“…This will be another payment with interest that has to be paid back”
Media Contact: Barbara Fornasiero; EAFocus Communications; barbara@eafocus.com; 248.260.8466
Wyandotte, Mich. — September 28, 2023 – As the UAW strike continues, with threats of additional walkouts looming, some Michigan financial institutions are offering strike loans to provide additional cash to impacted workers who face a loss of income not covered by the UAW’s $500 weekly strike pay. But just because a loan is available, doesn’t mean it should be taken, according to Carma Peters, president and CEO of Michigan Legacy Credit Union, which is not currently offering strike loans.
“With the mortgage payment deferral options offered by some financial institutions during the pandemic, many borrowers stopped paying their mortgages– even when they could still afford to pay them – not realizing that the interest would continue and the mortgage loan length would be extended,” Peters said. “While strike loans may be right for some strikers, they should generally not be accessed unless absolutely necessary to maintain a basic standard of living.”
Peters offers the following financial strategy tips for UAW strikers:
- Deferments or Skip-A-Payment can postpone payments; however, they will cost you more in interest and extend the loan maturity date. Only use them if you absolutely have to. If you utilize a deferment when you don’t need it, it may not be available as an option when you do.
- If you do run into difficulty making payments, talk to your financial institution right away; this will provide more options for your lender to assist you on a customized basis.
- Review your budget and cut spending; consider eliminating cable (temporarily) or other monthly subscriptions to keep from falling further behind in payments.
- Taking out a loan while your income is reduced should be a last resort. This option should be reserved for when you know the date when your pay will resume or increase. Remember, this will be another payment with interest that has to be paid back.
- Check with utility companies for budget plans to save money and plan for consistent monthly payments.
“These are extremely difficult times for striking workers and their families–and workers in other businesses who are impacted by the strike,” Peters said. “To the degree possible, any major financial decisions should be put on hold until a clearer picture arises on the potential duration and outcome of the strike.”
About Michigan Legacy Credit Union
Michigan Legacy Credit Union (MLCU) is a member-owned, not-for-profit financial cooperative serving members who live, work, worship, attend school, or own a business in the state of Michigan. Michigan Legacy Credit Union is committed to providing quality financial services at a competitive price, delivered professionally and efficiently while keeping member/owners and their needs first. For additional information on MLCU, visit: www.michiganlegacycu.org.
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