debt management

When Life Goals May Mean a Lower Credit Score

November 18, 2015 by penn

Your credit score is going to be the number that can either help or hurt you in life. This is the number that lenders are going to use and decide whether to let you have that mortgage you so desperately want. It is also the number that is going to get you lower insurance rates, a better deal on entertainment and the like. You are warned from a young age that your credit score is going to be the basis for which your entire life will be played out. You never want to let this score drop, and you never want to do anything that is going to make this score change in the slightest. However, is this really practical? There are always going to be things that are going to be times in which your score is going to take a hit. But, the good news is that even with this hit, it is okay.

[Read: Ways to Fix Your Credit Score]

There are times in which you have to let your score take a hit. We will discuss three of the main reasons why, along with why these situations are okay for your credit rating.

Seeking Multiple Loan Terms

There are times in which you may feel that you need to get information on multiple loans. This is often the case when you want to ensure that you are getting the best rate out there and the lowest payment that you can possibly get. When you are looking in this manner, you are going to find that having multiple loan inquiries on your report can and will affect your credit score. However, keep this facts in mind:

The score is only going to lower by a few points
This request will be a hard inquiry on your credit report, which signals to lenders you have been shopping around for the best rate, rather than raking up credit
The points that are lost can usually come back after a short period of time as long as you are paying on time

Starting a Business Lowers Credit

When a person is starting a business, they are going to find that there are several hits that their credit score is going to take. Starting a business is a huge endeavor. Not only are nerves tested and stress is accumulated with this decision, but there are affects against the credit rating that a person has. Why is this? There are several reasons why opening a business is going to affect the score of your credit, leading to your overall number lowering. These reasons include:

Many business owners open up business lines of credit as a way to start out, they may utilize several different banks and lenders to find the best rates and terms, thus they are going to have several hard inquirers onto their credit
Credit cards are often used to help start up a business, which is going to lower the overall credit score as the person uses more credit
The debt to income ratio is going to increase when starting a business as the person is doing many things with credit, this ratio can greatly affect the overall score that a person has

Learning to Manage Debt with Debt Management Programs

There are times in which a person’s credit score is low due to the amount of debt that they have. We all understand that there are times in which having too much debt is going to adversely affect your score. Lenders view you as a risk for lending to and overall your score begins to drop. When this is the case, the person may be looking for help with dealing with their debt, which is a noble thing to do. However, through getting help through debt management programs, the person’s overall score is going to take a hit. Why is this?

Enrollment with a debt management program automatically signals that you have debt issues
Many times these companies negotiate your terms and repayment balance to get something that works better for you, resulting in you benefitting but your score losing

Why it’s Okay to Let Your Score Lower

These three scenarios mentioned beforehand are the times in which it is okay to let your score drop slightly. Consider these aspects:

If you are seeking multiple loans to find the best one for you, you are saving money in the long run with taking this hit to your credit
A new business is a great venture that could mean you succeed even more in the future. And as many people have pointed out, if you are successful it will take no time to get your credit back to where it was
If you have too much debt, it is best to take the hit to your credit score than to let this debt get the best of you and result in bankruptcy or other situations.

[Read: 12 Surprising Ways You’re Sabotaging Your Credit Score]

Though it is great to have a high score on your credit, it is not always something that you can control. Though these three scenarios would lower the score, they are great things to happen in your life if they are needed.

How Soon Should I Use A Credit Card After Paying Off Debt?

October 14, 2015 by penn

Congratulations! Paying off debt is a huge accomplishment that should not be overlooked. It can feel shameful to have credit card debt and carry a monthly balance, and is not an easy feat. Now that the chapter of your life with debt is closed, it is time to move on to the next step and determine how soon you should begin using a credit card now that you have paid off your debt.

[Read: All about the Best Credit Cards]

Today it is the norm to use credit cards and it can seem difficult to live without one. While you may plan to abstain from using credit cards after paying off debt, many people simply do not feel prepared to make that commitment. I know that would be incredibly difficult for me personally, but it is not a decision that should be made lightly. Before making your final decision, consider the following points.

Take A Moment to Breathe

After paying off debt, you need to take a moment to assess your new debt-free way of life. Consider the following questions:

What should I do with any extra money each month?
What is the best way to make my money work for me?
How can I keep myself financially accountable?

You may have already begun to ask yourself these questions. If you haven’t, now is the perfect time to start considering how to answer them and plan for your future. The most important thing to remember is that you have broken the cycle of debt for good and are ready to move on. Paying off debt isn’t easy, and now you need to plan so that you stay out of debt.

There is No Set Timeframe

It may be tempting to try to “keep up” with friends or neighbors when paying off debt. However, remember that there is no set timeframe in which you must begin using a credit card again after becoming debt-free. This all depends on you, your lifestyle, and your goals. Each person has a different situation in his or her debt payoff plan. There is no set timeframe when it comes to using a credit card after paying off debt. This will depend on your personal situation and the particulars related to your debt payoff plan. If you still have access to credit cards and have not been required to close your accounts, you need to take the time to decide what is best for you. It is crucial to consider whether or not using credit cards will tempt you to overspend. If this is the case, proceed with extreme caution before using credit cards again.

Start With A Plan

Just as you plan for a day at work or a weekend away, you need to have a plan after paying off debt. No matter when you begin using credit again, having a plan is essential for helping you stay out of debt. You may find it best to work this into your overall budget if that helps you visualize your goals. It is also important to instate a spending plan once you begin using credit cards again. This will help you develop discipline with spending and keep you accountable so that you do not overspend.
One way to do this is by allowing yourself one small, planned and budgeted purchase per month. Giving yourself a reasonable limit and sticking to it will help you develop that discipline. As you build confidence in your credit card usage, you can increase the number of small, planned purchases to an amount that brings you enjoyment without blowing your budget.
What works best for me is to have someone I trust (in this case, my husband) keep me accountable for my credit card usage. We document every purchase on a shared spreadsheet. This way, we each know how much the other has spent that month. Since we trust each other to keep the other accountable, we can challenge whether or not we have stayed on track that month.

Long Term Goals

It may feel tempting to cancel your credit card altogether after paying off debt. This is definitely understandable, but may negatively affect your credit score. Although it sounds contradictory, credit companies monitor your score based on how frequently you close lines of credit, so exercise caution here. Your best option may be to store your credit cards somewhere hidden yet safe so that you aren’t tempted to use them, yet don’t affect your credit score. This will ensure that your future isn’t impacted in terms of loan rates, potential jobs, and so forth.

[Read: Ways to Cut the Cost Of Christmas Debt]

What’s most important to remember is that you take your time when making decisions about your debt-free future. Make sure that you make a careful, balanced decision that will have a positive impact on your future.

DO YOU NEED AN EMERGENCY FUND

September 22, 2015 by penn

Most of us have heard of an emergency fund; a fund to help us should we get sick, injured or fired, or some other way loose our job. But is it really necessary these days? There are some who say they are essential, and others that say, not so much. Lets look at the issue more closely and then you decide. There are a few factors that you should consider in deciding if an emergency fund is the right tool for you to use.

You will be hard pressed to find any financial planner who does not recommend an emergency fund, they are considered the backbone of sound financial planning. So important that you could even talk yourself out of using yours downplaying the emergency at hand, and never touching it. But you must look at your unique situation because everyone has different goals. Look at the following issues.

Financially Responsible People
Credit Cards
Unemployment Benefits
Insurance
Opportunity Cost

FINANCIALLY RESPONSIBLE PEOPLE

Most financially responsible people do not need an emergency fund because they may already live below their means, and have access to credit. Now assuming that the financially responsible person also has really good credit, they presumably have access to money easier, and are able to tap into that source when and if needed during an emergency time period, such as illness, or loss of work. Keep in mind that if you are not working you will have less expenses in other areas, such as travel costs or other work related expenses. The financially responsible will be apt to cut more expenses out and be able to survive on less.

CREDIT CARDS

Credit cards can be a way to bridge the gap in an emergency, and then paid down over time once the financial emergency is traversed. The average credit card rate in America is 14.89% according to CreditCards.com and investing your emergency fund, will probably not get you a 15% return, so you will be losing money. If you use credit cards wisely, you do not need an emergency fund.

UNEMPLOYMENT BENEFITS

Depending on what state you live in, how much time you have on the job and other factors you could receive about 75% of your wages should you loose your job, or become injured and a have to take time off. Check Servicelocator.com to see what your state offers. Regardless, if you are entitled to unemployment of any amount, your need for an emergency fund goes down because you will only need to account for a small percentage of earning being missed, and not the full amount of lost earnings.

INSURANCE

Rather than setting aside money for your emergency fund, why not invest a small amount in an insurance policy or medical coverage policy. Short term disability insurance can kick in if it is a work related injury. Some of these policies can be as low as $39 a month. Using insurance as a planning tool can greatly reduce your need for an emergency fund and free up that money to do other things for you.

Most employers will offer insurance coverage benefits. They may be fully paid by the company, or funded by you through a deduction in your pay check, and considering that most of these types of policies are for large groups the cost of the policy out of pocket for you may be mere pennies. A good financial planner should be able to assist you in finding a good policy and coverage that fit your needs.

[Read: Actual Advantages Of Savings Accounts]

OPPORTUNITY COSTS

What is opportunity cost? It is generally speaking, the value given up to get something else. Sitting on a large pile of money will earn you nothing at all, zero in interest, if you have it stuffed in your mattress. Most bank accounts, if that is where you have your money resting, do not pay any interest on the account, or very little, less than 1%, where the average investment rate of return is about 8%. Here the opportunity cost is evident. Easy example, $10,000 cash sitting around in a bank account will earn you $100 in interest for a year, while at an average return of 8% will get you $800, that is $700 more dollars in your pocket. Which amount would you rather have?

So in sum, with all the available investment tools out there, the ease of online tracking, deposits and withdrawals you have no need for an emergency fund these days. It is just to great a loss in potential interest and income to have your money laying dormant and not working for you. With all the alternatives mentioned above you can have the piece of mind that in the event of an emergency, you will have your bases covered.

Long-Term Care Insurance for the Middle Class

March 19, 2015 by penn

In the great divide between the poor and the wealthy, the middle class seems to get lost in the fold. Too poor to insure themselves and too rich to rely on government assistance, long-term care insurance is the farthest thing from their minds. It shouldn’t be. America’s middle class makes up the majority of the population, and that means a lot of people working and living their lives without a safety net. However, proper long term care is obtainable.

Whether it’s a nursing home or in-home care, the bills will pile up. We’re not counting pennies here, either, we’re counting in the thousands and sometimes, even higher depending on location. In the east coast, for instance, a stay in a geriatric facility for only a year could cost a loved one over $100,000. That’s a house, or a car, or your son’s college tuition. People that don’t have long-term care insurance could end up footing that entire bill out of pocket or worse, digging themselves into ditches of debt.

What’s Long-term Care Insurance?

When you’re in the middle class, you know about the importance of securing your funds. Long-term care insurance is your family’s back-up plan. It’s the safety net that catches you when life unexpectedly hurls you over the edge. While a substantial retirement bundle, Social Security, and a small pension might have been able to support you and your spouse after retirement, it doesn’t include the unexpected. In the event that a situation happens beyond your control, one that may require you to reside in one of the nursing homes mentioned above, long term care insurance could aid you and your family by relieving some of the financial burden. That means that some, or in some cases, all of that $100,000 a year doesn’t have to come out of your money.

Long-term Care Insurance Can Help

Here are a few ways LTC insurance can make life easier:

Maintaining an Inheritance
Providing Care and Protection
Helping You Feel Safe

Although many middle class citizens may feel that they have dotted their i’s and crossed their t’s when it comes to coverage, without long-term care insurance, they can never be too sure. If the heads of a family have a will in place to leave their children money after they have departed, those funds are not necessarily safe. For many families providing an inheritance to their children, grandchildren and others is a priority. Long-term care insurance can provide a source of funds to pay for needed care. The money paid by the policy represents funds that an individual will not have to pay out of pocket and in this case can potentially be preserved to pass on to their heirs as desired.

Understanding How to Use LTC

Premiums

Premiums are unfixed prices set monthly, quarterly, or annually for clients. Because they are not set in stone, premiums could fluctuate depending on policy. Premiums provide the same amount of insurance for the policyholder as long as they make their payments, meaning it neither expands nor contracts. Companies may try to target policyholders with certain inflation rides and elimination periods to increase their prices or entice you to change your plan.

Inflation Riders

Like it’s name, this concept allows the policyholders to factor in the inflation or deflation of the economy when providing long term care insurance. While this is a great idea, it will cost you extra. This form of coverage allows one’s insurance to better provide care in the event that the cost of health care increases.

There is a way that middle class Americans can offset inflation. It’ll help to buy more coverage every few years. The long-term insurance can add up, and in the event that inflation has risen the price of health care facilities, you’ll still be covered.

Elimination Periods

Long-term care insurance is available for a set amount of years, so whether it’s forever or five years, coverage is obtainable for middle class Americans. The cost is, however, affected by the amount of days prior to when the insurance actually begins. So, basically, the time period before the benefits kick in. Longer elimination periods have cheaper premiums because you will have to pay into them longer.

Getting the Help You Need

As a middle class citizen, you have enough to worry about. Consider seeking with a financial advisor. They can help you decide if LTC insurance is the right decision. Also, advisors can outline specific policies and explain the various types of coverage to guide you through the policy complexities. They have the know-how to put your financial position into perspective when considering the different plans, and also can serve as a connection to bring you to an insurance agent or to the right company that will best suit your needs.

Ways to Protect Yourself from Financial Disaster

December 27, 2014 by penn

Living each paycheck to each paycheck could be a very difficult thing to do. Living in that kind of financial situation could leave you feeling unsure of the ability to handle financial emergencies in case one were to arrive. This could have you thinking that a financial disaster is in the near future. However, there are some tips that you can follow in order to prevent you from falling victim to any financial disaster. Continue reading for ways to protect yourself from financial disaster.

The Power of Insurance

When you purchase a new car, a new home, or any item that costs a good bit of money and it can be destroyed or harmed, it is important to get the insurance that is offered along with the item. Insurance is exactly what it sounds like, assurance that if something happens to your item or yourself, it will be okay because you are covered. Here are some insurance that are important to get:

· Health

One way to protect yourself from financial disaster is to purchase health insurance. It may seem as if you do not need health insurance especially if you are an individual who do not need much medical attention. However, no one is certain of what accidents can happen on a day-to-day basis. You never know when you may need medical attention. It is always good to have health insurance so that if something happens, you will not have to pay a hefty medical bill using your own money.

· Disability

Another way to protect yourself from financial disaster is to purchase disability insurance. There are two specific kinds of disability insurance—short-term and long-term. Short-term disability covers one to three months of the inability to work for medical reasons. Long-term disability covers all the months after the third month of being out of work. Having this insurance will provide a way to make ends meet while you are not earning an actual paycheck.

· Life

Another way to protect yourself from financial disaster is to purchase life insurance. Unfortunately, one thing that is certain in life is that everybody eventually dies. When that happens, it is important that your loved ones are taken care of financially. This can be accomplished through life insurance. Not only can life insurance cover funeral expenses, but also provide financial security for your living children and spouse.

· Car and Home

Another way to protect yourself from financial disaster is to purchase car and home insurance. This is the best solution to any problems, including natural disasters or unpreventable accidents that occur with your home and your car. If you do not own your home, you can purchase renter’s insurance to make sure that all of your valuables in the home are covered. Depending on where you live will determine what disasters the insurance will cover on your home and car.

What You Can Do

Aside from purchasing insurance, there are other things you can do to protect yourself from financial disaster. You can…

· Build a Financial Cushion

One thing you can do to protect yourself from financial disaster is to provide yourself with a savings of some sort. You can either open up a savings account or start a money jar. Just make sure you put a small portion of your paycheck in savings each month, and watch your money swell nicely.

· Spend Money on a Budget

Another way to protect yourself from financial disaster is to put yourself on a budget. Setting a budget will help you manage the money you are spending. Ultimately, you gain all of the control over your spending.

· Decrease Your Debt

Another way to protect yourself from financial disaster is to lower your current debt or completely eliminate it. There are a variety of ways to do this. You can save money each month and dedicate it to eliminating your debt, or you can contact your creditors to figure out solutions to handling your debt. You can even enlist the help of a financial adviser to help you. The more out of debt you become, the easier it will be to avoid a financial disaster.

· Increase Your Income

If you are in a place to take on more jobs, then another way to protect yourself from financial disaster is to increase your sources of income. This could include a variety of options. You can do part-time work in addition to your full-time job. You can take on extra hours at your current job. You can even sell items that you do not use or need anymore or even turn your hobby into a money-making business.

Financial disasters can happen, sometimes without any signs or warnings. That is why it is important to be able to handle any disasters that threaten your finances. Take advantage of insurances, start a budget, save your money, and make more money if possible. Do not fall victim to any financial disaster.

Basic Essential Money Concepts You Need To Know

August 30, 2014 by penn

Being knowledgeable is gaining financial freedom

Applying good financial decisions towards your money is the beginning of financial security and progression. Knowing the basic essential money concepts in life help jumpstart the way you think about a lot of things that are involved with how you handle money.

Below are some of the things you need to start getting in touch with in order for you to start understanding and utilizing your financial capabilities.

Budgeting

Being in touch with your money and how you use it is a start. Having some sort of plan as to how you make the most of it or not is a great way of establishing a great financial future and stability. You have to know what it is you want and what to do away with in order to attain certain financial goals.

Risks Involved

You have to know what kind of risks are involved and as one of the essential money concepts, it is very essential for it lets you know how to increase your money or how knowing how you are going to sustain it. You have to weigh out the risks and be familiar with them. However, things might lead you on the wrong path of blowing all your money on some investment that may end up being bad. So caution is advised at all times in these circumstances.

Credit Cards

It is wise to know how credit cards work. If you have them, then you have to learn how to use them so that they don’t end up ruining your credit. If used wisely, they can actually be a big plus to your financial goals. Credit cards are essential money concepts that can either make you or break you depending on how well you know about them and the level of self control you have with them.

Having Index funds

These are easy essential money concepts that can benefit you in the long run if you have done your homework on them. When it comes to your own personal investing, the best method is through index funds. With time, you will be familiar with other kinds of investments, but index funds are an effective way of immersing yourself in the stock market, especially you don’t have a lot of money.

The concept of compound interest

If you can learn the concept of compound interest, you can save a lot of money. Saving without compound interest is not money worthy like saving with it. Even saving small amounts of money with compound interest can help you acquire a heft sum for your retirement and get you living a comfortable life.

The housing and mortgage Concept

You have to learn and understand that the housing prices don’t always go up. Therefore, make sure that the mortgage loan is not only affordable every month, but always affordable in the lifeline of a mortgage debt.

It is quite a crucial aspect of essential money concepts that you should be ready to embrace if you want to stay afloat in any housing financial crisis that may crop up at any time.

The Appreciating and depreciating concept

When you make purchases, keep in mind that not all of them are necessarily investments.

Things that you may buy in your lifetime will decrease in value and even if they are not bad sales, it is important to note that one factor.

By understanding the appreciating and depreciating assets, you shall be able to make good decisions in your purchases.

Having that in mind as essential money concepts will help you improve in your ability to make such determinations.

The Taxes concept

Understanding how taxes work is extremely important in your financial health. By knowing the basics you are able to:-

Save a lot of money in a long term plan.
Know what to keep and not what to keep in regards to receipts and documents for your taxes each year.
Have an idea of what you might be saving at the end of each tax year.

Being able to automatically determine your finances without having to do so much; gives you a sense of assurance that will keep you financially happy.

The Savings/Emergency fund concept

You never know when things might hit rock bottom with money, so if you understand this concept, then you will have understood the essential money concepts in general. In an instant, life can financially change and even with the best of plans, things can go horribly wrong.

It is always wise to have some funds stashed somewhere in case of anything and it is great to equip yourself with knowledge for the best options out there.

There is always the risk of unexpected damage or loss to assets and the emergency fund can come in handy and get you out quickly.

Know Your Rights: How To Do Away With Annoying Calls From A Bill Collector

August 10, 2014 by penn

It is very annoying to have your phone ring every minute of the hour and you know that it is merely calls from a bill collector who can’t wait to harass you for money. They call relentlessly and without shame at odd hours of the morning and evening and if you should mistakenly answer the call, the threats that ensue leave you boiling with rage.

Did you know that one in every seven Americans is frequently harassed by a debt collector?

You should know your rights and be informed about how and where to report the abuse they are inflicting on you and your time. You don’t have to take it in any way. They have a way of trying to intimidate you so that you cave in to their demands. Some people do, for others is a heated exchange of words that may go on forever.

If this is happening to you, then you need to know the following:-

You have the right to complain

If calls from a bill collector are persistently coming in to your workplace before 8a.m and after 9pm, then you have the right to tell the bill collector that your employer does not allow it and it is written under company policy that they should not call the office. The bill collector has no choice but to cease and desist. These calls from a bill collector are aimed to trick you into giving them your bank details so that you can pay and schedule a time the money will be taken out of the account.

If they are to the point you can’t take it anymore, you can write a letter to the debt collector asking them not to contact you again. According to the Fair Trade Commission (FTC), they have to comply. The only instances they can write you is when they are letting you know that they have no intention of contacting you again or if they are informing you that they are going to take on another approach in pursuing their money I.e., A lawsuit.

However, sending them a letter to stop calling you does not imply that you are exempt from the debt they are calling you about. If they should file a lawsuit against you, don’t ignore it. Show up for the court date and that way, there will be more leniency for the debt. A complete no show is an automatic win for the debt collector.

You can report them to:-

The Association of Credit and Collection Professionals

The State’s Attorney General

The Consumer Financial Protection Bureau

Legally, you have rights

You are not meant to be harassed or intimidated in any way by calls from a bill collector. They are also not supposed to threaten or make you feel inadequate for whatever debt they are trying to get you to pay.

These practices are illegal and end up creating a stressful attitude for the one being called all the time. Their aim is to make you feel so anxious and miserable that you end up caving in to their demands. Nobody should be treated in that manner and they don’t have any right to do so.

Calls from a bill collector are meant to put fear in your heart. The way they speak to you makes one think that you basically have no choice but to comply. But that is not true. They know of your rights more than you do and they use every applicable angle to their advantage.

If you owe them money

If you get calls from a debt collector urging you to pay your debt and you are capable of paying, then go ahead and do so. Go into negotiation mode and ask to pay a smaller amount that you are able to afford. At this point, they will be more than eager to work with you because you are coming to terms about your debt and you are ready to pay.

If you know you don’t owe them any money

It is not uncommon to get calls from a debt collector that thinks you are the person who owes them debt. Sometimes, there are cases of mistaken identity and you have nothing to do with the debt they are pursuing you for. Unfortunately, in this case, it is not innocent until proven guilty. It is actually guilty until proven innocent. Unless you vigorously follow the whole issue, you might end up inheriting the debt of someone else.

They will come after you with a vengeance, once they get you into court, especially if you have huge debt, so it is better to make a settlement out of court and arrange for a payment plan. Calls from a bill collector need to be handled tactfully well.

Is Your Money Safe In A Credit Union?

August 2, 2014 by penn

Keeping your money in a bank is the safer option than digging a hole under your bed and hoping for the best. Safety, of course is the number one priority for your hard earned money and a bank guarantees that. Having cash with you is risky due to theft and the likelihood of spending it is higher than when it is deposited in the bank. There is also the possibility of losing money that you can never recover, whereas if it was in the bank, all you have to do is stop all transactions going through with just a simple phone call to your bank.

There are a lot of questions regarding Credit Unions and people still don’t know what they are all about. There is little or no information as to how Credit Unions work. In actual fact, banks and Credit Unions are very similar. Let us explore what they do and how they safeguard your money.

What a Credit Union is: The owners of the Credit Union

Credit Unions are nonprofit organizations. Now when I say non profit, it does not mean that they are a charity network. They are institutions that are owned by the customers. The whole point is to achieve quality of service as opposed to banks who work on acquiring profit. A bank is run by shareholders who expect a certain financial performance from management of the bank. They still have the functions that a bank has and that is to:-

Compete with other financial institutions
Pay salaries
Collect revenue

Who manages a Credit Union?

It is not very different from a bank. There is a manager, tellers and even a security guard at the door. The same kind of personnel required to run a bank is found at a Credit Union. The higher management is made up of a board of directors who are responsible for all the decisions of the facility. It comprises of people who have been elected by volunteering. Unlike the personnel in the bank, they don’t get paid to do it. All they have to do is make the necessary adjustments on how the place will be run. In other words, the basic outcome is to ensure that they have a say on things.

So, are Credit Unions institutions you can trust with your money?

They operate the same way a bank operates, so yes, they are safe. There is only one thing that would be somewhat of a concern and that is, if they aren’t federally insured.

FDIC Insurance protects your money from any kind of mishaps the facility may have and it provides secure coverage for your money.

Federally insured Credit Unions already have the name “Federal” as part of their name, so it is easy to tell which ones are insured or not. If there is nothing like that on the credit union you plan to put your money in, then maybe you should reconsider your choice. Private Credit Unions are not necessarily unsafe, but it would be a good idea to get one that has the support of the government, incase of anything happening.

In the Credit Unions, this kind of insurance is called NCUSIE Insurance, which instead of being provided by the FDIC, is given by NCUA (National Credit Union administration). This kind of insurance is government approved and fully backed by it. If anything was to happen to the Credit Union that your money is in, then the government would fully replace it.

How the Insurance Works

Both the NCUSIF and FDIC provide coverage up to two thousand and fifty thousand dollars per person who has an account in the facility. They will not pay higher than that, which when you think about it, is not a bad deal. It is better than nothing at all.

The NCUSIF will not insure amenities, investments or mutual funds.

It will only insure the following:-

Certificates of Deposits (CDs)
Savings accounts
Checking accounts
Money Market accounts (excluding money market funds)

So, what have we learnt about Credit Unions?

They are not so different from Banks. They offer the same services and do the same job. They have the same setup except that the banks pay their employees and aim to profit from their customers.
The customers run the institution. They make decisions on how it should be run in every aspect. They make sure that the Credit Union is running smoothly and efficiently.
They do not profit from the customers. They do not get paid to run the facility. It is purely on a volunteer basis.
Private Credit Unions are not insured.
Those that are; NCUA provides the coverage. This is like the FDIC of banks. They can cover up to 250,000 dollars incase of anything.

Know Your Pet’s Personality and Reduce Veterinary Costs: Part II

June 11, 2014 by penn

Carrying on from part one on how to reduce veterinary costs for owners of pets. Another important factor to consider is the food we provide to our pets. Just like the foods, we eat ourselves; pet food can also be of both high and low quality. It is important the food your pet is eating is high quality in order to maintain their good health. You need to make sure you are feeding your pet well and to ensure this you can always check the nutritional value on the food. You can also carry out some research and find which brands are recommended for your pet and their needs.

Quality and Cost

Even though foods that are high quality may cost you more, in the end they also save you a lot of money. Pets that have a nutritious diet have less chance of becoming sick than pets who consume a poor quality diet. Good quality food for your pet means fewer trips to the vet, which as a result will help you reduce veterinary costs. If you want to change your pets’ food to a healthier one, then you must do this progressively. You can mix the new one with the old, with a bit more of the new one every day.

Your Pets’ Healthy and Happy Lifestyle

Another way to reduce veterinary costs is by meeting your pets’ entire needs. If you wish to maintain a healthy and happy lifestyle for your furry friend, then this is what you can do:

Consider particular grooming needs.
Spend plenty of time with them and keep them feeling good and happy.
Make sure they have shelter in all seasons.

Okay, all pets do not need so much grooming, as some may need a little less than others may. You can reduce veterinary costs by adapting a DIY approach and regularly grooming your pet. Secondly, playing with your pets keeps them engaged and feeling both happy and healthy. The healthy benefits of exercise and activities your pet will get will help them burn energy, which is also a plus to their overall health. This means fewer trips to the vets and another way you can reduce veterinary costs. Thirdly, cats and dogs can overheat in the summer, which is why they should not be left alone, or outside for a long time. You need to ensure they are getting fresh and clean water and you need to look out for any signs that can be brought on by the heat. If your pet spends most of their time outdoors, you need to ensure they have access to clean water and a shelter.

Your Pet’s Breed and Personality

The only time owners notice a problem with their pets is when they start to behave abnormal. Your pet may be extremely scratching or may be less active, or may even hide away from the family. When something like this happens, it is recommended to visit the vet straightaway, especially if you wish to reduce veterinary costs. The earlier you go, the earlier the problem will be solved. Alternatively, the later you leave it, the more serious the problem could get, which will result in more expenses.

Each breed of cat and dog has their own unique personality as well as their own genetic health issues. You need to read about your pets breed to discover the problems that can come up and the necessary steps you can take to be prepared.

Try Pet Insurance

As a pet owner, you will be dealing with veterinary costs sooner and not later. In order to reduce veterinary costs you can prepare an early budget, which will help you have control with your money. One option you may have to reduce veterinary costs is to take out pet insurance. Before considering this option, you need to make sure it works for both you and your pet. With the improvement in veterinary technology, our furry pets have a wide range of techniques offered to them to solve their health issues.

If you do not want to try insurance for your pet, then you can set a special fund aside just to manage the expenses of your pet. A savings account, if you want to call it will help you look after your pets needs and afford the veterinary care when the time arises. You need to take the time and care for your pet daily in order to prevent health issues, which will also prevent expensive vet visits. As pet owners, you have the responsibility or providing your animals with food, love, care, shelter, and attention.

In order to be happy, your pets do not require anything extraordinary. The expenditure carried out on your pets is all returned to you in the form of unconditional love, cuddles, silly antics, and licks.

Know Your Pet’s Personality and Reduce Veterinary Costs: Part I

June 3, 2014 by penn

Pets are definitely a lovely addition to the family, as they bring companionship, love, and laughter into our lives. Apart from this, several studies have also shown how these four-legged companions improve both our physical and mental health. However, when you decide to keep pets as animals, it is important you do not avoid some financial facts. Additional expenses arise when one keeps pets as animals in the home, which need to be fitted into the budgets.

Pet Needs

Just like humans, animals also have food and caring needs, which must be fulfilled. Every month, our furry friends require food and care items, as well as veterinary care and grooming whenever they need it. Every time the owners travel out the country, it may even cost a little more to take your four-legged friend along, which is why you need to have an idea on how to reduce veterinary costs. Even though they become part of the family, the cost used on them does not really seem like so much of a problem, as they are like the rest of the family. However, if there are ways to reduce veterinary costs, maybe it is time we uncovered them. Over the years pets live with us they can cost a lot, as dogs can live up to ten years and the lives of cats can be twice as long. For those who love their pets, treat their animals just like family and really do not mind the expenditure.

However, the pet owners that are financially perceptive would choose the wise option and focus on ways to reduce veterinary costs. The majority of pricey expenses for animals are usually when visiting the vets, which is why both parts of this article can show you how to minimize vet expenses. The tips below ensure your pet stays happy at all times, as they do say healthy pets are happy pets and they may even turn out to be more affordable. Read on, consider the following tips and ideas below, and reduce veterinary costs today.

Stay Upbeat and Plan Routine Checkups

One of the simplest ways you can reduce veterinary costs is to take your pet to the vet on a routine base. If you choose to take your pet for an annual wellness exam, you vet can easily recognize and diagnose health problems before they get severe and require expensive treatment. Each time you take your pet to the vets, they can help to set strategies for daily care, which will be based on the changing needs of your pet. E.g.) the vet may be able to suggest changes in exercise that may be able to keep your pets health on the right track, as they age. Alternatively, the vet may even suggest new diets for your pet, as they progress through different stages of life.

For those who own cats, an annual checkup is vital. When cats are not feeling well they usually hide their symptoms well. This makes it incredibly difficult for even most focused owners to notice the health of their pet. This is why if you take your pet to routine visits to the vet, all hidden issues will easily be uncovered before they turn into diseases or full-blown illnesses.

Find Substitute Care Providers

If you think, the annual trip to the vet is not a good idea to help reduce veterinary costs, read on and discover the alternatives. You can give a call to your local animal shelter and ask about animal hospitals that are low cost. Such places can provide you with contact info for trustworthy veterinarians who will have less expenditure when compared to some other clinics.

Furthermore, you may want to use a rural vet to help reduce veterinary costs. Vets who are located in rural areas usually make house calls for both small and large animals. This means they may not have a fancy office, which is an advantage to those who are looking to reduce veterinary costs. A problem with this is one may not feel comfortable about leaving their current vet. This is understandable, which is why you should not be afraid to negotiate with them. If the relationship between you and your vet is good, and if you are their long-time patient, then you have a good chance of talking about the expenses. You need to try, as you will not know until you do not ask.

Stay Up-To-Date with Defensive Care

You need to ensure your pet is kept up-to-date with their vaccinations. This is vital for both outdoor cats, and for dogs. This is because they frequently meet much wildlife, including rodents, which can transmit serious diseases. If your pet is up-to-date with their vaccinations, this prevents them from catching any illness or viruses from interacting with other animals, which may be unvaccinated.