Category Archives: Financial Advice

Considering a Pet? Do Your Financial Homework First

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While many people have been spending more time at home and working from home due to the COVID-19 pandemic, you’ve decided you’d like to bring home a furry friend also. You’ve done your research, you’ve figured out what type of pet you want, and you’re ready to sign on the dotted line. But, have you thought about the ongoing cost(s) associated with getting a pet?

There are two main areas regarding costs to consider when it comes to owning a pet. First, there are initial costs (adoption fees/breeder fees, first vaccinations, training, etc.) and then general costs over your pet’s lifetime (food, toys, routine vet visits, grooming, etc.). It’s a good idea to prepare for the several different types of costs you might have, before you decide to bring your pet home.

Adoption Fees vs. Breeder Fees

One of the first expenses pet owners experience is an adoption fee or purchase price. Typically, adoption fees are going to be less expensive than breeder fees.

Most shelters and rescue organizations will provide medical care, vaccinations, and possibly even spaying or neutering animals. If you decide to go the shelter route, it’s essential to ask what services your adoption fees include.

It’s also a good idea to find out what the adoption process looks like. It could be different depending on the shelter or rescue organization you choose, but usually the basics are the same. Once you select your fur-ever friend, you’ll have to fill out paperwork to be approved. The shelter or rescue organization will want to know where you live, whether or not you have other pets, if there are kids in your home, and they may even do a house visit before you’re allowed to take your new friend home. Once you pay the adoption fee and your application is approved, then the real fun begins!

If you plan to purchase from a breeder, the type of breed you’re interested in determines the amount you’ll pay in fees. When buying from a reputable breeder, you’ll likely get a fair, competitive price, and most will have official paperwork on the animal you’re purchasing. Do your homework on the breeder and make sure you’re buying from someone who is breeding ethically.

Medical Costs

Vet bills are often the most expensive aspect of owning a pet. If you’re lucky, you’ll have a relatively healthy animal that only needs a vet visit once or twice a year. On the other hand, if your pet does need additional vet care, it can be pretty costly and you’ll want to be prepared.

The average vet visit can cost a pet owner anywhere from $50 to $400, depending on the nature of the visit. If you’re trekking to the vet once a year, it’s not as challenging to work into your budget. However, if it happens every couple of months, you could find yourself in over your head with vet bills.

Eating Right for Less

For every question you have about pet ownership, there are a million different answers – and that includes what to feed them! When you’re picking out what your pet eats, think about their size (are you feeding them once a day or do they require multiple feedings), how much they eat, and what they like. You might find that your cat loves a particular brand (let’s say it costs less than $20 for a 22-pound bag) or that your dog lives for a specific brand (let’s say that a 50-pound bag is less than $25). Don’t automatically buy the most expensive food. See what works for your animal and your budget.

Toys!

You can’t have an animal without toys. Every cat needs a scratching post, and every dog needs a good rope to play tug-of-war. The great thing about toys? You can spend as much or as little as you want. You might have a cat that would rather play with bottle caps than catnip mice. Before you spend your paycheck buying toys, get a few and see which ones your furry companion likes. You might be surprised.

Training & Grooming Costs

Training and grooming are additional costs that you may not have to consider. If you’re getting a cat, you won’t have to worry about training classes or grooming (unless you choose to do so). With a dog, however, training classes might be something you need to consider. Depending on the breed of your dog, grooming might be a necessity too. Do your research. Look around and find the best deals on grooming and training.

Bringing home a furry friend is a huge commitment. It’s essential to evaluate your current financial situation before deciding to purchase a pet. We have affordable personal loans* or low-interest credit cards that meet your needs for multiple parts of your life.** We’re your credit union, let us see how we can help! Contact us today.

*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. A First Financial Federal Credit Union membership is required to obtain a loan or credit card, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. Federally insured by NCUA.

*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

 

How to Dispute and Pay for Large Medical Bills

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If you’re looking at astronomical medical bills due to the coronavirus pandemic or another health emergency, you might think there’s no choice but to pay thousands of dollars for your treatment. This may not always be the case. Here’s some advice on how to bring down the numbers on your medical bills and tips on how to cover the remaining costs.

Step 1: Review your bill(s).

Typically, you’ll receive an Explanation of Benefits (EOB) from your insurance company along with the actual bill, which tells you how much you’re responsible for paying. It’s important to hold onto both of these documents and to review them carefully.

The EOB is a document provided by your insurance company explaining your insurance benefits as it pertains to a bill. It will usually include the following information:

  • Amount Billed by Provider (this refers to the amount the doctor or hospital charged)
  • Plan Discounts (this refers to a discount negotiated by your insurance company)
  • Amount paid by insurance company
  • Amount you owe the provider

Most EOBs will also include information about your deductible, co-pay and co-insurance. If a procedure or treatment is not covered, the EOB should include a short explanation about why it’s not covered. If your statement includes charges for COVID-19 testing or related expenses, like co-payments and deductibles, your insurance should be covering the entire amount, as per the Families First Coronavirus Response Act.

Review your bills carefully and make sure the EOB and the medical bill correspond with each other. If there is a discrepancy between the two documents, it may be a billing error. If you suspect an error, you may want to ask for itemized bills. This will provide you with a detailed breakdown of all costs charged to you for services and/or inpatient stays.

If you’re being billed for a hospital stay, review the charges carefully to be sure you’re not getting billed for a treatment you haven’t actually received.

Step 2: Review your insurance coverage.

It’s a good idea to familiarize yourself with your health insurance policy before disputing any charges. Most health insurance providers will present their members with a detailed manual that outlines exactly which treatments and charges are covered and which are not. Here, you can refer back to the EOB to see if the insurance paid for all the procedures it claims to cover.

Step 3: Dispute any errors.

If your insurance billed you incorrectly or did not cover a procedure or treatment that is covered under your plan, call a company representative to ask about the charge. Be sure to have your bill in front of you when you make the call, note the time of your call, the contents of the conversation, and the name of the representative you speak to in case you need it for future reference.

If the error is with your doctor’s office, ask to speak to an office billing representative and explain your position. Here too, keep a record of the conversation for future reference. Be prepared to make multiple phone calls until you reach a party who can make the change. It’s also a good idea to follow up with a written request to challenge any charges in question.

Step 4: Negotiate the remaining bill.

If the bill is unimaginably high after all the errors were corrected, you still have options. Consider negotiating with the billing department at your doctor’s practice for a lower price on the treatments rendered. You may want to do this in person, and most practices will allow you to schedule an appointment with a representative of the billing office. Bring all your bills and other supportive documents, such as receipts from the pharmacy and information from your insurance provider. If you believe a charge for a procedure has been unreasonably inflated, it’s a good idea to research the going rate of coverage through sites like HealthcareBluebook.com and My Healthcare Cost Estimator first.

At the meeting, explain that you are having difficulty with your bill and that you’re looking for a way to lower the costs. Here are some open-ended questions to guide your negotiations:

  • What discounts do you offer for financial hardship?
  • Which of these fees can be waived?
  • Many hospitals have charity relief plans for patients having difficulty meeting their payments, can you tell me about yours?
  • Can you charge me what Medicare would pay for this service?
  • Can you lower some charges if I pay this off sooner?

Step 5: Create a payment plan or seek funding.

Once you have your final bill amount, you’ll need to choose to pay it now or work on creating a payment plan to make it more manageable.

If you’d rather not have a huge bill hanging over your head for awhile, or your doctor’s office insists on immediate payment – consider some other options. One way to help pay your bill is by applying for a personal loan from First Financial.* This method will provide you with the funds you need to pay your bill, along with a payback plan offering flexible terms and manageable monthly payments. Another option would be using your emergency savings fund, if it will help cover any expenses.

Step 6: Going forward.

To avoid an unexpectedly large medical bill in the future, you may want to consider switching your insurance plan to one that provides more robust coverage and less expensive co-pays and deductibles – if at all possible. Your premiums will likely increase, but the change may be financially worthwhile if you know you may have ongoing medical expenses.

Another long-term option to consider is setting up a Health Savings Account (HSA). The funds you contribute to this account are tax-deductible, grow tax-free and can be withdrawn to cover qualified medical expenses.

If you’d like to talk to us about personal or consolidation loan options, contact us! We’re here for you.

*APR = Annual Percentage Rate. Rates are subject to change. Maximum loan is $25K and maximum term is 60 months. Not all applicants qualify, subject to credit approval. A First Financial membership is required to obtain a personal loan, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. See credit union for details. 

Article Source: CUContent.com

Should You File for Bankruptcy?

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Your debt feels impossible. New bills and past due notices are showing up constantly. Creditors won’t stop calling. As you feel like throwing your hands in the air, you wonder – should I file for bankruptcy?

Due to the pandemic, this is a reality that many might be facing. Millions of Americans across the country have been unemployed since earlier this year. It’s incredibly easy to get behind on bills when the money isn’t coming in, but the bills are still showing up. It’s an overwhelming feeling.

The longer this pandemic continues, the more likely it is that you’ll see an attorney on a TV commercial asking if you’re thousands of dollars in debt, feeling overwhelmed by creditors and looking for a solution. Next – they’ll present the option of filing for bankruptcy, which who wouldn’t want to have their debt forgiven, right? Not so fast.

Filing bankruptcy might help you get rid of your debt, but it’s important to understand the serious, long-term effects it can have on your credit. When you file bankruptcy, it remains on your credit report for 7-10 years as a negative remark, and it affects your ability to open credit card accounts or get approved for loans with favorable rates.

What exactly is bankruptcy? Bankruptcy is a legal process designed to help individuals and businesses eliminate all or part of their debt, or in some cases – help them repay a portion of what they owe. There are several types of bankruptcy, but the most common types are Chapter 7, Chapter 11 and Chapter 13.

Chapter 7 forgives most of your debt and allows you to keep all of your assets with a few exceptions, depending on state and federal laws. During the process, you and your creditors are invited to a meeting where they are allowed to make a case as to why a federal bankruptcy court shouldn’t forgive your debt. Once your case is approved, your debt will be forgiven, and none of your creditors will be allowed to hassle you over the forgiven debt.

Chapter 11 is generally for small business owners. It allows small business owners to retain their business while paying back debts according to a structured plan. With this option, business owners give up a certain amount of control to court officials, debtors, or counselors assigned to help them rebuild their credit. Despite losing some control of the business, owners are able to keep their business running while working on their financial future.

Chapter 13 is different than Chapter 7 in that it requires you to come up with a plan to repay your creditors over a 3-5-year period. After that, your debt will be forgiven.

Things to consider if you’re thinking about filing bankruptcy:

It’s important to note the serious impact bankruptcy can have on your credit report. Bankruptcy effectively wipes out everything on your credit report – good and bad remarks, and will stay on your credit report for 7-10 years.

This also means any account you’ve paid off or left in good standing that could positively impact your credit score, is also wiped out. Any hard work you’ve put into building your credit is basically nonexistent once you file bankruptcy. All the negative remarks will be gone as well, but you will also be considered high-risk when it comes to lending moving forward.

Bankruptcy affects your ability to open lines of credit – credit cards, mortgages, auto loans, personal loans, etc. Because you will be labeled high-risk, most banks will likely deny any application you submit for a line of credit – even though your credit score might have gone up when your credit report was initially wiped out. If you are approved for a line of credit, you’ll likely get a much higher interest rate which will make your monthly payments higher too.

Should you file for bankruptcy?

When it feels like your debt is caving in on you, bankruptcy might seem like the only way to reach financial peace. Here are a few steps to consider taking before you consider filing.

  • Take a moment to talk to your creditors. Negotiate and see if there are options to make your debt more manageable. Can you lower the interest rate? Is it possible to settle for less than you owe? Can you set up a payment plan?
  • Talk to us about your financial picture. We might have options that will allow you to consolidate your debt into one, more affordable payment.
  • Go through your house. Do you have things you don’t use or need that you can sell? If so, sell some of those items and apply that money to your debt.

Also, it’s important to note that not all debt is eligible for bankruptcy. While bankruptcy can eliminate a lot of your debt, some types of debt cannot be forgiven:

  • Most student loan debt.
  • Court-ordered alimony.
  • Court-ordered child support.
  • Reaffirmed debt.
  • A federal tax lien for taxes owed to the U.S. government.
  • Government fines or penalties.
  • Court fines and penalties.

Bankruptcy should be the last option you consider. Look through your debt, see what you owe and carefully weigh all your options. Again, make an appointment to come in and talk to us and we can help you review your options. We’re your credit union, and we’re here for you!

Questions to Ask Before Applying for a Personal Loan

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Personal loans are a popular alternative to credit cards, because like credit cards – they are paid in monthly installments and come with a low interest rate if you have a good credit score. From debt consolidation to paying for life events, personal loans give borrowers money which can be paid back over time. Typically, payments are the same amount each month – as opposed to credit card payments that might vary depending on your balance. Keep reading to get all your questions about personal loans answered, and find out if this is the best financial option for you before you apply.

Is a personal loan right for me?

Personal loans are a way to consolidate high-interest debt at a lower rate. A personal loan can be used for just about anything – a home improvement project, wedding, debt consolidation, or other costly undertaking when you don’t have cash on hand or in the bank. Personal loans give borrowers money up front to be paid back in monthly installments over a fixed period, usually at a rate much lower than a credit card would have.

How much can be borrowed with a personal loan?

This amount will be based on your income, employment, financial history, and how much debt you currently have.  A lender will look closely at your debt-to-income (DTI) ratio, which is the percent of debt you currently have in relation to your before tax income. A favorable DTI is 43% or less, typically.

How much should I borrow?

Just because you get approved for a certain loan amount, doesn’t mean you should accept it. You also need to look at the other items you spend money on each month. Borrow the amount you know you will need to fund what you need the loan for, and don’t acquire extra debt. For help deciding what amount you should borrow or what your monthly payments might be, check out our financial calculators. Make sure your personal loan gets factored into your monthly budget and that you can comfortably afford the payments.

How can I get the best loan rate?

Do your homework ahead of time, and shop around. Often a loan with a shorter term will cost you less over the life of the loan, than one with a longer term will – though your monthly payments will be less on a loan with a longer term. Your credit score (the number that tells lenders if you are credit worthy and the financial risk you would pose) is another important component in receiving a competitive rate. The higher your score, the better your rate will be.

Is there a way to pay off my loan faster?

If you have room in your budget, it’s always a good idea to make extra loan payments when you can. Perhaps you can make bi-weekly payments instead of just once per month, or an extra payment every so often. This will only help you pay your loan off faster and you’ll also pay less in interest. Even rounding your monthly payment up can also help you pay your loan off quicker. For example, say your monthly payment is $173. If you round this amount up to $200 you’ll continue to pay the loan down and will ultimately pay less in interest over the life of the loan. Just be sure your loan doesn’t include any pre-payment penalties before you begin making extra payments.

Can a personal loan help my credit rating?

Part of your credit score is based on credit utilization, and lenders usually like to see that you’re not using more than 30% of your available credit. If you’re planning to use a personal loan to pay off credit card debt, you can actually lower your credit utilization – which should boost your credit score. Because a personal loan is considered an installment loan, whereas credit cards are considered revolving debt – adding it to your credit profile can demonstrate that you can successfully handle other loan types.

How can I apply?

If you live, work, worship, volunteer or attend school in Monmouth or Ocean Counties in New Jersey – check out our personal loan options! Our personal loans have a fixed rate, start at $500, have flexible terms up to 60 months, and no pre-payment penalties.* You can apply over the phone or right online, and we even have electronic closings available.

A personal loan is a great option that can help you save money instead of going through the high cost of retail financing or racking up high-interest credit card debt. Do your research and find the best option for your budget!

*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. A First Financial Federal Credit Union membership is required to obtain a Personal Loan, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. Federally insured by NCUA.

Article Source: Gobankingrates.com

How to Prioritize Bills During a Financial Crisis

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Our vibrant, animated country has basically been put on pause. Busy streets are now empty and previously crowded malls are eerily vacant, as millions of Americans shelter in place to slow the spread of the coronavirus.

If you have been affected financially by the pandemic, you may be getting worried about incoming bills and wondering where you’ll find the money to pay them. Let’s take a look at what financial experts are advising now so you can make a responsible, informed decision about your finances going forward.

Triage Your Bills

Financial expert Clark Howard urges cash-strapped Americans to look at their bills the way medical personnel view incoming patients during an emergency. “In medicine it’s called triage,” Howard says. “It’s exactly what’s happening in the hospitals right now as they decide who to treat when. You have to look at your bills the same way. You’ve got to think about what you must have.”

Times of emergency call for unconventional prioritizing. Clark recommends putting your most basic needs, including food and shelter, before any other bills. It’s best to make sure you can feed your family before using limited resources for other bills. Similarly, your family needs a place to live – so mortgage or rent payments should be next on your list. And continue down the line after that. If you are not sure that you can make full payments on your other bills, call that particular lender or company as soon as possible. Many are offering extended grace periods without penalties during this time.

Housing

It’s one thing to resolve to put your housing needs first and another to actually put that into practice when you’re working with a smaller or no paycheck. The good news is that some rules have changed in light of the financial fallout of the pandemic.

President Donald Trump announced he’s instructing the Department of Housing and Urban Development (HUD) to immediately halt “all foreclosures and evictions” for 60 days. This means Americans will have a roof over their heads for at least the next two months, no matter what.

The Federal Housing Finance Agency also offered payment forbearance to homeowners affected by COVID-19, allowing them to suspend mortgage payments for up to 12 months. These loans, provided by Freddie Mac and Fannie Mae, account for approximately 66 percent of all home loans in America. Some lenders are allowing delayed payments to be tacked onto the end of the home loan’s term, while others will collect the total of missed payments when the period of forbearance ends.

If you are having trouble making your mortgage payments right now, talk to your lender about your options before making a decision. Suspending your housing payments during an economic shutdown can be a lifesaver for your finances and help free up some of your money for essentials.

If you’re a renter, be open with your landlord. “Consumers who are the most proactive and say, ‘Here’s where I stand,’ will get a lot better response than those who do nothing,” says Lynnette Khalfani-Cox, CEO of AsktheMoneyCoach.com and author of “Zero Debt.” Your landlord should also be willing to work with you.

Transportation

When normal life resumes, many employees will need a way to get to work. Missing out on an auto loan payment can also mean risking repossession of your vehicle. This should put car payments next on your list of financial priorities. If meeting that monthly payment is impossible right now, communicate with your lender and see if they offer skip-a-payment or a deferment program during this time.

Household Bills

Utility and service bills may be another area of difficulty right now. First, don’t worry about shutoffs. Most states in the U.S. have outlawed utility shutoffs for the time being. Second, many providers are willing to work with their clients. Visit their websites or give them a call and check to see what kind of relief and financial consideration they’re offering to their consumers at this time.

Unsecured Debt

Unsecured debt includes credit cards, personal loans and any other loan that is not tied to a large asset, like a house or vehicle. When it comes to these loans as well, consumers are advised to communicate with their lenders about their current financial reality. Credit card companies and lenders may be able to extend payment deadlines, waive a late fee, or occasionally allow consumers to skip a payment without penalty.

Have you been affected by COVID-19 and are having trouble making your First Financial loan payments? We are here for you! Click here to learn more about your options and fill out an online request form.

Article Source: CUContent.com

How to Create a Budget and Make Your Money Work for You

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Budget. Did you just get cold chills reading that word? It’s not a popular word, and it’s certainly not a popular idea. Typically, the idea of a budget is enough to take away any sense of fun you might have when thinking about spending your money. But, it doesn’t have to be.

There are several benefits to creating a monthly budget. When you have a budget in place, you instantly:

  •     Make your money work for you
  •     Assign each dollar in your account a job
  •     You get 100% control of your money
  •     You can track your expenses
  •     You’ll relieve some of the stress that finances can bring
  •     You will create a “safety net”

There are obvious benefits to creating and maintaining a budget, and there are just as many tools to help you budget as there are benefits.

So, where do you start?

First, figure out how much you make each month. Then, figure out how much you spend. Once you figure out what you’re bringing in vs. what you’re spending, you can start creating specific categories for your money. This is where you get to tell your money what to do.

Now, you’ve got a basic budget in place. You know what you’re making, what you’re spending, and your money has a specific goal. But, how do you keep track of all that information in a manageable way?

Budget apps! The great thing about budget apps – not only do they keep track of your budget, but you can take them with you everywhere you go. Check out some of the best budgeting apps for 2020.

Wally — Get the details of all your financial activity in an easy-to-digest template. Categorize spending destinations, set goals, and create charts. Wally provides you with the full picture of your account in a simple and colorful template. Easy to look at and easy to understand, Wally makes tracking and analyzing your financial habits easy.

Acorns — You know how it’s hard to overcome the mental hump of setting money aside? Well, Acorns removes that struggle from the equation. By rounding up each of your transactions to the nearest dollar, it puts the funds into an investment portfolio. This app looks out for “future you” and makes sure you always have a few acorns hidden away for a rainy day too.

Mint – Create budgets, track bills and receive a free credit report when you use Mint. However, it’s the budgeting feature that really makes Mint shine. It allows you to link your bank, loan, and credit card accounts and then uses the information from those accounts to suggest a budget for you based on your spending. Mint takes it a step further by breaking that spending down into categories like “entertainment,” “food and dining,” and shopping. The best part? You’ll be able to see how much you can save by cutting back in each category.

Mvelopes – A popular budgeting method is the envelope system, a style of budgeting, where you put cash in envelopes for different spending categories and when the envelope is empty, that budget category is spent for the month. This is great for people who like a cash only system, but for people who use credit and debit cards, this can be challenging. Enter Mvelopes, an app that makes it easy to follow cash style budgeting in a digital world.

Of course, while you’re downloading apps, make sure you’re using our mobile app! At First Financial, our app allows you to check your balances, transfer money, pay bills, review your spending and deposit checks remotely. Still have questions about budgeting and financial planning? Check out our handy budgeting guide, or make an appointment with one of our member service representatives and let us help get your budget on track!