Now that the holiday season is over, are you dreading the arrival of your credit card bills? Many people do most of their holiday shopping with credit cards—and the totals sure add up quickly! Here are 5 strategies to deal with the financial aftermath from Christmas shopping and prepare a plan for this year’s holidays.
Start by making a list of all of your debts, including credit cards, store cards, car payments, and loan payments. For each debt, list the interest rate, monthly payment amount, and the current amount owed. Review your list and make a note of which debts have the lowest balances, and which have the highest interest rates. Which debt would be the easiest to eliminate in the fastest time if you paid just a little more than the minimum payment each month? If you can swing some extra toward this debt while still paying your other debts on time—go for it! Soon you’ll have one less debt on your list and you can then put the money you would have spent on that monthly payment toward your next debt to knock that one down, too.
Creating a budget might feel like a chore, but it can actually be very helpful. Go through your last few months of banking statements and make a list with categories and the amounts you’ve spent for each, (EX: groceries $600/month). If you’re using MVCU’s online banking, you can use the included budgeting feature to make this even easier! (See our How-To videos for Creating Budgets and Savings Goals)
Once you have everything listed out with categories and the amount you normally spend for each category, it’s easier to figure out where you can make some cuts. Are you eating out a lot? Do you need that daily coffee from Dunkin’s? If you identify something you can easily cut from your budget (even temporarily), you can use those few extra dollars saved every day to apply extra to the monthly payment of your debt.
Wouldn’t it be even better to make a larger extra payment? Did you get a holiday bonus or are you expecting a tax return? Plan on paying off a small credit card or making some larger payments over the next few months to cut down your debt balances. Eliminating even one debt will free up extra cash in your monthly budget to help you pay off your other debts.
Now’s the perfect time to create your savings plan for the next holiday season. How much money did you spend on holiday gifts, decorations, food and travel this past year? Is that a comfortable amount, or would you like to spend less next year? After you decide on your planned holiday budget, set up a separate savings account to hold your holiday funds. You can set it up so that some of your paycheck will be direct deposited into your holiday savings account each pay period. You’ll find that your holiday savings will add up quickly, and because those funds don’t hit your regular checking account, you’re less likely to miss them.
Looking at your list of debts, do you have one or more that have interest rates that are higher than you’d like? It’s quite possible that you could save money on interest and have a lower monthly payment if you consolidate your debt. You’ll also enjoy making just one monthly payment instead of paying several debts each month. How can you reap these benefits for your budget? Consolidate your debt with a debt consolidation loan or personal line of credit.
Category: Budgeting & Debt Reduction
According to a recent study, the average American household spends $64 per month on internet service. If you’re looking to reduce that cost, here are some ways to do that.
Guess what? You’re not the only one with debt. Most people are juggling several different payment responsibilities each month: credit cards, car loans, store charge cards, gas credit cards, personal loans and even student loans.
Do you feel like just when you catch up…something hits your budget out of the blue? Like when you suddenly need new tires… or your refrigerator dies and you definitely need to replace it? Just when you think you’re on top of everything, new expenses seem to pop up.
Credit Card Theft can happen even when the card is still in your possession – the thief has obtained your number and security information and has created a new card with the same information. And it may just be the first step in obtaining other parts of your identity.
One of the biggest factors impacting your credit score is the credit utilization ratio. This is your total credit used divided by the total credit available to you. Your best strategy when dealing with this ratio is to keep it below 30 percent. If it goes above that number, you could be in trouble.
Will there be a sweet tax refund check coming your way? Even though you may be excited about this lump sum of cash hitting your banking accounts, consider your options before going on a shopping spree. If you use this money to your advantage, you could improve your finances for long-term benefits. Here are some smart ways to spend your tax refund:
Did you know the average family of 4 spends $800-$1000 on food each month? Food is one of those sneaky budget items because it covers not only your weekly groceries, but any restaurant food, coffee or drinks on-the-go that don’t seem expensive until you add up the total at the end of the month.
Setting a financial goal is easy. Attaining that goal is the hard part. Here are some ways to make the road to your financial goal as smooth as possible.
According to a study from the U.S. Department of Agriculture, groceries are going to get more expensive. The report suggested prices will likely increase between 1.5 percent and 2.5 percent during the next year. One way to save on groceries is to buy things in bulk. Here are some items that are usually worth buying in bulk:
Did you know the average US adult spends over $700 a year on gifts? In addition, we often can’t help ourselves while we’re shopping for others, and we end up also spending money on ourselves while out shopping. And that’s not even including the hundreds of dollars we spend on wrapping, cards, groceries, decorations, clothes and hairstyling for parties, and the gas, mileage, babysitting, and restaurant expenses it takes to get out and go shopping.
Did Thanksgiving seem a bit late this year? Surprise—it’s already December! Traditionally, some families start decorating for the Christmas holiday the day after Thanksgiving. Other families trim the tree and hang the lights in early December. Whatever your family holiday traditions are, here are 6 tips for easy, economical holiday decorating to get you started:
There’s a growing community of people who are strategically planning to retire much earlier than 65, 60, or even 50 years old. These people are making radical changes to their lifestyles and financial plans. They are looking to achieve “financial independence” and to “retire early.” Shortened to an acronym, that becomes F-I-R-E, and the FIRE movement is gaining popularity with millennials.
Food is a necessary cost – you can’t avoid feeding yourself and your family! Here are our Top 10 ways to cut some of the cost and put some of the money back into your pocket every week:
Are you expecting a tax refund this year? While it can be exciting to have an unexpected chunk of cash suddenly available, consider your options before going on a shopping spree. You could use this money to your advantage and improve your finances for long-term benefits. Here are some smart ways to spend your tax refund:
Now that the holiday season is over, are you dreading the arrival of your credit card bills? Many people do most of their holiday shopping with credit cards—and the totals sure add up quickly! Here are 5 strategies to deal with the financial aftermath from Christmas shopping and prepare a plan for this year’s holidays.
What makes up your FICO credit score? Where does it come from? What actions make it better or worse, and what does this mean to you? Anthony Marino, Merrimack Valley Credit Union’s Senior Vice President of Organizational Development, answers these questions and more in this informative recorded seminar.
Using debt consolidation as a tool to lower your monthly payments and interest If you’re like most Americans, you may be juggling several different payment responsibilities each month: credit cards, car loans, store credit cards, gas credit cards and even student loans. It can be overwhelming!
It is officially summertime, you’ve put in the request for some time off at work and you’re ready for some much needed R&R! You finally start to plan out your vacation getaway, and then… you see that the expenses are adding up quickly. The last thing you want is to arrive at your destination and realize you’re out of money. So how do you plan a vacation without overspending, that also fits your budget?!
Spring is finally upon us! While most people are thinking about spring cleaning their homes, it is equally as important to think about cleaning your finances. Yes, just like that one crinkled shirt hidden in the depths of your closet that you promise “you will wear one day” – your finances need some reevaluating, too! So, where do we even start? Here are a few tips and tricks to start spring cleaning your finances:
Before we start, I already know what you’re thinking, “Olivia, you’re not good at saving money. Is this going to be a huge flop like the ’No Spend November‘ challenge?” And my answer: potentially. I always do my best to be transparent when it comes to money… and I am a work in progress! I cannot guarantee this spending plan is going to be my “a-ha moment” where I get my life and finances together, but it is worth a shot!
Is anyone else confused at how it is already 2022?! Growing up, I always felt that the years were so much longer. However, the older I get the more I realize how quickly each day goes by. I began my career at the credit union when I was young and fresh out of college. Now, I am in my late 20’s and my back pops when I bend over!
If you’ve been a regular reader of the ThinkPink blog series, you should be well-versed on the importance of a budget. When it comes to saving money and having a plan, a budget is one of the best ways to take control of your finances and reach your financial goals. However, I’ve found that following through with a plan can be cumbersome and while there may be momentum in the beginning, eventually it fizzles out before a goal is even reached. Why is that?
For some readers, the No Spend Challenge could be done with ease and that is awesome! For me, a No Spend Challenge is difficult. It is especially hard when participating during the month of November. Let’s cue the smallest violin here, again. For starters, every store is now fully stocked with their transitional fall into winter pieces, which is arguably the best season for creating outfits.
This is a great time of year to get organized and back on track. Something about the return of regular schedules after a nice summer break leaves many people feeling ready to take on the world. Still, going into the end of the calendar (and tax) year can also leave us a bit anxious about our financial situations.
One of the easiest mistakes to make with money is overspending. It happens to all of us occasionally. Yet if overspending becomes a habit, that’s when you know you have a real problem on your hands. What can help is a two-pronged effort: Understanding why you overspend and then making practical changes to stop the behavior.
Companies know we like our phones so they’re ready and willing to make them costly to use. Thankfully, there are some ways to save on your next (and future) phone bills.
Using a credit card is one of the fastest and easiest ways to build credit or improve your credit score. Responsibly using credit cards allows you to demonstrate to lenders that you can manage payments. The earlier you begin, the better.
Building a strong credit score takes time. If you’ve pulled your credit score lately and you’re not satisfied with the number you received, there are several things you can do to raise your credit.
Checking your credit score is an easy way to tell if you’re making smart financial moves with your credit cards and loans. It’s a representation of how well you’re paying your bills, keeping your overall debt under control, and a few other signs of personal responsibility. But even if you feel like you’re doing everything right, you might be making some mistakes that could cause a drop in your score since the last time you checked. Here’s a look at what they are and how to get back on the right track.
Knowing how credit inquiries affect you is a big part of being financially healthy. When you apply for a credit card or loan the creditor will “pull” your credit. This is known as a hard inquiry – but there are also soft inquiries, too. Here is what makes them different:
Paying your bills on time is key to improving your credit score, and managing credit card debt effectively is equally important. Setting up autopay for your credit card payments is a practical solution to achieve both objectives. Here’s everything you need to know.