affordable housing Archives - NeighborWorks Columbus, GA

Managing Credit Cards

Credit cards can get a person into a lot of trouble and for good reason. When misused, credit cards can lead to unnecessary debt that can become a financial burden.

But in the right circumstances, credit cards can be a powerful tool to help establish credit.

In the NeighborWorks Columbus homeownership program, we walk with people through the processes of building a strong financial foundation. This includes creating and maintaining a budget, helping people manage their debts and rebuild their credit scores, and for some it includes establishing credit in the first place.

This is where credit cards come into play, but many people wonder where to start. Which credit card should you get? How should you use it? These are the questions we will walk through now.

Who should get a credit card?

If you are struggling to manage your budget, it is not the time to get a credit card. But, if you have successfully built a money management plan and stuck to it, a credit card could be beneficial for you to boost your credit score.

Which credit card should you get?

There are several credit cards that are known as starter cards. You will want to ensure you don’t get a credit card that comes with a fee. You also want to ensure your card has a relatively low spending limit to start out with so you don’t get into trouble. To get the most benefit from your cards, you also want to get one that reports to all three major credit bureaus.

How do you use your credit card for the most benefit?

Spending isn’t usually an issue for people, right? If anything we need to be careful to not overspend, whether you’re using a credit card or any form of money.

But, what we’re talking about here is how to use your credit card in a way that actually provides a benefit to your credit and doesn’t hinder it.

There are a few key things to make a credit card work for you and not against you. The first is to set a monthly spending limit that is well within your budget. Some people choose to use it to only pay for gas, for example.

You also want to make sure the spending cap you choose is not the one the credit card company gives you. The best way to use this card is to spend no more than 30% of what your limit is at any given time. So, if your credit card gives you a $1,000 limit, you will want to make sure you never have more than a $300 balance.

Finally, and most importantly, make sure you pay your entire balance on time, every time. Setting up automatic payments is the best way to ensure you don’t forget.

Keeping your goals alive during the holidays

Imagine this: You’re getting the hang of budgeting. You’re maybe even beginning to save a little money. You’re financially on track–and then, the holiday season hits and you lose focus.

In a season that is full of distraction, festive events, and shopping deals, even the most well-intentioned financial planner can drift from their goals. So as we head toward the holidays, let’s equip ourselves with some tools to help avoid some of these pitfalls.

Make a plan before you get busy.

Most of us have a calendar that gets quite full between October and December. Gatherings with family and friends; performances to attend; traveling for some of us; and holidays themselves. Everyone’s schedule won’t look the same, but most of us will have some level of busyness creep in. So now, before you are swimming in festivities, is the perfect time to make a spending plan.

Of course, we always recommend starting with your budget. If you don’t know how much you have available to spend on various things, you won’t be able to make a very good plan. If your money is tight, you could consider a way to make a little extra money, if spending is something you’d like to do this season. Possibly, there’s something you could sell on Marketplace or you could take on a small side job for the holidays, like house cleaning, yard work or one of these other ideas.

Once you know how much you have to work with, you can prioritize the most important things to spend your money on. We even recommend planning what you want to buy, for whom, and where you may get it from. Any pre-planned detail will help you avoid impulsive spending when you get those ads in your inbox!

2. Prioritize yourself.

The holidays are often considered a “season of giving,” but we’re here to tell you that prioritizing your own goals and needs is important. If you are saving for a big goal, like homeownership, or working toward paying off your debts, do not let those goals go. Do not let outside pressures to spend derail your progress. Remember, this goal won’t last forever, and it will make future celebrations all that much more exciting!

3. Get creative.

Even while staying laser-focused on your goals, you can still find many ways to get in the spirit of the holidays! Have a fancy party or church event to attend and need a new outfit? Maybe you can start shopping second-hand or hold out for a big sale and find the perfect attire. Want to give some great gifts? Watch those sale ads and wait for the best deal. Perhaps you prioritize the children in your spending and send cards to adults? Maybe you can use your talents to offer a nice gift or service.

We fully believe you can have a meaningful holiday season, no matter your income or financial goals. We hope some of these tips can help you be festive without breaking the bank or your progress.

But to end, if you overspend–like Forbes says 7 of 10 Americans do, you are not alone.Give yourself grace and continue working toward the finish line. Whatever holidays look like for you and yours, may your season be full of warmth, love, and light!

Surprising benefits of homeownership

If you’ve come across this article, chances are you are thinking about becoming a homeowner one day. And, we bet you have really good reasons for that goal.

Perhaps you are looking to build equity; maybe you are excited about the freedom to make your own home choices, like renovations and paint colors; perhaps you are looking for the stability of mortgage payments remaining consistent and no longer having to move. And, tax breaks never hurt, right?

These are all really common reasons people seek out homeownership, and they are all great ones. But, we thought we’d let you in on a few other benefits that maybe you haven’t considered. Homeownership has some surprising ripple effects on not just a homeowners’ lives but the entire community. Let’s dive in:

1. Homeownership is good for your health.

Homeownership is about so much more than just having a house. It creates stability, community ties, and financial security, and with these, studies show that homeownership has a positive impact on physical and mental health. A recent study from the Centers for Disease Control (CDC) looked at chronic health conditions and homeownership and found that as a group, homeowners have better health outcomes.

We (and the CDC) are not saying that if you buy a house, you will not experience any health problems. But studies continue to show it plays a role. It’s not simply about the structure of a house, but rather the other benefits that come with homeownership. Though, the structure of a quality home can lead to better health, as well.

There are also mental health benefits. Adults have plenty to worry about, and when you have a safe, decent, affordable home, that is a big load off. You don’t have to worry about moving, so you are free to focus on other important things in life.

2. Homeownership helps children thrive.

Studies also show that children of homeowners perform better in school. They are more likely to score higher in math and reading scores improve the longer they are in a home. Further, kids from low-income families who are homeowners are 11% more likely to graduate high school and 4.5% more likely to attend a post-secondary school than those who do not own their homes.

Again, we are not saying purchasing a home is a magic fix for your children’s school performance. But something is to be said for the data that shows stable housing is a strong contributing factor to education.

3. Homeownership helps families build wealth.

According to a study by Habitat for Humanity, U.S. homeowners have a net wealth that is 400% higher than renters with similar demographics and income. Having equity in your home makes you a wealthier person, even if the wealth doesn’t equal immediate cash in hand. You are laying down roots for your family and your future when you purchase a home.

4. Homeownership helps make safer communities.

Like health, there are several factors that contribute to public safety, but housing is definitely one of them. The quality of housing and involvement of a neighborhood’s residents are key to creating safe communities. And when people are in their homes to stay, they are more likely to take better care of them and become more involved in their communities.

Overall, we don’t think there are many bad reasons to buy a home, there are many benefits to doing so. We hope these give you a little insight into some that may not be talked about as much as others, and if you decide homeownership is the path for you, NeighborWorks Columbus is here for you every step of the way!

8/19/2024

25 years of NeighborWorks Columbus

NeighborWorks Columbus is officially 25 years old this year! We are proud to be part of a community of supporters who value safe, fit, and affordable housing. From day 1, we have had a great team, and in the past quarter of a century, with your support, we have been able to make big strides in expanding affordable housing. We hope you’ll enjoy this look back at the milestones you have made possible in our community’s history:

Seeds planted

Two years before NeighborWorks Columbus was formed as an organization, our CEO Cathy Williams was invited to a Chamber of Commerce inner city tour. This trip is done annually and typically takes community leaders to another city to gain new ideas and insights. But in 1997, Councilwoman Evelyn Turner Pugh suggested the Chamber tour Columbus, and thus, “The Good, The Bad, and The Ugly Tour” took place around our city.

As part of that, the group went on a bus tour of what was then known as the “South Lawyers Lane neighborhood.” It was bad–so bad that in 1989 Dateline NBC dubbed the corner of 9th and Benner Street as the “most dangerous corner in the country.” This was quite an eye-opening experience, Cathy said.

Seeds watered

After this experience, the City Manager asked Cathy and Amy (Carroll) Moore to co-chair a housing focus group and study the issues. After one year, they presented their recommendations:

Start a nonprofit
Establish a consortium line of credit
Draft a message that it is unacceptable to have substandard housing in our city.

The City Manager then said, “Go do it.” Thus, Cathy left her job at the Homebuilders Association and formed the Columbus Housing Initiative (which became NeighborWorks Columbus in 2004).

Garden is in bloom!

With generous funding from an anonymous donor, our work began in 1999.

The first task the city asked the nonprofit to do was to revitalize South Lawyers Lane. In surveying residents for that work, one of the first things we learned was that residents called their neighborhood East Wynnton Park.

East Wynnton Park

We rebranded it. We worked individually with an architect and residents to design the look of their homes and created a community garden. The work of NeighborWorks Columbus really started in East Wynnton Park. Over the course of time spent there, we built 51 homes! EWP was no longer defined by its deficiencies; rather it was a place of opportunity and hope. In December of 2003, the U.S. Department of Housing and Urban Development (HUD) named East Wynnton Park a “Best in American Living” neighborhood. It had become a Neighborhood of Choice.

Milestone Moments

It is worth noting that from the start, our homeownership model, Avenues to Homeownership, has stayed the same at its heart: we walk with individuals seeking homes through each step of the process. This includes financial counseling, homeownership education, securing affordable loans, down payment assistance options where possible, and a relationship that even extends beyond the closing table. The goal is not just putting people in a house–but creating successful lifelong homeowners. This is the core of what NeighborWorks Columbus does each day.

Columbus Cottage Program

From the beginning of our history, NeighborWorks Columbus has had a version of the Columbus Cottage Program. Began as a partnership with Jordan Vocational High School’s Construction Program, Students Housing Seniors, this life-changing program has given back to senior citizens in our community by taking substandard homes they already owned and building them a new home in its place. This has given 9 senior citizens in our community the ability to age in place with dignity in their own homes.

Beallwood

In 2005, we transitioned out of working in East Wynnton Park and moved into the Beallwood community. Over the years, NeighborWorks Columbus worked closely with the community to build several single family, duplexes, and cottages for our residents. Many of the homes that were originally built to be sold, had to be rented when the housing market crashed in 2008. Over time, we have sold all these rental properties to homeowners in a neighborhood that is truly a unique and wonderful place to call home.

Hallock Soldier’s Fund

In 2007, the Hallock Soldier’s Fund was established in memory of Colonel Richard Hallock to help soldiers and their families achieve the American dream of homeownership. This fund offers down payment assistance, low-interest loans and matching incentives to help soldiers and their families become successful homeowners. Through the years, 142 have benefited from the Hallock Soldiers Fund.

Solstice

In partnership with The Bennett Group, NeighborWorks Columbus built Solstice, a community in Auburn, Alabama for low-income senior citizens. The community features 28 duplex units in a beautiful, ideally located neighborhood.

North Highland Developments

In 2019, we began our third neighborhood revitalization effort in partnership with so many partners. The North Highland community was once a thriving neighborhood, but when the mill shut down, it left its residents impoverished. Our efforts resulted in two big developments in this region: Highland Terrace and Highland Homes.

Highland Terrace

Highland Terrace is a beautiful apartment complex housing 102 low-income senior citizens in North Highland. It is located next to Fox Elementary School, on the site of the former Meritas Mills location.

Highland Homes on 4th

This new subdivision was built along 4th Avenue on the block between 35th and 38th Streets. The 20 new homes have been purchased by former residents of the Ralston Towers, mothers working at Wal-Mart, doctors, and military families. It’s truly a unique and diverse neighborhood in the beautiful Mill District.

Elliott’s Walk

This brings us to today. NeighborWorks Columbus started work on Elliott’s Walk, bringing new affordable housing to South Columbus for the first time in 50 years. Last year, we built 19 new single-family homes, which have all been sold. The second phase of 26 homes is under construction now. Once that is completed, we will build a 130-unit low-income senior housing at Elliott’s Walk called Providence Pointe.

Truly, it’s been an honor to work with this community for the past 25 years.

Cheers to the next quarter of a century! Thank you for helping us give this community safe, fit, and affordable housing for all citizens of low to moderate income.

07/10/2024

Home Sweet Home in Elliott’s Walk

Emma West was tired of paying rent and living in apartments, and she knew she wanted to own a home.

She started her journey almost five years ago and kept hitting road blocks.

“This process was not an easy one for me. I had a bunch of ‘no’s’ along with a lot more excuses of why I couldn’t be a homeowner,” West said.

West works at Wal-Mart, and was told by various sources she did not make enough money or would need a co-signer. But, she did not give up hope.

Earlier this year, Emma was encouraged by her family to come to NeighborWorks Columbus. That’s when the process sped along for her. Just a few months later, Emma is the proud homeowner of not just her first home but a brand-new home in Elliott’s Walk!

“(NeighborWorks Columbus staff) told me I was approved for the loan, and then they told me about Elliott’s Walk. It was just a dream come true,” she said.

Ema closed on her home last month, becoming one of the first homeowners in this historic subdivision that will eventually house hundreds—and she did it despite lots of trials and proudly, without a co-signer!

Managing Credit Cards

Keeping your goals alive during the holidays

Surprising benefits of homeownership

25 years of NeighborWorks Columbus

Home Sweet Home in Elliott’s Walk

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