How to Manage Your Credit Card During Difficult Times

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Life can get expensive, especially during times like these. While your credit card has likely provided you with some additional freedom and flexibility lately, it’s important to remember that your credit card is not free money. You will have to pay it back eventually (and with interest)!

With U.S. credit card debt hitting an all-time high of $930 billion earlier this year, according to the latest data from the Federal Reserve Bank of New York, we could all probably use a reminder on how to effectively use and manage our credit cards. Here’s some important advice:

Try to pay your credit card off ahead of time.

There are many reasons you should always try to pay your credit card off ahead of time, but the most important is to avoid paying interest. Accounts that don’t run a continuous balance are given an interest-free grace period, which usually lasts until the next due date. If you can’t pay in full, be sure to pay as much as you can – in order to reduce your interest payments.

In addition to avoiding interest payments, paying your credit card off ahead of time can also help to improve your credit score – since it reduces the amount of your credit limit used. This, along with payment history – can account for the majority of your credit score.

Don’t strain your wallet.

You should avoid maxing out or spending anywhere near your credit limit, as it could cause long-term financial issues – like fees, debt, and damage to your credit score. A good practice is to use less than 40% of your available credit. Treat your credit card similar to a debit card or checkbook. If you don’t have the money currently or can’t save to pay it off later, that should be a sign that you really can’t afford to make a purchase.

Monitor your balance daily.

If you’re using your credit card for everyday purchases, it can be easy to forget how fast those daily transactions can add up. That’s why it’s crucial to regularly monitor your balance. One of the best ways to do this is to download your card’s mobile app. Also, be sure to set up daily or weekly account balance updates/notifications that can be sent directly to your phone or email. You can often do this right from the mobile app, or through your online account. Typically you can also set up monthly payment reminders here too.

Take advantage of your credit card rewards. 

Take full advantage of any rewards or benefits programs offered through your credit card. This can mean anything from retailer gift cards, cash back, electronics and airline miles. These perks can save you money! If you’re contemplating a new credit card, make sure to choose the credit card that best suits your needs and lifestyle – along with a low APR.

First Financial has great credit card options, lower APRs and no annual fee.* 

Let us help you find the right card for you! Check out our website or give us a call so we can answer any questions you may have. Or if you like what you see, you can apply online 24/7!

*APR varies up to 18% when you open your account based on your credit worthiness. These APRs are for purchases and 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 Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; 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, volunteers, or attends school in Monmouth or Ocean Counties. See firstffcu.com for current rates.

Article Source: Jackson Bolstad for CUInsight.com

 

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.

 

What to Know Before You Buy a Car

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Have you been considering purchasing a vehicle? Now could be the right time for you to buy, as dealerships and DMVs start to open back up in New Jersey.

Due to declining sales in light of the COVID-19 pandemic, dealerships are most likely highly motivated to sell vehicles right now – but you may not necessarily get the deal that is best for you. Our goal is to encourage you to do your due diligence and buy a vehicle that works for your lifestyle and budget. To help you make a smart decision, we’re providing a few tips to ensure you’re well-informed.

Know you have choices. Due to dealerships looking to make up for lost sales, they’re probably offering flashy, headline-making deals. However, once you take a look under the hood, the deals aren’t always as great as they can seem. For instance, a cash rebate is more likely to be a better deal than 0 percent interest when paired with a low-interest loan that can lower your monthly payment. Therefore, consider taking the rebate and finance or refinance your ride with First Financial!*

Consider your warranty options. When you’re buying a vehicle, whether new or used – dealers will try to sell you or automatically include add-ins like warranties to your loan. When buying a car, think of how long you plan to own it. If you trade or upgrade your vehicle often, you may not need an extended warranty. Typically, new vehicles come with manufacturer warranties that supersede any extended warranties. This means that your extended warranty has no value until the original manufacturer warranty expires.

If you plan on keeping your vehicle for an extended length of time, an extended warranty could be right for you. Compare the costs of the warranties the dealer offers with our Mechanical Repair Coverage options.**

GAP Insurance. GAP stands for Guaranteed Asset Protection. What is GAP insurance? It’s optional car insurance coverage that helps you pay off your auto loan in the event that your car is totaled or stolen, and you owe more than the car’s current value. This helps bridge the “gap” between what you owe and what your insurance is willing to pay. For example, say you owe $25,000 on your car but the actual value is $19,000. If you incur a total loss accident, your insurance will most likely only pay the value amount of $19,000. GAP insurance will pay the other $6,000 so that you are debt-free. Compare the GAP insurance from the dealership with our Loan Payment Protection options.

If you’ve made up your mind to purchase a vehicle, don’t be intimidated by the dealership. Take control of your car buying journey and get pre-approved with First Financial.* Learn more about our current auto loan offerings, or fill out a quick inquiry form online. We can help you compare the numbers and guide you to make the best financial decision for you!

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. A First Financial membership is required to obtain a First Financial auto loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan.

 **Mechanical Repair Coverage is provided and administered by Consumer Program Administrators, Inc. in all states except CA, where coverage is offered as insurance by Virginia Surety Company, Inc., in WA, where coverage is provided by National Product Care Company and administered by Consumer Program Administrators, Inc., in FL, LA and OK, where coverage is provided and administered by Automotive Warranty Services of Florida, Inc. (Florida License #60023 and Oklahoma License #44198051), all located at 175 West Jackson Blvd., Chicago Illinois 60604, 800.752.6265. This coverage is made available to you by CUNA Mutual Insurance Agency, Inc. In CA, where Mechanical Repair Coverage is offered as insurance (form MBIP 08/16), it is underwritten by Virginia Surety Company, Inc. Coverage varies by state. Be sure to read the Vehicle Service Contract or the Insurance Policy, which will explain the exact terms, conditions, and exclusions of this voluntary product. MRC-2341946.1-1218-0121 © CUNA Mutual Group

3 Ways to Stop Overspending During These Times

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Given the current pandemic that continues, you’re most likely more mindful of your finances these days. Even if you have a budget set up, you may still find that money feels a little tight right now. The last thing you want to do in these current times, is rack up unnecessary debt or spend too much money. Here are 3 easy ways to stop overspending.

Cut back on takeout: It’s great to support local businesses right now, but don’t overdo it. Have you been consistently making trips to your favorite fast food drive thru or ordering takeout/delivery? If your takeout budget has increased, your grocery budget needs to decrease. Be mindful of what you are spending on food and if the takeout is taking over your budget.

Pay with cash: After you pay your bills for the month, try to use cash for anything else. Other than necessities that you may still want to purchase online for health and safety reasons, are you shopping online and using a card just to pass the time or buy items you don’t really need? Using cash may prevent you from adding that one extra item to your Amazon or other online shopping cart.

Make do with what you have: Delayed events are happening all over. Movies and concerts have either been pushed back or cancelled. As much as you might want to spend money you normally would spend on summer concert tickets on something else, keep it in your savings account. For now – watch a movie on Netflix you haven’t seen yet, or on your cable network’s free on demand movies. You can also login to YouTube and view a past live concert at no cost. There are many ways to improvise and save money!

Article Source: John Pettit for CUInsight.com

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!