Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose

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12 Steps to Financial Wellness

Step 3: Pay Down Debt

You’ve tracked your spending, designed a budget for your monthly expenses, and you’re on a good path to financial wellness. In this next step, you’ll create a plan for paying down debt.

Consumer debt can be one of the biggest challenges to financial wellness. With some intentional action and commitment, reaching true financial wellness is possible.

Here’s how to pay down or off your debt in five simple steps.

1. Organize your debt

List every credit card you own along with an outstanding balance. Jot down the amount owed to each card issuer. Next, list the interest rate of each card. Repeat these steps for other loans you may have as well.

2. Choose your debt-crushing method

There are two approaches generally advised to folks who are seeking to get rid of their debt:

• The snowball method involves paying off your smallest debt first, and then moving to the next-smallest until all debts have been fully paid.

• The avalanche method involves getting rid of the debt that has the highest interest rate first before moving on to the debt with the next-highest rate until all debts are paid.

Choose the method that makes the most sense for your personal and financial circumstances.

3. Maximize your payments

Once you’ve chosen your debt-crushing method, find ways to maximize your monthly payments. You can do this by trimming your spending in one budget category and channeling that money toward your debt. You can also find ways to get some extra cash for your payments, such as freelancing for hire.

4. Consider a debt consolidation loan

When you consolidate debts to one low-interest loan, it’s a lot easier to manage the monthly payments. Plus, the savings in interest you won’t pay can be significant, especially if the new loan has a low-interest rate. If this approach sounds right for you, consider taking out a personal loan.

5. Negotiate with your creditors

Many credit card companies will be willing to lower your interest rate once you prove you are serious about paying down debt. After kicking off your debt payment plan, it’s worthwhile to contact each credit card company to discuss options.

No matter which strategy you go with or the methods you use for paying off your debt, commit to not adding more debt onto your card while paying it down. Paying off a large amount of debt will take time and willpower, but living debt-free is key to financial wellness. Best of luck on your debt-crushing journey!

 

Read Step 1: How to Track Your Spending

Read Step 2: Creating a Budget

Read Step 3: Pay Down Debt

Read Step 4: Have the Money Talk With Your Partner

Read Step 5: Practice Mindful Spending

Read Step 6: Pay It Forward

Read Step 7: How to Pay Yourself First

Read Step 8: Know When and How to Indulge

Read Step 9: Build and Maintain an Excellent Credit Score

Read Step 10: Plan for Retirement

Read Step 11: Start Investing

Read Step 12: Review and Tweak

 

 

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU.
Learn More About Banking with a Purpose

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Now Is The Time To Refinance

Cash Out Refi

Visit our Home Loan Center to get started!

AGCU is committed to helping find the right home loan option for you. We offer a variety of products to meet your requirements. Whatever your lending needs are, AGCU is here to help you navigate the process.

Have a question or want to get started with an application? Connect with an AGCU Video Banking Representative or apply online today!

Speak face-to-face with an AGCU Video Banking Representative from anywhere.
Give it a try today! Video Banking Hours (CST): Mon – Fri: 8:30 a.m.- 5:00 p.m.

Contact a Mortgage Officer

Apply now, or contact our mortgage professionals at 866-508-2428, email us for more information, or complete the form below and we will contact you.

1 CoreLogic, Homeowner Equity Insights report, data through Q3 2021.

2 The Mortgage Reports, “The Streamline Refinance: Get Today’s Low Rates With Almost No Paperwork,” February 28, 2020.

12 Steps to Financial Wellness

Step 2: Creating A Budget

Budgets play a crucial role in promoting financial awareness, which leads to more responsible money choices.

Let’s take a look at how to create a budget and review some popular budgeting systems, as well as how they work.

Create a budget in 5 easy steps

• Track your spending and income. This includes all your financial documents, like your account statements, bills and pay stubs. [If you’ve followed Step 1, you’ve already completed this step–nice work!]
• Tally up your totals. Calculate the totals of your monthly expenses and all streams of income.
• List your needs. Your needs include anything that is essential for living and basic functions, such as mortgage payments. As you list each need, write down its corresponding cost. Sum the total of all your needs when you’ve finished.
• List your wants. This includes anything that is not essential for living, like entertainment costs. Here, too, note the monthly cost of each item on your list and add up the total when you’re done.
• Assign dollar amounts to your expenses. Open a new spreadsheet and copy your list of expenses. Assign an appropriate dollar amount for each of these costs.
• Review and tweak as necessary. You will likely need to adjust the amounts in each expense category at least once a year to keep your budget relevant.

Budgeting systems

While every kind of budget involves tracking expenses and committing to a maximum spending amount each month, there is a wide range of budgeting systems to fit every kind of personality and money management style.

• The traditional budget.  doesn’t involve much more work than the steps described above. After working out a number for every expense category, you’ll simply need to track your spending throughout the month to ensure you’re sticking to the plan. You can use a spreadsheet for this purpose, or utilize one of the budgeting features in our Online Banking. AGCU has helpful budgeting tools with online banking. just log on to your account through our web portal and click on the “My Finance” tab. If your life happens on your phone, you use budgeting apps like YNAB or Mint to help you track your spending. Both apps allow you to allocate a specific amount of money for each spending category for each month and will enable you to track your spending with just a few clicks. It’s important to note that YNAB is not a free app, but that it may be worth the price for users who want to take on a more active role in their money management.
• The money-envelope system. works similarly. However, instead of simply committing to sticking to your spending amounts for each expense category, you’ll withdraw the amount you plan to spend on all non-fixed expenses in cash at the start of the month. Divide the cash into separate envelopes, using one for each of these expenses. Then, withdraw cash from the appropriate envelope when making a purchase in that category. There’s no way to blow your budget with this system; when the money in the “Dining out” envelope runs dry, that’s all for this month!
• The 50/30/20 budget. is simpler, but requires more discipline. Set aside 50 percent of your budget for your needs, 30 percent for wants and the remaining 20 percent for savings. Of course, you’ll need to make sure your income and expenses will work with this kind of budget. Does 50 percent of your income cover your needs? If yes, this budget allows for more individual choices each month and less accounting and tracking of expenses.
• A well-designed budget can provide its creator with a sense of financial security and freedom. When you stick to a budget, you’ll always know you have enough to get through the month and save for the future. Start budgeting today!

 

Read Step 1: How to Track Your Spending

Read Step 2: Creating a Budget

Read Step 3: Pay Down Debt

Read Step 4: Have the Money Talk With Your Partner

Read Step 5: Practice Mindful Spending

Read Step 6: Pay It Forward

Read Step 7: How to Pay Yourself First

Read Step 8: Know When and How to Indulge

Read Step 9: Build and Maintain an Excellent Credit Score

Read Step 10: Plan for Retirement

Read Step 11: Start Investing

Read Step 12: Review and Tweak

 

 

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU.
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Don’t Get Caught in a Romance Scam

Love is in the air, and that means scammers are out in full force trying to con love-seekers into giving up their hearts — and their money — for a love interest who doesn’t actually exist. Romance scams have been around for a while, and they’re unfortunately on the rise: a record  $304 million in losses related to romance scams was reported to the FTC in 2020, up by nearly 50% from 2019.

Here’s all you need to know about romance scams and how to protect yourself from getting your heart and wallet crushed by one of these schemes.

How the scams play out

In a romance scam, a scammer will create a bogus profile on a dating site or app, or reach out to their target on popular social media platforms. They’ll strike up a remote relationship with the target and work to gain their trust. The scammer will claim they can’t meet their new “dating partner” in person, citing any number of reasons from serving in the military, to working on an oil rig, to being stuck overseas and unable to travel.

After several weeks have passed, the scammer will invent a story aimed at persuading the target to loan them a significant amount of money. After several weeks have passed, the scammer will invent a story aimed at persuading the target to loan them a significant amount of money for any of these alleged costs, or a similar phony expense:

• A plane ticket or other travel expenses
• Emergency surgery or other medical expenses
• Customs fees to retrieve a lost item
• Gambling debts
• A visa or other official travel documents
• Bail for an arrest

Unfortunately, at this point in the relationship, the target may be in too deep to recognize a scam and will often part with their money. The scammer, of course, will ask for the funds to be given via prepaid gift card or wire transfer, making it nearly impossible to reverse the payment or trace its destination. Once the payment has been made, the scammer may disappear from the target’s life. They may try their luck again by asking for more money a few weeks down the line, repeating the scam until the victim finally grows suspicious.

Red flags

Protect yourself from falling victim to a romance scam by looking out for these red flags when searching for a dating partner online:

• The dating profile is too perfect to be true
• When asked about an in-person meeting, the “date” is evasive
• The love interest seems super-eager to build a relationship

How to avoid romance scams

In addition to looking out for red flags when browsing online dating apps and websites, there are several steps you can take to keep yourself safe.

First, if a dating profile seems suspicious, do a reverse image search on the photo. If the photo turns up in another profile under a different name, or is revealed to be a stock image, you’re likely looking at the dating profile of a scammer.

Next, you can look up the name on the profile with words that are relevant to their alleged background, like “US Army scammer” or “heart surgery scammer”. If the scammer has pulled off this scheme in the past, a search should bring up enough breadcrumbs to confirm your suspicions.

Finally, never send a prepaid gift card or wire money to a contact you haven’t met. If asked to send funds to a love interest you’ve never seen in person, you’re probably being scammed.

If you’ve been scammed

If you’ve fallen for a romance scam and sent the scammer a prepaid gift card, immediately contact the company that issued the card and let them know about the scam. Some card issuers can refund the money spent on a fraudulent charge. It’s also important to notify the FTC at ReportFraud.ftc.gov. Finally, alert the customer service of the website or app where you met the phony single so they can take appropriate action.

A new love interest is always exciting, but don’t let your feelings cloud your judgment. Stay alert when seeking a new dating partner through an online forum and stay safe!

 

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose

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Fixed vs. VaRiAbLE Expenses

How to budget for fixed and variable expenses

Putting together a budget requires looking at a range of expenses; some that are expected and others that are not. Expenses generally fall into one of two categories — variable and fixed. Understanding how they differ can help you handle current bills as well as future ones.

 

What is a fixed expense?

 

Expenses that stay the same (or close to the same) each time they are paid fall into the fixed expense category. The stability or repetitive nature of fixed expenses provides a good foundation for your budget.

 

According to Paula Pant, personal finance expert and contributor to The Balance, expenses like your mortgage or rent, car loan or other loan payments, real estate taxes, insurance premiums, utilities, and childcare expenses all fall under the fixed expense umbrella.

 

Knowing how much you are going to pay is not the only benefit of fixed expenses. You will also know exactly when you have to pay them, which is another booster in your budget-planning efforts. In an article for Forbes, freelance financial journalist Rebecca Lake explains that fixed expenses can be paid through automatic bill payments, thereby avoiding late payments and the fees that accompany them.

 

What is a variable expense?

 

Any expenses that aren’t regular or that change amounts by a lot are considered variable. That includes things like medical bills, home or car repair, entertainment, meals out, personal care expenses, and even gas and groceries, according to Lake.

 

A lot of times, your variable expenses will consist of your “needs” instead of your “wants.” For example, you don’t need to eat out one a week, but if that is important to you then you need to include a set amount in your budget and stick to it.

 

Ways to budget and reduce expenses

 

Budgeting for fixed expenses is definitely easier than variable expenses, but even fixed expenses offer a little wiggle room. If you are trying to pay less on a fixed expense, do some research and sharpen your bargain-hunting skills. Paula Pant recommends shopping around to see if you can get a better deal on your internet or cell phone bill or to see whether there’s a cheaper option out there for car or home insurance.

 

Lake recommends looking into refinancing your mortgage or other loans, as well as consolidating your consolidation, or signing up for a credit card with a lower interest rate to help you save on fixed expenses.

 

Variable expenses may seem easy to trim in order to save money, but they require you to make decisions each day about where you should spend your money, which Pant notes can be difficult. Lifestyle adjustments like eating out less, forgoing shopping sprees, and using coupons and meal planning may help you save on variable expenses, according to Lake.

 

When you take the time to understand how every bill and cost affect your life, you can create a successful budget and even save money on your fixed and variable expenses.

 

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose

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Big Game Auto Loan Special!

To celebrate the Big Game, we are offering an auto loan special!

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When you secure your auto loan between February 1 and February 13, 2022, you may be eligible to score:

• 1.99%* APR on NEW and USED auto loans
• $200 cashback
  
• No payments for 60 days
  

Already have an auto loan with another bank or credit union? Check with our loan officers on moving your existing loans to AGCU. You could add another $100 for each loan!

Have a question or want to get started with an application? Connect with an AGCU Video Banking Representative or apply online today!

Speak face-to-face with an AGCU Video Banking Representative from anywhere.
Give it a try today! Video Banking Hours (CST): Mon – Fri: 8:30 a.m.- 5:00 p.m.

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose

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*APR=annual percentage rate. Note: the current APR is described as a “as low as” rate. You may or may not receive the “as low as” rate advertised because all loans and rates are subject to your own personal credit history. This rate is on New and used vehicles.  The minimum loan amount is $5,000. Subject to credit approval and the credit union’s eligibility requirements. Cashback funds will be deposited into the member’s checking account 30 days after loan closing. Cashback funds will be reported to the IRS as interest. Existing AGCU loans are not eligible. Promotion is effective on auto loans applied for between 2/1/2021 – 2/13/2022. The loan must close by 2/28/2022. Not valid with any other offer.

The Hidden Costs of Owning a Car

There’s so much more to owning a car than monthly payments on a loan or lease! Also, consider these costs when it comes to owning a car.

Gas

The amount you spend on fuel will fluctuate along with gas prices and varies by vehicle, location, and how much you drive. Expect to spend $150-300 a month on fuel.

Insurance

This also varies according to a number of factors. The average cost of auto insurance in the U.S. is $140/month. It’s a good idea to review your insurance policy every year. Let AGCU Insurance help you find an affordable insurance plan for auto, home, motorcycle, life, pet, and more! Plus, AGCU Insurance is for everyone, not just AGCU members!

Maintenance

New cars cost an average of $1 in maintenance for every 10 miles. Older cars can cost an average of $1,000 a year in maintenance costs. This, of course, varies by vehicle and its condition when purchased. Maintenance includes oil changes, tire rotations, brake pad replacements, and more.

 

Are You Ready?

After you’ve considered all the costs involved with buying a car, we’re here to help! Whether your dream is to cruise the open road, enjoy the lake, or head out on the trails, we offer great rates on loans and refinances for new and used autos, RVs, boats, jet skis, motorcycles, and even ATVs. We look forward to helping you finance your next set of keys!

Car, Boat, RV, Motorcycle & More

Get the car you want at a rate you can afford with AGCU. Our auto loans come equipped with perks to meet your needs.

• Competitive, low rates
• Flexible terms
• Optional GAP Coverage and Extended Warranty
• Optional Debt Protection Coverage including Credit Life, Disability, and Involuntary Unemployment

Click to view AGCU loan rates.

Have a question or want to get started with an application? Connect with an AGCU Video Banking Representative or apply online today!

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Give it a try today! Video Banking Hours (CST): Mon – Fri: 8:30 a.m.- 5:00 p.m.

 

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose

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When Should You Start Banking Online With Your Kids?

Here is a guide to help you start talking about finances with your kids. When to start teaching your kids about saving, spending, and online banking.

Part of your job as a parent is to prepare your kids for the future. One important component of their future is learning how to handle money. Yes, financial literacy can seem daunting and complex, but you can start small by introducing your young kids to simple concepts like saving money in an online savings account. Here is a guide to help you start talking about finances with your kids.

Younger than six

If your little one is less than six years old, they may not understand what an online banking account is even if they are tech-savvy like many kids today. But, they will understand a physical representation of their saving efforts, aka the traditional piggy bank, according to Spencer Tierney, writer for NerdWallet. You can even let them pick out the bank — it doesn’t even have to be a pig! They will love dropping the coins or dollars they receive from birthdays, holidays, or from completing age-appropriate chores. Plus, they will be able to see their savings grow until you allow them to buy something special for themselves at the store.

Ready for the next step

Once the piggy-bank-savings method has lost its appeal or your child’s interest, it could be a good time to go high-tech. Online savings offers 24/7 access, so you can set the time that’s convenient for you and your child to discuss money. No need to wait in a crowded lobby or deal with an appointment time that puts stress on your schedule and your kid’s nerves.

Kid-focused accounts

Most likely, the financial institution you trust with your grown-up money offers a kid-friendly savings account. If not, a little research should help you find a suitable source for your child’s hard-earned money. “Whether you want to help build your child’s balance or your child needs an account to bank their income from an allowance or part-time job, a youth savings account provides an opportunity to earn some interest, while also learning how to bank and build a savings habit,” explains Sabrina Karl, writer for Investopedia.

What to look for in an online savings account

The interest rate isn’t the only thing you should weigh when choosing an online savings account for your child. Although, a high-interest rate is an attractive feature and may inspire your child to save as much as possible! Check to make sure that the high-interest bearing account does not require monthly maintenance fees or a minimum balance before committing. “Children should see saving as a good thing and not have fees diminish what they put into their accounts,” Tierney says.

Kids have limited attention spans. To keep their focus on their money-saving habits and make your lessons enjoyable and fruitful, you should choose an online savings account that is easy to use, see, and access. Tierney suggests looking for features like mobile apps and electronic statements; other features worth noting are goal-oriented budgets, spending trackers, and a prepaid debit card. “Show your child how to create their own secure password, which will help them learn money management and internet safety,” he advises.

According to Margarette Burnette, writer for NerdWallet, some apps will offer parental controls so you can help monitor how much your child spends as well as let you transfer money directly into their account.

By talking to your children about money, saving, and accounts early, you’ll inspire them to make smart money moves throughout their lives.

Ready to open a youth account for your kids or grandkids? You can open one online!

Speak face-to-face with an AGCU Video Banking Representative from anywhere.
Give it a try today! Video Banking Hours (CST): Mon – Fri: 8:30 a.m.- 5:00 p.m.

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose

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12 Steps to Financial Wellness

Step 1: How to Track Your Spending

Are you ready to join us on a journey toward financial wellness?

Each month, AGCU will focus on one step of a journey of financial wellness. We’ll tackle the topic in detail and help you learn all you need to know about this step. Follow along, and at the end of the year, you’ll have mastered the tools for a life of financial wellness.

Tracking your spending is the first step toward greater financial awareness and, ultimately, toward financial health. However, mastering this skill is easier said than done. How can you track every dollar you spend when you make multiple purchases each day?

We’ve outlined how to track your spending in 3 easy steps.

1. Choose your tools

Tracing every dollar’s journey isn’t easy, but with the right tools, you can make it quick and simple. Choose from one of the following money-tracking techniques:

• Budgeting apps. AGCU has helpful budgeting tools with online banking. just log on to your account through our web portal and click on the “My Finance” tab. If your life happens on your phone, you use budgeting apps like YNAB or Mint to help you track your spending. Both apps allow you to allocate a specific amount of money for each spending category for each month and will enable you to track your spending with just a few clicks. It’s important to note that YNAB is not a free app, but that it may be worth the price for users who want to take on a more active role in their money management.
• Spreadsheet. If you like to see everything spelled out clearly, a spreadsheet might be a better choice for you. You’ll need to record every transaction, but if you prepare the sheet with all the spending categories you think you’ll need, this step shouldn’t take long at all.
• The envelope system. If you’re a big cash spender, consider withdrawing the cash you think you’ll spend in a month (or in a week) and keeping it in an envelope designated for each category. When you need to make a purchase, just use money from the envelope.
• Receipts. Hold onto every receipt from the purchases you make this month to help you track your spending.
• Pencil and paper. Recording each purchase the old-fashioned way can help you make more mindful money choices throughout the day. Be sure to keep a steady supply of both writing instruments handy at all times so you never miss a purchase.

2. Review your checking account and credit card statements carefully

Along with one of the tools listed above, you can track the purchases you make using plastic by reviewing your monthly checking account and credit card statements at the end of the month. You may receive these in the mail, or you can access them online by logging into your account and downloading.

3. Review and categorize your purchases

At the end of the month, use your chosen tool to review all the purchases you’ve made throughout the month. If you’ve used an app or a spreadsheet, adding your purchases to find the total amount of money spent will be simple. The app or spreadsheet may have already helped you divide the money spent into separate categories as well. Similarly, if you’ve used the envelope system, you should know how much you spent on each kind of purchase this month. However, if you’ve chosen another method to track your spending, you’ll need to crunch some numbers to get an accurate picture of your spending habits.

When completing this step, don’t forget to include any automated payments you may rarely think about, such as subscription fees and insurance premiums.

Tracking your spending and identifying your money drains is the first step toward greater financial awareness and responsibility. Use the tips outlined here to successfully master the skill of tracking your spending.

 

Read Step 1: How to Track Your Spending

Read Step 2: Creating a Budget

Read Step 3: Pay Down Debt

Read Step 4: Have the Money Talk With Your Partner

Read Step 5: Practice Mindful Spending

Read Step 6: Pay It Forward

Read Step 7: How to Pay Yourself First

Read Step 8: Know When and How to Indulge

Read Step 9: Build and Maintain an Excellent Credit Score

Read Step 10: Plan for Retirement

Read Step 11: Start Investing

Read Step 12: Review and Tweak

 

 

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU.
Learn More About Banking with a Purpose

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