April 6, 2018 at 1:53 p.m.
CATHOLIC CHARITIES
Wheels and Ways to Work provides car loans and 'financial education'
Wheels and Ways to Work provides car loans and 'financial education'
When New York State funding for the Wheels to Work program was cut in 2011, it could have meant an end to the Catholic Charities program that provided cars for people in need.
Instead, the program was reworked and, rather than supplying donated cars, "Wheels and Ways to Work" now helps clients repair their credit, learn how to handle their finances and get low-interest loans toward cars they purchase themselves.
"Someone told me about them. The whole process was amazing," said Jamaica Miles, a single mother of three who'd struggled with poor credit.
Three years ago, having just started a new job without owning a vehicle, she said, "I needed a car for work. Winter was a real issue; getting the children to school and myself to work was a hassle. Catholic Charities helped me realize I was capable of sustaining a car loan."
Program coordinator Beth Anne Smith termed the process a "teach them to fish" moment: Rather than simply giving clients a car -- and, she noted, many of the donated cars Catholic Charities once received were older and in poor condition -- Wheels and Ways to Work educates clients about banking, how to apply for a loan and what to look for in a car.
Class in session
Ms. Miles remembered the financial education class that was part of her loan process, provided by Catholic Charities, Key Bank and SEFCU: She received help in boosting her credit rating, learned the difference between how savings and checking accounts should be used, and even found that she could open a bank account specifically for car payments. The money would be automatically deducted from that account, so it was never used for other expenses.
Another client, Kimberly Burton, told The Evangelist that the financial education class included a lot of information she hadn't thought of before, including what would affect her credit rating. She completed a financial spreadsheet in record time and successfully got a $5,000 loan from Wheels and Ways to Work, which she used to buy a used Ford Focus.
Now, "I can get to everything," said Ms. Burton, who had a new baby when she applied for the loan. She works for the Commission on Economic Opportunity (CEO) in Troy. "I can get to doctor's appointments, go grocery shopping, and not have to wait hours for a cab. I was on foot before."
As for Ms. Miles, with her $5,000 Catholic Charities loan, she bought a 2004 Chevrolet Trailblazer. Her work commute went from an hour on the bus to 10 minutes by car. The Chevy lasted two years, but by the time the engine died, her credit was good enough to get a better replacement car, with credit through a dealership instead of Catholic Charities.
Still, she went back to Wheels and Ways to Work for a refresher course on finances. By now, she felt like an expert: Every time the instructor asked a question, she said, her hand was the first one raised to answer.
Lots of loans
Last year, Catholic Charities processed more than two dozen car loans. Ms. Smith wouldn't mind doing more, either. "Access to transportation assists individuals with being able to keep their jobs," she told The Evangelist. "Having less financial stress also affects jobs: People will be on the job but not focused on their duties, because they're concerned about making this or that payment."
Wheels and Ways to Work "helps the complete individual," she said, citing the example of a current client who is pregnant. Ms. Smith helped the woman plan for how she'll make her car payments when she's out on maternity leave, concluding that, since the baby is due at the time the client will get her tax return, she'll use that money. Requirements
The program has some rules: Clients must live in the program's catchment area, have been working at least 30 hours a week for at least three months and have $500 they can put toward a car each month, which would cover a payment on the loan, gas and repairs.
Clients can earn up to 80 percent of the median income in the Capital District, which would be $46,000 for a single person. The maximum loan is for $5,000 at eight percent interest, and they have two and a half years to pay it back.
The vast majority of clients are single mothers, who tend to be "underbanked, unbanked or using non-traditional types of banking," said Ms. Smith. Some put their paychecks on a debit card, not realizing that the fees for doing so are high; some have liens on their paychecks, which prevent them from getting a traditional car loan. One client told Ms. Smith she had $1,000 saved -- and pulled it out of her purse on the spot. She'd been carrying it in cash.
Ms. Miles calls the program "a real stepping-stone" that gives clients "information to make changes." She pointed to clients who sat down with a social worker to go over finances and saw how a cable bill could be cut or they could stop getting their nails done and put the money toward a car payment.
Part of the "financial education" Wheels and Ways to Work offers includes specific information on car-buying. Catholic Charities asks that clients choose cars no more than 10 years old with less than 150,000 miles on them, and requires that the cars get a third-party inspection. Staff also look at a Carfax report to make sure the vehicle is safe.
Ms. Smith said she doesn't recommend luxury cars, even used ones, since repairing them is more expensive. Many clients choose Kias or Hyundais because they're more affordable, she said.
Track record
Since the program's inception, 75 percent of the loans it has processed have been paid back -- a good average, but Ms. Smith said she can usually see it coming when a loan is going to fail and a vehicle must be repossessed. She tries to impress upon clients that Catholic Charities wants the loan repayment, not the car.
Ms. Smith, who termed herself a "financial social worker," spends a good amount of time following up with clients who are late on payments. She urges people to call before missing a payment to talk about what's happening and how to work through it.
Ms. Miles remembered doing that.
"The staff have always been there," she said. When she called Catholic Charities in a panic, saying she thought a payment was going to be late, "they talked [me] through it, calmed [me] down." She even got a gas card once as a gift for making all her car payments on time, which delighted her.
We're all alike
Ms. Miles added that there are many misconceptions in society about single mothers and people with bad credit. "They think you're just poor and broke. People ask less of you and expect less of you. I just don't have the vehicle." Having just celebrated her three-year anniversary as development coordinator for Girls Inc., she noted, a car has made all the difference -- especially since her work involves mandatory attendance at networking events outside the office.
"I hate to think what life would have been like if I didn't get the job," she said, and "I wouldn't be able to do the job if I didn't have reliable transportation."
She can also continue her volunteer work. She's on the state board for the grassroots lobbying group Citizen Action of New York and the Alliance for Quality Education, as well as the board of the Schenectady Public Library.
Ms. Burton called Wheels and Ways to Work "awesome.
"A lot of people can't maintain employment," she added, just because "they can't get there."
(Contact Wheels and Ways to Work at 518-724-1821.)
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