School supplies
Q: Back-to-school shopping kills my budget each year. Is there any way to start the year off right without spending a small fortune?

A: Rows of freshly sharpened pencils, an unopened box of crayons and a pair of shiny, new shoes will provide a thrill for any child.

As the parent, though, you’re the one footing the bill. If the thought of all that back-to-school spending makes your head pound, you’re not alone. The National Retail Federation reports that parents of children entering kindergarten through 12th grade plan to spend nearly $700 per child on school supplies, new clothing and shoes this season. That’s enough to fill any budgeting parent with dread.

No worries! As always, 705 Federal Credit Union has your back! Let us help you navigate the second-largest shopping season of the year with your budget and sanity intact. Here are 11 ways to save on back-to-school shopping.

1. Do a house-wide sweep

Before you spend a penny on new supplies or clothing, scour your closets and drawers to see what you have laying around the house. Round up all the supplies you find and take inventory. Write it all down and keep the list handy — in your phone, purse or car — so you don’t forget what you already have and end buying unnecessary items.

While digging through your kids’ closets, sort and purge. Donate outgrown clothing (take note and get a receipt for tax deduction purposes) and throw out everything that isn’t wearable. This way, their closets won’t be cluttered with junk and you’ll know exactly what you have and what each child still needs.

2. Get the teacher-approved list

Most schools and teachers will send you a school supply list that details exactly what your child will need. Those lists are also often available at major retailers. Pay close attention to specifics on the list instead of buying supplies at random. This will prevent you from buying items your child can’t use and being forced to later repurchase according to teacher criteria.

3. Spread your purchases

Spreading your back-to-school purchases throughout the summer will allow you to take advantage of weekly sales. One week there might be a great deal on pencils, the next week, folders will be dirt cheap. Over the course of the summer, you’ll get all your supplies at terrific prices. Also, by picking up a few items a week, you won’t feel the financial squeeze as much as you would if you’d buy everything at once.

4. Take advantage of sales-tax holidays

Many states have a sales-tax holiday during the first week of August; others have tax-free days in July. Look up the timing of your state’s gift to budgeting parents and do your shopping then. You’ll save big!

5. Organize a clothing swap

The clothing your best friend is trashing may be the perfect fit for your daughter. Organize a clothing swap party with other parents in your area. Choose a date and venue, and instruct all attendants to show up with three or more items of gently used children’s clothing. At the party, parents can exchange their kids’ outgrown clothing and go home with incredible finds — all free of charge!

6. Find the best prices

This doesn’t have to mean touring your town in search of the best deal on crayons. Instead, hunt for specials in the Sunday paper and weekly circulars and look up coupons and deals online, at sites like RetailMeNot and CouponCabin. To make it even easier, check out PriceGrabber.com or use the ShopSavvy app for help in snagging the lowest possible price on an item.

7. Use Twitter and Facebook to save

Many companies will send coupon links to their followers and let them know about upcoming sales. Monitor your favorite stores’ Twitter feeds and Facebook updates to find super deals.

8. Time it right

Your child needs to be ready for the first day of school, they don’t need a year’s supply of paper or a full autumn wardrobe before Labor Day. Purchase what your kids need now, and save the rest for later. You’ll find deep discounts on school supplies and fall clothing just a few weeks into the school year.

9. Set limits

Every year there’s a must-have school supply or clothing trend. You want your child to fit in, but you don’t have a money tree growing out back!

That’s why it’s important to set limits. Share your budget with your child. If your budget allows, let them choose one or two pricier items — but that’s it! Don’t give in to every whim; you’ll be enforcing bad habits and breaking the budget at the same time. If your child insists on more, you can always check out sites like eBay and Craigslist for discounted high-end items.

10. Cash and debit card only!

Paying with cash or using a debit card that draws from your checking account will help you stick to your budget. Resist the urge to charge supplies if you can. You don’t want to end up paying interest on pencils for months after they’ve already broken.

11. Plan ahead

Finally, start thinking about the next school year now! When school supplies and backpacks are ridiculously discounted a few weeks into the school year, stock up for next year. Stash away your extra supplies to pull out at the end of next summer. You’ll be grateful you did!

Resources: 
https://www.moneycrashers.com/best-credit-cards-use-everyday-spending/
http://www.familycircle.com/family-fun/money/back-to-school-shopping-savings/
https://money.usnews.com/money/personal-finance/articles/2015/07/22/14-back-to-school-shopping-hacks

 

How to Budget in Times of Inflation

With inflation at record highs, many Americans are finding it difficult to stick to a budget. After all, when groceries have leapt in price and household staples can be double, or even triple, what they cost just a year ago, how can the same amount of money get you through the month?

Sticking to a budget during times of high inflation is challenging – but not impossible. Here are five ways to budget while in times of inflation.

  1. Plan your grocery purchases

Groceries can take a huge bite out of a monthly budget. Fortunately, there are ways to trim your grocery bill, even when prices are soaring.

First, shop your pantry and fridge before hitting the store. You may not remember exactly what you have at home, and doing a quick scan of your food items can help you stick to purchasing only what you need. 

Next, plan your week’s dinner menu before shopping so you can pick up exactly what you need for the week in just one go. The fewer trips you make to the grocery, the less you’ll spend on impulse buys. Also, when you have the ingredients you need and plans in place for dinner each night of the week, you’ll be less likely to make a last-minute decision to indulge in takeout or fast food.

Consider joining a club store at this time as well. You’ll need to spring for a membership, but you’ll enjoy steep savings on groceries and other products. Just be careful to only buy what you need, no matter how cheap an item might be.

Finally, don’t forget to shop sales and to couponize. Use apps like Reebee, Checkout 51, Flipp and Grocery IQ to stay in the know of what’s on sale in each store, and to download coupons for even bigger savings. 

  1. Consider an energy audit

Have you ever performed an energy audit? An audit will help identify energy drains around your home, such as air leaks near your windows and doors, so you can fix them to make your home more energy-efficient. You can also take additional measures toward saving on energy costs, such as switching all lightbulbs to LED bulbs, unplugging electronics when not in use and setting your thermostat a little lower during winter, and a bit higher in the summer.

  1. Choose your indulgence

Everyone needs to treat themselves to something special every now and then, but with costs rising on restaurant meals, movie tickets and clothing, something’s gotta give. Take a closer look at your just-for-me purchases of the last few months, and try to narrow them down to just one or two treats. You can swap them with an enjoyable activity that doesn’t cost much, such as a hike or bike ride, or cut them out completely.

Alternatively, you can find ways to trim the cost of your indulgences. For example, if you love dining out but restaurant meals are destroying your budget, you can decide to eat out but skip the desserts and wines, or opt for a midday meal so you can take advantage of lunchtime specials. 

  1. Switch your auto insurance plan

If you’ve had your auto insurance policy for a while and you’ve maintained a good driving record during that time, there’s a good chance you can save a bundle by switching to a new insurance plan and/or provider. Reach out to a representative at your current insurer to discuss your options. Ask about raising your deductible in exchange for a lower premium, reducing overall coverage or negotiating for a safe driving discount. After obtaining a quote, call several other providers to get competing quotes. You can choose to go with your lowest offer, or call back your present provider and ask them to match it for your continued business.  

  1. Pad your income

As always, when income doesn’t meet expenses, you have the choice of trimming expenses or boosting your income – or you can do both! In addition to following the cost-cutting tips outlined here, you can also look for ways to increase your income.

If your paycheck is suddenly not enough to support your lifestyle, consider asking for a raise. Your workplace may have already given you a cost-of-living raise to reflect rising inflation last year, but this may prove to be insufficient as costs have continued to rise. Don’t be afraid to ask for another raise at this time.

In addition, you can look for other ways to pad your monthly income. Find a side hustle, like driving for a ride-share company or consulting for hire, which you can do at your leisure on weekends. Ask your workplace about taking on additional projects on an as-needed basis for additional pay. Open a small service business doing something you love and excel at. Every extra dollar earned counts!

Times are hard for the average American consumer, but with careful planning, you can ride out the record-high inflation rates and keep your budget intact. Use the tips shared here to get started. 

Resources: 

https://www.ramseysolutions.com/budgeting/adjusting-your-budget
https://www.forbes.com/advisor/personal-finance/how-to-budget-during-inflation/
https://www.incharge.org/blog/how-to-budget-during-inflation/
https://www.cnbc.com/2022/03/14/inflation-is-costing-us-households-nearly-300-more-a-month.html

705 Travel Hacks for Vacation Costs

 

Vacationing with a prepared spending plan on hand is one of the best ways to have your fun, and your financial wellness, too. However, transportation costs can take a big bite out of a vacation budget. The good news is, there are loads of tricks and hacks you can use to bring those costs down. Here’s how to save on transportation costs while on vacation. 

Book early

One of the most effective ways to save on transportation costs is to plan and book your travel arrangements in advance. By doing so, you can take advantage of early bird discounts, promotional fares and special offers. Whether you’re booking flights, train tickets or rental cars, comparing prices and booking ahead of time can significantly reduce your transportation expenses.

Travel offseason

Timing your travel during off-peak seasons can yield substantial savings on transportation costs. Popular tourist destinations often have peak and off-peak seasons based on factors such as weather, holidays and local events. By choosing to travel during less-crowded times, you can take advantage of discounted transportation services.

Take advantage of public transportation

Public transportation can be a cost-effective option when exploring a new city or country. Many destinations offer efficient and affordable public transportation systems such as buses, trains, trams and subways. Research the available public transportation options and consider purchasing daily or weekly passes for unlimited travel within the area. You’ll save loads on your transportation costs and enjoy the unique experience of rubbing shoulders with local residents.

Get moving

Think outside the box and consider exploring your vacation destination on foot or by bicycle. Getting from point A to point B outside the confines of a vehicle will give you a more immersive and intimate travel experience. Many cities have well-planned walking and cycling routes, making it convenient and enjoyable to navigate through popular areas and attractions. You can rent a bike for the duration of your stay, or opt for a daily rental when needed. You can also choose to participate in guided walking tours to save on transportation costs while staying active and getting up-close and personal with the destination.

Share rides and carpool

If you prefer the convenience of private transportation, sharing rides or carpooling can significantly reduce costs. Services like Uber and Lyft often offer shared ride options, allowing you to split the fare with other travelers who are heading in the same direction. You can also link up with fellow travelers through websites and apps dedicated to carpooling, helping to reduce expenses while meeting new people.

Use travel passes

Many destinations offer travel passes or city cards that provide discounted or free access to various modes of transportation, attractions and activities. Research and compare available travel passes at your destination to determine which best aligns with your travel plans. These passes can provide substantial savings, especially if you plan to visit multiple attractions or use public transportation frequently.

Seek out local discounts

Keep an eye out for local discounts and offers that can further reduce your transportation costs. Look for tourist information centers, visitor bureaus or websites that provide information on discounted transportation tickets, car rentals and more. 

Rent smartly

If you do plan to rent a car, be sure to do it right to score the best deal. First, use an app like Hopper or Hipmunk to learn about special deals. Next, choose a smaller car for big savings. Finally, don’t ask for recommendations. The hotel concierge who shares the name of a rental place is likely getting a kickback from the company for every referral, which significantly increases your price.

Don’t let your transportation costs kill your budget! Use the tips outlined here to save big on vacation transportation costs. 

Resources:
https://www.mintnotion.com/travel/10-travel-expenses-youre-forgetting-vacation-budget/ 
https://ordinarytraveler.com/save-money-travel-transportation
https://marketbusinessnews.com/save-on-transportation-costs-while-traveling/310060/

Money and Mental Health

For many people, the mere mention of the word “money” spurs feelings of stress and anxiousness. In fact, a Bankrate study of nearly 2,500 U.S. adults found that 70% of respondents feel stressed about their finances.  At the same time, living a financially responsible life can help one maintain optimal mental health. In observation of May being Mental Health Awareness Month, let’s take a look at the connection between money and mental health.

How do financial struggles impact mental health?

There are lots of ways money troubles can influence one’s mental health:

  • Stress and anxiety. Financial struggles are one of the leading causes of stress and anxiety. Feeling stressed and anxious can also impact a person’s physical health, often leading to insomnia, headaches, weight gain/loss and other physical symptoms.
  • Depression. Money struggles can also lead to depression, which can cause a person to lose interest in activities they once enjoyed and affect their ability to function in daily life.
  • Strained relationships. Financial issues are famously a primary cause of divorce, but it doesn’t end there. Money issues can put a strain on many other relationships as well, including those between parents and children, siblings, friends and more.

It is essential to recognize the signs of financial stress and take steps to manage it. Seeking support from friends, family or a mental health professional can help alleviate some of the stress and anxiety associated with financial struggles.

How does financial stability impact mental health?

Now, let’s explore how financial stability can impact one’s mental health:

  • Peace of mind. A stable financial reality can provide a sense of security and peace of mind, reducing stress and anxiety.
  • Increased opportunities. Living a financially responsible life can provide a person with the opportunities to pursue their interests and passions, such as travel, hobbies and new learning experiences, all of which can improve overall mental health and well-being.
  • Improved relationships. Financial stability can also improve relationships, reducing stress and tension associated with financial struggles.

It’s important to aim for financial stability to improve your overall mental health and well-being. This can involve taking steps to save money, reduce expenses and invest in a financially secure  future.

The link between money and self-worth

Unfortunately, too many people link their self-worth to their financial situation. This can lead to feelings of inadequacy and low self-esteem when experiencing financial struggles. However, it is essential to recognize that self-worth is not tied to financial success. Instead, focus on developing yourself as a person in ways that are not related to your financial situation. Set personal goals, practice self-care and seek fulfillment in areas outside financial success.

Debt and mental health

Debt is often the most significant financial problem that people face, and it can have a strong impact on mental health. Research shows that people who are in debt are more likely to experience mental health problems like anxiety, depression and even suicidal thoughts.

People who’ve been caught in the debt cycle may feel like they are trapped in their situation with no way out. This can lead to feelings of hopelessness and despair. Debt can also cause a great deal of stress, which can lead to physical health problems such as high blood pressure and heart disease.

If you are struggling to escape from under a mountain of debt, there are steps you can take to kick your debt for good. Consider consolidating it through an unsecured personal loan that may include one low-interest, and possibly lower, debt payment each month. You can also pay off one debt at a time by maximizing your monthly payment toward that debt until it’s paid off, which is often called the “snowball method” of debt payoff. If you choose this route, be sure to continue making all your minimal monthly payments on your other debts as you focus on the one.

Managing your finances for improved mental health

Are you struggling with money challenges that are negatively impacting your mental health? Here are ways you can improve your financial and mental health:

  • Create a budget and stick to it.
  • Trim your discretionary spending for extra breathing room in your budget.
  • Seek support from a financial counselor or therapist.
  • Practice stress-reducing activities such as meditation, yoga or exercise.
  • Avoid using credit cards or taking out loans unless absolutely necessary.
  • Set realistic financial goals and work toward them.
  • Focus on personal achievements and growth unrelated to your financial worth.

Money is intimately connected with one’s mental health. By managing your finances and seeking help when needed, you can improve your mental health and overall well-being.

Meet with 1 of Our 8 Financial Counselors!

Resources: 
https://www.mind.org.uk
https://www.moneyandmentalhealth.org/
https://www.cnbc.com

 

The Post-Holiday Budget Recovery Guide

The holidays are over, and if you’ve gone over budget with your spending, it’s time to deal with the aftermath. Instead of living in a financial deficit, take steps to repair your budget as soon as the last guest leaves. 

Here’s how you can get your budget back on track for the new year.

Review your holiday spending

Before you take steps toward financial post-holiday recovery, take stock of your finances. How much credit card debt did you rack up this season? Did you dip into a savings account that now needs to be replenished? Spend some time crunching the numbers so you have a better idea of what kind of recovery steps you need to take now.

Choose your recovery process

Once you’ve got your numbers clear, you’ll need to decide on a path toward recovery. 

If you’ve really blown it this season, and you’ve got multiple credit card balances to pay off, you may want to consolidate your debt. You can accomplish this by taking out a personal/unsecured loan and then using the funds to pay off your credit card debt. You’ll be left with a single, low interest payment to make each month.

Alternatively, you can pay off one credit card bill at a time, maximizing payments on the bill with the highest balance, or the one with the highest interest rate, until it’s completely paid off. Once you’ve crossed one balance off your list, move on to the next until you’re debt-free. Don’t get stuck paying just the minimum balance on each card each month, or you may be paying those credit card bills for years to come. 

Trim your budget

Take a close look at your monthly spending to find places to cut back. Are you paying multiple subscriptions each month for apps you never, or rarely, use? Those small fees can add up quickly. Can you cut back on your grocery bill? Perhaps you’re overdoing it on takeout or dining out. Is there any way you can negotiate with a service provider, such as cable or internet, for a better monthly rate? Maybe it’s time to shop around for a less expensive auto insurance policy. Trim the extra wherever you can to free up more money for paying down debt.

Put your holiday resources to work

Along with a pile of debt, the holiday season may have left you with some extra cash through work bonuses, tax returns and gift money. Put these resources to work by using a portion of this money, or even all of it, toward paying down your holiday debt. It may sting to use “extra” money for something as utilitarian as a credit card bill, but getting rid of the debt faster so you can return to your normal spending patterns can motivate you to make this choice.

Go on a shopping detox

Before the holidays, you shopped until you dropped and then you may have shopped some more. Now, it’s time for a shopping detox. Take a break from the mall this month and close all those open tabs presenting your favorite clothing brands. Resolve to swipe the plastic only for essentials this month, or at least to keep discretionary purchases to a minimum until your budget recovers. Trimming expenses is never fun, but remind yourself that it’s only temporary until you’re financially fit again.

Make a plan for next year’s holiday season

It’s never too early to start thinking about next year’s winter holidays. Instead of using the months before Christmas stressing out over how much you’re spending, and the months after the holidays stressing about paying your bills, pay a little bit toward your holiday expenses each month of the year for a much less stressful holiday season. When you open a holiday club account at 705 Federal Credit Union, you can set up an automatic monthly transfer from your checking account to feed your holiday savings. 

If you blew your budget this holiday season, you’ll need to take steps to help your finances recover. Use the tips outlined here to get started.

Resources: 

https://www.bankrate.com/finance/credit-cards/post-holiday-financial-recovery/ 
https://blog.usccreditunion.org/blog/post-holiday-blues-tips-to-recover-from-holiday-spending
https://www.realsimple.com/work-life/money/money-planning/post-holiday-spending-recovery-tips
https://www.fool.com/the-ascent/personal-finance/articles/how-to-recover-from-your-post-holiday-financial-hangover/

How Can I Save on Holiday Shopping?

Q: I’m always worried about money during the holiday season, and with inflation soaring, I’m more stressed than ever. How can I save on holiday shopping this year?

A: If you’re worried about making it through the holiday shopping season in the midst of record inflation, you’re not alone. A recent survey shows that 59% of American shoppers are stressed about buying holiday gifts this season due to higher prices. However, with some careful planning and budgeting, you can enjoy stress-free holiday shopping. Here are seven easy ways you can save during this holiday season.

  1. Shop early

It’s always a good idea to do your shopping early in the season so pressure and crowds don’t cause you to make decisions you’ll come to regret. This year, experts are urging shoppers to hit stores earlier than normally planned so they can take advantage of early season sales. Many big-box stores are struggling with a supply surplus thanks to an inflation-triggered decline in demand. This will likely lead to sales events to make room for more up-to-date inventory. You can take advantage of this surplus by shopping these sales and saving on your holiday purchases.

2. Set a budget

Budgets are for holidays, too. Sit down before doing your shopping to build a reasonable budget for your holiday shopping. Factor in current prices when working out your budget. Of course, this is only half the work – you’ll need to stick to that budget for it to be worth anything. Make this easier by allocating a specific amount for every gift, shopping with cash and/or reviewing your budget frequently as you do your holiday shopping. 

  1. Shop with a list

Instead of hitting the stores blindly, create a list of every gift you plan to buy for friends and family. You can browse online stores for inspiration, but resolve not to start shopping until you have a complete list. You’ll be far more likely to stay within budget when your purchases are pre-planned. 

  1. Leave some last-minute shopping for Green Monday

While it’s best to do the bulk of your shopping early in the season, you can leave some last-minute gift-shopping for Green Monday, which falls on Dec. 14 this year. This is when retailers make their final pre-holiday markdowns. Be prepared for slim pickings, though, so don’t leave any specific gifts for this late in the season. 

  1. Think outside the box when planning your gifts

If ever there was a holiday season to get creative with your gifting, this is it. Retail inventories are full of products that were backed up during the post-pandemic supply-chain disaster. Think furniture, home decor and more. While much of this may not make for typical holiday gifts, there’s no real reason you can’t delight a loved one with a new office chair, exercise bike or coffee organizing station.

  1. Give gift cards

Protect your gift list against inflation by giving gift cards. You can find discounted cards on sites like GiftCardGranny and CardCash, or use cash-back apps to earn them at no cost. Gift cards are easy to shop for, easy to budget for and always appreciated by the receiver.

  1. Use apps to save

In 2022, there are so many apps that can help you spend less on your shopping, and even put money back in your pocket. Here are some money-saving apps you might want to download ahead of this shopping season:

  • DropThis free app allows you to link your credit and/or debit card, and shop directly from the app at 300+ retailers. Earn points back on every purchase. Use your points to purchase gift cards.
  • HoneyWhy pay full price when you can get the same item for less? This coupon-scanning app will automatically find promo codes and coupons for items you’re searching for so you can save on your shopping. You can earn points on purchases made through the app, too.
  • FetchEarn points on grocery purchases by scanning your receipts after you shop. Redeem points for gift cards.
  • IbottaGet cash back for your purchases by scanning your receipts with this app. Use for online purchases, and by linking store loyalty cards for in-store purchases, too. Redeem points for cash or gift cards. 

Holiday shopping may be a race against inflation this year, but with a little pre-planning, you can complete your shopping with your budget intact. Use the money-saving tips outlined here to get started.

Need Extra Dough this Holiday Season? Ask about Our Holiday Helper Loan or Skip-A-Payment Special!

Resources: 
https://www.forbes.com/advisor/personal-finance/holiday-shopping-2022/ 
https://www.cnbc.com/2022/09/08/inflation-fears-spur-shoppers-to-get-early-jump-on-year-end-holidays.html
https://financebuzz.com/holiday-shopping-hacks
https://www.wsj.com/articles/some-of-the-best-holiday-gift-deals-are-popping-up-before-labor-day-11661212669


4 Ways 705 FCU Can Help Fund Your Vacation!

If you’re like most Americans, as soon as you see ads announcing Memorial Day sale events, you start thinking summer. Summer means flip-flops and sandy beaches, sunscreen and baseball, fireworks and ice cream — and expensive vacations.

Perhaps you’re really needing to get away this summer, so you have the perfect vacation all planned out.

But how are you going to get around the steep price tag on your dream getaway? Do you pull out the plastic, make it happen and worry about paying your credit card bills after you return home? Do you beg a loan off family and friends, putting your most important relationships at risk? Do you live off pasta in the weeks leading up to your vacation and use the money saved on groceries to cover the cost of your trip?

You don’t have to take extreme or irresponsible measures to fund the perfect summer vacation. As a member of 705 Federal Credit Union, you have access to a variety of convenient products that can help cover the costs of your trip with minimal effort on your part.

Here are four ways 705 Federal Credit Union can send you packing for your dream summer getaway.

Vacation Savings Account

It’s easier to save up for a specific goal when you separate the funds you’re earmarking for that goal from all other savings. When you open a savings account at 705 Federal Credit Union with the express purpose of using it to accumulate funds for a summer vacation, you’ll always know exactly how much money you’ve saved up for your getaway. Plus, your money will grow, so you’ll reach your goal sooner.

You may have already started saving up for summer expenses in your regular savings account. Move that money into your summer savings account now so your vacation funds are in one easy location.

To be certain you’re socking away enough money to cover your getaway, create a vacation budget now. Realistically, how much money will you need to cover the costs of your trip? Next, determine when you’d like to go and count the number of weeks or months left until your vacation date. Work out the exact amount you’ll need to save each week or month by dividing your total vacation budget by the number of weeks or months left to go before your trip. You can trim your budget, sell some stuff you don’t use anymore or take on a side hustle to come up with the necessary savings. Finally, link your checking account and your designated vacation savings account — and set up a direct deposit — so that your summer savings can grow almost effortlessly.

Vacation Loan Special

If you think you can’t possibly save up enough money to fund your vacation in time, consider taking out a Vacation loan instead.

When you take out a Vacation loan at 705 Federal Credit Union, you’ll get the funds you need for your dream getaway. And best of all, with our affordable rates, you won’t go broke paying it back! Speak to us today to find out more about this fantastic special available May 16, 2022 – June 30, 2022.

Skip-a-Payment

If you’re desperate for a vacation in more ways than one, consider taking a break from some of your financial responsibilities this summer. 705 Federal Credit Union allows qualifying members to skip one loan payment during this expensive time of year. By choosing Skip-a-Payment, you’ll get the break you need without hurting your credit or defaulting on the loan. However, your loan or balance payment plan will extend for another month, and the interest on the skipped payment will be integrated into the principal of your loan or bill.

Skipping a payment is not recommended for members who are struggling to get on top of their finances. But, if you’re in a financially comfortable place and just need some extra breathing room this time of year, skipping one monthly payment can be a great way to help you cover the costs of your summer getaway. The credit union’s Skip-A-Payment promotion will be available June, July, or August of 2022. Contact a loan officer by calling 337-232-8450 option 3!

Vacation Club Account

Instead of panicking about summer expenses when the calendar hits June each year, why not pay a little bit toward your summer costs all year long? When you open a Vacation Club account at 705 Federal Credit Union, you’ll be spreading the cost of your summer getaway across the entire year. Each month, you’ll pay just a little bit toward funding your vacation, and when summer rolls around, you’ll have all the money you need for your vacation, without taking a huge bite out of your monthly budget or going into debt. Find out more by speaking to a 705 Federal Credit Union representative about opening a Vacation Club account to help cover the costs of summer.

Get your vacation plans off the ground by stopping by 705 Federal Credit Union today. We have a broad range of products that can turn your dream vacation into a reality!

Resources:

https://www.moneycrashers.com/save-up-fund-summer-vacation
https://www.theworkathomewoman.com/fund-your-summer-vacation/
https://www.ramseysolutions.com/saving/plan-your-vacation
https://www.investopedia.com/terms/s/skip_payment_mortgage.asp

How to Avoid Credit Card Fraud this Holiday Season

With the holiday shopping season heading into its final frenzied stretch, scammers are out in full force to take advantage of busy shoppers. In particular, credit card fraud is rampant during this time of year. With most purchases paid for with plastic, scammers have their pick of vulnerable prey before the holidays. Stay safe this season and protect yourself and your cards from fraud with these safety measures and preventative tips: 

Choose zero liability 

If you can, choose a credit card with zero liability protection. This way, you won’t be responsible for any unauthorized charges made on your card. 

Monitor your credit

Stay alert and learn about the first signs of fraud to your credit accounts by reviewing your credit card statements carefully. It’s also a good idea to enroll in available alerts so you are notified of unusual and/or large purchases made on your card, and transactions made in remote or obscure places. Most credit card issuers offer instant text or email alerts, which helps cardholders to be alerted to fraudulent activity so they can take action before it happens again. 

Strengthen your passwords

Take some time out during this busy season to review the passwords on your accounts. Does each account have its own unique password? Are your passwords strong, using a combination of letters, numbers and symbols as well as varied capitalization use? If any passwords use your personal information, such as your date of birth, your hometown or your mother’s maiden name, change them. Easily cracked passwords like these can be used to hack into multiple accounts and can even lead to identity theft. Keep your passwords strong, and change them from time to time to prevent fraud. 

Shop with caution

Be an alert shopper this holiday season to avoid falling victim to credit card fraud. Only shop reputable sites and avoid clicking on pop-up ads or links in emails coming from unverified senders. To confirm a site’s security, look for the lock icon before the URL and the “s” after the “http.” Finally, make sure you are using a device that’s using updated security settings and choose a VPN (virtual private network) if you must use public Wi-Fi. 

Be wary of “support staff” calls from your credit card issuer

Some scammers resort to phishing calls for pulling off credit card fraud before the holidays. In these scams, a target will receive a phone call from someone who allegedly represents their credit card company or financial institution. The “support staff member” will tell the target there’s been an issue with their account and that it needs to be updated before the card can be used again. The caller will then ask the cardholder to share sensitive information, such as their card numbers, account details, passwords and more. Unfortunately, if the cardholder complies, they will be playing directly into the hands of a scammer. 

If you receive a phone call like the one described above, hang up and block the number. You can reach out to your card issuer on your own to check if there really is a problem with your account; but chances are, everything will be in proper order. 

Keep your cards close

Don’t forget to take basic precautions with your credit card this season, especially if you’ll be hitting a lot of shops before the holidays. Keep your card tucked into your wallet or purse. If you use a cardholder on your phone case, keep your phone in a safe place and make sure the card numbers are not visible to passersby. Finally, put your card away immediately after completing a purchase. 

Take immediate action if there are signs of fraud

If you suspect your credit card has been stolen or hacked, alert your credit card issuer and financial institution immediately. Your old card will be canceled to prevent the scammer from making additional charges and you’ll be issued a new one so you can complete your shopping. Consider placing a credit freeze on your accounts as well, which will make it nearly impossible for the fraudster to open new accounts or take out loans in your name. 

Stay aware this holiday season, and keep your money and your information safe!

RESOURCES:
https://www.chase.com/personal/credit-cards/education/basics/how-to-stop-credit-card-fraud-during-the-holidays
https://www.cnbc.com/select/how-to-prevent-credit-card-fraud-this-holiday-season/#:~:text=Holiday%20shopping%20is%20in%20full,credit%20card%20to%20purchase%20gifts.&text=While%20there’s%20the%20potential%20for,be%20charged%20for%20fraudulent%20charges.
https://moneyfit.org/blog/holiday-credit-card-fraud-guide

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!