The Economic Recovery Program
 
Through this program, individual financial plans are created in order to help families in economic distress get back on their feet financially and prevent them from entering financial trouble again in the future. Each family is assigned a volunteer from Paamonim who assists the family in forming an individual financial plan and accompanies the family throughout the entire process until economic stability is achieved. These financial guides provide each family with individualized assessment and support for an average of 1 year and continue to accompany the families until they reach financial stability.
 
The Economic Recovery Plan Process includes the following steps:
1.      Assessment of each family's financial situation through careful evaluation of their expenses and income.
2.      Creating a balance between expenses and income through an integrative financial plan that focuses on the reduction of expenses and the increase of income.
3.      Maintaining a financial balance for a number of months.
4.      Resolution of past debts through payment plans and long term loans.
5.      Special grants for families who need them in order to complete the rehabilitation process, and whose ability to repay these loans is carefully assessed.
 
Together with its guide, the household learns how to develop and adjust to a sensible budget that allows for debt and loan repayment, and financial recovery.
 
A volunteer is assigned to each family that Paamonim helps. This is the family’s volunteer guide or guide. Together with their personal volunteer guides, the families decide which expenses can be minimized or eliminated, discuss how their incomes can be increased, and plan individual financial programs for the upcoming period and for the future in general.
 
The guide also assists the family in dealing with banks, law suits, creditors etc. The guide accompanies the family until it becomes financially stable and continues to be available if/when any problems arise in order to ensure the family’s long-term economic stability.
 
All information regarding meetings with the family and the family’s progress is documented on a unique computerized database that was developed for the organization. Paamonim’s professional staff analyzes this information in order to improve its operations on an ongoing basis. All information is kept strictly confidential.
 


PTP : Preventive Educational Services
 
PTP (PAHAMON), established in 2007, is a highly successful Paamonim project,.
 
Paamonim was frequently approached by various institutions such as businesses, government offices, non-profit sector organizations, educational institutions and the IDF who were interested in providing the motivation and tools to change financial behavior long-term. They sought preventive education to train their personnel, employees, clientele and others as to healthy management of household finances. They realized the vast benefits to be reaped by their institutions, by the individuals they wished to help and by society as a whole, as a result of this instruction.
 
Paamonim aspires to instruct as many households as possible, so as to help them achieve independent and healthy management of their finances.
 
Consequently, Paamonim now presents seminars, workshops and lectures for the general public about the management of household finances so as to prevent them from requiring Paamonim’s acute services.
 
Many partnerships have been formed to provide this education, including with: IDF, frameworks for young people, regional councils, businesses, etc.
 
During 2010, 110 lectures were presented to a total of 11,000 attendees and 65 workshops took place, consisting of 4 meetings each, with the participation of a total of 1,625 attendees.
 

Loan Fund
 
Paamonim’s Loan Fund offers families in serious economic distress the opportunity to receive interest free loans, while following a closely monitored loan repayment plan which is suited to the needs and ability of the individual family. The Loan Fund is part of the Economic Recovery Plan and is made available strictly to families who are participating in the Plan. Before providing a family with a loan, a volunteer from Paamonim, together with the family, creates a balance between expenses and income through an integrative financial plan that focuses on the reduction of unnecessary costs and the increase of income when possible in order to ensure that the family will be able to repay the loan.
 
In addition, the loan is given only after a professional examination of banks, etc. to be sure that the family has no other way of receiving a reasonable loan that suits the family’s situation. In order to be considered for a loan, both Paamonim’s volunteer who works with the family as well as the local branch coordinator must recommend the family’s candidacy to receive a loan. The request is then examined by a professional independent committee.
 
Upon approval of the loan, the family must provide guarantors with checks in case they are unable to repay the loan. All loans are interest free and have a long term repayment schedule according to the family’s personal circumstances. After families pay back their loans, the money is then reused as new loans for additional families in need who are participating in the Economic Recovery Plan. The loans range from 5,000 to 50,000 NIS ($1,400 - $14,000) depending on the family’s individual needs.
 
The Loan Fund is made up of contributions from various individual donors and foundations, and also serves as a facilitator for individuals who would like to provide a loan to a specific family, while closely monitoring their loan repayment.  Loans are given exclusively to families that are able to pay them back, as assessed in the early stages of the Economic Recovery Program.
 
The Loan Fund’s main objective is to offer support without creating additional sources of dependency for the families who seek Paamonim’s aid. Therefore, a family may only qualify for a loan through the Loan Fund after meeting several meticulously definitive criteria relative to their ability to continue their financial recovery process successfully while taking on such a loan. Through providing these long-term loans, Paamonim enables these families to reestablish financial stability without accumulating additional sources of dependency.
 
After the loans are repaid, the money is then reused as new loans for additional families.
 
Donations fund the Loan Fund. Half of the fund consists of contributions and half of deposits. For the donor who makes a deposit into the fund, their contribution is similar to depositing money in a bank account. The donor retains the ability to withdraw such funds from the Loan Fund, but meanwhile, the deposited funds provide a loan for an eligible family.
 
PLEASE DONATE TO US! HELP US TO HELP OTHERS