Tired of being nickled and dimed by the big banks? Savings hints, advice and tidbits of information for people who aren't interested in banking gimmicks but want a smart way to manage their money.
Here are 101 reasons to consider a banking relationship with one of the 6,800 credit unions in the US. Keep in mind that not all credit unions operate the same. Some are way more awesome while others are working hard to be awesome. Either way decide for yourself and hope this list can make you ask the question, “Is it time to make the switch?”
The Fair Credit Reporting Act gave consumers access to free annual credit reports from the three major credit reporting agencies through a centralized source, AnnualCreditReport.com, in 2003. A free credit score has never been a right.
Numerous sites promise "free" scores, but in reality they sign people up for a fee-based credit monitoring product. The score costs nothing only if the consumer cancels the order before the end of the trial period. Several sites will give you a free credit score or score estimate, such as the FICO Score Estimator at Bankrate.com. Score estimators, which provide a score range, may rely on answers to questions about your credit situation or come from credit report information, while actual scores are computed from credit report data. None of the free scores and estimates available deliver actual FICO scores, the most commonly used score by lenders. The free scores and estimates do, however, give you an idea of where your credit rating stands. "At the end of the day, an 'excellent' on one model is 97 percent of the time going to be an 'excellent' on another model," says Ken Lin, CEO of San Francisco-based Credit Karma, a site that provides free TransRisk scores from Transunion.
Surprise! Young Adults Have Smartened Up About Debt
Credit cards, with their high interest rates and exorbitant fees, have often trapped college students and other young adults in debt spirals that can be almost impossible to escape from.
However, the latest generation to hit young adulthood has learned some lessons that their older peers didn't -- and that's helping many of them avoid the credit-card trap.
Young adults have gotten a lot smarter about using credit cards, according to the most recent data from credit-score company Fair Isaac and its FICO Banking Analytics blog. Outstanding credit-card debt has fallen by nearly a third during the past five years, with the average outstanding balance among those 18 to 29 now standing at just $2,087 compared to $3,073 back in late 2007.
Moreover, a rising number of young adults don't even have credit cards at all.
In 2005, only about 9 percent of young adults went without a credit card, but that figure has jumped to about 16 percent, about double the rate among those 30 to 39 who don't have any credit cards.
Being in debt can be one of the most overwhelming financial challenges you'll ever face. That's one reason that Americans have worked so hard to break themselves of their debt habit, with the Federal Reserve Bank of New York having reported recently that debt levels have fallen by $1.45 trillion since the third quarter of 2008. In particular, credit-card debt is down more than 20 percent over that time frame, reflecting the priority of getting high-interest-rate debt paid down fastest.
Even if you have a lot of debt, don't panic! You can get your outstanding loans under control if you take a long-term view and start taking baby steps toward better managing your debt. Start out with these three simple tips:
1. Order your credit report from AnnualCreditReport.com, which is the free website set up under federal law to provide copies of credit reports to all Americans. You can get one free report every year from each of the three main credit-reporting agencies, and the report will tell you what loans and cards you have outstanding, how much you owe, and your payment history, including any late payments or delinquent accounts.
Debt can be a heavy burden on anyone, no matter what their age, but increasingly, young adults are starting out deeper in the hole. A recent report from credit-score provider FICO shows that student loan debt has climbed dramatically for those ages 18 to 29, with average debt rising by almost $5,000 from 2007 to 2012.
The good news, though, is that young adults are taking steps to get their overall debt under control, reducing their balances on credit cards and their debt levels for mortgages, auto loans, and other types of debt. With 16 percent of 18- to 29-year-olds having no credit cards, young adults are getting the message that managing debt early on is essential to overall financial health.
With the goal of managing debt levels firmly in mind, let's take a look at four things you should do to manage your debt prudently and successfully.
1. Get a Handle On What You Owe.
In managing debt, the first challenge is figuring out all of what you owe. By pulling a free copy of your credit report from annualcreditreport.com, you'll get a list of loans and credit-card accounts that major credit bureaus think you have outstanding, along with contact information to track down any unexpected creditors that might appear on the list.
Tired of being nickled and dimed by your Big Bank? Come here to learn about REAL money - and how to manage your finances in a way that will work for YOU and not a BIG Bank!
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Ups to USPS!
When the host of HBO's "Real Time with Bill Maher" was questioned if he really wanted healthcare and the banks “to be run like the Post Office” (meaning "nationalized") he replied:
“I can mail my sister a postcard from California on Monday and it gets to her in New Jersey by Wednesday for .42 cents….. h*ll yeah I’d like it to run like the Post Office!”
Savvy Quote of the Day
"The retail industry has stolen the word 'saving' and redefined it as saving money when spending.
Saving used to mean putting money away in a savings account or in a piggy bank. But, now we must spend to save."
Tim McAlpine President/Chief Strategist Currency Marketing
Savvy Saver enjoys showing all the wonderful things CPCU employees do in the community on the CPCU Blog, loves helping members set up a savings plan that will help them with their financial goals & dreams @ her Brighter than a Bank blog and riding down the highway of life in her Hoopty! (check out her "I love my Hoopty" blogspot!)
