7 Tips for Financial Spring Cleaning

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Metal Spike File With BillsSpring is not only a great time to spruce up your home and organize your closets, but it’s also an ideal time to clean up your finances too.

Sweep away winter bills.

Here’s a scary statistic: Consumer Reports estimates that 7% of all shoppers go into a new holiday season carrying debt from the previous one. And it’s costly.You certainly don’t want to continue making payments on your holiday purchases for another 9 months. Try to clear up this debt in the spring.

Polish your budget.

How are you doing so far now that the first quarter of the year has ended? Are you over budget or under budget? Do you even have a budget? If you’re close to your expectations – great, but if you’ve veered off track for any reason – perhaps because there’s been a job switch, you had a baby, bought a new house, or there’s been another life change – it’s time to re-evaluate the situation. Your budget will need to be refreshed to meet current needs as well as short and long-term savings goals.

Tidy up bad credit.

Have you been subject to high interest rates? Denied a loan altogether? Been unable to rent an apartment? If you’ve got bad credit, then you’re aware of these consequences. To improve your score, make your payments on time and avoid carrying large balances on your credit cards (keep your utilization rate — the amount you owe versus your total available credit — below 30%).

Purge clutter.

Now that you’ve filed your income taxes, shred statements, bills and other financial records and keep only the documents that are absolutely necessary. As a rule of thumb, you want to hang onto tax records and supporting documents for seven years, and it might be easiest to keep hard copies of those (even though the IRS is okay with digital copies). Definitely no need to hang onto paper records forever.

Dust off unwanted items.

To boost your savings goals or earn extra money to help pay down debt, sell your unwanted gift cards on a site like Gift Card Granny where you can get up to 95 cents on the dollar in return. There is also Thred Up – a site you can sell baby, kids and women’s clothing. Poshmark is another site (and free mobile app) where you can sell women’s clothing, shoes, and accessories. As for old electronics, consider Gazelle. You’ll get a fast quote, a free shipping label and quick payment once the item’s mailed in and inspected, and the payout is generous.

Clean up accounts.

Are there brokerage accounts that can be consolidated? Bank accounts you rarely — if ever — use that should be closed? Old retirement accounts from previous employers that should be rolled over? After years of bill paying online, do you have a huge list of creditors you have to scroll through every time you make a payment? Try to get all of these cleaned up and organized.

Straighten out spending.

We all know that the key to financial freedom is to spend less than you earn. However, given how easy it’s become to spend, and given the proliferation of ads, marketing schemes and various tactics that tempt us to buy more than we need, keeping spending in check is becoming increasingly challenging. It’s more important than ever that you control impulse shopping. How? Eliminate triggers such as browsing favorite online shops, heading to the mall after work to window shop, or buying something new when you’re feeling down to help boost your mood.

Happy spring financial cleaning!

Article Source: Vera Gibbons for Marketwatch, http://www.marketwatch.com/story/7-tips-for-financial-spring-cleaning-2015-03-12

 

 

7 Ways to Save More Money This Year

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Icon of coupon cutout with money1. Change Cell Phone Providers

Smartphones have become commonplace in today’s society. While that brings a number of benefits, it also brings one major problem – the cell phone bill. According to a recent study at CouponCabin.com, 46 percent of Americans have a cell phone bill of at least $100 per month with another 13 percent over $200. The major culprit behind this is the cell phone contract. Many people believe that if you’re under a contract, you’re obligated to pay that amount. However, a simple call to your provider to review your needs can often result in saving money by reducing the plan. If you’re not in a contract, or are coming up for renewal, consider one of the many reputable non-contract offerings out there such as Straight Talk Wireless, etc. – as you can often get coverage for less than $50 per month.

2. Change Your Grocery Shopping

The average grocery bill for a family of four can be as high as almost $300 a week. The good news is that there are ways to significantly cut that amount. Some of those might be painful changes, but can save you real money. Look at how often you go to the store. Can you extend the time between trips? Can you coupon as well? Another idea is to have a freezer or pantry week once a month, or once per quarter. This forces you to use everything in your kitchen, reduce food waste and save money.

3. Reduce Entertainment Costs

It’s no surprise that cable bills can be expensive. The obvious alternative to save money is to cut the cord. If that’s not an option for you and your family, then analyze the channels you are watching, as you can often reduce your cable package and save yourself some money each month. Even if you have ditched cable altogether, look at what alternatives you’re using. You may find that you only need two plans to get your shows and not three. Cut the third one and put some of that money back in your pocket.

4. Cut Insurance Bills

Insurance, in many cases, is a necessary evil. In the case of auto insurance you obviously need it, but that doesn’t mean you can’t save money on it. Like with cable and your cell phone, analyze your insurance needs. If you drive an older car do you really need full coverage? Are you driving fewer miles? Can you afford to increase your deductible? Those are all justifiable ways to save money on your auto insurance, not to mention comparing other companies.

5. Kill the Interest Rates

Many Americans carry debt, and debt of course – carries interest responsibilities with it. Depending on the type of debt you will likely have options to find lower interest rates. If you’re dealing with credit card debt, you can try and do a balance transfer to a lower rate card. If you’re hacking away at student loan debt you can look into consolidating for a lower rate. Better yet, pay off the debt altogether if you’re able.

First Financial has a great Visa Platinum Cash Plus Card with a really low rate and no annual fee, plus rewards for purchases!* Get started by applying online today.

6. Don’t Always Call in the Pros

If you’re a homeowner, than you know how often it seems that something breaks or needs replacing. The temptation is to call in a professional to fix the issue, but that can cost a pretty penny. Instead of calling in a pro, try doing it yourself (depending upon what the issue is of course). It may feel daunting, but many jobs require only simple tools to take care of them. If you don’t know how to do a certain task, the Internet is a great resource for free tools and YouTube videos that can teach you how to do something. That can result in a huge money savings, not to mention the satisfaction of learning something new.

7. Fall In Love With a Budget

While not necessarily a task that will allow you to save money, starting a budget will indeed allow you to save more money. Don’t let the feeling that budgeting is restrictive hold you back, as it can actually be quite freeing. There are many ways to budget and many free resources available to help get you started (like this First Scoop blog, or by attending one of First Financial’s annual budgeting seminars). Find what works best for you and modify it to your life. This will allow you to see what spending fat can be trimmed which will help you control your money and not the other way around.

It may feel like it’s impossible to save money in most cases. However, with a little work and research – you can often find many areas in which you can save money pretty easily!

*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.

Article Source: John Schmoll for Money.USNews.com, http://money.usnews.com/money/the-frugal-shopper/2015/01/13/7-ways-to-save-more-money-this-year

5 Times Your Credit Score Matters Most

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Credit - Arrows Hit in Red Target.Your credit score has a huge impact on the net loss or gain of some of life’s biggest financial moments: a good score gives you more options, better terms and bigger savings. Your credit score will follow you throughout your life and affect a variety of situations, but these five times are when your credit score really matters the most.

1. Financing a Car

There are three factors that determine how much financing a car will cost: how much money you put down, the length of the term of the loan and your credit score. On a $10,000, 60-month auto loan, a borrower with a low credit score could pay nearly $4,000 more in interest charges than a borrower with a prime credit score. If you have a less-than-stellar credit score, shop around for the best car loan rate available — the savings will be well worth the effort.

2. Buying a House

It’s common knowledge that your credit score matters when applying for a mortgage, but just how much your score costs you in the long run is often ignored. The difference between an excellent score and good score can cost you tens of thousands of dollars over the lifetime of a loan, and having a poor score can cost you your dream of homeownership altogether.

3. Starting a Business

If you are a small business owner or have dreams of entrepreneurship, your personal credit is a major influence on the kind of capital you can access. Even if a business is set up as a corporation to limit personal liability, credit scores are often tied to the owner’s ability to personally guarantee the business’ debts; an analysis by the Federal Reserve estimated that 40.9 percent of all small business loans and 55.5 percent of small business borrowing is personally guaranteed.

4. Renting an Apartment

Though there are no official credit score requirements to rent an apartment, the higher your score, the better your housing options. A competitive credit score can give you the edge you need to rise above other applicants or take advantage of offers, like low down payment promotions for qualifying applicants.

Rental markets can be competitive, especially in large cities where many owners of multi-unit apartment buildings have a minimum score requirement to rent within the community. If you have a low score and have a hard time getting your rental application approved, you may have better success with a private landlord — your options will be limited but the requirements tend to be less strict.

5. Qualifying for Insurance

Insurance companies have standard practices for setting their rates, weighing various risk factors to calculate the exact rate to charge a customer, including their credit score. But the scores insurance companies use are different than the ones used by banks and financial services companies — these scores are called Insurance Credit Bureau Scores, or Insurance Risk Credit Scores.

Insurance scores consider credit information and previous insurance claim information, which allows insurers to determine how much of a risk someone is to insure. Actuarial studies suggests that someone who pays all of their bills on time, has a good credit history and hasn’t filed any insurance claims is less of a risk and a more profitable customer, according to the Insurance Information Institute. Therefore, a favorable credit score will not only get you a better rate on your insurance premiums, it could be the determining factor on whether you even get approved for coverage.

If you are looking to finance a vehicle, buy or refinance a home, or start your own business – be sure to contact First Financial for low rate loans and personalized service!*

*A First Financial membership is required to obtain a First Financial loan and is available to anyone who lives, works, worships or attends school in Monmouth or Ocean Counties. Subject to credit approval.

Article Source: Morgan Quinn for gobankingrates.com, http://www.gobankingrates.com/personal-finance/5-times-credit-score-matter/

Warning: Children Can Be Exposed to ID Theft Through Data Breaches

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Saving money in a piggybankAdults aren’t the only ones who can have their identity stolen. Tens of millions of American children had their Social Security Numbers, dates of birth and health care ID numbers stolen in the data breach at health insurance giant, Anthem Inc. Criminals can now use those stolen Social Security Numbers to open accounts, get medical treatment, commit tax fraud, and so on.

Because the children’s information was linked to their parents’ data, it can also make it much easier for cybercriminals to commit fraud against their parents as well, said Tim Rohrbaugh, chief experience officer at Identity Guard.

The Social Security Number was never supposed to be used as a national identifier, but it’s become that. For an identity thief, that nine-digit number is the key that unlocks your life. A child’s SSN is even more valuable. Here’s why: for most minors, their number is pristine – it’s never been used and is not yet associated with a credit file. That means there’s very little chance that the credit reporting agencies are monitoring it.

A criminal can take that stolen number, combine it with someone else’s name, address and birth date to create a fake ID that can be used for fraudulent purposes. All too often, this fraud is not detected until the child reaches legal age and applies for a student loan or tries to get a credit card. By that time, their credit history is ruined and it could take years to undo the damage.

Parents need to be on guard.

“Now it’s really all about detection,” said Eva Velasquez, president and CEO of the non-profit Identity Theft Resource Center (ITRC). “Parents need to keep an eye out for any red flags that signal their child’s stolen Social Security Number has been used by a thief.”

Those warning signs include:

  • Collection calls or notices for a debt incurred in your child’s name
  • Mailings that would generally be for someone over the age of 18, such as pre-approved credit card offers, jury duty notices, or parking tickets
  • An insurance bill or explanation of benefits from a doctor listing medical treatments or services that did not take place
  • A notice from the IRS that your child’s name and/or Social Security Number is already listed on another tax return

Fraud experts encourage all parents to check to see if their underage children have credit reports. All three of the major credit bureaus, Equifax, Experian and TransUnion, allow parents to do this at no cost.

“If they have [a credit report], it could be an indicator of fraud. If not, you probably don’t have anything to worry about,” said Experian spokesman Rod Griffin. “If your child has a credit history and you don’t know why, you should be very concerned.”

In that case, you should put a “freeze” on any fraudulent credit files – it’s free, so that those files cannot be used to commit more financial fraud using your child’s stolen identity. Then you’ll need to work with the credit bureaus to remove the false information from that account. The Identity Theft Resource Center can help guide you through the process. Be advised that once your child becomes an adult, you’ll need to contact the bureaus to get the freeze lifted or they won’t be able to get any credit cards or loans.

Parents should do this fraud check once a year until their children become adults and can then check their own credit history. Finally, don’t think you’re safe because you don’t have Anthem. Remember, there are many other ways a crook can snag your child’s Social Security Number.

Article Source: Herb Weisbaum for NBC News, http://www.nbcnews.com/business/personal-finance/millions-children-exposed-id-theft-through-anthem-breach-n308116

 

 

 

8 Online Banking Fraud Prevention Tips

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  1. Choose a bank account that offers some form of multi-factor authentication Keyboard with E-Banking Button.(MFA) for online banking, such as a key code or unique image. First Financial offers this with our Online Banking!
  2. Create a strong password, avoiding common words or phrases, and change it every few months. Also, for security questions, the answer does not have to be the real answer, just one you will remember.
  3. Keep your security software (anti-virus, firewalls, etc.), operating system, and other software up-to-date to ensure that there are no security holes present when using your computer for online banking.
  4. Beware of suspicious emails and phone calls that appear to be from your financial institution asking for account information. Access your online banking account directly by typing the address into your browser, going through your financial institution’s website, and only call your financial institution back via a number that you are familiar with and you know is legitimate.
  5. Access your accounts from a secure location, using computers and networks you know are safe and secure. Avoid using public networks and always look for the padlock icon in the corner of the browser, signaling that the website is encrypted.
  6. Always log out and clear your computer’s cache at the end of each session.
  7. Set up account notifications to immediately alert you if there is any suspicious activity on the account, such as large withdrawals or a low remaining balance.
  8. Monitor your accounts regularly, paying attention to all transactions over the past few months.

If you fall victim to ID Theft, don’t panic – First Financial is here to help! Report the incident regarding any of your First Financial accounts immediately, by calling us at 732.312.1500 or emailing info@firstffcu.com. 

5 Types of Debt – What to Pay Off Now and Later

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debt dollar billYou often hear that there’s good debt and bad debt. That’s probably because it would not sound too great if financial experts went around referring to bad debt and even worse debt.

After all, it’s challenging to live without owing somebody something – right? If you want to buy a house with cash, by the time you save up enough, it may be time to retire. If you’re saving up to buy a car free and clear, you may have to spend a lot of years riding the bus first. Most people get through life by borrowing money.

So sure, there’s good debt (the kind you probably can’t avoid carrying) and there’s bad debt (the kind you should try to get rid of sooner rather than later). One key to determining which debt to pay off now versus later is the interest rate: the lower it is, the longer you can carry the debt without it becoming a burden. Here are some guidelines to help you prioritize your debt.

Mortgage: Pay off later.

If you have a large mortgage and you win the lottery or come into an inheritance that allows you to pay your house off easily, doing it now is probably not a bad idea. But if you make it your main goal to pay off your mortgage, you might end up sacrificing other goals like saving for retirement or your kids’ college education.

Revolving credit card debt: Pay off now.

With the steep interest rates on credit cards, this one’s a no-brainer. Revolving credit card debt is not good, and should be paid off as quickly as you can.

Not only is paying all of that interest expensive, it’s a result of a lifestyle people can’t yet afford. Once you establish a pattern of increasing expenses for your lifestyle, it could be impossible to catch up.

Did you know you can transfer your high-interest credit card balances to First Financial’s Visa Platinum Cash Plus Credit Card, which has a great low rate and no annual fee?*

Student loans: Pay off later.

Let’s just stress that if you have a choice between buying a sports car or retiring that student loan debt, you know what the smart decision is (hopefully you were thinking to pay off the student loan first!).

In most cases, you’ll be just fine if you make the monthly student loan payment and don’t stress over paying it off any faster. Student loans typically tend to have a lower interest rate and an extended payment period. In most cases, if you have an extra thousand dollars, you’re better off using it to pay down your revolving credit card debt than putting it toward student loans (unless this is your only source of debt and your goal is to be debt-free).

Car loans: Pay off sooner rather than later.

If you can buy a perfectly good used car and borrow less, or buy a car without a loan, that’s ideal. But if you’re going to go into debt when you buy an automobile, try not to get stuck in a lengthy loan. Experian Automotive recently reported that in the second quarter of 2014, the average new car loan, for the second quarter in a row, was 66 months. That’s an all-time high. And that’s just the average. Approximately a quarter of new car loans are between 73 and 84 months long. Those are six and seven year car loans.

Historically, the average car loan has been around four to five years, with three years considered to be the sweet spot. Consumers are naturally attracted to an 84 month loan because the monthly payment is far lower than it would be if you took on a 36 month or even 60 month car loan. But you’ll likely pay thousands more with a lengthy loan. You may also find that your warranties will run out long before you make that final payment, and your car may not even last seven years depending upon what you bought.

Did you know at First Financial, our low auto loan rates are the same whether you buy new or used? Be sure to check them out today, and if you like what you see – you can apply for an auto loan online 24/7.**

Car insurance premiums: Pay off now, but only if you can.

This is small potatoes as far as your financial obligations go, and it may not be fair to call it a debt, since you pay as you go with insurance. Still if you have car insurance, it’s a financial obligation that you’re generally stuck paying indefinitely, so it feels like a debt.

If you can pay six or 12 months ahead of time instead of just once a month, you can avoid installment fees, which generally run between $5 and $9 dollars month. These additional costs, although relatively small individually, can add up over a 12 month policy period. Moreover, you’ve not only saved some money – you have one less monthly bill to worry about as you deal with your bigger debt.

On the other hand, if you’re going to have trouble making your car payment because you’re paying for a year’s worth of car insurance, stick with the monthly plan. Paying debt off successfully is really about successfully managing your cash flow.

*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.

**APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties.

Article Source: Geoff Williams of money.usnews.com, http://money.usnews.com/money/personal-finance/articles/2014/12/11/5-debts-you-should-pay-off-now-or-later