June 18, 2024 • 16 mins
Ever wondered how to shield your wallet from the sting of inflation? Join us as we dive into an insightful conversation with Laura Hawthorne, Chief Consumer Lending Officer at Centric Federal Credit Union. Laura unpacks the complex dynamics of inflation, revealing the forces behind rising costs in groceries, housing, and the car industry. Understand the intricate balance of supply and demand, and discover how inflation is affecting loan and savings rates. Don't miss Laura’s expert advice on how to navigate these turbulent times with practical strategies, including Centric's car buying program designed to help you make smarter financial decisions.
Ready to make your money work harder for you? This episode is packed with actionable tips to help you maximize savings despite soaring prices. Learn the benefits of loan repricing and adjusting payment frequencies to lower your interest costs. Laura also emphasizes the critical distinction between needs and wants in your budget, and the role of financial counselors in streamlining your expenses. From investing in high-yield certificates to leveraging the security of NCUA insurance, we cover all bases. Plus, discover how building a robust credit score can pave the way for better borrowing terms in the future. Tune in and equip yourself with the tools to stay financially resilient!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Kelli Green (00:00):
Welcome to another episode of the Live Better
Podcast.
We are proudly presented byCentric Federal Credit Union,
and I'm your host and Centric'sMarketing Senior Vice President,
Kelli Green.
Today we are delving into asubject that just about everyone
can relate to inflation.
In today's episode, we'llexplore practical strategies and
expert insights to safeguardyour financial future amidst
(00:22):
inflationary pressures.
Whether you're worried aboutincreasing grocery bills,
housing costs, or the overallimpact on your savings, we've
got you covered.
L Tune in as we break downcomplex economic concepts into
easy to understand adviceempowering you to make informed
decisions and stay ahead of theinflation's curve.
Don't let inflation derail yourdreams.
(00:43):
Let's tackle it together.
So, whether you've been a loyallistener or you're joining us
for the first time, tune in aswe break down complex economic
concepts into easy to understandadvice empowering you to make
informed decisions and stayahead of inflation's curve.
Well, I want to welcome all ofour listeners to another episode
of the Live Better podcast.
Today, we are joined with mydear friend and our chief
(01:06):
lending Officer, Laura Hawthorne.
Before we get started, Laura,really do you mind just telling
our listeners a little bit aboutyourself?
Laura Hawthorne (01:13):
Sure, thank you for having me on the podcast
today.
As you mentioned, I'm the ChiefConsumer Lending Officer.
I've been with Centric for 25years and primarily my role is
to collaborate with our staff toprovide solutions for our M
members.
Kelli Green (01:29):
Yeah, you're really good at finding solutions,
aren't you?
Laura Hawthorne (01:31):
I try really hard.
Kelli Green (01:32):
Yeah?
Laura Hawthorne (01:33):
Y eah
Kelli Green (01:33):
Well, in this, the state that we're in, and really
in the topics of things thatwe're talking about today
overall inflation and what thatlooks like sometimes a solution
may seem like it's really out ofreach for families.
Their paycheck is beingstretched more so than ever, but
yet we still have the sameneeds and we're still spending
(01:54):
like crazy.
Laura Hawthorne (01:55):
Yeah, so people really have to work to identify
areas that they may be able tocut back on that.
There is not so much aparticular need while we get
there this season of life and,um, you know, once the economy
changes back a little bit orpricing adjusts itself, so that
you know people can continue tomake purchasing yeah, um, a
(02:17):
priority, then go back tospending money and the thing is,
this is not we're not immune toit.
Kelli Green (02:23):
This is not new to us.
It's not the first time thatwe've experienced this time of
inflation.
This is something that you know.
You look back over history.
It's an ebb and flow andsomething I feel like, and if we
didn't work in the financialindustry, I don't think
necessarily that I would reallyeven know what that means and
what causes it.
(02:44):
Help us understand really whathappens.
How do we get to where we arewith this level of inflation
we're experiencing today?
Laura Hawthorne (02:52):
Well, I'll say this I think a really common
misconception about inflation isjust that prices increase, and
I think that if you've lived anytype of life, you realize that
prices are always going toincrease.
That's just part of itsnaturalness.
But it's not just a priceincrease alone.
It's also the demand of thesame supply of goods that really
(03:15):
causes inflation.
So you have more people lookingat the same item and those
coupled together is what causesthe inflation, because the
supply is not there to meet thedemand, which further increases
the price of the cost.
Kelli Green (03:31):
Oh, yeah, and we see that a lot in here at the
credit union o ur loan rateshave increased a bit.
And then you also think abouttoo because we've got borrowers
and savers, so you think aboutthat too, from a savings
standpoint, the savings rateshave increased.
They have increased right, andso normally when you see one,
(03:53):
you know one goes up, one comesdown, and where we're at right
now is that you know we've hadsome interest rates that have
continued to go up from alending standpoint and then from
dividends or savings, theyhaven't come down to too much.
Laura Hawthorne (04:05):
No, and I really don't know that they're
going to come down in the shortterm very much at all.
I mean, we have to work reallyhard to balance those rates so
that we can continue to pay oursavers right to have their money
with us and and, at the sametime, continue to make lending
and loans affordable for membersthat really need them,
(04:27):
especially those that arelooking to purchase vehicles so
that they can travel back andforth to work and, you know,
support their families and doall the things.
Kelli Green (04:38):
You know something that we were talking about when
you mentioned just the vehicleshaving a vehicle to get you to
and from.
You know something that we'retalking about.
You mentioned just the vehicleshaving a vehicle to get you to
and from going to work.
That's how we pay for thethings that we have.
But you know how really andtruly has inflation impacted the
car industry.
Laura Hawthorne (04:53):
Well, for a long time, specifically, you
know, coming out of the COVIDera, the supply for, for all
kinds of reasons, you know,chips was a big one at the time,
but used cars were hard to find, which forced the prices of the
(05:14):
used car industry to increasehigher than we had ever
experienced it before.
And now you couple that withthe rise in interest rates
because again we're having tomatch those deposit rates and
monitor what the Fed makeschanges it really makes
searching for affordable vehiclewith an affordable payment that
much more of a challenge, andso we really have to work with
(05:35):
members and car dealers toreally match those two up.
Kelli Green (05:39):
I love what you said, that we have to really
work with our members and helpeducate them on, one, what they
can afford and, two, we haverelationships right with
different vendors different, youknow, could be anyone
throughout our state.
But more importantly too, isthat we really want to look at a
car buying program for ourmembers.
(06:00):
Absolutely yeah, and so do youwant to take us through that?
Like, what if I were lookingfor a vehicle and understanding
with inflation, I know I've gotan idea of what I want to spend
on a vehicle.
How might I go about this assomeone that might be a new
buyer or maybe even with a tradein?
What do I do?
Laura Hawthorne (06:19):
Where would I start?
Well, I would say the veryfirst thing you need to do is
talk to your loan officer.
If you don't have a loanofficer, we have plenty.
I can introduce you to somefabulous young people who would
be more than happy to work withyou.
But you really want tounderstand what that's going to
look like once you get into avehicle.
You want to talk about pricesthat you can afford, what
(06:42):
payment is comfortable for youand your budget and your
family's budget, and you want totalk about what that rate's
going to be.
Where does your credit stand?
How can you make improvementsto your credit to qualify for a
better rate, because that doesmatter as well.
Yes, but once you're able toestablish kind of that
pre-approval and you know whatyou're really looking for, you
can then begin to shop for avehicle that fits into that type
(07:04):
of criteria or those types oflimits for you, and we have
several avenues.
I mean, there's a we have apage on our website that lets
you search through used car, newcar inventory at dealerships
that participate in the programthat we offer, as well, as we
have some really greatconnections just from the loan
(07:24):
officers themselves who developrelationships with car dealers
and they're more than happy todirect you to someone that they
trust and that they work withoften.
That knows that you are goingto get a good deal, a fair deal,
and I think that's reallyimportant.
Kelli Green (07:42):
I think you've hit the nail on the head.
I just want to recap, for ourlisteners too, is that if they
are really searching for avehicle, the first stop really
should be your financialinstitution Absolutely, and I
think that when you'recomfortable with your loan
officer, they retrieve a creditreport and understand if you
have a relationship with them,they're going to know what your
expenses are maybe things thatdon't show up on the credit
(08:04):
report and help you, as thebuyer, understand what you can
afford.
Laura Hawthorne (08:09):
Well, in almost all of our cases, all of our
loan officers are certifiedfinancial counselors, so they
don't just have a background inlending and underwriting, but
they also have some history andsome education in budgeting as
well.
Yeah, and right now I think,especially in this inflationary
period, that's vitally important, because it's not just about
(08:29):
what debts you owe.
You have a lot of other thingsthat don't you know.
Go into that debt ratiocalculation.
That you have to be mindful ofCar insurance is at an all-time
high.
That's really important.
That you have to be mindful ofCar insurance is at an all-time
high.
That's really important.
And part of the car buying andshopping process is
understanding what that's goingto look like when you finally do
purchase that vehicle thatyou're looking for.
You know, gas right now seemsto be reasonable, right, we've
(08:52):
seen a little bit higher, but Ican't complain too much about
that that.
But then you have, you know,groceries you have to take and
consider if you have children,you have child care needs, those
types of things, so they canreally work with you and
understand you know, if you needhelp in the budgeting area,
where that payment is going toimpact you and your family.
Kelli Green (09:12):
Oh, yeah, because when you're adding on a new debt
or increasing a payment, youknow, when you're maybe
necessarily paying off a vehicleand you're getting ready to
purchase another one, therecould be an increase in payment.
And what does that look likefor you?
You know I love that.
So come visit, you know, visitwith a loan officer, seek that
preapproval before you hit thelot.
(09:33):
And one of the things that Ilove that we offer here is
really talking with them.
Because once you get on the cardealer, you know, at the lot,
you know we don't want to speaknegatively of them, but they too
, you know, have an ability tofinance and they are going to
want to run your credit.
And that's multiple inquirieson a credit report.
(09:54):
That could really have negativeimpact it could.
Laura Hawthorne (09:58):
Um, and then one thing I'd also to like to
mention that we offer here atCentric is, you know, while
interest rates may be a littleon the high side right now, once
we come out and the interestrate market starts to kind of
decrease a little bit, you knowyour loan here at Centric and if
you've worked to maybe improveyour credit if it was kind of
lower at the time that you madeyour purchase, we're more than
(10:22):
willing to rework with you andhelp reprice your loan, which
will then also help decreaseyour payment and make it a
little bit better for yourbudget.
Kelli Green (10:31):
When you mention repricing your loan and this is
something I think especiallywhen families are really trying
to manage inflation, they'relooking at ways to save money
and repricing your loan can do acouple of different things.
Absolutely, you can change yourpayment frequency, which really
it lowers your payment from aninitial say.
If you're making a largeone-time payment, splitting that
(10:53):
up into multiple payments hassignificant benefits.
Laura Hawthorne (10:57):
Oh, absolutely.
One of the things I like aboutthat is you're able to pay down
the principal balance faster,which means you're going to pay
less interest over the life ofthe loan.
Kelli Green (11:09):
Yes, and that's the goal is to get this car paid
off so that you, you know,relieve yourself of that payment
.
And a lot of times people don'trealize that you can do the
same thing we hear a lot oftimes with if you pay an extra
mortgage, can do the same thingwe hear a lot of times with if
you pay an extra mortgage a year, that can actually reduce X
number of months from yourmortgage.
But when you think about this,in anything that you're making a
(11:30):
payment towards and it'sinterest, you're paying interest
on those loans.
When you can split up thosepayments and really make those
multiple payments one, it's notsuch a huge hardship on that
single large sum, that paymentthat you're making, but you're
cutting down on the interest andpeople don't realize that I
mean what other financialinstitution is going to.
Laura Hawthorne (11:52):
How can I help you pay me less, right?
You know?
I just think it's a feel-goodthing yes For us.
It brings us joy to help ourmembers live better.
Feel-good thing yes For us.
It brings us joy to help ourmembers live better, and I think
that teaching our members howto pay less in interest and earn
more in dividends is at the topof what we do.
Kelli Green (12:08):
Absolutely, Because when you're able to put money
down, you're financing less,which means overall it's going
to cost you less, and whenyou're paying, you know you're
making your regular payments,timely payments.
That's going to increase yourcredit score and that is going
to save you an interest becauseyour rates will be lower.
Laura Hawthorne (12:26):
Future buying power is critical, yeah,
critical.
Kelli Green (12:30):
It really, really is.
So something I want to askabout this too and just kind of
wrapping up what we're talkingabout here.
But overall budgeting andspending.
So you mentioned this earlier,touched on it a little bit, but
how should I really adjust mybudget to account for rising
prices?
Do you have some tips maybe formanaging expenses during
periods of high inflation?
Laura Hawthorne (12:51):
Well, I really think that evaluate all the
things that go into your budget.
What are areas of need and whatare areas of maybe wants for
now Is that something that wecan push off until there's a
better time financially to beable to go back to participating
(13:12):
in those types of things?
Our financial counselors canreally help narrow down that
budget and understand where yourdollars are going and how you
can rearrange those to put alittle bit more back into your
savings account during thesecritical times.
Kelli Green (13:30):
And one of the things that you mentioned when
you're talking about puttingmoney back into your savings
accounts.
Something else that we actuallyoffer here at Centric and I
think are priced really well andit's really advantageous for
borrowers, are certificates.
Laura Hawthorne (13:43):
Absolutely.
Right now, if you have excessfunds, that's earning a minimum.
I think some banks pay likeless than you know 0.2 percent.
Yeah, it's very low.
20 basis points is what theycall it.
Yeah, I think that right now, Imean you can get a 12-month
(14:04):
certificate for 5.
15%.
That's unheard of I mean or youknow, and it's secured, that's
the thing.
Yeah, and it's secured, andit's locked in for a specific
amount of time, and 12 monthsright now is a really good term,
because you don't know in 12months where we're going to be
(14:25):
as far as what rates are offered.
So if you can lock it in at a5% rate, why not Let us pay you?
Kelli Green (14:29):
And there's no risk to that.
We are insured by the NCUA upto $250,000.
There's opportunities here thatabound, and if you're, you have
a question, you've got excessfunds of $250,000.
Well, let's talk about that.
What are some ways in which wecan ensure that you will be
insured?
And so I just think thatthere's opportunities for
(14:51):
everyone, whether you're, youknow, just starting your savings
account, you know, with $10, wecan find ways to help you
really maximize that.
So I think the sky's the limitwhen you bank with Centric.
Absolutely, yeah.
Well Laura, thank you so muchfor coming in and chatting with
us today.
I really appreciate yourinsight.
You're an expert and been herefor how many years?
Laura Hawthorne (15:13):
25.
Kelli Green (15:14):
25.
And you started working herewhen you were what?
Just five years old?
Laura Hawthorne (15:17):
Absolutely!
Kelli Green (15:17):
Y eah Well.
Listeners, I just want you toknow how grateful we are for you
and it's a real privilege forme to sit down with our expert
of 25 years here.
She's been my long-term friendfor over a decade and I'm just
so grateful for your insight andI just appreciate your
dedication.
So, L laura, thank you.
Laura Hawthorne (15:35):
Thank you, I appreciate you, too.
Kelli Green (15:37):
Yeah, that brings us to the end of the episode of
the Live Better podcast, and wehope you found today's
conversation about inflation tobe insightful.
In the world of personalfinance, knowledge is your
greatest asset and Centricremains your steadfast partner
in that journey.
If this episode resonated withyou, we kindly ask you to show
your support.
Please hit the subscribe button, share this episode with your
(16:00):
friends and family and take amoment to leave us a review.
Your input is invaluable inshaping the content that
addresses your financialinterests and needs.
And, of course, let's stayconnected on social media.
You can find us on Facebook, atCentricFCU, and on all other
platforms under MyCentricFacebook at CentricFCU and on
all other platforms underMyCentric.
(16:20):
Stay in the loop regarding thelatest financial insights and
resources tailored to yourunique financial aspirations.
Until our next episode, alwaysremember that Centric is right
by your side as you navigateyour financial journey.
Thank you for tuning in to theLive Better Podcast.
Welcome to another episode of the Live Better
Podcast.
We are proudly presented byCentric Federal Credit Union,
and I'm your host and Centric'sMarketing Senior Vice President,
Kelli Green.
Today we are delving into asubject that just about everyone
can relate to inflation.
In today's episode, we'llexplore practical strategies and
expert insights to safeguardyour financial future amidst
(00:22):
inflationary pressures.
Whether you're worried aboutincreasing grocery bills,
housing costs, or the overallimpact on your savings, we've
got you covered.
L Tune in as we break downcomplex economic concepts into
easy to understand adviceempowering you to make informed
decisions and stay ahead of theinflation's curve.
Don't let inflation derail yourdreams.
(00:43):
Let's tackle it together.
So, whether you've been a loyallistener or you're joining us
for the first time, tune in aswe break down complex economic
concepts into easy to understandadvice empowering you to make
informed decisions and stayahead of inflation's curve.
Well, I want to welcome all ofour listeners to another episode
of the Live Better podcast.
Today, we are joined with mydear friend and our chief
(01:06):
lending Officer, Laura Hawthorne.
Before we get started, Laura,really do you mind just telling
our listeners a little bit aboutyourself?
Laura Hawthorne (01:13):
Sure, thank you for having me on the podcast
today.
As you mentioned, I'm the ChiefConsumer Lending Officer.
I've been with Centric for 25years and primarily my role is
to collaborate with our staff toprovide solutions for our M
members.
Kelli Green (01:29):
Yeah, you're really good at finding solutions,
aren't you?
Laura Hawthorne (01:31):
I try really hard.
Kelli Green (01:32):
Yeah?
Laura Hawthorne (01:33):
Y eah
Kelli Green (01:33):
Well, in this, the state that we're in, and really
in the topics of things thatwe're talking about today
overall inflation and what thatlooks like sometimes a solution
may seem like it's really out ofreach for families.
Their paycheck is beingstretched more so than ever, but
yet we still have the sameneeds and we're still spending
(01:54):
like crazy.
Laura Hawthorne (01:55):
Yeah, so people really have to work to identify
areas that they may be able tocut back on that.
There is not so much aparticular need while we get
there this season of life and,um, you know, once the economy
changes back a little bit orpricing adjusts itself, so that
you know people can continue tomake purchasing yeah, um, a
(02:17):
priority, then go back tospending money and the thing is,
this is not we're not immune toit.
Kelli Green (02:23):
This is not new to us.
It's not the first time thatwe've experienced this time of
inflation.
This is something that you know.
You look back over history.
It's an ebb and flow andsomething I feel like, and if we
didn't work in the financialindustry, I don't think
necessarily that I would reallyeven know what that means and
what causes it.
(02:44):
Help us understand really whathappens.
How do we get to where we arewith this level of inflation
we're experiencing today?
Laura Hawthorne (02:52):
Well, I'll say this I think a really common
misconception about inflation isjust that prices increase, and
I think that if you've lived anytype of life, you realize that
prices are always going toincrease.
That's just part of itsnaturalness.
But it's not just a priceincrease alone.
It's also the demand of thesame supply of goods that really
(03:15):
causes inflation.
So you have more people lookingat the same item and those
coupled together is what causesthe inflation, because the
supply is not there to meet thedemand, which further increases
the price of the cost.
Kelli Green (03:31):
Oh, yeah, and we see that a lot in here at the
credit union o ur loan rateshave increased a bit.
And then you also think abouttoo because we've got borrowers
and savers, so you think aboutthat too, from a savings
standpoint, the savings rateshave increased.
They have increased right, andso normally when you see one,
(03:53):
you know one goes up, one comesdown, and where we're at right
now is that you know we've hadsome interest rates that have
continued to go up from alending standpoint and then from
dividends or savings, theyhaven't come down to too much.
Laura Hawthorne (04:05):
No, and I really don't know that they're
going to come down in the shortterm very much at all.
I mean, we have to work reallyhard to balance those rates so
that we can continue to pay oursavers right to have their money
with us and and, at the sametime, continue to make lending
and loans affordable for membersthat really need them,
(04:27):
especially those that arelooking to purchase vehicles so
that they can travel back andforth to work and, you know,
support their families and doall the things.
Kelli Green (04:38):
You know something that we were talking about when
you mentioned just the vehicleshaving a vehicle to get you to
and from.
You know something that we'retalking about.
You mentioned just the vehicleshaving a vehicle to get you to
and from going to work.
That's how we pay for thethings that we have.
But you know how really andtruly has inflation impacted the
car industry.
Laura Hawthorne (04:53):
Well, for a long time, specifically, you
know, coming out of the COVIDera, the supply for, for all
kinds of reasons, you know,chips was a big one at the time,
but used cars were hard to find, which forced the prices of the
(05:14):
used car industry to increasehigher than we had ever
experienced it before.
And now you couple that withthe rise in interest rates
because again we're having tomatch those deposit rates and
monitor what the Fed makeschanges it really makes
searching for affordable vehiclewith an affordable payment that
much more of a challenge, andso we really have to work with
(05:35):
members and car dealers toreally match those two up.
Kelli Green (05:39):
I love what you said, that we have to really
work with our members and helpeducate them on, one, what they
can afford and, two, we haverelationships right with
different vendors different, youknow, could be anyone
throughout our state.
But more importantly too, isthat we really want to look at a
car buying program for ourmembers.
(06:00):
Absolutely yeah, and so do youwant to take us through that?
Like, what if I were lookingfor a vehicle and understanding
with inflation, I know I've gotan idea of what I want to spend
on a vehicle.
How might I go about this assomeone that might be a new
buyer or maybe even with a tradein?
What do I do?
Laura Hawthorne (06:19):
Where would I start?
Well, I would say the veryfirst thing you need to do is
talk to your loan officer.
If you don't have a loanofficer, we have plenty.
I can introduce you to somefabulous young people who would
be more than happy to work withyou.
But you really want tounderstand what that's going to
look like once you get into avehicle.
You want to talk about pricesthat you can afford, what
(06:42):
payment is comfortable for youand your budget and your
family's budget, and you want totalk about what that rate's
going to be.
Where does your credit stand?
How can you make improvementsto your credit to qualify for a
better rate, because that doesmatter as well.
Yes, but once you're able toestablish kind of that
pre-approval and you know whatyou're really looking for, you
can then begin to shop for avehicle that fits into that type
(07:04):
of criteria or those types oflimits for you, and we have
several avenues.
I mean, there's a we have apage on our website that lets
you search through used car, newcar inventory at dealerships
that participate in the programthat we offer, as well, as we
have some really greatconnections just from the loan
(07:24):
officers themselves who developrelationships with car dealers
and they're more than happy todirect you to someone that they
trust and that they work withoften.
That knows that you are goingto get a good deal, a fair deal,
and I think that's reallyimportant.
Kelli Green (07:42):
I think you've hit the nail on the head.
I just want to recap, for ourlisteners too, is that if they
are really searching for avehicle, the first stop really
should be your financialinstitution Absolutely, and I
think that when you'recomfortable with your loan
officer, they retrieve a creditreport and understand if you
have a relationship with them,they're going to know what your
expenses are maybe things thatdon't show up on the credit
(08:04):
report and help you, as thebuyer, understand what you can
afford.
Laura Hawthorne (08:09):
Well, in almost all of our cases, all of our
loan officers are certifiedfinancial counselors, so they
don't just have a background inlending and underwriting, but
they also have some history andsome education in budgeting as
well.
Yeah, and right now I think,especially in this inflationary
period, that's vitally important, because it's not just about
(08:29):
what debts you owe.
You have a lot of other thingsthat don't you know.
Go into that debt ratiocalculation.
That you have to be mindful ofCar insurance is at an all-time
high.
That's really important.
That you have to be mindful ofCar insurance is at an all-time
high.
That's really important.
And part of the car buying andshopping process is
understanding what that's goingto look like when you finally do
purchase that vehicle thatyou're looking for.
You know, gas right now seemsto be reasonable, right, we've
(08:52):
seen a little bit higher, but Ican't complain too much about
that that.
But then you have, you know,groceries you have to take and
consider if you have children,you have child care needs, those
types of things, so they canreally work with you and
understand you know, if you needhelp in the budgeting area,
where that payment is going toimpact you and your family.
Kelli Green (09:12):
Oh, yeah, because when you're adding on a new debt
or increasing a payment, youknow, when you're maybe
necessarily paying off a vehicleand you're getting ready to
purchase another one, therecould be an increase in payment.
And what does that look likefor you?
You know I love that.
So come visit, you know, visitwith a loan officer, seek that
preapproval before you hit thelot.
(09:33):
And one of the things that Ilove that we offer here is
really talking with them.
Because once you get on the cardealer, you know, at the lot,
you know we don't want to speaknegatively of them, but they too
, you know, have an ability tofinance and they are going to
want to run your credit.
And that's multiple inquirieson a credit report.
(09:54):
That could really have negativeimpact it could.
Laura Hawthorne (09:58):
Um, and then one thing I'd also to like to
mention that we offer here atCentric is, you know, while
interest rates may be a littleon the high side right now, once
we come out and the interestrate market starts to kind of
decrease a little bit, you knowyour loan here at Centric and if
you've worked to maybe improveyour credit if it was kind of
lower at the time that you madeyour purchase, we're more than
(10:22):
willing to rework with you andhelp reprice your loan, which
will then also help decreaseyour payment and make it a
little bit better for yourbudget.
Kelli Green (10:31):
When you mention repricing your loan and this is
something I think especiallywhen families are really trying
to manage inflation, they'relooking at ways to save money
and repricing your loan can do acouple of different things.
Absolutely, you can change yourpayment frequency, which really
it lowers your payment from aninitial say.
If you're making a largeone-time payment, splitting that
(10:53):
up into multiple payments hassignificant benefits.
Laura Hawthorne (10:57):
Oh, absolutely.
One of the things I like aboutthat is you're able to pay down
the principal balance faster,which means you're going to pay
less interest over the life ofthe loan.
Kelli Green (11:09):
Yes, and that's the goal is to get this car paid
off so that you, you know,relieve yourself of that payment
.
And a lot of times people don'trealize that you can do the
same thing we hear a lot oftimes with if you pay an extra
mortgage, can do the same thingwe hear a lot of times with if
you pay an extra mortgage a year, that can actually reduce X
number of months from yourmortgage.
But when you think about this,in anything that you're making a
(11:30):
payment towards and it'sinterest, you're paying interest
on those loans.
When you can split up thosepayments and really make those
multiple payments one, it's notsuch a huge hardship on that
single large sum, that paymentthat you're making, but you're
cutting down on the interest andpeople don't realize that I
mean what other financialinstitution is going to.
Laura Hawthorne (11:52):
How can I help you pay me less, right?
You know?
I just think it's a feel-goodthing yes For us.
It brings us joy to help ourmembers live better.
Feel-good thing yes For us.
It brings us joy to help ourmembers live better, and I think
that teaching our members howto pay less in interest and earn
more in dividends is at the topof what we do.
Kelli Green (12:08):
Absolutely, Because when you're able to put money
down, you're financing less,which means overall it's going
to cost you less, and whenyou're paying, you know you're
making your regular payments,timely payments.
That's going to increase yourcredit score and that is going
to save you an interest becauseyour rates will be lower.
Laura Hawthorne (12:26):
Future buying power is critical, yeah,
critical.
Kelli Green (12:30):
It really, really is.
So something I want to askabout this too and just kind of
wrapping up what we're talkingabout here.
But overall budgeting andspending.
So you mentioned this earlier,touched on it a little bit, but
how should I really adjust mybudget to account for rising
prices?
Do you have some tips maybe formanaging expenses during
periods of high inflation?
Laura Hawthorne (12:51):
Well, I really think that evaluate all the
things that go into your budget.
What are areas of need and whatare areas of maybe wants for
now Is that something that wecan push off until there's a
better time financially to beable to go back to participating
(13:12):
in those types of things?
Our financial counselors canreally help narrow down that
budget and understand where yourdollars are going and how you
can rearrange those to put alittle bit more back into your
savings account during thesecritical times.
Kelli Green (13:30):
And one of the things that you mentioned when
you're talking about puttingmoney back into your savings
accounts.
Something else that we actuallyoffer here at Centric and I
think are priced really well andit's really advantageous for
borrowers, are certificates.
Laura Hawthorne (13:43):
Absolutely.
Right now, if you have excessfunds, that's earning a minimum.
I think some banks pay likeless than you know 0.2 percent.
Yeah, it's very low.
20 basis points is what theycall it.
Yeah, I think that right now, Imean you can get a 12-month
(14:04):
certificate for 5.
15%.
That's unheard of I mean or youknow, and it's secured, that's
the thing.
Yeah, and it's secured, andit's locked in for a specific
amount of time, and 12 monthsright now is a really good term,
because you don't know in 12months where we're going to be
(14:25):
as far as what rates are offered.
So if you can lock it in at a5% rate, why not Let us pay you?
Kelli Green (14:29):
And there's no risk to that.
We are insured by the NCUA upto $250,000.
There's opportunities here thatabound, and if you're, you have
a question, you've got excessfunds of $250,000.
Well, let's talk about that.
What are some ways in which wecan ensure that you will be
insured?
And so I just think thatthere's opportunities for
(14:51):
everyone, whether you're, youknow, just starting your savings
account, you know, with $10, wecan find ways to help you
really maximize that.
So I think the sky's the limitwhen you bank with Centric.
Absolutely, yeah.
Well Laura, thank you so muchfor coming in and chatting with
us today.
I really appreciate yourinsight.
You're an expert and been herefor how many years?
Laura Hawthorne (15:13):
25.
Kelli Green (15:14):
25.
And you started working herewhen you were what?
Just five years old?
Laura Hawthorne (15:17):
Absolutely!
Kelli Green (15:17):
Y eah Well.
Listeners, I just want you toknow how grateful we are for you
and it's a real privilege forme to sit down with our expert
of 25 years here.
She's been my long-term friendfor over a decade and I'm just
so grateful for your insight andI just appreciate your
dedication.
So, L laura, thank you.
Laura Hawthorne (15:35):
Thank you, I appreciate you, too.
Kelli Green (15:37):
Yeah, that brings us to the end of the episode of
the Live Better podcast, and wehope you found today's
conversation about inflation tobe insightful.
In the world of personalfinance, knowledge is your
greatest asset and Centricremains your steadfast partner
in that journey.
If this episode resonated withyou, we kindly ask you to show
your support.
Please hit the subscribe button, share this episode with your
(16:00):
friends and family and take amoment to leave us a review.
Your input is invaluable inshaping the content that
addresses your financialinterests and needs.
And, of course, let's stayconnected on social media.
You can find us on Facebook, atCentricFCU, and on all other
platforms under MyCentricFacebook at CentricFCU and on
all other platforms underMyCentric.
(16:20):
Stay in the loop regarding thelatest financial insights and
resources tailored to yourunique financial aspirations.
Until our next episode, alwaysremember that Centric is right
by your side as you navigateyour financial journey.
Thank you for tuning in to theLive Better Podcast.
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