Credit unions turned out an impressive showing in the run up to the budget compromise. From non-interest loans to skip-a-payment offers, cooperatives demonstrated they were willing and able to provide members with short-term financial boosts during a time of crisis.
Preparing for a government shutdown is nothing new. From 1981 to 1995, the government closed a total of nine times, each one lasting no longer than three days. In the winter of 1995, the longest shutdown in history lasted 21 days (Dec. 15, 1995 - Jan. 6, 1996). In this context, all this debt talk feels a little like déjà vu like déjà vu.
Fortunately for credit union members across the country, many cooperatives have contingency plans they can dust off and repurpose for a rainy day.
“A little planning can take you a long way if you repurpose it correctly,” says Scott Post, senior vice president of strategy and delivery for Hanscom Federal Credit Union ($919.5M, Hanscom AFB, MA). Last week, Hanscom offered a bit of insight to members of Callahan & Associates’ Leadership program regarding how his credit union plans for the worst. Watch the video above to learn more about:
Hanscom’s interest-free line-of-credit
Hanscom’s skip-a-pay option
How Hanscom communicates the availability of its short-term assistance
How to ensure there is enough cash on hand to meet members’ needs
Next year, a new legislative committee will decide where to cut $1.2 trillion in spending. These spending cuts will be painful for many members. How will you respond?