What Credit Unions Don't Want You to Know.

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a little friends mark mark telly here

for Mark's money matters and welcome to

money matters live right here on

Facebook what I'd like to try to do here

is help you break your addiction to

credit and bring some sanity to your

finances and I want to talk to you about

today or credit unions and how they're

different from your regular

run-of-the-mill banks and what you need

to know but before I get into the credit

unions I want to give you a little rant

that I have and it's something I've been

seeing more often on my my bankruptcy

consults is this get-rich-quick scam

where I've seen it in the real estate

industry where you know you have these

people that are famous from TV I'm gonna

tell you how to flip houses but now I've

seen in other areas on online courses

and again what they do is they show you

a couple of testimonials from people who

have made allegedly millions of dollars

and that you can do this to the online

things they explain to you how you do

you know from the comfort of your home

but here's the part of the scam so again

three reasons why people act our fear

guilt and greed and a lot of this

relates to greed and that's how people

get taken advantage of because I think

it's a get-rich-quick scheme when it

turns out it does it really work hi

there Linda I hope you're feeling better

and so here's here's the the commonality

between these scams that I'm saying is

that what they do is they they tell

people you know well you can't afford

this package you know it's 10,000 20,000

30,000 dollars they're the ones that I

see with real estate they tell people

well you can take out this credit and

put money down and

you know you're gonna make this

investment back and just pay off that

credit card what happens is they're

unable to get this financing that

they're being told about or they're

unable to make these sales they they're

told about and so basically how the scam

works is and they coach people to do

this is to call up for credit card a

credit card application that tell them

how to do it online they tell them how

to fill out the application online and

they have them actually make

misrepresentations letting them think

that their misrepresentations are

legitimate by saying you know when it

comes to the question well how much are

you making they tell them well you can

put down how much you think you're gonna

make and if you do this plan you're

gonna make $100,000 you're gonna make a

hundred and fifty thousand dollars so

put that down and because of that they

get these big credit card lines or lines

of credit so they can get three four

cards each with ten to fifteen thousand

a dollars worth of credit and the next

thing you know you know they're deep

into debt they got taken by these scams

whether it's flipping houses or you know

selling some product online that doesn't

work and then they're in trouble that's

unfortunately when they have to come and

see me so so be aware of these things

again the common-sense thing if it

sounds too good to be true it probably


you live by that you're gonna stay out

of a lot of trouble so please be careful

with these scams especially where

they're telling you to take out credit

where they're the beneficiary of it

there's no guarantee that you're gonna

get paid back from that now what I'd

like to talk to you about today are

credit unions and how credit unions are

different than going to your local bank

or even a national bank so unlike a

large Bank Wells Fargo or

Bank of America if you get one of their

credit cards those credit cards are

called unsecured meaning that if you

don't make those payments they don't

have a lien on anything that they can

execute mom I have to see you and get a

judgment however credit unions are

different so credit unions have what

they refer to as members yeah I think

it's really a fiction but they can refer

to them as members so they have this

higher level that they want to protect

the members of this club and it'll have

teachers unions you'll see the Navy

Federal Credit Union and the credit

unions were started to to help people in

particular industry that let's band

together as teachers as firefighters or

as a particular union so we can help

each other out and think of you know

like It's a Wonderful Life think of the

Old Bailey building and loan company the

same type of concepts that's really more

what a credit union is like and what

credit unions do is unlike a bank if you

get a credit card from a credit union

they don't go into detail on the fine

print but unlike your other credit cards

it may be in your wallet the application

that you signed for that credit card

says in the fine print that that credit

card is secured by the monies that you

have deposited in the accounts in their

bank so if you have a CD you have a

savings account you have a checking

account that credit that you have is

secured by those accounts what's even

worse that people don't realize is that

that same fine print says that that

credit card is secured if you if you get

a car loan from them and of course what

they do is you go there for a car loan

they throw in and hey would you like

your credit card shorts and what happens

is that credit card is secured by the

vehicle so when you first get the

vehicle you may not have any equity in

it but after three years four years

where you maybe you have six seven

thousand dollars worth of equity in that

vehicle that credit card is secured by

that so if you don't make those credit

card payments you know what they can do

they can come and repossess the car even

if your car

and that's the big surprise that's a big

surprise that my clients have or when

they have to come to me for bankruptcy

because if things go bad and and this is

what will I hear so often from my

clients you know they were so nice to me

you know they were willing to give me

this credit card they gave me this car

loan and I went to them and they told

them that hey I'm having some trouble

can we rework the loan and they want

something that took the money out of my

my bank account and they're shocked so

yes they're nice to you when they're

trying to do business with you but when

push comes to shove they're gonna do

what they have to do to protect their

members interests so if you are

currently with a credit union and you do

have credit cards with them or any type

of loans make sure you review that

agreement that you signed is your car

loan or your credit card secured by your

car or your other assets you need to

know that when you're you're doing

planning now it's not the end of the

world if you have to file bankruptcy but

if you have a credit card and you want

to keep the car you're gonna have to

make payments on it and Nicole or you

know so many people don't know this and

then you're you're in industry that's

always dealing with credit unions and

doing loans and stuff and people just

don't know this that's why I call it's

one of the big big secrets and then the

first time it happened in a bankruptcy

it was surprised to me when they said

hey you have to pay off this credit card

because we have a security interest in

in their vehicle and I'm like will show

me it and there it is and it doesn't

matter which credit union it is everyone

I've seen has these these different

types of stipulations will say and they

don't disclose it but I'm telling you

when you're signing up for that credit

card that that loan is secured by it so

again don't if you have those credit

cards if you're picking if you you know

looking to take control of your finances

and you want to resolve things start

paying those or first if you're


get those paid off first and again

mother's right you know so many people

don't know this and that's really the

first thing we talk about

when we meet with the client you know

I'll look at that they can fill out a

questionnaire and we'll it to see are

they banking with a credit union and

then do they have a car l'homme the

first thing I asked them was your car

loan with and if we find out that the

car loan is with the credit union we

advise them only have to do a lot of

planning when that happens so it is a

unique situation that that people don't

know about so keep that in mind again

it's not to throw a credit union under

the bus they're very helpful in the

right situations but when things are

tough and that's why you may be looking

for for some answers or doing your

planning be aware of these other

consequences is not like your typical

credit card that you may get from a bank

so again if you like more information or

if you have questions you can always

shoot me a question in the comment area

if you'd like to email me a question my

email is simply Mark at mark Martella

dot-com if you like some free resources

go to the money manager website it's

just WW mark mark telecom you could go

to the free resources page we have the

ultimate budget planning tool for being

asked by creditors we have some form

letters there that you can send them and

you know all these videos are on there

my past radio shows and if you want to

learn about my five-step financial

sanity solution just go to episode 13 of

my radio show also on the website there

listen to that and that'll start you on

the path of gaining control of your

finances again I'm Mark Martella for

money matters and remember you have the

power to choose to live a debt-free

stress-free life have a great week