WASHINGTON, D.C.-Keep your eyes open to what's happening in the world.
A simple, yet effective strategy that Evan Clark quickly learned helps avoid losses.
"In early 2007 we saw this whole mortgage mess coming with all of its contingent issues-weak economy, job losses, high loan losses," said the CEO of the $225-million Department of Commerce FCU. "So what we did was tighten our lending standards. Although we are experiencing loan losses, the delinquency in our credit card portfolio is less than one percent. Part of that is due to our membership, mainly government employees. But I think part of it can be attributed to the tighter lending standards as well. The lesson should be to pay attention to what's going on in the world around you because macroeconomic events can have big microeconomic consequences."
