SafeAmerica Credit Union

San Francisco Bay Area

• By Kevin Alvarez

What To Do If You’re Late Making Car Payments.

Life can be unpredictable and challenging at times, and having a late car payment might seem tempting as a temporary solution.

Making regular, on-time car payments not only helps borrowers maintain a good credit score, but it also ensures the reliability and availability of your vehicle, allowing you to fulfill your daily responsibilities without unnecessary stress.

If you find yourself facing financial difficulties, it can be helpful to reach out for assistance and explore viable options to avoid missing payments. While there isn’t one solution that works for everyone, there are options that can work best for you.

Making Late Car Payments Can Lower Your Credit Score.

Unfortunately, the consequence of making late payments on your car loan can reduce your overall financial health. You will also end up paying more for your car due to late payment fees. And if the payments continue to be late, it might even result in repossession, which will become a negative chapter of your credit history.

With a little planning, it might be possible to get back on the road to financial health to keep current with car loan payments. Assembled here, is a roundup of information to keep in mind if you’re consistently late with car payments.

Tips To Staying On Track With Your Car Payments.

Tip 1: Know When The Payment Will Be Considered Late

  • Check with your lender to confirm exactly when your payment will be considered late.
  • Typically, a payment will be reported as late to the credit bureau when it hits 30 days past due.
  • Ask your lender if there is a late car payment grace period. Some lenders provide a 10-day grace period for example.

Tip 2: Understand The Late Payment Fee Structure

  • Look over the loan documentation to understand the amount of fees you will be assessed when payments are late.
  • Creditors assess a late payment fee immediately following the missed payment, so be sure you have a clear picture of the fee total.

Tip 3: Track Your Credit Score

  • Creditors typically report a missed payment to the national credit bureaus after the 30-day mark.
  • When you’re finding it tough to keep up with payments, be sure to track the activity on your credit report and monitor your score.
  • Annualcreditreport.com provides updates from all three credit bureaus. Be sure your history is accurate and up to date. If something’s inaccurate, there are ways to reach out to credit bureaus for resolution.

Tip 4: Understand Repossession Policy

  • The number of missed payments allowed before a lender repossess the vehicle can vary by financial institution.
  • Some lenders can initiate repossession proceedings after a single default on the loan.
  • Take the time to connect with your lender to understand their policies and timing when it comes to repossession.

Tip 5: Connect With The Lender

  • Waste no time reaching out to creditors before payments are missed.
  • If payments are late, talk to the lender and ask for hardship options.
  • If you are facing a financial significant hardship, often the lender is willing to work with people to prevent delinquency or repossession.
  • Contacting lenders sets people up for more options, a new payment plan or hardship assistance, especially if you’ve maintained a good payment history.

Tip 6: Return To Budgeting Basics

  • Take an inventory of your financial picture. Has your income increased, decreased or remained steady? How have your expenses changed? Figure out your new baseline.
  • Prioritize expenses. Take a hard look at non-essential expenses and determine those that can possibly be reduced or eliminated.

Tip 7: Use Trusted Resources And Information

  • If you are considering a repayment option, or want to check on affordability, use GreenPath’s handy car payment financial calculator.
  • Take a free online course that shares information about budgeting for car payments.
  • Connect with a financial counselor who can assess your specific challenges and provide an action plan to move forward. Everyone who contacts GreenPath receives a free initial financial counseling session with certified counselors who lend an emphatic ear, look at the entire financial picture, help ease financial stress and uncertainty through access to clear information and develop a personalized plan.
Woman Calculating Monthly Bills

Your Next Step

It can be scary when loan payments are late, and there might be a chance your vehicle will be repossessed. It can be even more stressful when you work though the challenges all by yourself.

Our partner, GreenPath Financial Fitness is a trusted national nonprofit financial counseling agency which helps people navigate debt, budgeting and financial challenges for more than 60 years. Their certified trained counselors will look at your entire financial picture and help make a plan tailored for your situation.

This information is brought to you by our partner, GreenPath Financial Wellness

GreenPath Financial Wellness

• By Kevin Alvarez

Back-to-School on a Budget: 10 Ways to Shop Smart

While America’s students aren’t strolling into math class quite yet, here are some numbers to consider: school spending is expected to reach around $31.2 billion in 2023. Per child, that’s a cost of $597. Translation? Inflation has made back-to-school shopping a spendy venture.

If this gives you pause, don’t panic! Here are some simple ways you can save more this season.

1. Plan Ahead

Before you start shopping, jot down a list of the necessary items you need to purchase for the upcoming school year. Every student’s needs are unique, but some categories to consider are classroom supplies, clothing, electronics, and extracurricular materials. Having a spending list will help you estimate the costs involved and allocate your budget accordingly.

2. Set a Budget

Determine a maximum amount for your back-to-school shopping based on what you need, what you currently have in the bank, and your other expenses. It’s natural to overspend (anyone else experience nostalgia surges at the sight of pencil boxes?) but aim to stay within your budgetary limits so you aren’t surprised when it’s checkout time.

3. Do Your Research

Scope out back-to-school deals and compare prices across different retailers before making any purchases. Take advantage of sales and discounts, many of which happen shortly after school begins, in August and September. If you’re online shopping this year, do a little research on promo codes you may be able to use at checkout.

4. Prioritize Essentials

Identify the “must-haves” on your list and focus on purchasing those first, starting with the most expensive items (electronics, for example.) Knowing you’ve got the essentials covered will save you stress when it’s time to buy the remaining items on your list. You might find that you can stagger some of these other purchases and save up in the short term.

5. Use Cash

While credit cards allow us the convenience of shopping now and worrying later, it’s smart to use cash whenever possible. Not only will you have a clearer idea of what you’re spending as you go, but you’ll avoid having surprises on your statement balances with potentially high interest rates attached.

School Shopping

6. Get Thrifty

Dollar stores, teacher supply websites, and online community groups like OfferUp often offer new and gently used items at lower prices. And when it comes to items like clothes, lunch boxes, and clothing, consignment stores in your neighborhood could be a great budget-friendly alternative to big box retailers…vintage denim, anyone?

7. Involve Your Kids

The start of another school season offers an opportunity to teach your kids about the basics of budgeting. Depending on their age, you can enlist their help in creating lists and shopping. Remind them of your budget expectations and encourage them to make thoughtful choices. They’ll appreciate having some say in what they bring to school on day one, and they’ll gain some real-world context on money management—win win!

8. Scope Out Alternatives

Sometimes, there are less expensive alternatives to popular brands or items, especially when it comes to clothing and electronics. Explore store brands or generic options, which can be just as functional but cost significantly less. Reading product reviews can help reassure you that you’re not sacrificing quality where it actually counts.

9. Track Expenses

Keep track of your spending by saving receipts or maintaining a record of your purchases through a personal money management app—chances are you may have one you use already. This will help keep you accountable and allow you to review your expenses as you knock out your shopping list to ensure you’re staying within your budget.

10. Enlist Help

Need some guidance when it comes to mapping out school spending? Through our partners at GreenPath Financial Wellness, many of us aren’t just financial counselors, we’re parents juggling school costs, too. Check out their interactive budgeting worksheet and connect with GreenPath if you’d like to create a personalized plan that puts you (and your student) at the center.

This information is brought to you by our partner, GreenPath Financial Fitness

GreenPath financial Wellness

• By Kevin Alvarez

Webinar: Time to Prepare for Student Loan Payments to Resume

After more than three years on pause, federal student loan payments are now required by Congress to resume this fall. The Supreme Court also rejected the forgiveness plan announced in late 2022, leaving many people who were counting on reduced or forgiven balances scrambling to prepare for payments to resume.

Join us to learn what actions to take now to prepare for payments to resume in October, as well as what to do if you’re concerned about making payments. Learn about the different repayment plans available, including the new SAVE repayment plan, and how to decide what option is best for you.

Click through each tab below to learn more.

Who Should Attend

  • Anyone with federal student loans 
  • Anyone who is concerned about resuming student loan payments
  • Anyone who provides guidance to someone with federal student loans

What You Will Learn

  • Steps to take now in preparation for student loan payments to resume
  • Factors to consider when choosing a repayment plan
  • What to do if you are worried about affordability of payments

Details

Date: Tuesday, August 15, 2023

Time: 5:00 PM PST

If you are unable to attend this webinar, you can register and a link with a recording will be sent out to all registrants after the webinar.

Register Now

This free, webinar is presented by GreenPath Financial Wellness

• By Kevin Alvarez

Cumpla El Sueño De Comprar Una Casa – Achieve Your Dream of Owning A Home – Free Webinar

El webinar sera alojado en espanol.

¿Sueña de comprar una casa para usted y su familia? Permítanos ayudarle a conocer mejor el sistema y a como navegarlo con confianza. Sin importar donde se encuentre en el proceso nosotros le ayudaremos para adquirir la casa que siempre ha deseado.

Do you dream of buying a home for you and your family? Let us help you to better understand the system and how to navigate it with confidence. We’ll help you figure out where you are in the process and help you to purchase the home you’ve always wanted.

¿Quién Pudiera Atender? (Who Should Attend)

  • Primeros compradores. First-time homebuyers.
  • Quien no haya comprado una propiedad recientemente. Those who haven’t bought a home in a while.
  • Aquellos que ofrecen orientación en el proceso de comprar casa. Those who are supporting homebuyers in the process.

Lo Que Aprenderá (What You Will Learn)

  • Los pasos que necesita para adquirir una propiedad. The necessary steps to buy a property.
  • Los básicos del financiamiento y el proceso de aplicación. The financial basics and the application process.
  • Lo que uno puede esperar ya que habite la propiedad. What you can expect once you buy the property

Detalles

Fecha: Wednesday, September 13, 2023

Tiempo: 3:00 PM PST

Presentado por:

  • Bilingual Spanish Program Design Leader Deborah Green
  • Bilingual Partner Experience Manager Lauren Simon

¿No puede llegar a la hora del webinar? Can't make the webinar time?

¡No hay problema! Regístrese de todos modos y le enviaremos el webinar grabado. No worries! Register anyway, and we’ll send you the recorded webinar.

Regístrese Hoy!

Este webinar es gratis y presentado por GreenPath Financial Wellness

• By Kevin Alvarez

Budgeting Basics For Purchasing Your First Car

If you’re purchasing your first car, this purchase represents an important milestone in your adult life. Owning a car gives you the freedom to travel as you please, but it also brings certain responsibilities. As a car owner, you’re tasked with tackling all the expenses associated with purchasing and maintaining your vehicle.

You can avoid unnecessary hassles and stress if you manage this endeavor in a structured and organized way. In other words: prepare a budget.

Here are some tips to consider as you put together a budget for purchasing your first car:

1. Set a Purchase Price

Your first step in making a car purchase involves deciding how much you’re willing to spend on your vehicle. Most car purchases involve financing. When going this route, a good rule of thumb is to set a loan payment that is no more than 20 percent of your monthly income. This will help ensure you have enough resources on hand to meet other financial obligations. One of the biggest factors of purchase price comes down to choosing between a new or used vehicle. New cars offer the benefit of having never been driven, and this will delay certain types of repairs. New cars also come with manufacturer warranties that protect you from repair expenses. These warranties vary from automaker to automaker. On the other hand, used cars are often a much more affordable choice. Most cars lose about 19 percent of their value to depreciation after just one year of ownership. This makes used cars a compelling alternative from a financial perspective. If purchasing a used model, it’s important to have a mechanic inspect the vehicle. Set aside roughly $100 (about the cost of an hour’s labor for a mechanic) to cover this inspection. Certified Pre-Owned (CPO) cars are used cars that have been thoroughly inspected and refurbished, and bring less repair risk than the average used car. Look for a CPO program that is backed by the manufacturer, since these CPO models come with manufacturer warranties.

2. Include Registration and Title Fees

Each state requires that a newly purchased vehicle be registered by its owner, and this registration comes with certain fees. The method of calculating these fees varies from state to state, and your local Department of Motor Vehicles or town office will be able to give you an idea of what these fees look like in your neck of the woods. Keep in mind that these fees can be quite significant, so they should not be an afterthought.

3. Consider Sales Tax

Most states collect statewide sales taxes, and the rate can climb as high as 7.5 percent. If you live in a state that collects sales taxes, you will be taxed on the total cost of your vehicle purchase, so it’s important to factor it into your budget calculations. If you finance the car from a dealership, chances are the taxes will be included in your monthly payment, but if you purchase the car from a private seller, you may have to pay them separately when you register your car.

4. Make Room for Car Insurance

Car insurance is required by law, but the minimum coverage required varies from state to state. Keep in mind that state minimums are often quite low, and they may not be enough to meet your needs in an accident. Consult with an insurance professional to get a sense of the coverage that best suits your needs. Your driving record and the neighborhood you live in will have an effect on the cost of your car insurance. Your insurance rate also hinges on the vehicle itself: In most cases, the lower a car’s price tag, the lower its insurance rate. As you weigh how much you can afford to pay in car insurance, keep in mind that you can reduce this financial burden by purchasing a less-expensive vehicle. As a member of SafeAmerica Credit Union, you have access to exclusive member-only pricing on auto insurance. Learn more >>

5. Put Aside Money for Maintenance and Repairs

Over time, your vehicle will suffer wear and tear, and parts will need to be replaced and repaired. You can stay ahead of these expenses by including them in your budget. The amount required for maintenance will depend on several factors. One is the age of the car. All other things being equal, the newer the car, the less money you’ll have to spend on maintenance. The cost of the car is another factor. An affordable hatchback will be cheaper to maintain than a costly luxury sedan, since the parts for these economy cars are less expensive. Data gathered by AAA reveals that the average annual cost of maintaining a vehicle stands at $766.50 per year, or about $64 per month.

Preparation Is Key

From a financial perspective, car ownership sometimes brings a few bumps in the road. Some expenses are easy to predict, while others may be more unexpected and unusual. However, with prescient financial planning, you’ll be ready for all outcomes.

Thinking of getting your first car? We're here to help. SafeAmerica Credit Union offers members competitive rates, flexible terms and tools & resources to help get you started.

Learn More about our auto Loans

This information is brought to you by our partner, GreenPath Financial Wellness

GreenPath Financial Wellness

• By Kevin Alvarez

Sun’s Out, Funds Out: 10 Tips for Summer Spending

 

Summer is here! And while warmer months are a great time for outdoor fun and travel, they can also be a time of overspending (staycations, anyone??) To minimize financial stress, it’s a good idea to have a spending plan for your summer itinerary.

Trimming down on expenses doesn’t have to mean trimming down on good times. Here are ten tips for building a spending plan that will help you enjoy the season (without breaking the bank).

1. Build A Budget

Create an activities or vacation budget that allows you a big picture view of your current income and how much your activities will cost—if you’re road-tripping for example, what will you need to spend on lodging, tourist attractions, and meals?

2. Prioritize Activities

Make a list of the summer activities you want to do and prioritize them based on how important they are to you (and others, if you’re planning with friends or family.) This puts a financial focus on the activities that matter most and makes it less likely that you’ll be short on cash where it really counts.

Mission Peak Hiking Trail

3. Scout Freebies

Whether you’re staying local or hitting the road, there are often plenty of free summer activities you can take advantage of. Hiking, picnics, open air concerts, and spray parks are a few examples.

Sign up for local calendars or email newsletters that spotlight community happenings or, if you’re only in town for a little while, do some online sleuthing beforehand. City recreational websites are one place to start.

4. Find A Host

When deciding what plans you might make (or trips you might make) this summer, consider whether you have friends or family members who would be happy to play host or even swap homes with you if they’re also wanting a change of scenery.

Hotel and vacation rental costs typically comprise a sizeable percentage of travel expenses plus you have the added benefit of catching up with close ones.

5. Use Coupons And Discounts

Look for coupons and discounts for summer activities, such as amusement parks, museums, and water parks. You can often find discounts on online coupon sites or promo code sites and some businesses will advertise direct specials if you sign up for their newsletter or emails (you can always unsubscribe after you’ve taken advantage.) SafeAmerica Credit Union offers members exclusive discounts on select attractions. Learn more.

6. Plan Ahead

While last-minute excursions are exciting, you might want to consider some advance planning if saving money is a goal. Doing your research on hotel and flight discount periods, coupons, and park discounts—even what days of the week are ideal—requires some research on the front-end but could ultimately save you hundreds.

7. Save On Food

Summer’s warm weather makes creativity in dining even easier—packing picnics for a daytrip or a cooler full of food and drinks for longer trips can cut down considerably on dining costs (especially in larger metropolitan areas where restaurant dining can come with premium price tags).

8. Consider A Staycation

If airfare or even gas pump sticker shock has you second-guessing distant destinations this summer, an alternate approach could be a staycation at a hotel or vacation rental.

Be a tourist in your own town (is there a new hiking trail or restaurant you’ve been meaning to try but just haven’t gotten around to?) Changing up the scenery even locally—can be an affordable way to save money and still escape the house.

9. Use Cash

While it’s tempting to rely on credit cards when you’re on vacation and not wanting to worry about costs, this also creates a greater likelihood of overspending.

Decide what you’re willing to spend across categories and then set aside those amounts. Using cash instead of credit cards can help you stay on budget and help curb anxiety when you receive your next credit statement.

10. Explore Resources

If you’re getting ready to make summer plans and could use a little financial guidance, connect with us here at GreenPath. In addition to our interactive budgeting worksheet, you can also chat with Coach Lea who can offer tips on utilizing cash wisely, paying down debt and building better habits for summer and beyond.

This information brought to you by GreenPath Financial Wellness.

GreenPath financial wellness

• By Kevin Alvarez

Share Certificate Vs. CD — What’s the Difference?

Share Certificate Vs. CD (Certificate of Deposit)

You may have heard these two terms used interchangeably, but do you know the differences between them?  Are they the same thing?  Is one better than the other?  Here’s everything you need to know when shopping around for a term savings account.

Both Share Certificates and CDs are a type of savings accounts with a set term and withdrawal restrictions. Typically, the longer your term commitment, the higher the dividend you’ll earn. If you have money sitting in a regular savings account (or under your mattress) that you won’t need for while, you can set that money in a Share Certificate or CD for a set term and receive a higher interest rate.  Plus, your funds are insured! More on that later.

How are they similar?

  • Both offer a variety of term options, depending on your financial timeline
  • Both are a longer term solution to earning more for your money
  • Both offer guaranteed returns
  • Both are insured

How are they different?

While these two types of accounts are widely similar, their difference is that Share Certificates are offered by credit unions and CDs are offered by banks. Because credit unions are not-for-profit, their profits are returned to their members/shareholders in the form of dividends (which are usually higher than banks because of their profit-sharing model).

Share Certificates CDs
Offered by credit unions Offered by banks
Pay in dividends Pay in interest
Insured by NCUA or private insurance Insured by FDIC

How Are These Accounts Insured?

Both accounts are insured at their respective financial institutions. Credit unions are either federally insured by the National Credit Union Administration (NCUA) up to $250,000 per depositor, or privately insured. SafeAmerica Credit Union is privately insured through American Share Insurance (ASI) up to $500,000 per account.

Banks are federally insured by FDIC up to $250,000 per depositor.

Let Your Money Work For You!

As a member of SafeAmerica Credit Union, you can take advantage of our competitive rates on all our share certificates, including our rate specials. Click below to view all of today’s rates and starting earning more today!

Share Certificates
Translate »