Here are the facts:
2011 marked the beginning of retirement for Baby Boomers
Many Boomers borrowed from their 401(K) plans to get them through the recession
Many Boomers were led to believe home prices would more or less double every decade, a belief that many baby boomers to neglect retirement savings.
Jane White, author of “America: Welcome to the Poorhouse,” explains that many boomers will still have mortgages and home equity loans when they’re ready to retire – something past generations didn’t have to worry about.
But this is something credit unions do need to worry about. For the first time in credit union history the largest generation IN US history is going to die with enormous debt. And unless they are insured, that debt goes to their estate – which most won’t have – so it will go to your charge-offs.
Did you know that the average age of the credit union borrower is 2-5 years OLDER than the average age of their entire membership?
Why is this?
Because we live and die by the bloody credit score. I personally hate FICO. It’s not logical, almost impossible to decipher and until you have one, you are nobody. And who’s the idiot that decided the number wasn’t enough – let’s attach a grade to it. A, B, C, D……….sound familiar?
You can’t un-see a C credit score. We are so conditioned to judge people by that stupid number we’ve stopped hearing their stories. In this economy a lot of people – good people – struggled with their debt.
But let’s talk about the group that is seriously discriminated against. Those with NO score. And how do you get a score? You have to get credit. Somewhere else……
That’s why Team 2 of the FIlene’s i3 program decided to subvert FICO by literally gaming it.
We have recruited 20 young adults with no credit score, approved them for a $500.00 VISA card and in six months, the person with the highest score wins $500.00! But more importantly, they will all be on their way to being somebody.
We are off to the races!