SafeAmerica Credit Union

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• By Kevin Alvarez

Managing Debt as Interest Rates Rise

Debt can be a challenge to manage, even in the best of times. Now, with the economy in the news nearly every day, how do you effectively manage your debt as the cost of borrowing for things like homes, cars,
and credit cards rises? People are successful when they set a realistic budget for spending. Focusing on non-traditional gifts, the joy of experiences and the resulting memories, can be just as rewarding without damaging your finances, especially as prices on essentials are rising.

Here are five general questions to ask in order to minimize the hit to your wallet in the face of rising interest rates.

What's Your Current Credit Score And History?

Knowing this information helps you understand how rising interest rates will apply to you. Some research shows that only 33 percent of Americans checked their credit score in the past year. Regularly monitoring your credit can alert you to errors, protect you from fraud, and provide you valuable information to strengthen your credit score–which can potentially minimize the rising cost of borrowing.

What Is Your Debt Portfolio?

Another helpful course of action is to make a list of your current debt such as credit cards, car loans, student loans and other debt. Although it’s a simple step, this can make a big difference in visualizing the big picture of your financial situation. Part of seeing the impact of rising interest rates is understanding exactly where you stand.

What Are Your Current Interest Rates?

An effective next step is to regularly review your balances, terms, and interest rates on a monthly basis. By staying on top of this vital information, you can make adjustments and informed decisions about reducing any existing balances more aggressively. As a debt paydown strategy, it often makes sense to start with the highest interest credit cards or loans.

What Is A Realistic Payment Plan?

As you are able, consider paying credit card balances in full by the due date each month. You can avoid interest charges on what you purchase, which means rising interest rates may not have much of an effect on your household finances.

What Is Your Overall Financial Plan?

To stay financially healthy and minimize the impact of rising interest rates, it is key to earn more than you spend, so that you have enough money to build savings for the future. Keeping an eye on your spending is an important step in the effort to create a budget without the cost of high-interest debt. Once you develop a household budget and track income and spending, it becomes clear where the money is going and where you need to adjust your spending to achieve your financial goals. By setting financial goals, preparing a financial plan, sticking to a budget, and setting up an emergency fund for the unexpected, you ensure that your financial well-being does not suffer as interest rates rise.

This information brought to you by GreenPath Financial Wellness.

GreenPath Financial Wellness

• By Kevin Alvarez

Love to Give: Holiday Food Drive 2022

The Season of Giving

It’s no secret that People Helping People is an integral philosophy to our credit union. In 2022 we joined forces, once again, with The Alameda County Community Food Bank and the Food Bank of Contra Costa & Solano for our annual holiday food drive "Love To Give" to help those in need.

Love to Give logoDonate Today!

Just $1 provides 2 meals to those in need.  Your donations will go a long way in helping those in need in our communities.

You can donate any time to either food bank.  Just click the links below to make your contribution.

Thank you!

Donate to Alameda County Community Food Bank
Donate to Food Bank of Contra Costa & Solano

We encourage you to help with our endeavors, and together we can continue to help our communities thrive.

• By Kevin Alvarez

America Saves Week – Save By Reducing Debt

One of the greatest contributors to financial stress is debt. If you're having a tough time financially, it can feel isolating, but the truth is 80 percent of Americans have consumer debt. The only way to relieve financial stress is to make a plan and work your way through it. But to make that plan, you'll need to understand the type of debt you have, your best-case scenario to pay down your debt, and how to leverage your knowledge so that you can maintain or increase your credit score. When you reduce your debt, you save in the long run — on late fees, interest, and a higher credit score, which will lower interest rates.

Get A Clear View Of Your Finances

You thought we'd say budget first, didn't you? While creating a spending and savings plan (our preferred term over "budget") is essential, the true value in having a plan is clarity. When you know your exact income and expenses, you can better steward the discretionary income left over after your bills are paid. It will become easier for you to decide how much to spend, if you can put more toward debt, what goes into savings, and whether to begin making investments. Your spending and savings plan will also highlight areas that need attention.

For example, is your grocery allocation adequate? Are all of your subscriptions and recurring monthly expenses still necessary, or can any be canceled? Knowing where all of your money is coming from and going to helps you build financial confidence and shows you where you can afford to reduce your debt and begin building wealth.

If you need support with making a spending and savings plan, we've created a straightforward tool that will help!

Work With What You Have

When you're paying down your debt, one conscious decision to adopt is to stop adding to your debt. This step may seem intuitive, but there are circumstances where the urge to just "charge it" may arise.

Many "Buy Now, Pay Later" options are becoming increasingly popular. Though it may feel like it is not, options like Klarna, Afterpay, and Affirm are debt and should be treated as such.

As you work to pay off your credit cards, here's a word of advice: do not close your credit cards!

Closing your credit card accounts may reduce your credit score, as the "age" of your credit factors into your FICO score. By keeping your card open with a $0 balance, you'll have a longer credit history and a larger amount of available credit. The only time you may want to consider canceling a card is if it has pricey annual fees.

Increase Your Income

If you can, consider increasing your income temporarily, allowing you to put more money towards your debt. This will allow you to pay down your debt faster! There are so many options to get a quick cash injection or additional income in today's economy. Some ideas include selling items around your home you no longer use, purging your closet on sites like thredUp, leveraging a talent or skill you have, like tutoring or singing, to offer as a service, or taking advantage of the booming gig economy.

Paying It Off For Good Starts With A Decision

There are many strategies to use when working toward paying off your debt. The most popular strategies include the snowball method or the avalanche method. By deciding which method you want to use beforehand, you will reap the benefits of paying it off faster.

Snowball Method

"Snowballing" your debt is a type of accelerated debt repayment plan. First, list all of your debts from the smallest balance to the largest balance. Next, make the minimum payment on all your debt except the smallest one. With your smallest debt, you will put as much money as you can toward the balance. Once the smallest debt is paid, take the amount you were putting towards that debt and apply it to the next smallest. With this method, interest rates are not the focus.

Avalanche Method

With the "avalanche" method, you will still make the minimum payments on every source of debt, but you apply the remaining funds toward the debt with the highest interest rate. By paying off the debt with the highest interest rate first, you reduce the overall amount of interest you pay.

Making extra payments allows you to pay off your loan(s) more quickly when paying toward installment loans, like your car payment. Just be sure to specify that any additional funds outside of your monthly payment go toward the principal. Before you begin making extra payments to installment loans, check the terms of your loan to determine whether additional fees or prepayment penalties may apply.

Regardless of how you decide to reduce your debt, let America Saves be your savings accountability partner! Take the America Saves Pledge and choose “reduce debt” as your savings goal. We'll support you by sending email and text reminders, resources, and tips to keep you on track towards paying down your debt.

Make the Pledge

By accessing this link, you will be leaving SafeAmerica's website and entering a website hosted by another party.

Although SafeAmerica has approved this as a reliable partner site, please be advised that you will no longer be subject to, or under the protection of, the privacy and security policies of the bank's website. The other party is solely responsible for the content of its website.

We encourage you to read and evaluate the privacy and security policies on the site you are entering, which may be different than those of the bank.

Continue

• By Lisa Eddy

Love to Give: Holiday Food Drive 2021

The Season of Giving

It’s no secret that People Helping People is an integral philosophy to our credit union. In 2021 we joined forces, once again, with The Alameda County Community Food Bank and the Food Bank of Contra Costa & Solano for our annual holiday food drive "Love To Give" to help those in need.

Love to Give logo

Your generous donations helped us raise $7,711!

Thank you to all our members and employees who contributed.  Your donations will go a long way in helping those in need in our communities.

There's still time to donate.  You can donate any time to either food bank.  Just click the links below to make your contribution.

Thank you!

Donate to Alameda County Community Food Bank
Donate to Food Bank of Contra Costa & Solano

We encourage you to help with our endeavors, and together we can continue to help our communities thrive.

• By Kevin Alvarez

What to Know About the Child Tax Credit

Information brought to you by our partner, GreenPath Financial Wellness

Families with dependent children are about to receive advanced payments as part of the American Rescue Plan’s expansion of the Child Tax Credit.

On average, families who claim the Child Tax Credit for 2021 will receive up to $3,000 per qualifying child per year, paid out in monthly installments.  A qualifying child is between 6 and 17 years old at the end of 2021. For those with a qualifying child under age 6 at the end of 2021, they will receive $3,600 per year, paid out in monthly installments.

The official dates for the 2021 monthly direct cash payments are: July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15.

Families are eligible to receive advance Child Tax Credit payments based on their 2020 tax return or 2019 tax, families generally will receive those payments automatically without needing to take any additional action.

Meal Preparation with kids during COVID-19

RESOURCES AVAILABLE

Your Family Budget

Families set to receive the advanced monthly payments starting in July might be weighing what to do with the money. How will the funds best be used? Will you use the payments for immediate family needs? Put it away for any family emergencies that might come up?

A good place to start when it comes to assessing how to use the advanced child tax credits is to look at a family’s entire financial picture. Families might consider asking the following questions:

  • How much does the family have in emergency savings?
  • Does the family have any high-interest debt (credit cards, loans, other debt) to pay off?
  • What other major expenses are coming up and how will the family pay for the them?
  • Does the family have the need for any upcoming home repair, car repair, medical expenses?

The Power of a Plan

Setting a plan can be helpful when it comes to managing these advanced funds.

Advanced payments can be used to make a significant difference in a family’s entire financial situation.  It could be a way to make a major dent in credit card debt, or a way to be able to build some family emergency savings that many struggle to build throughout the year with a paycheck.

To get started, GreenPath offers a simple spending plan worksheet to jump-start the family budgeting process.

To help understand your best options, visit our GreenPath  page to learn how you can receive a free financial counseling session. As an example, some families might want to opt-out of the scheduled advanced payments and instead receive one lump sum child tax payment in 2021. If that payment plan makes sense, people will need to select that option in the IRS online portal.

What’s the best path for your family? When you contact GreenPath, you will be guided through a process to assess your financial picture and create an action plan to address your specific situation when it comes to managing the advanced payments.

GreenPath’s certified, caring counselors listen with respect, offer advice and information, and work with you every step of the way.

For more Financial tips and education, visit GreenPath Financial Wellness.
Learn More

• By Kevin Alvarez

The 5 Factors That Affect Your Credit Score (And Simple Ways to Boost Them!)

Information is brought to you by our partner, GreenPath Financial Wellness

Whether you’re looking to get your first credit card for everyday expenses or take out a mortgage to purchase your first home, credit is an essential tool for helping people to meet their financial goals.

When applying for a line of credit, the higher your credit score, the more likely you will be to qualify, and the more options you will have available to you.

Here, we’ll breakdown the 5 factors that affect your credit — in order of most heavily weighted to least—and the simple  yet effective steps you can take to give your score a boost.

Understand Your Current Credit SnapShot.

Federal law requires each of the three nationwide consumer credit reporting companies -Equifax, Experian, and TransUnion -provide you a free credit report every 12 months if you ask for it. While these reports don't contain your actual score, they can be very helpful in identifying what might be affecting it (as well as any inaccurate information that may need correcting). Request yours at annualcreditreport.com.

1. Payment History (35%)

Payment history is the biggest single factor used to calculate your credit score. Late payments (even a couple of days), past due accounts, and accounts in collections all have a negative impact on your credit. Regular, on-time payment of the minimum amount (or greater) will improve your credit score. A non-time payment history in the range of 18 months or longer will begin to show results in a growing credit score.

Set up automatic payments.

If your late payments are due to forgetfulness, this is the easiest way to ensure you never miss a future payment.

Change your billing due date.

Suppose you have multiple bills due on the same day of the month. In that case, it may be worth changing your payment due date to align better with your personal situation (e.g.,spacing out bills to make them more manageable, or ensuring your payment date is after an income deposit date.)

Explore hardship/deferment options.

If you’re having trouble making ends meet, call your creditors and request a forbearance or payment deferral. They may also be able to waive late fees or even allow a lower payment for a period of time.

2. Amount Owed (30%)

Your credit utilization is determined by the amount you owe—not relative to your income but, compared to the total credit limit available to you, expressed as a percentage.(For example, if your card balance is $600 and you have a spending limit of $2,500, your credit utilization is $600/$2,500 or 24%.) As a rule of thumb, your credit utilization should be no more than 30.

Quick Tips for Improving Amount Owed:

Pay down your balance early.

If you can make small payments throughout the month, this can help keep your balance down and lower your credit utilization.

Decrease spending.

Find areas where you can cut back on spending to lower your utilization. Our Prioritizing Expenses Worksheet can help you to determine what to cut.

Ask for a credit line increase.

Increasing your credit limit is the simplest way to decrease your credit utilization with out having to cut back on spending.

3. Length of Credit History (15%)

Although not the most heavily weighted category, the length of a borrower’s credit history is important. It’s an indication to the financial institutions what kind of borrower you maybe in the future. In addition to the overall time an individual has had credit accounts open, credit history is also determined by how long specific types of accounts have been open, and how long it’s been since those accounts have been used.

Quick Tips for Improving Credit History:

Get a secured credit card.

Backed by a cash deposit, a secured credit card can be an excellent low-risk way for those who have not had a credit card previously to start building credit.

Keep credit cards open.

Closing a credit card can negatively affect your score. If you have cards you aren’t using, placing a small recurring charge on them (such as a phone bill or streaming subscription) can help to keep the card active while keeping your overall credit utilization low.

4. Credit Mix (10%)

Credit mix is determined by looking at the types of credit you are carrying (this includes credit cards, retail accounts, installment loans, mortgage loans,etc.) as well as your payment history in each area.

Quick Tips for Improving Mix:

Explore loan options that work best for you.

Your credit mix isn’t the most impactful category, and you shouldn’t pursue loans unless they make sense for you and your personal needs. In fact, you may already have a fair credit mix—things like credit cards, personal loans, auto loans, and mortgage loans are all considered different types of credit.

Make sure you pay loans on time.

A good credit mix is moot if you aren’t making timely payments–ensure you are making at least the minimum payments on your outstanding loans each month.

5. New Credit (10%)

Research shows that opening several credit accounts in a short amount of time represents a more significant risk—especially for people who don’t have an established credit history.

Quick Tips for New Credit:

Open new credit accounts only as needed.

Every time you apply for a new credit card,this creates a hard inquiry on your credit,which will automatically lower your score. Having more credit than needed can also encourage unnecessary spending and lead to increased debt.

Understand how hard inquiries show upon your report for different types of loans.

While multiple inquiries over a short time frame for credit cards may result insignificant score damage, other types of inquiries—such as home or auto loans—are reported a little differently. Since lenders know people often shop around, these types of inquiries won’t hit your report for 30 days, and when they do,they’ll be counted as a singular inquiry.

So, there you have it. If you implement these tips, you should start to see a gradual increase in your credit score. Remember: Your credit score is based on patterns over time, with an emphasis on more recent information. Improving credit won’t happen overnight, but with persistence and consistency, your score should gradually improve over time!

Free Credit Report Review

Need some extra help navigating your credit report? GreenPath’s NFCC-certified credit counselors can walk you through a free review of your credit report. They’ll explain how to read the report and help you to make a plan for managing your credit score to support your goals.

Learn More

• By Kevin Alvarez

Today Marks the First Federal Juneteenth Holiday

June 19 is now officially Juneteenth National Independence Day, a US federal holiday commemorating the end of slavery in the United States.

It commemorates June 19, 1865: the day that Union Army Maj. Gen. Gordon Granger rode into Galveston, Texas, and told slaves of their emancipation. That day came more than two years after President Abraham Lincoln issued the Emancipation Proclamation on January 1, 1863. Even after Lincoln declared all enslaved people free on paper, that hadn't necessarily been the case in practice.

Because June 19 falls on a Saturday this year, most federal employees will observe the holiday on Friday, June 18 in the U.S. The law makes Juneteenth the 12th federal holiday.

Juneteenth serves as a day of remembrance for those who made sacrifices in the name of freedom and to recognize the progress that has been made in our nation through the power of community and the work it takes to make change.

To learn more about Juneteenth, click here.

Juneteenth

• By Kevin Alvarez

SafeAmerica Credit Union 68th Anniversary

May 20, 2021 marks our 68th anniversary, from starting with ten Safeway Employees to now 35,800 members strong today! Those ten Safeway employees came together in 1953 with the goal to create a financial cooperative that would benefit their coworkers with savings and low interest loans. By May 20th 1953, the formal approval was given and the rest has been nothing but great history.

We would not be able to reach this great accomplishment without our members and employees from both past and present. We have learned, grown and will continue to evolve.

Thank you all for allowing us to serve and assist you in reaching all your financial goals. From home and auto loans, to checking and Visa cards as well as many other services we offer. We have done our best and will continue to be as resourcefully available to you as possible.

Thank you for 68 years
Here’s to many more
and
remember
You are safe with us

Learn more about our history by clicking here