offered by Frontier can be found on the web at www.frontierhousing.org or by calling 606-784-2131. Details on the NeighborWorks® America consumer finance survey can be found at www.nw.org.
Frontier Housing, an affordable housing nonprofit for 40 years in eastern Kentucky, builds and develops single and multi-family housing. Frontier, a NeighborWorks® Network Homeownership Center with an Exemplary rating, is the largest residential builder in its service area and the largest nonprofit builder in Kentucky. As a Community Development Financial Institution (CDFI) and a NeighborWorks® Full Cycle Lender, Frontier has a reputation of ensuring sustainable homeownership with low foreclosure rates of less than 1%.
Frontier has proven that when quality products are coupled with responsible lending, individuals of all incomes can be successful homeowners.
For more than 35 years, NeighborWorks® America has created opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. NeighborWorks® America supports a network of more than 235 independent, community-based nonprofits located in every state, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks® organizations have generated more than $19.5 billion in reinvestment in these communities.