The work we do with credit unions allows them to make real differences in the lives of their members and communities. This could be through CDFI certification or grant writing, strategic planning, product design, partnership creation or any of our other many services. And as part of this work, we get to hear the wonderful member impact stories that illustrate what credit unions are doing to unlock opportunities in the communities they serve. We will be highlighting some of these stories here.
A member of FLAG Credit Union in Florida had been recently divorced, and was finding himself overwhelmed by the reality of his overall financial picture. He had primary custody of three school-age children and was concerned about paying his bills, especially now that there was no second income.
His spouse had always taken care of the bills, so he had no idea what they owed or who they owed money to. Now he worried about being able to even provide food and clothing for his children. His goal was to provide for his children and get his finances to a manageable state, while paying off high interest credit cards.
When he approached FLAG Credit Union, his credit limit was at its capacity and his ability to repay was above standard policy limits. The credit union representative looked at the divorce decree and removed the debts that he was not responsible for. This reduced his debt-to-income ratio and allowed the credit union to provide the member with a consolidation loan at a reasonable rate. The credit cards were closed and the member’s monthly expenses were reduced, allowing him to provide for his children.
FLAG prioritizes looking at the specifics of an individual member’s financial situation, and looks beyond standard policy when called for. The credit union reviewed the financial situation and prospects of the divorcing member, and took the opportunity to help him get his debts under control and become financially sound.
CDFI-certified credit unions have countless stories like these to share; we’re proud to highlight a few from our clients.