The Hidden Risks of

Buy Now Pay Later

In today's digital shopping era, Buy Now, Pay Later (BNPL) options are increasingly popular. While they may seem convenient, these services can pose significant financial risks if not used carefully. Remember, just because you can buy now and pay later doesn't mean you should. Your future financial stability is worth more than any impulse purchase. Here's what you need to know to protect your financial health:

What is Buy Now, Pay Later?

BNPL allows consumers to make purchases and pay for them in installments, often without interest if paid within a specific timeframe. Popular providers include Afterpay, Klarna, and Affirm.

The Appeal:

• Instant gratification: Get your items now, pay over time.
• Often interest-free if paid on schedule.
• Easier approval than traditional credit cards.
• Easy to use with online shopping.

The Hidden Risks:

• Debt Accumulation: Multiple BNPL purchases can lead to over extending yourself and accumulating more debt than you can handle.
• Credit Report Blind Spot: Many BNPL services don't report on-time payments to credit bureaus, meaning future lenders might not see your complete financial situation.
• Missed or Late Payments: These can result in late fees and may be reported and damage your credit score.
• Fees and Interest: Late payments can incur hefty fees and high interest rates.
• Impulse Buying: BNPL can encourage unnecessary purchases, straining your budget.
• Less Protection: BNPL may offer fewer consumer protections than credit cards.

Avoiding the Debt Trap: To avoid falling into a BNPL debt trap, consider these strategies:

1. Wait before purchasing: A cooling-off period can help you determine if a purchase is a need or a want. Always ask yourself: "Is this necessary, and can I afford it?"
2. Assess the true cost: Consider all fees and interest. Is the total amount worth it?
3. Consider your debt goals: Will this purchase set you back in your efforts to get out of debt

Smart Shopping Strategies: Before using BNPL, ask yourself:

1. Can I afford this if I had to pay in full today?
2. Will I still be able to pay my other bills on time? Will this payment fit in my budget?
3. Am I using BNPL because I can't afford the item otherwise?

If you answer "no" to the first two questions or "yes" to the last one, it's best to hold off on the purchase.

BNPL can be beneficial when used responsibly, but it's crucial to understand the risks and manage your spending wisely. Prioritize your financial health and make informed decisions to avoid falling into the debt trap.

Strategies for Building Assets in Any Economy

In today's economy, with rising inflation and increasing costs for essentials like food, many of us are feeling the extra costs. It can seem impossible to think about building assets when you're just trying to make ends meet. However, even small steps can make a difference in your financial future.

Navigating Cost Increases

The first step in asset building is to take a close look at your income, spending, and expenses. With prices going up across the board, it's crucial to prioritize your needs versus wants. While it may not feel like traditional asset building, reducing your expenses is a powerful way to improve your financial situation. This often involves making tough choices:

1. Track your spending: Keep a detailed record of where your money goes for at least one month. This can reveal surprising patterns and opportunities for savings.
2. Prioritize essentials: Ensure your basic needs are met first - housing, utilities, food, and necessary transportation.
3. Cut non-essentials: Look for subscriptions, services, or purchases you can live without, at least temporarily.
4. Seek alternatives: For necessary expenses, look for lower-cost options. This might mean switching to generic brands, using public transportation more often, or finding free entertainment options.

Remember, every dollar saved is a dollar that can go towards building your assets:

1. Emergency fund: Use savings from reduced expenses to start or grow an emergency fund. Even small amounts add up over time.
2. Debt reduction: If you have high-interest debt, using savings to pay it down faster is a form of asset building. You're reducing future interest payments and improving your financial health.
3. Skills investment: Boost your earning potential by acquiring new skills. Explore free learning resources like Gale Courses through your local library or platforms like Coursera to access a wide range of courses that can improve your job prospects or create a side or increased income opportunities.

Asset building is a journey, not a destination. Every small step you take, whether it's reducing expenses or finding creative ways to save, is moving you in the right direction. It's okay to start small – the important thing is to start.

Redmond Main Office

405 SW 6th Street

Redmond, OR 97756

Phone) 541-923-1018

Fax) 541-923-6441

Text) 541-286-5562

Business Hours:

Monday to Thursday, 8:00 am - 5:00 pm

Closed Friday

Bend Satellite Office

2017 NE Full Moon Dr. Suite #100

Bend, OR 97701

Phone) 458-281-0813

Fax) 458-281-0815

Text) 541-286-5562

Business Hours:

Tuesday to Thursday, 9:00 am - 4:00 pm

Closed Monday & Friday

(Pictured Above: Emma's Place)

Housing Works Awarded Grant From Oregon Health Authority

Housing Works is thrilled to be the recipient of a $583,370 grant from the State of Oregon, awarded through the Oregon Health Authority's Healthy Homes Grant Program (HHGP)!

The Healthy Homes Grant Program is designed to improve housing conditions and health outcomes for residents of low-income households, preserve affordability and availability of existing affordable housing by addressing deferred property maintenance issues, and help low-income households avoid displacement through access to home repair funds. Established by the Oregon Legislature in 2021, the HHGP provides grants to eligible organizations that provide financial assistance to residents in low-income households to repair and rehabilitate their residences, and to landlords to repair and rehabilitate dwelling units inhabited by low-income households.

Housing Works will use these grant funds to complete needed preservation, safety, and energy reduction projects to support healthy living environments for vulnerable populations, reduce energy costs, and extend the useful life of the structures to serve many more people into the future. Emma’s Place and Horizon House, located in Deschutes County, and Prairie House, located in Crook County, are over 20 years old and serve low-income households living with serious and persistent mental illness who may also have co-occurring developmental disability. One hundred percent of the grant award will go toward improvements, including new roofs, HVAC systems, lighting upgrades, secure door access, and security cameras. The work is expected to start in 2025 and be completed in 2026.

Housing Works is excited to embark on this transformative project, which will significantly enhance the safety, comfort, and sustainability of these vital housing communities. We look forward to seeing the positive impact these improvements will have on the residents' well-being and stability, ensuring they continue to have a secure and supportive place to call home for years to come. We are grateful to the State of Oregon and the Oregon Health Authority for making this important work possible.

(Pictured Below: Horizon House)

(Pictured Below: Prairie House)

Navigating the Moving Process: A Guide for Voucher Participants

Moving can be a daunting task, but with the right preparation and understanding, it can be a smooth transition. Here’s a comprehensive guide for Housing Choice Voucher holders to help our participants through the moving process, including essential pre-move steps, the detailed process itself, and a look at the current rental market.

Before You Move

1. Evaluate Your Situation: Ensure that moving is the best option for you. Consider your current lease terms, potential moving costs, and your personal and financial readiness for the move.
2. Check Your Eligibility: Obtain a Calculation Estimates Sheet from your Housing Specialist to determine your eligibility and the maximum allowable Gross Rent, which includes both rent and utilities.
3. Review the Utility Allowance Sheet: This sheet helps you estimate the utility costs based on your voucher size and guides you in selecting a unit that fits your budget.

The Nuts and Bolts of the Moving Process with your Voucher

1. Qualify for a Unit: Use your Calculation Estimate and Utility Allowance Sheet to determine if a prospective unit meets the financial criteria. Ensure the total rent and utility costs do not exceed the maximum allowable amount.
2. Submit Your Notice to Vacate: Provide your Housing Specialist with a copy of the notice to vacate you gave your current landlord. This step is crucial for processing your move.
3. Maintain Good Standing: Ensure your current unit is left in good condition and that all dues are paid. Any violations can jeopardize your housing assistance.
4. Receive Your New Voucher: After submitting your notice, a new voucher will be issued for 120 days. Sign and return this voucher promptly to avoid delays.
5. Give the Golden Key Packet to Your New Landlord: Sign and hand over this packet to your potential landlord, who will then complete and return it to Housing Works for final approval.
6. Schedule an Inspection: Housing Works will schedule a move-in inspection within 5-7 business days of receiving the Golden Key Packet. Do not move in until the unit passes this initial inspection.
7. Sign the Rental Agreement: Once the unit passes inspection, sign a rental agreement with your new landlord. Housing Works will handle the Housing Assistance Payment (HAP) contract with your landlord.

The Current Rental Market

The rental market is currently competitive, with high demand and limited supply driving up prices. It’s essential to start your search early, be flexible with your preferences, and act quickly when you find a suitable unit. Utilize resources such as Thrive Central Oregon and AbiliTree, who have partnered with Housing Works, to assist you in this process.

Moving can be challenging, but with careful planning and the right support, you can successfully transition to your new home. For further assistance, reach out to your Housing Specialist or to one of our partner organizations. Happy moving!