Friday, January 4, 2013

January Blues

January of every year is a tough time for educational employees who are paid monthly. School systems typically pay their employees before the Christmas break. While it is nice to be paid early before the holiday, this also means that it will be 40 days or so until the next monthly payroll will be posted. The additional expenses associated with the holidays also add some financial strain to the family budget.

The credit union can help with some short term lending options that are far superior to stopping in and utilizing one of the many payday lenders out there. Our Holiday Loan will be available through the end of January that can provide qualified borrowers up to $2,000 at a fixed rate as low as 5.99% APR. You may only need $200-$300 until payday which the credit union can provide. Some larger lenders do not want to process smaller loan amounts because they are “not profitable”. A small overdraft line of credit can be established to cover financial holes that may develop from emergencies and unexpected expenses. There is no cost to have an overdraft loan available for use. It is simply a good backup plan should the need arise.

January is a time for reflection for many consumers as they look back over the previous year and prepare for the coming year. Member statements from December will reflect the total dollar amount of overdraft fees paid during the year. Did you pay more in fees that you wanted to? Do you want to pay fewer fees this year? Now is the time to make a plan for the future to keep more of your hard earned money in your own pocket.

Christmas Club accounts are another way to set aside a few dollars every pay period for those holiday expenses next year. The credit union actually has a variety of different sub-accounts available that can be separate from your normal savings account. We have members now who have established their own “vacation fund” or “mad money” fund sub-accounts to build a pool of money for a specific purpose. There is no cost to establish or maintain these sub-accounts under the primary account. Ask any Head Teller or Member Service Representative for assistance in creating one of these accounts.