In the News

Wyandotte, Mich.  – December 1, 2021 – It’s a time-honored tradition: making new year’s resolutions to get out of debt and save more money in the year ahead. Michigan Legacy Credit Union (MLCU) President and CEO Carma Peters, who once found her family climbing out of debt after a job loss and the Great Recession, speaks from experience when offering advice on how to move forward on solid financial footing.

“If COVID has taught us anything, it is that your life can change in a moment’s notice.  Eliminating debt and having savings to fall back on can mean the difference between barely surviving and thriving – or at least comfortably weathering the storm,” Peters said.

Here are 10 actionable tips from Peters to get you on track for saving money and managing debt:

1. Start a budget or financial journal. Spend the time to make a budget or document in a note book your income and expenses. Once you get in the habit it will help know where to make adjustments and you will find ways to save some of the money you do not even see being spent now.
2. Cash is king: Stop using your credit card and start paying cash when possible to keep a close eye on your spending.
3. Mind over matter: If you need a psychological win, pay off the smallest balance first to feel a sense of accomplishment.
4. Be efficient in your payments: If you can skip the satisfaction of a psychological win, concentrate on paying off the highest interest rate debt first, as it is the one most negatively affecting your budget.
5. Be aware of the minimum payment warning box: This box will tell you how long, as well as how much, it will take if you make no additional purchases and pay the minimum payment. For example, it will take you 16 months and a total of $444 just to repay a $288.64 charge by making a minimum payment of $29 at a 26.99% simple interest rate.
6. Conquer student loan debt: This is the debt that affects personal budgets the most. It can be the biggest enemy because of the duration of the repayment, not necessarily the interest rate. To help plan repayment, find an online financial calculator and enter the total amount of student loan debt, the interest rate and the payment, and it will calculate the time and total cost of paying it off.
7. Consider refinancing: Some financial gurus may not look at refinancing as a good idea, but if you can lower that rate and find a financial partner that will understand your goals and hold you accountable, it can help you to go from a 26% or higher credit card to a smaller unsecured rate loan.
8. Be patient: You likely didn’t get in your financial position overnight and you will not get out of it overnight. It will take time, sacrifice, hard work and focus, but it can be done.
9. Start saving small: If you are not a saver, put $10 per paycheck in an account with no access to an ATM or home banking, so you must drive to physically withdraw it. Every time you can increase the contribution amount, it will add up over time, and you will have created your emergency fund.
10. Change is hard: Most people never change their habits, so it takes a true desire to get to a different outcome. You must be so discouraged by where you are that you want something different for the rest of your life.

“Following even one of these tips to start out the new year can make an immediate impact on an individual’s financial savings and outlook for the rest of the year. Plus, it can help build better personal finance strategies for years to come,” Peters encouraged. “Choosing to change your unhealthy financial habits can be just like a new year’s resolution to exercise – start with one right decision every day.”

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.

On-demand cash payments, with affordable fees, now available through traditional financial institutions

Media Contact: Barbara Fornasiero; EAFocus Communications; barbara@eafocus.com ; 248.260.8466

Wyandotte, Mich. — November 22, 2021 — It has never been easier for consumers to access their money through payday lending services and the instant money apps that have proliferated since the pandemic; however, many are unaware of the costs associated in using these types of services and how quickly they add up.  Carma Peters, President and CEO of Michigan Legacy Credit Union (MLCU), sheds light on the inflated fees that payday lenders and digital cash-advance services charge for their offerings—penalizing the individuals who are most in need of the cash but can least afford the fees.

“I’ve always been unsettled by consumers wasting their money on additional fees to get their paychecks cashed or to get short-term loans to tide them over until payday,” Peters said. “At first glance, payday lenders seem innocuous enough because they give consumers the quick cash they need with a few weeks to pay it back, but what isn’t apparent is the annual percentage rate equivalent often surpasses 300%.”

Peters offers an example from Consumer Financial Protection Bureau data, which finds payday loan fees typically run $15 per $100 cash advance, in noting that an individual asking for a $300 loan would pay a $45 fee. That translates into an annual percentage rate (APR) of 400%—well over typical credit card APRs.  Peters also notes that data from the Center for Responsible Lending indicates that states with fewer regulations and no rate caps, which includes Michigan, have borrowers that can fall into the “payday loan debt trap,” where they continually have to reborrow to cover their previous payday loan.

In addition to debt traps, Peters cites other risks and disadvantages from using third-party lending apps, including privacy concerns; overdrafts and the high fees associated with them; the inability to effectively build up credit, just like with short-term small-dollar lending services; and the lack of personalized service when there are questions and problems.

MLCU—known for finding unique and individualized financial solutions for its members—has a history of granting credit to borrowers with lower credit scores and offers an on-demand payroll advance option called ‘Pay Me Now,’ which was introduced in 2021 and provides money for short-term purposes with lower fees. The credit union also offers loans for members who may need a larger, longer-term option, with NO fees to obtain the loan. (Note: anyone who lives, works or attends school in Michigan is eligible to join MLCU.)

“Many consumers are unaware they can look to traditional financial institutions like credit unions and banks to receive the same on-demand cash at a lower interest rate or fee, saving hundreds of dollars annually.”

Peters said. “Not only can they improve their financial situation, they can get the personal financial assistance they need for their own well-being and establish an ongoing, trusting relationship with their lender.”

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.

Media Contact: Lucie Fornasiero; EAFocus Communications; lucie@eafocus.com; 248.925.6726

Wyandotte, Mich. — September 28, 2021 — Michigan Legacy Credit Union (MLCU), with five physical locations, in Flat Rock, Highland, Pontiac, Warren and Wyandotte, is pleased to announce it has made a  $20,000 donation to Crime Stoppers of Michigan. The announcement was made by Carma Peters, president and CEO of Michigan Legacy Credit Union.

The Crime Stopper donation reflects a continuing effort by Michigan Legacy Credit Union to support initiatives that strengthen communities.   Earlier this year, MLCU donated $10,000 to The Downriver Community Food Pantry and $15,000 to The Wyandotte Rotary Club.

Crime Stoppers of Michigan is committed to making communities where you live, work and play safer.  Serving seven counties in Southeast Michigan, Crime Stoppers of Michigan enables tipsters to anonymously report crimes via phone (1-800-SPEAKUP) or online (1800SPEAKUP.org) to help prevent and solve criminal activity, as well as working with victims of crime and also creating safe after school places for children, through Project Safe Campus.

“At Michigan Legacy Credit Union, we are always looking for ways to make an impact in the communities where we live and serve,” Peters said. “The work of Crime Stoppers of Michigan aims to make Michigan communities safer for everyone, safer communities means everyone thrives – and we are happy to support their mission.”

About Crime Stoppers of Michigan

Crime Stoppers of Michigan’s goal is to empower people to make their neighborhoods, schools, churches and businesses safer through the anonymous reporting of crime. Crime Stoppers of Michigan is an independent 501 (c)(3) nonprofit organization, and proud to be a part of Crime Stoppers International. Based in Southfield, the organization serves Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw and Wayne Counties. Get more information about Crime Stoppers or submit a tip online.

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

Michigan Legacy Credit Union answers the call to modernize amid fintech disruption

 Media Contact: Lucie Fornasiero; EAFocus Communications; lucie@eafocus.com; 248.925.6726

Wyandotte, Mich. — August 30, 2021 — Michigan Legacy Credit Union (MLCU)—with five physical branches in Flat Rock, Highland, Pontiac, Warren and Wyandotte—is answering the call to innovate as more big tech giants and retailers like Apple, Google, Amazon, and Walmart move into the fintech sector to offer traditional financial and banking services. Led by CEO Carma Peters, MLCU has taken several innovative measures to modernize its experience as part of a larger strategic direction that shifts to a smaller physical footprint and offers more digital interaction with members.

“With the rise of neobanks, combined with an increasing number of customers willing to handle their personal finances remotely as a result of the pandemic, brick-and-mortar banking is experiencing disruption, and the traditional bank teller and ATM experience is no longer enough,” Peters said. “The move to fully online banking affirms MLCU’s strategic branching system decision, as we are already seeing the value among our branches that has come with having less square footage of space.”

MLCU is converting all its locations to teller-less branches, utilizing smart ATMs to handle deposits and withdrawals. As part of the teller-less branch, MLCU adopted the Pop I/O video teller platform in which a member can open an account, apply for a loan, close a loan, including mortgage lending, and perform any maintenance such as change of address, fraud disputes and any other cashless services on their account through the video platform. This technology allows members to join from the comfort of their home, vacation or wherever they happen to be from their convenience of their phone. A key objective is to provide one-on-one service utilizing technology in a non-threatening environment, along with non-contact transactions that keep members and staff as safe as possible.

“We saw in-person transactions and member lobby interactions start to decline even before the pandemic, so this strategic decision was easy to make; when the pandemic hit, though, online took off,” Peters said.

In 2020, MLCU had 50,000 more online transactions in April than in March—a 38% increase. More recently, online channels have increased 33% in 2021.

While the call to innovate could be intimidating for smaller financial institutions, it shouldn’t be.

“You do not have to be a large financial institution to adopt new technology at prices you can afford. Most of it is thinking outside the traditional box and finding the ways to make solutions work for your credit union,” Peters notes.

MLCU’s innovation efforts haven’t gone unnoticed. In December 2020, the renovated Wyandotte branch reopened, designed as a nostalgic community gathering spot, reminiscent of a 60s era diner, and complete with a jukebox encased ATM machine. Michigan Credit Union League announced the Wyandotte branch of Michigan Legacy Credit Union as an Innovation Award winner earlier this year.

And the modernization won’t stop there.

“Eventually, our goal is to provide 24-hour service, utilizing staff to be on call for the video platform anytime it is convenient for members,” Peters shared. “We will continue to adapt as our world changes – rapidly.”

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.