When Times Are Tough, We Can Help

In tough times, it’s more important than ever to develop and maintain good financial habits.
Having a household budget and shedding high-rate credit card debt are two obvious things that
could benefit most consumers. But figuring out where to start can be a daunting task—
especially if you feel like you’re already in trouble. The thing to remember is that it’s never too
late to ask for help from your credit union.

Manage your mortgage
If you have an adjustable-rate mortgage (ARM) and are facing a rate adjustment, refinancing
your home loan with your credit union might be the break you need. If you qualify, you could:

• Refinance into a fixed-rate 30-year (or shorter-term) mortgage.
• Refinance into a new ARM that has terms better suited to your situation.

Even if you have a fixed-rate home loan, refinancing may free up some money you could use to:
Pay down more expensive debt—credit card bills, for example.

• Build your emergency fund for unexpected expenses, such as car repairs or a new
  furnace.

Or ask about a Cash-Out Refinance. If you qualify, you could:

• Pull equity from your home to make improvements, pay off debt, or other lingering
  expenses.
• Refinance to a completely new loan with current rates and check to see if a new term
  would also be more suitable for you.

Tap your home’s equity
A home equity line of credit can be a useful cushion if you’re not already overloaded with debt.

• You can set it up and never draw on it but have the comfort of knowing it’s there if
  needed.
• If you’re already tapped out, borrowing more is not the answer.
  Cut credit card costs

Not all credit cards are created equal. Switch to a credit union credit card—they average more
than two percentage points lower than bank credit card interest rates, and often have lower
fees as well.

• Pay on time, no exceptions
• Whenever possible, pay the balance each month. When you have to stretch payments,
  pay in a few months as you can manage.
• Avoid cash advances—the interest rate on these is higher than on straight purchases.

Pass up payday loans
Payday lenders promise to help when you’re short on cash. You’ll get the money you need, but
with interest rates from 300% to 1,000%.

• See what it really costs to borrow from a payday lender.
• Visit your credit union—Credit unions offer payday loan alternatives with fairer terms
  and lower interest rates, such as short-term signature loans and low-cost cash advances.

Use direct deposit
Direct deposit will help you to save automatically. You can set it up to place a certain amount or a
percentage into your checking account and another amount into your savings. It gives you:

• One less thing to worry about; it’s the safest way to receive your money.
• It is an easier and more convenient way to contribute to IRAs (individual retirement
  accounts) and other savings vehicles, and
• More control over your money and your time—it’s predictable and dependable.

Steer clear of scams
Some scammers use negative economic news to scare investors into high-risk investments.
They use investor fears to promote sketchy schemes with promises of high return and no risk
that leave investors with nothing but empty wallets.

• Hang up on aggressive cold callers
• Delete unsolicited e-mails promoting investment opportunities.

Financial Coaches
If you have found yourself in a difficult financial situation or are looking for ways to budget,
Resource One offers free Financial Coaching at all of our locations. Financial Coaches are
available to discuss solutions to your financial troubles. Please reach out if you are looking for reliable and unbiased help.

As a member-owned institution, credit unions look out for their members’ best interests. Credit
union’s rates and fees can save their members hundreds of dollars annually. Don’t wait until
you’re in deep trouble to ask for a financial checkup at your credit union. In fact, the earlier you
ask for a review, the better the outcome can be.