Welcome to my first electronic newsletter. I hope you will enjoy
receiving these updates about my work on behalf of Wisconsin. Wisconsin is a unique state filled with beautiful
countryside and growing cities. It is an honor to represent you in the U.S.
Senate. If you have any questions or concerns, please feel free to contact
me at kohl.senate.gov
or at 1-800-247-5645.
Sincerely,
KOHL COLUMN: Have
Financial Questions? ASK
During these hard
economic times, it is important for consumers to understand their options
and know where to find answers to financial questions. A lot of the banking
jargon being used on the news can be confusing, with terms such as Term
Asset-Backed Loan Facility, credit default swaps and mortgage backed
securities. With all of the action surrounding the banking industry,
keeping track of what it all means to you can be difficult.
First, one of the most
important things to check is if your bank or credit union has deposit
insurance. Congress has temporarily increased the amount that is
insured by the government, up to $250,000. If you are unsure if your financial institution has Federal Deposit Insurance
Corporation (FDIC) or National Credit Union Association (NCUA) protection
or to how much of your money is protected, contact your bank or credit
union.
Second, if you are having
difficulty making monthly mortgage payments, talk to your bank or
lender. Many banks are willing to work with homeowners so they can
find a sustainable solution. If you are having difficulty getting in
touch with someone or do not feel comfortable speaking to your lender,
there are other resources available. To speak with a certified
counselor to help you work with your lender, call the Homeownership
Preservation Foundation hotline at 1-888-995-HOPE. To find a housing
counselor near you in Wisconsin, call toll free 800-569-4287.
Third, assess your
current financial situation and make a budget to help prioritize important
household expenses. Taking a closer look at household spending may
reveal areas where you can cut back and save money. Set aside whatever
money you can to pay down high-interest debt, such as credit card bills,
which can be a terrible drain on your finances. If you are having
trouble managing your bills, you can speak with a certified credit
counselor by calling the National Foundation for Credit Counseling at
1-800-388-2227.
Finally, plan for the
future. It is never too early to start saving for retirement, and
money you save earlier will have the most time to gain value in investments
you make. Some companies match the contributions employees make in
their retirement accounts, and when considering your household budget you
should make every effort to take full advantage of this benefit. Ask
your employer any questions you have about your company’s retirement
plan.
Financial issues can be
extremely confusing, and as a member of the Senate Banking Committee we
will continue to advocate reforming our financial system to make it work
better for all Americans.
