Friday, July 23rd, 2021
If you have a large credit card balance and just pay the minimum each month, you could end up carrying this balance for years while paying a lot in interest. You might also be tempted to make more purchases on the card, ultimately increasing the time it takes to pay off the debt.
You might consider: Try to double down on your monthly payments and/or make one extra payment each month instead of paying just the minimum amount. If you have multiple credit cards with high-interest rates, consider transferring all your balances to one credit card with a lower interest rate.
AGCU offers a variety of personal credit cards, including Max Cash Preferred, Real Rewards, Platinum, and Secured Card. Pick the card best suited for your needs!
Does the thought of making your monthly bill payments on time fill you with dread? Having a plan upfront can help decrease your stress and empower you to control your finances.
You might consider: Making a monthly budget, detailing your income and spending. Look for areas to cut back on “discretionary” purchases and consider ways to boost your income. Our budgeting tools are a great way to keep on target!
Log in to your Online Banking Account and select the My Finance tab to start taking control of your spending today!
Putting away at least 5% of your income could help you pay for seasonal expenses like vacations, back to school, or holidays, without relying on credit.
You might consider: Trimming your expenses and restructure your budget to include at least 5% for savings. If this amount is not feasible, start with 1-2% and gradually increase each month until you can reach 5%.
Ideally, you should have an emergency fund to cover urgent needs that you can’t anticipate. According to a recent Bankrate survey, “just 40% of Americans could pay an unexpected $1,000 expense, such as an emergency room visit or car repair, with their savings”.
You might consider: Starting to build your funds now by putting away as much as you can each month, specifically for emergencies. Consider setting up automatic recurring transfers into one of your AGCU savings accounts to help prepare now for the unexpected.
Most financial experts agree that your monthly mortgage payment should not exceed 30% of your take-home pay.
You might consider:
If the answer is no, this could spell financial trouble.
Thanks to social media, the pressure of “keeping up with the Joneses” is stronger than ever. If you find yourself making financial decisions based on your friends’ choices, you could be spending more than you can afford.
You might consider: Not feeling compelled to live up to the expectations of others. The peace of mind you gain by taking control of your finances contributes more to your well-being in the long run.
If you’re feeling overwhelmed by your current financial situation, we might be able to help. Stop by your local branch or call 866-508-AGCU (2428) for assistance.
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