Author Archive for Emily Beatmann

5 Steps to Take Before Making a Large Purchase

Have you been bitten by the gotta-have-it bug? It could be a Peloton bike that’s caught your eye, or maybe you want to spring for a new entertainment system, no matter the cost. Before you go ahead with the purchase, though, it’s a good idea to take a step back and follow the steps outlined here to be sure you’re making a decision you won’t ultimately regret.

Step 1: Wait it out

Often, a want can seem like a must-have, but that urgency fades when you wait it out. Take a break for a few days before finalizing a large purchase to see if you really want it that badly. For an extra-large purchase, you can wait a full week, or even a month. After some time has passed, you may find that you don’t want the must-have item after all.

Step 2: Consider your emotions

A bit of retail therapy every now and then is fine for most people, but draining your wallet every month to feed negative emotions is not. Before going ahead with your purchase, take a moment to identify the emotions driving the desire. Is this purchase being used as a means to fix a troubled relationship? Or to help gain acceptance among a group of friends, neighbors or workmates? Or maybe you’re going through a hard time and you’re using this purchase to help numb the pain or to fill a void in your life. Be honest with yourself and take note of what’s really driving you to make this purchase. Is it really in your best interest?

Step 3: Review your upcoming expenses

What large expenses are you anticipating in the near future? Even if you have the cash in your account to cover this purchase, you may soon need that money for an upcoming expense. Will you need to make a costly car repair? Do you have a major household appliance that will need to be replaced within the next few months? By taking your future financial needs into account, you’ll avoid spending money today that you’ll need tomorrow.

Step 4: Find the cheapest source

If you’ve decided you do want to go ahead with the purchase, there are still ways to save money. In today’s online world of commerce, comparison shopping is as easy as a few clicks. You can use apps like ShopSavvy and BuyVia to help you find the retailer selling the item at the best price.

Step 5: Choose your payment method carefully

Once you’ve chosen your retailer and the item you’d like to purchase, you’re ready to go ahead and make it yours! Before taking this final step, though, you’ll need to decide on a method of payment.

If you’ve saved up for this item and you have the funds on-hand for it now, you can pay up in cash or by using a debit card. This payment method is generally the easiest, and if it’s pre-planned, it will have little effect on your overall budget.

If you can’t pay for the item in full right now, consider using a credit card with a low interest rate. Most credit card payments have the added benefit of purchase protection, which can be beneficial when buying large items that don’t turn out to be as expected. Before swiping your credit card, though, be sure you can meet your monthly payments or you’ll risk damaging your credit score.

Another option to consider is paying for your purchase through a buy now, pay later program. Apps, like Afterpay, allow you to pay 25% of your purchase today, and the rest in fixed installments over the next few months. This approach, too, should only be chosen if you are certain you can meet the future payments.

Large purchases are a part of life, but they’re not always necessary or in the buyer’s best interest. Follow these steps before you finalize an expensive purchase.

Reach Out to a Loan Officer to Talk about Your Options for a Big Purchase! 

Resources:
https://www.thebalance.com/before-you-make-large-purchases-2385817
https://www.fool.com/retirement/2018/07/23/4-things-you-should-do-before-making-a-big-purchas.aspx
https://www.thesimpledollar.com/save-money/my-strategy-for-making-large-purchases/
https://moneywise.com/insurance/home/how-to-think-through-a-big-purchase

6 Reasons to Switch to E-Statements

Are you constantly dealing with a barrage of junk mail that clogs up your mailbox? Drowning in papers needing sifted through? Are you always afraid to throw out any paper from your financial institution, fearful that you’ll be throwing sensitive material into the trash and making it an easy steal for would-be scammers?

If this sounds familiar, you may benefit from switching to electronic account statements.

Electronic statements (E-Statements) are similar to paper statements, except for the fact that they’re delivered electronically. At the end of each statement period, which is generally monthly for checking accounts and quarterly for basic savings accounts, you’ll receive a notification from 705 Federal Credit Union informing you that your statement is ready to view through the online banking portal, app, or by downloading from a secure site. Once you access the E-Statement, you’ll find it has all the information you’re used to receiving in your paper statements. You can also access your E-Statement by logging into your online banking site or app at any time throughout the month.

Quick, convenient and clutter-free, E-Statements are the way of the future. Here are six reasons to consider switching to E-Statements.

 1. Check your accounts at a glance

With E-Statements, there’s no need to wait for your monthly statement to arrive in the mail. Just a few clicks and you get your account statement at any time, from anywhere, using the mobile device of your choice. Some financial institutions also offer members the option of signing up for financial alerts, such as a warning when your account is running low and in danger of being overdrawn. With E-Statements, managing your accounts is easy.

2. Clear out the clutter

Why bother with piles of paperwork when you can access your accounts online? It’s neater, cleaner, and helps cut down on the correspondence you have flooding your mailbox. You’ll also save time sorting through papers when you can find your last account cycle balance with just a few quick swipes.

3. Keep your information safer

No matter how careful you are with papers containing sensitive data, there’s always a chance you can miss something and it’ll end up in the wrong hands. It can also be a pain to keep track of every incoming piece of mail and to dispose of it properly. With E-Statements, you’ll never have to worry about losing a paper that contains confidential banking information, or mistakenly tossing it into the trash where it can be easily accessed by identity thieves.

Some people are wary about sending sensitive information online and are fearful that an E-Statement can easily be hacked. However, you can access your account balance online with confidence, knowing that 705 Federal Credit Union uses several layers of protection to keep your information absolutely safe.

4. Monitor your accounts frequently for fraud

When you have instant access to your accounts throughout the month, it’s a lot easier to check for signs of fraud. Plus, when you spot the fraud sooner, you can take steps to mitigate the damage earlier and have a better chance of a full recovery.

5. Eco-friendly

When you choose to receive your monthly account statements electronically, you’ll be doing the environment a favor. Less paper statements means less paper waste and fewer trees getting cut down for something that will ultimately be tossed. Go green for the environment with E-Statements!

6. Safe and secure storage

Filing cabinets are so last century. With E-Statements, you’ll never stress about misplacing your account statements again. Your online banking portal or app acts as a convenient and secure filing cabinet, storing your account statements for you to access as needed.

Ready to make the switch to E-Statements? Signing up is easy. Log into Online Banking to sign up, today!

Tracking Holiday Spending Keeps Seasonal Stress Down

 

Holiday Helper Loan: Oh my garland! Tis the season to save with the 705 Holiday Helper Loan. Learn more!

Holiday Spending Hacks

Nothing is more heartwarming than seeing your loved ones’ faces light up when they open that perfect gift you (err, Santa) gave them.

Tyler’s new bike, Olivia’s new tablet and that gift card to mom and dad’s favorite steak place all add up to wonderful holiday memories… until the credit card statements show up.

The holidays will look different this year due to the COVID-19 pandemic, which is why most people will try even harder to make the season brighter for others. But, you don’t have to dip into Tyler and Olivia’s college savings to create a special time for everyone!

The most important thing to remember is to plan ahead: Have a set spending amount for gifts, wrap, entertaining, donations and travel.

Make a list and check it twice

Many are struggling financially this year, so it will be no surprise to those outside your family if your gift-recipient list is shorter this year. Once you trim your list, make a holiday treat or handmade token for those who got the cut. It really IS the thought that counts.

Once you have your list complete, figure out a realistic amount to spend on each person. Jot down a couple of gift ideas in your price range for that person.

Try the 705 budgeting tool to keep your spending in check. Click on “Trends” within Online Banking for regular monthly budgeting, but it also allows you to allocate more funds for holiday purchases. Using graphs and reports, it shows how much you’ve spent and how it will affect your budget in the months to come.

Shopping

Due to the pandemic, holiday shopping is already in full swing. Most people want to avoid crowds, so they are already hitting the malls. Retailers are well aware of this trend, and are offering pre-Black Friday sales and discounts.

Spreading out your holiday shopping over several weeks also makes it easier on your budget. Always shop with a list and keep track of your spending. As you buy your gifts, subtract from your total budget.

In addition to shopping the sales and collecting coupon codes for online purchases, know when to buy. December is the best time to buy cars, appliances, winter clothing and electronics. Also, know how much items cost before a markdown to know if you’re really getting a deal.

It is expected that online shopping will increase by 35% this year because shoppers don’t feel comfortable being in stores. Some states still have restrictions limiting retail establishments’ capacity and store hours.

If you’re shopping online, order early and expect delays in shipping. Increased shopping during the holidays will affect already-strained delivery companies. To avoid shipping delays and higher shipping costs, shop at stores that offer “buy online, ship to store” service. This service is free at most retailers, some of which offer curbside pickup.

Get the best deals on cards, decorations and gift wrap during the days right before and after Christmas. Discounts of up to 75% off can shave a lot off your holiday budget for next year.

Entertaining

Still reeling from the pandemic, most folks will host smaller holiday gatherings this year, which will save tons on food, treats and adult beverages. Many people are still working from home, so work parties and gift exchanges also will be virtual or postponed, keeping cash in your wallet.

If you’re hosting guests, keep costs down by asking everyone to bring their favorite side or dessert and include festive recipe cards with the chef’s name.

For the adults, serve a warm mulled wine or holiday punch or make one festive signature cocktail.

Use DIY decor featuring natural items, like holly and pine cones. Gather the kids and go on a hike to find outdoor holiday decorations. Not only will it save you money, but it will also give you some stress-free outdoor time with your family.

Save more by partying without plastic. Disposable plates and dinnerware are not great for the environment or your budget.

Travel

If you must travel home for the holidays, don’t forget to figure in other incidentals beyond gasoline and the cost of a plane ticket.

If you’re traveling by car, gas prices have luckily seen a steady dip. Still, the GasBuddy app can help you find the best prices for gasoline wherever you are, and you can even pay from the app. Don’t forget to figure in tolls and any emergency costs that may come up.

If you’re flying, consider baggage fees, parking and shuttle costs and the expense of ground transportation once you arrive.

And don’t forget Fluffy! You’ll need to pay someone to take care of your furry friends. The Rover app can help you find pet care options near your home.

Charitable giving

The holidays are a time for goodwill toward all. But if your budget cannot accommodate a monetary donation, volunteer your time. If you are able to make a financial donation, be sure to check that the charity you are supporting is legitimate by consulting Charity Navigator.

Keep your holidays dollars in check, and you may have some holiday spirit left over even after the last elf is packed away and the January bills start rolling in.

We at 705 FCU wish you all a happy, healthy and stress-free holiday.

Resources

https://www.forbes.com/sites/blakemorgan/2020/10/26/5-ways-holiday-shopping-will-be-different-in-2020/?sh=2def7bdd1558
https://www.thebalance.com/how-to-stick-to-your-holiday-budget-2385688
https://www.mentalfloss.com/article/60171/11-innovative-ways-track-your-holiday-spending
https://www.hgtv.ca/entertaining/photos/holiday-entertaining-on-a-budget-1922279/#currentSlide=1
https://www.moneycrashers.com/create-holiday-budget/

My Savings Has Been Wiped Clean; How Can I Replenish It?

Broken piggy bank with coins everywhere

Q: The last few months have been really tough on my finances, and I’ve been forced to use my savings for getting by. My emergency fund and savings account are basically zero. Now that my financial situation is starting to improve, I’d like to start building these up again, but it’s all so overwhelming. Where do I begin?

A: Watching savings that took you years to build up disappear in just a few months can be disheartening, but it’s important to remember that you’ve made the right choice. Using emergency funds to survive prolonged unemployment, an unexpected large expense or a medical emergency is the best way to make it through a financial hardship. If your savings are depleted, though, you’ll want to start rebuilding as soon as possible to ensure you have the funds to cover a future financial challenge without falling deeply into debt.

Here’s how to start your rebuilding plan:

Set a goal

Before getting started on saving up money, it’s a good idea to establish a tangible goal. What’s your magic number? You can try to recover the value of the savings lost, or start smaller, with a more attainable goal. Bear in mind that experts recommend having funds to cover three to six months’ worth of living expenses set aside in an emergency fund or savings account.

Review your budget and trim your spending

A good place to start finding those extra dollars for savings is by carefully reviewing your spending for ways to cut back. Look for expenses that can make a difference in a monthly budget without dramatically affecting your quality of life. Think about subscriptions or services that are rarely used, a dining-out budget that can be scaled back and expensive recreational activities that can be swapped with freebies. There’s no need to live like you’re broke, but stripping your budget of some extras can give you the boost of cash you need each month to build up your savings again.

Find a side hustle

Another great way to land extra funds is through a side job. There are many ways to pad a wallet without a major investment of time. Some options include taking surveys on sites like Survey Junkie and Swagbucks and doing gig work for companies like Uber, DoorDash and Rover.

Sell your old treasures

If you’ve spent part of the COVID-19 lockdown giving your house a deep cleaning, you may have unearthed some forgotten treasures that can turn into easy moneymakers. You can sell old clothing on ThredUp, unwanted jewelry on Worthy.com, make good money off your unwanted furniture through Chairish, sell or trade unused sports equipment on Swap Me Sports and sell kids clothing and toys on Kid to Kid. Use the cash you earn from these sales to jumpstart your new nest egg.

Make a plan

Once you have a goal in place for building your savings, and you’ve maximized the possible monthly contributions toward savings each month, it’s time to create a plan. Map out a timeline of how long it’ll take to reach your goal when putting away as much as possible each month. Remember: the more aggressively you save now, the sooner you’ll reach your goal.

Start saving

It’s time to put the plan into action!

The best way to ensure regular savings happens each month is to make it automatic. You can set up an automatic monthly transfer from your Section 705 Checking Account to your Section 705 Savings Account on a designated day of the month. You may want to have the transfer go through several days after you receive your monthly salary, or it might work out better to put a smaller amount of money into savings each week. Give us a call at 337-232-8450 to discuss your options.

Put unexpected windfalls into savings

To speed up the process of rebuilding depleted savings, you may want to resolve to put unexpected windfalls into an emergency fund or savings account. This can include tax refunds, a work bonus and gift money. If another round of Coronavirus stimulus checks is approved, consider using these funds for your savings as well. Earmarking future windfalls for savings can shorten the amount of time spent cutting corners in a budget and taking on extra jobs to build up a savings account.

Rebuilding an emergency fund and savings account from the bottom up isn’t easy. It takes commitment, hard work and the ability to keep a long-term goal in mind; however, the security that comes from knowing you have a safety cushion to fall back on in case of a financial setback will make this goal worth the effort many times over.

Resources:

https://www.policygenius.com/blog/money-milestones-how-to-rebuild-a-depleted-emergency-savings-fund/
https://www.fool.com/the-ascent/banks/articles/rebuilding-emergency-fund-after-coronavirus/
https://www.moneymanagement.org/credit-counseling/resources/how-to-rebuild-your-personal-savings-account

Where is My Stimulus Check?

COVID-19 Financial Relief - Are you being negatively impacted by COVID-19 financially? Reach out to Section 705 to learn about the below specials: COVID-19 Relief Loan and the COVID-19 Skip-A-Payment.

Q: Everyone I talk to seems to have already gotten their stimulus money, but I’m still waiting for mine to arrive. Where is my stimulus check?

A: More than half of eligible Americans have already received their Economic Impact Payment, but tens of millions more are still waiting. We’ll let you in on when you can expect yours, how to help it come quicker and why you may not even be receiving a stimulus payment.

The schedule for issuing payments

The IRS is trying to get the stimulus payments out to Americans as quickly as possible, but with approximately 150 million checks that need to be issued, it will take some time.

First, the IRS is working on getting the funds to Americans via direct deposit. Most of the payments being issued to people whose account details are known by the IRS have already been distributed and the rest is scheduled to be deposited as the information is obtained.

Next, the IRS will send payments for individuals currently receiving federal benefits, such as Social Security checks, retirement or disability benefits, Railroad Retirement benefits, Supplemental Security Income (SSI) or Veterans Affairs (VA) benefits. The stimulus payments will be issued the same way these individuals receive their regular federal benefits, whether by direct deposit, Direct Express or paper check. The Treasury has promised that all Social Security and Railroad Retirement beneficiaries will receive their benefits by early May. SSI and VA beneficiaries should get their payments by mid-May.

On April 24, the IRS began issuing paper checks to Americans who have not provided their banking details. Low-income Americans are prioritized, and individuals earning an adjusted gross income (AGI) of $10,000 or less should have already received their checks. The IRS will then send out approximately 5 million paper checks each week, scheduling the mailings according to incomes in increasing $10,000 increments. For example, checks for individuals with an AGI that falls between $20,000 and $30,000 were mailed out on May 1. On May 8, the checks for people with incomes between $30,000 and $40,000 will be mailed out. This schedule will continue through Sept. 4.

How can I make my stimulus money get here quicker?

As mentioned, funds being distributed via direct deposit are issued first. The IRS will use your most recently filed taxes to determine where to send your stimulus money and the amount you are eligible to receive. If your most recently filed returns have not yet been processed, or you’ve received your refund by paper check, the government does not have your checking account information, so your payment may be delayed.

You can update this information on the recently updated track your payment portal on the IRS website. You will need your Social Security number, the gross income of your most recent tax returns, your Section 705’s routing number ([XXXXXXXXX]) and your checking account information. Once you’ve shared your account information, your stimulus payment should be scheduled for deposit within the week.

If the IRS already has your account information and you still have not received the stimulus money, or you would prefer to receive your payment by paper check, you can track your payment on the same link. The site is updated once a day.

What if my information has changed since I filed my last tax return? 

If the checking account used for your most recently filed taxes has since been closed, the payment will bounce back to the IRS, which will then send a paper check to the home address it has on file from your tax returns.

To update a checking account, use the IRS payment portal to enter your current information.
If you’ve moved since filing taxes, you can choose to share your checking account information with the IRS, or to use another method which may include informing the U.S. Postal Service of a change of address.

What if I don’t file taxes?

If you are not required to file taxes and you are eligible for an Economic Impact Payment, you can still receive your check. Just enter your information here.

Why you may not qualify for a check 

The CARES Act does not promise payments for every American. Dependents older than 16, individuals who do not have a Social Security number and those with an AGI above $99,000, will not be getting a stimulus payment. The threshold is higher for individuals filing as a head of household, at $136,500, and up to $198,000 for joint filers.

Watch out for stimulus scams

While the IRS urges people to update their information on the payment portal, it’s important to note that they are not reaching out to individuals. If you receive a phone call, social media post, email or text message asking for your banking information, it is likely a scam. There is also no application fee or processing fee for the Economic Impact Payments. If you’re asked to pay one, it’s also a scam.

Paycheck Protection Program

COVID-19 Financial Relief: Are you being negatively impacted by COVID-19 financially? Reach out to Section 705 to learn about the below specials: COVID-19 Relief Loan and COVID-19 Skip-A-Payment

How Will the Paycheck Protection Program Affect You?

The Paycheck Protection Program (PPP) is an important part of the historic Coronavirus Aid, Relief and Economic Security (CARES) Act designed to help small businesses continue meeting payroll and other expenses during these trying times.

Here’s all you need to know about the Paycheck Protection Program.

What does the PPP offer small businesses?

The provision creates a new category of unsecured loans guaranteed by the Small Business Association (SBA). The loans do not require a personal guarantee and are available to many businesses that were previously not eligible for an SBA loan. The loans may be entirely or partially forgiven.

Which kinds of businesses are eligible for a loan? 

Traditional SBA loans are only eligible for business entities designed to turn a profit. The company’s place of business must be located in the United States, and be primarily operated in the United States.

The Paycheck Protection Program has expanded to include all nonprofit organizations, veterans organizations and Tribal business concerns.

Does the business need to be a specific size to be eligible for the PPP? 

To be eligible for a loan under the Paycheck Protection Program, a business must have no more than 500 employees, including full-time, part-time and temporary workers. This rule accounts for the business applying for a loan, as well as any affiliated businesses or entities, including for profit and nonprofit, as well as domestic and foreign businesses.

What is the maximum loan amount a business can apply for under the Paycheck Protection Program?

The maximum loan amount available under the PPP is generally the lesser of $10 million, or 2.5 times the average monthly payroll costs incurred during the one-year period before the date of the loan. Payroll costs include all salaries, wages, commissions and cash tips; parental, family, medical or sick leave; severance pay; payments required for the provisions of group health care benefits, including insurance premiums; payment of any retirement benefit; and payment of state or local tax assessed on the compensation of employees.

How may the loans be used? 

The loans from the Paycheck Protection Program can be used from Feb. 15, 2020, to June 30, 2020 for any of the following expenses:

  • Payroll costs
  • Costs related to the continuation of group health care benefits during periods of paid sick, medical or family leave
  • Insurance premiums
  • Employee salaries, commissions or similar compensations
  • Payments of interest (but not principal) on any mortgage obligation
  • Rent
  • Utilities
  • Interest on any other debt obligations that were incurred before Feb. 15, 2020

Will all loans that are part of the Paycheck Protection Program be forgiven? 

A PPP loan is eligible for forgiveness in an amount equal to the sum of the following costs incurred during the 8-week period beginning on the date of origination of the loan: payroll costs; any payment of interest on any mortgage obligation that was incurred before Feb. 15, 2020; any payment on any rent obligation under a lease agreement in effect before Feb. 15, 2020; and payment for electricity, gas, water, transportation, telephone or internet service, which began before Feb. 15, 2020.

The loan forgiveness amount will be prorated down if the average monthly number of full-time employees during this 8-week period is less than the average monthly number of full-time equivalent employees. The forgiveness amount will also be reduced if there is a 25% (or greater) reduction in salary for any employee during this 8-week period.

Can a small business take out a loan under the Paycheck Protection Program and still be eligible for other relief under the CARES Act?

Taking a loan under the PPP can make an employer ineligible for some other relief under the CARES Act.  For example, the employer will not be eligible for payroll tax relief if they apply for a loan under the Paycheck Protection Program.

Resources:

www.forbes.com/sites/advisor/2020/04/07/everything-you-need-to-know-about-the-paycheck-protection-program/amp/
www.sgrlaw.com/client-alerts/forgivable-coronavirus-payroll-loans-for-employers-with-fewer-than-500-employees/

Prioritizing Bills During a Financial Crunch

 

COVID-19 Financial Relief: Are you being negatively impacted by COVID-19? Section 705 is here for you with a Skip-A-Payment and COVID-19 Relief Loan. Learn more!

Paying Bills During COVID-19

Our vibrant, animated country has been put on pause. Busy thoroughfares are now empty of pedestrians and previously crowded malls are eerily vacant, as millions of Americans shelter in place to slow the spread of the coronavirus. Forced leave of work has left many wondering if and when they’ll receive their next paycheck.

If you are one of the millions of Americans on furlough, you may be panicking about incoming bills and wondering where you’ll find the money to pay for them all. 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 billsWomen looking at bill with a concerned facial expression

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 or who not to treat. 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 your limited resources for loan payments or credit card bills. Similarly, your family needs a place to live; mortgage or rent payments should be next on your list.

Housing costs

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 this month. The good news is that some rules have changed in light of the financial fallout of the pandemic.

On March 18, 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 you’ll have a roof over your head for the next two months, no matter what.

Also, in early March, the Federal Housing Finance Agency 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. The payments will eventually need to be covered. Some lenders allow delayed payments to be tacked onto the end of the home loan’s term, while others collect the sum total of the missed payments when the period of forbearance ends.

Speak to your lender about your options before making a decision. A free pass on your mortgage during the 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 may be willing to work with you. That’s true whether it means paying partial rent this month and the remainder when you’re back at work, spreading this month’s payment throughout the year, or just paying April’s rent a few weeks late, after the relief funds and unemployment payments from the government begin.

Paying for transportation

When normal life resumes, many employees will need a way to get to work. Missing out on an auto loan payment can 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 come up with a plan that is mutually agreeable to both parties.

Household bills

Utility and service bills should be paid on time each month, but for workers on furlough due to the coronavirus pandemic, these expenses may not even make it to their list of priorities.

First, don’t worry about shutoffs. Most states have outlawed utility shutoffs for now.

Second, many providers are willing to work with their clients. Visit the websites of your providers and check to see what kind of relief and financial considerations they’re offering their consumers at this time.

It’s important to note that lots of households receive water service directly from their city or county, and not through a private provider. Many local governments have suspended shutoffs, but be sure to verify if yours has done so before assuming it to be true.

Finally, as with every other bill, it’s best to reach out to your provider and be honest about what you can and cannot pay for 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. Howard urges financially struggling Americans to place these loans at the bottom of their list of financial priorities during the pandemic. At the same time, he reminds borrowers that missing out on a monthly loan payment can have a long-term negative impact on a credit score.

Here, too, consumers are advised to communicate with their lenders about their current financial realities. Credit card companies and lenders are often willing to extend payment deadlines, lower the APR on a line of credit or a loan, waive a late fee or occasionally allow consumers to skip a payment without penalty.

Are you making payments toward an unsecured loan at Section 705? We understand that you may not be able to meet your monthly payments at this time and we are willing to work with you. Please feel free to reach out to us at 337-232-8450 option 7 to learn about your options.

Resources:
https://clark.com/personal-finance-credit/how-to-prioritize-bills/ 
https://nationalpost.com/category/news/canada
https://www.consumerfinance.gov/about-us/blog/protect-yourself-financially-from-impact-of-coronavirus/
https://katu.com/news/nation-world/65-of-mortgages-protected-by-government-moratorium-on-foreclosures
https://www.businessinsider.com/personal-finance/pause-bill-payments-if-you-lost-work-due-to-coronavirus

Still Focused on Serving You

Image of coronavirus

COVID-19 Doesn’t Impact Our Service

Dear member,

We are still here to help you

You and your family may be worried about the coronavirus disease (COVID-19), but the leadership at 705 Federal Credit Union want you to know we are here for you as we always have been. Your deposits are safe and insured. We’re not going anywhere, because at its core, our credit union is not a building or a business, it’s people unified for a common goal.

Your money is safe and insured

There are a lot of things to worry about these days, but the safety of your money in your credit union isn’t one of them.  Your money is safe, and your accounts are fully insured by the National Credit Union Share Insurance Fund (NCUSIF) up to $250,000.  There is no risk to keeping money in your account, but there are countless risks to holding cash.     

COVID-19 has cancelled, postponed, and slowed down much of American life, but the nation’s financial system operations are still strong. You can meet nearly all of your financial needs without leaving your home. If you do not have it on your mobile phone, now is a good time to download our app or sign up for online access. You can transfer and deposit money, and pay bills through your debit card, credit card, or electronic transfer. 

If you’ve been impacted by this pandemic, our staff is dedicated to working with and helping you through these uncertain times. Now, more than ever, we are here to support our members. 705 FCU has 2 loan specials available to help those affected. Please, call 337-232-8450 option 7 or email a loan officer to discuss taking advantage of the COVID-19 Relief Loan and/or the COVID-19 Skip-A-Payment

Use caution and minimize social interaction

Health professionals say if you must leave your house use an abundance of caution and minimize social interactions.  If you need to visit our branch through the drive-through (with normal operating hours) or utilize our ATM.

We’re here if you need any additional assistance

If you want to learn more about COVID-19, visit the CDC’s resource center or our state health department website. Please take care of yourself and those around you and do not hesitate to contact us for any assistance at 337-232-8450.

Sincerely,

Melanie Riedl

705 FCU President & Chief Executive Officer

P.S. Connect with us on Facebook for COVID-19 updates!

Beware of Coronavirus Scams!

Scammers are notorious for capitalizing on fear, and the coronavirus outbreak is no exception.

Woman wearing mask

Showing an appalling lack of the most basic morals, scammers have set up fake websites, bogus funding collections and more in an effort to trick the fearful and unsuspecting out of their money.

The World Health Organization (WHO) has published on its website a warning against email scams connected to the coronavirus. The agency claims it has received reports from around the world about phishing attempts mentioning coronavirus on an almost daily basis.

Closer to home, the Federal Trade Commission (FTC) is warning against a surge in coronavirus scams, which are being executed with surprising sophistication, so they may be difficult for even the keenest of eyes to spot.

The best weapons against these scams are awareness and education. When people know about circulating scams and how to identify them, they’re already several steps ahead of the scammers. Here’s all you need to know about coronavirus-related scams.

How the scams play out

There are several scams exploiting the fear and uncertainty surrounding the virus. Here are some of the most prevalent:

The fake funding scam

In this scam, victims receive bogus emails, text messages or social media posts asking them to donate money to a research team that is supposedly on the verge of developing a drug to treat COVID-19. Others claim they are nearing a vaccine for immunizing the population against the virus. There have also been ads circulating on the internet with similar requests. Unfortunately, nearly all of these are fakes, and any money donated to these “funds” will help line the scammers’ pockets.

The bogus health agency

There is so much conflicting information on the coronavirus that it’s really a no-brainer that scammers are exploiting the confusion. Scammers are sending out alerts appearing to be from the Centers for Disease Control and Prevention (CDC) or the WHO; however, they’re actually created by the scammers. These emails sport the logo of the agencies that allegedly sent them, and the URL is similar to those of the agencies as well. Some scammers will even invent their own “health agency,” such as “The Health Department,” taking care to evoke authenticity with bogus contact information and logos.

Victims who don’t know better will believe these missives are sent by legitimate agencies. While some of these emails and posts may actually provide useful information, they often also spread misinformation to promote fear-mongering, such as nonexistent local diagnoses of the virus. Even worse, they infect the victims’ computers with malware which is then used to scrape personal information off the infected devices.

The phony purchase order

Scammers are hacking the computer systems at medical treatment centers and obtaining information about outstanding orders for face masks and other supplies. The scammers then send the buyer a phony purchase order listing the requested supplies and asking for payment. The employee at the treatment center wires payment directly into the scammer’s account. Unfortunately, they’ll have to pay the bill again when contacted by the legitimate supplier.

Preventing scams

Basic preventative measures can keep scammers from making you their next target.

As always, it’s important to keep the anti-malware and antivirus software on your computer up to date, and to strengthen the security settings on all of your devices.

Practice responsible browsing when online. Never download an attachment from an unknown source or click on links embedded in an email or social media post from an unknown individual. Don’t share sensitive information online, either. If you’re unsure about a website’s authenticity, check the URL and look for the lock icon and the “s” after the “http” indicating the site is secure.

Finally, it’s a good idea to stay updated on the latest news about the coronavirus to avoid falling prey to misinformation. Check the actual CDC and WHO websites for the latest updates. You can donate funds toward research on these sites as well.

Spotting the scams

Scammers give themselves away when they ask for payment via specific means, including a wire transfer or prepaid gift card. Scams are also easily spotted by claims of urgency, such as “Act now!” Another giveaway is poor writing skills, including grammatical errors, awkward syntax and misspelled words. In the coronavirus scams, “Breaking information” alerts appearing to be from health agencies are another sign of a scam.

You can keep yourself safe from the coronavirus by practicing good hygiene habits and avoid coronavirus scams by practicing healthy internet usage. Keep yourself in the know about the latest developments.

Resources:

https://www.consumer.ftc.gov/blog/2020/02/coronavirus-scammers-follow-headlines
https://www.wsj.com/amp/articles/hackers-target-companies-with-fake-coronavirus-warnings-11583267812?tesla=y
https://blog.malwarebytes.com/social-engineering/2020/02/battling-online-coronavirus-scams-with-facts/

Meet Our New CEO, Melanie Riedl!

The Next Chapter

705 Federal Credit Union is thrilled to introduce the new 705 CEO, Melanie Riedl! Melanie has been within the credit union industry for the past 12 years at UL Federal Credit Union and 18 years within the financial industry. During that time, she has acquired many skills that are sure to bring the credit union to the next level. She began as the Marketing Manager and later became the Compliance Officer, Building Committee Chair, Grant Committee Chair, a member of the Asset Liability Management Committee and settled into her role as the Vice President of Development and Strategic Initiatives and part of the Executive Management Team.  

Melanie is a 2016 graduate from the Southeast Regional Credit Union School of Management earning honors for both her individual project and group project. She is a 2001 honors graduate from UL Lafayette earning her degree in Public Relations and Business.

Before joining the credit union, Melanie served in the Louisiana National Guard and is an Alumni of University of Louisiana at Lafayette.

Melanie has served as President, Vice President and Secretary for the Lafayette Chapter of Credit Unions and as a member of various committees for the Credit Union National Association Marketing and Business Development Council.

She has been a guest speaker at both National and State Credit Union Conferences and Schools.  She is a Certified Credit Union Compliance Expert and a Credit Union Enterprise Risk Management Expert as well as a Certified Credit Union Financial Counselor. She serves as a founding member of the Louisiana Credit Union Compliance Peer Panel.

Melanie was named one of CUNA’s 2018 Credit Union Rock Stars and CUNA’s 2019 Compliance Champion.

Melanie is a native of Acadiana, growing up in Abbeville, and has lived in Lafayette for the past 25 years.

Melanie has an infectious smile, always puts the member first, and is an amazing leader! We know that you will love her just as much as we do.

×

We spot savings ahead with the Kasasa Checking. Available Now! Ask for Kasasa Cash Back Checking. Yes, we'll literally pay you to bank here when you Kasasa at 705 FCU. Just do banking basics you do anyway, then we'll thank you in cash. Learn more!