If the majority of your outstanding debt is credit card debt, you may be spending hundreds of dollars just on interest alone. Aside from wasting money, this keeps you from moving forward and paying down your debt.
Most people don’t know you can call up a credit card company and negotiate for a lower APR. Take the time this month to do that. Explain that you are working on paying down your debt and that the interest payments are impeding your progress. You can even research competing cards and cite their interest rates in a bid for a lower APR from your current credit card company.
Lowering your interest rates will allow you to make another real step toward getting rid of debt.
If the majority of your outstanding debt is credit card debt, you may be spending hundreds of dollars just on interest alone. Aside from wasting money, this keeps you from moving forward and paying down your debt.
The COVID-19 Global pandemic caused an initial panic leaving store shelves empty of face masks and toilet paper. Hand sanitizer, cleaning supplies, paper towels and meat followed quickly in what was fast becoming routine for life during COVID-19. And now, the latest commodity to run in short supply is coins.
Got change? Many financial institutions, retailers and private citizens don’t.
Although we are increasingly becoming a cashless society, coins play an integral role in day-to-day commerce, and a dearth in their supply can severely impact small businesses that are already struggling to survive. There’s more than just pocket change at stake here, and if things don’t improve soon, the effect on the economy can be critical and long-lasting.
Here’s what you need to know about the most recent shortage caused by COVID-19.
What triggered the shortage?
The jangling coins in your wallet were stricken in the U.S. Mint. The Federal Reserve distributes these coins to financial institutions across the country. From there, the coins are purchased by retailers or private citizens, enter the economy and begin circulating. But now, with the pandemic upending the economy and the Mint operating at partial capacity, this chain was disrupted for months at a time.
“The COVID‐19 pandemic has significantly disrupted the supply chain and normal circulation patterns for U.S. coin,” according to a statement issued by the Federal Reserve. “In the past few months, coin deposits from depository institutions to the Federal Reserve have declined significantly and the U.S. Mint’s production of coin also decreased due to measures put in place to protect its employees.”
Federal Reserve Chairman Jerome Powell added that the massive shift to online or contactless transactions has further disrupted the flow of coins through the economy.
Even now, as large segments of the country reopen, the supply of coins is failing to keep pace with demand. Many consumers still shop remotely and those who do shop in physical stores are wary of handling germ-infested dollars and coins and are opting for contactless payment instead.
The response to the shortage
To help mitigate the fallout of the coin shortage, the Federal Reserve began to ration its coin distribution on June 15, giving banks and credit unions only part of their requested orders. The total number of rationed coins each bank or credit union will receive is determined by the institution’s history of coin orders and the capacity of the U.S. Mint to fulfill the request. The Reserve has also encouraged banks and credit unions to order only the amount of coins they need to meet short-term member demand.
The Federal Reserve is working together with the Mint to ramp up production of new coins and to lift supply allocations in the near future.
The impact of the shortage on the economy
The severity of the shortage first came to light in mid-June, when banks in Tennessee were notified that they’d only receive a small portion of their weekly coin order from the Federal Reserve.
In a virtual hearing on June 17, Rep. John Rose of Tennessee told Powell that the banks in his district, having received only part of their weekly coin order, would likely run out of change by the end of the week, or might need to round up or down if they run low.
“In a time when pennies are the difference between profitability and loss, it seems like it might be a bigger concern than the announcement from the Fed would indicate that it is,” Rose said.
The shortage can have devastating effects for retailers who won’t receive their complete requested orders of coins from their bank or credit union, Rose said. Without the means to provide adequate change for their customers, small business owners can be forced to round up or down, leading to significant losses in revenue and in customers.
A temporary shortage
The Federal Reserve believes the coin shortage is only temporary and that it will resolve itself in the near future.
“As the economy reopens, we’re seeing coins begin to move around again,” Powell said.
However, the dearth in available coins is still a reality that can be felt in all sectors of the economy. As a consumer, this means that Artesia Credit Union may be unable to fulfill your complete request for coins at this time. You may also feel the impact of the shortage when paying cash at brick and mortar stores; the clerk may not be able to provide you with accurate change.
Finally, if you have spare change lying around at home, you may want to sell it to Artesia Credit Union to help us close the gap between our coin supply and demand.
Scammers are notorious for capitalizing on fear, and the coronavirus outbreak is no exception. Showing an appalling lack of the most basic morals, scammers have set up fake websites, bogus funding collections and more in an effort to trick the fearful and unsuspecting out of their money.
The World Health Organization (WHO) has published on its website a warning against email scams connected to the coronavirus. The agency claims it has received reports from around the world about phishing attempts mentioning coronavirus on an almost daily basis.
Closer to home, the Federal Trade Commission (FTC) is warning against a surge in coronavirus scams, which are being executed with surprising sophistication, so they may be difficult for even the keenest of eyes to spot.
The best weapons against these scams are awareness and education. When people know about circulating scams and how to identify them, they’re already several steps ahead of the scammers. Here’s all you need to know about coronavirus-related scams.
How the scams play out
There are several scams exploiting the fear and uncertainty surrounding the virus. Here are some of the most prevalent:
The fake funding scam
In this scam, victims receive bogus emails, text messages or social media posts asking them to donate money to a research team that is supposedly on the verge of developing a drug to treat COVID-19. Others claim they are nearing a vaccine for immunizing the population against the virus. There have also been ads circulating on the internet with similar requests. Unfortunately, nearly all of these are fakes, and any money donated to these “funds” will help line the scammers’ pockets.
The bogus health agency
There is so much conflicting information on the coronavirus that it’s really a no-brainer that scammers are exploiting the confusion. Scammers are sending out alerts appearing to be from the Centers for Disease Control and Prevention (CDC) or the WHO; however, they’re actually created by the scammers. These emails sport the logo of the agencies that allegedly sent them, and the URL is similar to those of the agencies as well. Some scammers will even invent their own “health agency,” such as “The Health Department,” taking care to evoke authenticity with bogus contact information and logos.
Victims who don’t know better will believe these missives are sent by legitimate agencies. While some of these emails and posts may actually provide useful information, they often also spread misinformation to promote fear-mongering, such as nonexistent local diagnoses of the virus. Even worse, they infect the victims’ computers with malware which is then used to scrape personal information off the infected devices.
The phony purchase order
Scammers are hacking the computer systems at medical treatment centers and obtaining information about outstanding orders for face masks and other supplies. The scammers then send the buyer a phony purchase order listing the requested supplies and asking for payment. The employee at the treatment center wires payment directly into the scammer’s account. Unfortunately, they’ll have to pay the bill again when contacted by the legitimate supplier.
Basic preventative measures can keep scammers from making you their next target.
As always, it’s important to keep the anti-malware and antivirus software on your computer up to date, and to strengthen the security settings on all of your devices.
Practice responsible browsing when online. Never download an attachment from an unknown source or click on links embedded in an email or social media post from an unknown individual. Don’t share sensitive information online, either. If you’re unsure about a website’s authenticity, check the URL and look for the lock icon and the “s” after the “http” indicating the site is secure.
Finally, it’s a good idea to stay updated on the latest news about the coronavirus to avoid falling prey to misinformation. Check the actual CDC and WHO websites for the latest updates. You can donate funds toward research on these sites as well.
Spotting the scams
Scammers give themselves away when they ask for payment via specific means, including a wire transfer or prepaid gift card. Scams are also easily spotted by claims of urgency, such as “Act now!” Another giveaway is poor writing skills, including grammatical errors, awkward syntax and misspelled words. In the coronavirus scams, “Breaking information” alerts appearing to be from health agencies are another sign of a scam.
You can keep yourself safe from the coronavirus by practicing good hygiene habits and avoid coronavirus scams by practicing healthy internet usage. Keep yourself in the know about the latest developments.
When trying to trim a monthly budget, most people don’t consider their fixed expenses. These recurring costs, which include mortgage payments, insurance premiums and subscription payments, are easy to budget and plan for since they generally remain constant throughout the year. While people tend to think there’s no way to lower fixed expenses, with a bit of effort and research, most of these costs can be reduced.
Here are five ways to trim your fixed expenses.
1. Consider a refinance
Mortgage payments take the biggest bite out of most monthly budgets. Fortunately, you can lower those payments by refinancing your mortgage to a lower interest rate. The refinance will cost you, but you can roll the closing costs and other fees into your refinance loan. Plus, the money you save each month should more than offset these costs. A refinance is an especially smart move to make in a falling-rates environment or if your credit has improved a lot since you originally opened your mortgage.
2. Lower your property taxes
Taxes may be inevitable, but they aren’t set in stone. You may be able to lower your property taxes by challenging your town’s assessment of your home. Each town will have its own guidelines to follow for this process, but ultimately you will agree to have your home reappraised in hopes of proving its value is less than the town’s assessment. This move can drastically lower your property tax bill; however, if you have made improvements to your home, it may be appraised at a higher value, which could raise your taxes.
3. Change your auto insurance policy
The Geico gecko and Progressive’s Flo, who love disrupting your favorite TV shows, actually have a point: You may be overpaying for your auto insurance policy.
If you’ve had the same policy for several years, speak to a company representative about lowering your monthly premiums. By highlighting your loyalty and having an excellent driving record, you may be able to get a lower quote. You can also consider increasing your deductible to net a lower monthly premium.
If your insurance company is not willing to work with you, it might be time to shop around for a provider that will. A few minutes on the phone can provide you with a significant monthly savings for a similar level of coverage. Once you have a lower quote in hand, you can choose to go back to your original provider and tell them you’re seriously considering a switch; they may change their mind about their previous lowest offer.
4. Consolidate your debts
If you’re carrying a number of outstanding debts, your minimum monthly payments can be a serious drain on your budget. Plus, thanks to the high interest rates you’re likely saddled with, you might be feeling like that debt is going nowhere.
Lucky for you, there is a way out. If you have multiple credit cards open, each with an outstanding balance, you might want to consider a balance transfer. This entails opening a new, no-interest credit card, and transferring all of your debts to this account. The no-interest period generally lasts up to 18 months. Going forward, you will only have one debt payment to make each month. Plus, the no-interest feature means you can make a serious dent in paying down that debt without half of your payment going toward interest.
Another way to consolidate debt is to take out a personal loan at Artesia Credit Union. Our personal loans will allow you to pay off all of your credit card debt at once. With interest rates starting at just 9.00% APR*, you’ll only need to make a single, affordable monthly payment until your loan is paid off.
5. Cut out subscriptions you don’t need
Another fixed expense most people mindlessly pay each month are subscriptions. Take some time to review your monthly subscriptions and weed out those you don’t really need. Below, we’ve listed some of the most commonly underused monthly payments:
- Gym membership. Are you really getting your money’s worth out of your gym membership? It may be cheaper to just pay for the classes you attend instead of a full membership. Or, if you have a favorite workout machine at the gym, consider purchasing it to use at home for a one-time cost that lets you to drop your gym membership.
- Cable. Why are you still paying for cable when you can stream your shows for less through services like Netflix and Hulu? If you don’t want to cut out cable entirely, consider downgrading to a cheaper plan that drops some of the premium channels you don’t watch much.
- Apps. How many apps are you signed up for? You may not even remember signing up for an upgraded version of an app you rarely use. A quick perusal of your monthly checking account statement or credit card bill can help you determine how much these subscriptions are costing you. Drop the apps you’re not using for more wiggle room in your monthly budget.
Your fixed monthly expenses are actually not as “fixed” as you may have thought. By taking a careful look at some of these costs, you can free up more of your monthly income for the things that really matter.
*APR refers to Annual Percentage Rate
It’s Black History Month; so let’s celebrate! In honor of Black History Month, Artesia Credit Union is proud to share four little-known facts about African American history, along with a list of fun ways to commemorate black history and culture.
1. The Rev. Dr. Martin Luther King Jr. improvised the most historic part of his “I Have a Dream” speech.
On Aug. 28, 1963, more than 250,000 Americans stood spellbound at the Lincoln Memorial, as King delivered his iconic address.
While much of his speech went down in the annals of history, perhaps the most famous lines are those in which King describes his dream of a tolerant, respectful society. Incredibly, those words were likely ad-libbed on the spot.
Dr. King and a group of advisors spent hours polishing the planned speech, and the original version was a lot more political than inspirational. In fact, it did not make any reference to dreams.
Onstage, singer Mahalia Jackson allegedly whispered to King, “Tell ‘em about the dream, Martin.”
After intoning, “We are not satisfied, and we will not be satisfied until justice rolls down like waters and righteousness like a mighty stream,” Dr. King’s talk became more of a sermon.
He continued with the now-famous lines:
“Even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream …”
Dr. King’s talk is now considered one of the most successful speeches ever in American history.
2. Rosa Parks was not the first black woman to stage a sit-in
Before Rosa Parks was on the scene, there was Claudette Colvin.
In March of 1955, the 15-year-old schoolgirl remained rooted to her spot, refusing to move to the back of the bus. This was nine whole months before Rosa Parks’ famous stand. The young girl had been studying the history of black leaders, like Harriet Tubman, in school. Those lessons had triggered many heated discussions about the present-day Jim Crow laws. When the bus driver demanded that Claudette move to the rear of the bus, she refused.
The teenager said, “It felt like Sojourner Truth was on one side pushing me down, and Harriet Tubman was on the other side of me pushing me down. I couldn’t get up.”
3. The Quakers were the first to protest against slavery
The Quakers were famously known as “The Society of Friends.” Four of these men from Germantown, Pa. wrote the first protest against slavery in 1688.
Drawing inspiration from the Golden Rule, the peace-loving men wrote, “Pray, what thing in the world can be done worse towards us, then if men should rob or steal us away, and sell us for slaves to strange countries, separating husband from their wife and children …”
This rare document was rediscovered in 2005 and is now part of the Haverford College Special Collections.
4. One in four cowboys was black
It might not be the picture you’ll get from watching western movies or TV shows, but at least 25% of cowboys were black.
After the Civil War ended, the old Wild West attracted lots of newly freed slaves seeking freedom and paid work. While they did find a demand for their skills and lots of freedom to live as they pleased, the blacks – and all cowboys – had to contend with many physical dangers while sleeping under the stars and “riding them horses,” such as inclement weather, reckless outlaws and rattlesnakes.
There are so many ways to celebrate Black History Month! Here are just a few ideas to help get you started:
- Read the poem, I, Too, Sing America by Langston Hughes.
- Bake sweet potato biscuits, a traditional African American-inspired soul food.
- Jazz up a dull day by tuning into some blues music.
- Play the ancient African game of Mancala. You can make a board at home using an empty egg carton with the lid cut off, and some beans for game pieces.
- Look up James Karales’s photos of the 1965 Selma to Montgomery civil rights marches.
- Read On Beauty by contemporary author Zadie Smith.
- View Jacob Lawrence’s Migration Series.
- Read the poem, A Pledge to Rescue Our Youth by Maya Angelou.
When you’ve dug yourself deep into a pit, the only way to get out is to stop digging. This month, focus on not racking up more debt. Stop using your credit cards. Skip your weekly trips that usually have you buying too many non-essentials.
Instead, start brown-bagging your work lunch and brewing your own coffee. Get into the habit of spending only on essentials so you can make real progress toward paying down that debt.
Don’t forget to make the minimum payments on every line of credit and loan you have open. Neglecting your debt will only pull you deeper into the pit.
You’re determined that this will be the year you finally pay down (or pay off) that debt. Get ready, because every month, our Do It Today plan will have you taking another step on your journey toward living a debt-free life.
First, sit down and take stock of all your debts. Don’t let the numbers scare you; you need to do this to move forward. Get out every single credit card bill, personal loan, student loan, and any other debt you’re carrying (except your car and mortgage payments). Tally up the numbers to give yourself an idea of what you’re dealing with.
Next, organize your debt into different categories, such as credit card debt, student debt, personal loans etc. Use a spreadsheet to list your debt, the remaining term of each loan (if applicable), the minimum payment and the interest rate.
Finally, designate one hour each week for working on your finances.
Q: I’d like to focus on improving my finances in 2020, but there are so many areas that need attention. Where do I start?
A: The start of a new year is a wonderful time to make important changes in your financial life. Lucky for you, you don’t have to go it alone. Artesia Credit Union will walk you through some financial improvements you can make this year and continue to guide you every step of the way.
We’ve broken down some of the most popular financial resolutions into concrete steps and outlined the ways Artesia Credit Union can help you implement each change into your life.
Build a budget
Why it’s crucial: Creating and sticking to a monthly budget will force you to be accountable for your spending while giving you a clear idea of your financial reality.
In 3 steps:
- Track your spending over three months.
- Using a spreadsheet, a pen and paper or a personal finance app like Mint, divide your expenses into categories, such as mortgage, groceries, etc. Use an average of the last three months to set a reasonable spending limit for each category.
- Going forward, track your spending and be sure to stick to your preset limits for each category.
If your budget reveals your monthly income doesn’t cover your expenses, or you find you’re overspending in any area, look for ways to cut back.
Get out of debt
Why it’s crucial: Carrying long-term debt can mean paying exorbitant amounts of interest for years on end. It can also devastate your credit score.
In 3 steps:
- Make a complete list of all your outstanding debts in order from smallest balance to largest.
- Review your monthly budget and look for ways to cut back. Alternatively, you can look for ways to increase your monthly income.
- Work on paying off your smallest debt with the money you trimmed from your budget, or with the extra income you’re pulling in. Once you’ve paid off that debt, move on to the second-smallest. Repeat until you’re completely debt-free.
How Artesia Credit Union can help: If you’re carrying multiple high-interest rate debts, consider taking out a consolidation loan to simply things. This way, you’ll only have one low-interest loan payment each month. It may even reduce the total amount you’ll pay each month. Speak to a loan officer at Artesia Credit Union today to discuss this option.
Why it’s crucial: According to the Federal Reserve, 40 percent of Americans can’t cover a $400 expense. Living without a safety net means a relatively small, unexpected expense can throw off your finances and force you into debt. Aside for paying for emergencies, savings can help fund your long-term plans, goals and dreams.
In 3 steps:
- Review your monthly budget to identify your biggest spending traps. Then, find ways to cut back, such as shopping with cash only, cancelling subscriptions you never use or initiating a “financial fast” one weekend each month, in which you spend no money.
- Use all money saved to open an emergency fund and a long-term savings fund at Artesia Credit Union. It’s best to focus primarily on your emergency fund until you have 3-6 months’ worth of living expenses stashed away.
- Set up an automatic monthly transfer from your Artesia Credit Union checking account to your Artesia Credit Union savings accounts so you never forget to feed your savings.
How Artesia Credit Union can help: We offer many different types accounts including Savings, Checking, Money Market, Share Certificates and IRA’s so your money has an excellent opportunity for growth to suite your individual needs.
Maximize your retirement contributions
Why it’s crucial: Many workplaces offer to match 401(k) contributions. These contributions aren’t taxed and they come off your paycheck, which is taxed, making participation an excellent decision. Your 401(k) withdrawals will be taxed in the future, but the compound interest your fund will accumulate until then will more than offset this cost.
In 3 steps:
- Speak to an HR representative at your workplace to find out about your current 401(k) contributions.
- Identify how to best maximize your 401(k) contributions going forward.
- If you have any other retirement funds, such as an IRA or a Roth IRA, also review your contributions to determine if you are making the maximum funding allowed.
Let Artesia Credit Union help you meet your money goals this year. Together, we can make this the year you take control of your finances and start working towards a financially comfortable future.
‘Tis the season to be jolly! And unfortunately, ‘tis also the season for scammers to go after your hard-earned dollars. Keep your money safe by reading up on the most common scams taking place this time of year and practicing caution.
1. Phishing emails
Always popular, phishing scams get even more prevalent before the holidays. They can take the form of bogus delivery confirmation requests seeking your information or even a personalized letter to your child from “Santa.”
Be extra careful this holiday season when it comes to sharing personal information online or with an unverified requester.
2. Other “Ishing” Scams
Vishing is the telephone equivalent of phishing. It is described as the act of using the telephone to scam the user into surrendering private information that will be used for fraudulent purchases or identity theft.
Skimming is perpetrated by using electronic devices to surreptitiously scan and store credit and debit card numbers and PINs. ATMs and some unattended terminals, such as gas stations, are targets for this practice. This information can then be sold to fraudsters or used to commit theft directly. Fraudsters can use the numbers to make online purchases or to create fake cards for in-store transactions.
Phishing is the fraudulent practice of sending emails purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers.
SMiShing (SMS phishing) is the act of attempting to acquire personal information such as passwords and details by masquerading as a trustworthy entity through SMS text messages on cell phones. SMiShing messages may come from telephone numbers that are in a strange or unexpected format with links directing to fake websites.
A typical SMiShing occurrence can begin with a cardholder receiving a text message inquiring about a suspicious transaction on an account. In reality, the fraudster is looking to obtain other information from cardholders such as debit/credit card numbers, CV2 codes, expiration dates, PINs and other web login credentials.
3. Fake charities
Sadly, many scammers will capitalize on the goodwill that flourishes this time of year by asking you to make a donation to a charity that does not actually exist. Verify the authenticity of any charity you’d like to make a contribution to by checking it out on a website like CharityNavigator.org. Also, it’s best to contact a charity on your own instead of following a website or email link.
4. Package theft
It’s holiday time, and those UPS and FedEx trucks are everywhere, dropping off boxes of goodies all over the neighborhood.
Usually, these drop-offs go as planned. Unfortunately, though, some 23 million customers will have their packages stolen from their doorsteps this year.
Don’t be one of them! If possible, and especially when ordering something expensive, arrange for a delivery that requires your signature upon receipt. Otherwise, track your order and know when to look out for it so you can bring it inside as quickly as possible after it’s dropped off.
When sending a gift to someone else via Amazon, consider sending it to an Amazon Locker location instead of to the recipient’s household. There’s no fee for using this service, and this way, your gift is safe.
4. Bogus sites
You might get lucky and find that perfect gift at a super-low price, but don’t believe any ads or websites that are practically giving away the good stuff for free. These are, quite likely, scams. Once you click an ad link and place an order, you’ll never hear from the site again. Worse yet, they may use the information you shared to empty your accounts.
Only shop on reputable sites. Remember to check the website address/URL before placing an order. It may look strikingly similar to a popular site, but if one letter is off or missing completely, the site is bogus and you need to get out. Also, always look for that important “s” after the “http” in the web address to verify a site’s security.
5. Fake freebies
Did you really just see a Facebook post offering you a new iPhone, completely free of charge? If you have, run the other way and don’t look back! You’re looking at a scam, designed to lure you into sharing your information with criminals or unwittingly installing malware on your device.
Fake freebies run the gamut from new phones, complementary cruises and various luxury gift items to free holiday-themed downloads, like music, wallpaper and games.
If you’re offered any outrageous free gifts by text message, email or social media posts, ignore them. Downloads, though, may be safe, but need to be carefully vetted for authenticity before you accept them.
6. Defunct gift cards
Many scammers sell expired or empty gift cards this time of year, hoping to make a profit on a card that isn’t worth more than the plastic used to make it.
Ask to inspect any gift card you purchase before you finalize the sale. Check to see if the activation code is exposed. If it is, the scammer has probably already used the card or has copied the information and will use it soon.
7. Temporary holiday jobs
Lots of businesses are hiring extra hands to get them through the busy holiday season. Don’t get stuck working for criminals!
Many scammers will pose as employees of recognized businesses and post help-wanted ads on social media platforms and popular websites. When a job seeker follows the links in these ads, they are directed to a bogus site that looks just like the site of the company the scammer claims to represent. They’ll be asked to share personal information to submit an application. The scammer will then make off with this information and the promised job will never materialize.
If you’re looking for a seasonal job, apply in-person or directly on a business’s website. Do not follow any links.
As always, be aware and be cautious when enjoying the holiday season. Don’t get grinched! Stay alert and use caution to keep your money — and your information — safe.