Debt Consolidation is Key

Now that the holidays are well behind us, tax season is in full swing. The big question that always comes up in our household is what to do with that tax return.  We are bombarded with all the furniture stores, electronic stores, and new car ads luring us in with their special deals so we’ll spend that tax return money. My son just got a 60 inch plasma TV with surround sound with his money (yeah he fell for it), but maybe instead of bulking up on the latest gadgets, maybe now is a better time to look at what debt we already are carrying and see how best to consolidate it to help pay it down quicker.

Did you know that if you have a credit card and you use more than 1/3 of your limit it actually can hurt your credit score? You can pay perfectly on all your debt, paying down more than minimums, but if you’ve got cards that are maxed out, or close to being maxed out you still are damaging your credit.  This is known as your "level of debt," which is measured by how much of your limit that you are using. Having a high credit balance, relative to your credit limit, increases your credit utilization and decreases your credit score.   Stick to the 30% rule – never put more than 30% of your limit on each of your cards. If you find that you’re having a hard time with that, you can transfer some of your balances to other cards to bring the balance down to 30% or lower, or even ask the provider to increase the limit so that your balance is lower.

Did you also know you can look at things like your car or home to refinance and pull equity from to help pay those higher interest rate cards down to a point where you can help your credit?  Add to that the money you get back from your tax return and you can get yourself closer to your goal of getting out of debt.   

One of the things I LOVE about credit unions is they care about their members to the point of looking at your whole financial picture and helping you find solutions that work for YOU – not them.  It’s pretty simple:  banks need to satisfy shareholders so they must make money to keep that group happy. At a credit union, they exist as not-for-profit cooperatives; which is a fancy way of saying they don’t have pressures to satisfy shareholders, they work for you…period.

So if you are anxiously waiting for that big deposit from Uncle Sam, or if you’ve recently received it, instead of measuring for a new TV set, make an appointment with a Financial Service Specialist at TropicalFinancial Credit Union to help you get complete control of your finances from a place that truly cares about you.  Give us a call today at 888-261-8328.

^Amy

Share The Love

Valentine’s Day is a day that we all either love or really would like to skip – it’s always one or the other. Those of us who have been lucky in love, savor the day and all its meaning; while those of us who haven’t found that “perfect someone” spend the day just wishing that the calendar would flip to the 15^th.

Being a Credit Union, we think every day is Valentine’s Day in that we really love our members and the communities we serve.  One way we show our love of community is being involved IN our community through participation in local events, especially when it involves helping others. 

Currently we are in the process of raising money for a local Relay For Life event.  You can help us very simply by sharing this post with as many people as you know.  During the month of February we are going to match one dollar for each LIKE on Facebook and each Follower on Twitter up to $5,000! Help us spread the love for helping others by helping us fight cancer.   According to the American Cancer Society, more than 12 MILLION people are sharing Valentine's Day with their loved ones thanks to money raised through Relay For Life. Help us raise that number!  Who knows, your simple Like or Follow could equate to the one dollar that helps fund the breakthrough medical treatment that ends cancer.

^Amy

Don't Let Your Wallet Breakdown

A few weeks ago I promised my mom that we would drive her from South Dade to Auntie Marie’s home in Broward so that she could visit with her for the weekend.  They are both 80 years old and neither one drives further than the nearest Publix.

Of course, a few days before the scheduled weekend visit my dear husband’s car starting acting up and eventually stalled in the middle of the street.   Our trusty old SUV is getting older and has quite a few miles on it, but thankfully we purchased the mechanical breakdown service from Tropical Financial Credit Union.

Well, we got out our contact numbers and drove to the dealership.  The shuttle drove us home while the mechanics made their diagnosis….dum dum dah dum…   Late that afternoon, we received the call.  The problem has to do with the transmission, but the part is not on the premises.  It has been ordered and wouldn't be there until the following week.   We were given a rental and were on our way to drop off mom at Auntie Marie’s.    A week later we got a phone call advising that our car was ready and available.  We headed to the dealership, signed the papers, returned the rental and off we went at NO  CHARGE!!   When I looked at the bill it was well over $1500!   The labor alone was over $500, not to mention an eight day car rental….

In the past we never keep a car more than 2 years, and therefore we never needed the mechanical breakdown warranty.  Statistics are showing the consumers are hanging on to their cars longer than ever before, and we’re no different. These past few years we have tried to economize and have kept the cars, so when this car turned 3 years old a co-worker convinced us to purchase the mechanical breakdown service even though the car was older.   The problem was not having the cash on hand, so we took out a personal loan and purchased the insurance.  The monthly PSL payments were almost insignificant in dollar amount, but very significant in our lives as far as breakdowns are concerned.  Although we have not had too many incidences, I totally dislike being inconvenienced and not having MY car when I want it…I’m sure you all can relate.  I am totally happy with the smooth and efficient way that this whole insurance thing works.   A certified mechanic calls the service provider, a diagnosis is made, if necessary a representative visits the repair shop/dealership to inspect the problem as well as the resolution, and everything is handled between the mechanic and the insurance company.  I'm also provided a rental if necessary and I am on my way.  So, no more haggling with the mechanic as to which thing should I fix now, and which should I fix later when I have the money.  Minimal inconvenience and it has proven to be the best money we have ever spent.  

A single major car breakdown can impact a family and their financial status.  Invest in yourself; ask your Tropical Financial Credit Union representative for a quote for mechanical breakdown insurance for your car – peace of mind for you and your family. 

^Kat