PSA Winner Donates Winning Money to Haiti Relief

Neighborhood Credit Union's Prize Savings Account continues to make a difference in member’s lives. Now, it’s making a difference in Haiti, as well. Jim, one of our monthly prize winners, has requested that we donate his $1,000 prize to the American Red Cross to support Haiti relief and development.

“I was surfing the web and noticing the scams out there for the Haiti relief efforts. That's why I contacted MYNCU for advice,” said Jim, who does not want his last name published.

Jim said he was mildly surprised to learn he had won the money. A few of his co-workers heard that he had won something, but he didn’t know what the prize was until he was contacted by the credit union. Neighborhood Credit Union awards several monthly cash prizes to members with a Prize account, but only one member wins the big $1,000 prize.

The timing of this month’s prize just happened to be right. Jim believes Haiti needed the money more than he does.  However, if there wasn’t a crisis in Haiti, he still would have given the money away.

“I would have divided it up between my family members,” he said.

Jim has been a loyal member of Neighborhood Credit Union member since 1973.  He says the credit union has been loyal to him as well.

“The credit union has always served my needs and been there for me,” he said.

Our Prize Savings Account is a one-of-a kind bargain you won’t find at any other financial institution in the area. Simply save money, and you’ll be entered in a drawing to win cash or prizes.

How the Prize Savings Account works: Neighborhood Credit Union members receive one drawing entry for every $25 monthly average balance in their Prize Savings Account. The greater the savings, the greater chance a member has of winning. Each month, drawings are held for prizes including $1,000 cash rewards. Each quarter, the credit union also awards a plasma TV and $1,000 in cash. At the end of each year, a $25,000 grand prize winner is drawn based on the amount in savings at the close of business December 31.

Click here to learn more about the Prize Savings Account.

Where Does My Money Go?

How to Control Discretionary Spending

It happens to many of us. Pay day comes, we pay our bills and with any luck, there’s money left over to spend how we see fit. That’s discretionary income, and for many of us, it seems to vanish into thin air. Where does all our money go? Eating out, spontaneous stops at the grocery store and even small purchases like soft drinks and coffee add up fast.

The best way to control spending is to budget for regular expenses/bills and track every discretionary penny you spend. There are several ways to do this.

Keep Your Receipts
Keep all of your receipts for one month. Get yourself a shoe box, envelope or sealable bag, and every time you purchase something, put the receipt in there. If the receipt is not itemized, write down what you bought on the back. At the end of 30 days, add all the receipts to see how much you spent and on what. It may surprise you to see how many stops you make at the local coffee shop or at the grocery store for one or two items.

Spending Journal
Keep a journal of every penny you spend for a month or one pay period. Every time you purchase something, write it in the journal. You don’t have to write down your electric bill or mortgage, as long as you keep a budget for those items. Similar to the receipt method, a spending journal shows you exactly how you are spending your money and lets you know where you need to make adjustments.

Discretionary Account
Use a separate checking account/debit card earmarked for discretionary spending. Each pay period, transfer a set amount of money into that account. When it’s gone, you’re done spending until the next pay period. Be sure to opt out of overdraft protection or courtesy pay just on this account to keep yourself from over spending.

Cash Only
Withdraw your discretionary money from your account and use only cash for those purchases. When the cash is gone, you’re done spending until the next pay period.

Envelope System
Decide how much money you’ll spend each month or each pay period in major categories like Eating Out, Groceries, Gas, etc. Write one category on each envelope along with the amount of money you’re allowing yourself for the month or pay period. Put that amount of cash in each envelope. You can transfer cash from envelope to envelope as needed, but when the cash is gone, you’re done spending until the next budget timeframe begins.

The key to all of these methods is keeping yourself honest and making adjustments to keep the money from vanishing. Find the categories on which you spend the most money and set firm limits for yourself to keep spending under control. Next time you need money, you may just have some.

Should I Sell My Car or Trade It In?

If you’re ready to buy a new vehicle, one of the best sources of cash for your down payment is your current vehicle. The question is, should you sell it to another individual or use it as a trade-in at the dealership? There are pros and cons to both.

Selling your vehicle to someone else requires more time and effort, but you might make more money. You have to decide if the difference in price is worth the extra work. The state of Texas recommends following these steps when selling a vehicle:

Keep your license plates and transfer them to your new vehicle.

Provide the buyer with all the documents needed to transfer the title:

· A signed title

· A signed vehicle title application

· The vehicle's latest registration receipt

· Any other supporting documents, such as a release of lien, power of attorney, etc.

· Then, accompany the buyer to the county tax office to verify the buyer files a new vehicle title application under his/her name. If you sell or trade in your vehicle to a dealer, or if the buyer can't go to the tax office, you need to notify us of the sale by filing a vehicle transfer notification within 30 days of selling the vehicle.

Dealerships have to factor in the cost of fixing up and re-selling your vehicle when determining your trade value. That doesn’t mean you’ll get less, but it could. And, when you do a trade-in, the dealership does all the work. You just sign on the dotted line.

There’s also a sales tax advantage on trade-ins. When you trade in a vehicle in Texas, you don’t pay sales tax on the full purchase price of your new vehicle. You pay tax on the price difference between your trade-in and the new vehicle. If your new vehicle is $20,000, and your trade-in value is $6,000, you only pay sales tax on $14,000. At 6 1/4 percent, you’re saving $375 in sales tax by doing a trade-in.

To determine the best option for you – sell or trade in - do your research. Go to several dealerships and get a trade value. Find the Kelley Blue Book value of your car and see how it compares to dealer offers. Figure the difference in sales tax and weigh those figures against the amount of time and effort that goes into selling the vehicle. Whether you sell or trade in, you may not get what you want for your vehicle. You will however, be able to make an informed decision on the option that best meets your needs and your budget.

Help, My Credit is in the Toilet

If your credit is in the toilet, you’ve most likely figured out how poor credit can affect the rest of your life. It can keep you from getting a job, finding a place to live and getting a loan for the things you really need. Fortunately, it can be fixed. Depending on how bad your credit is, the repair process could take a year or more. But if you stay focused and committed, you’ll only need to do this once in your lifetime. Here are some steps to help you repair your credit.

Pay Your Bills On Time
Every time you are late 30 days or more on a credit card or loan payment, your credit score goes down. Even if you’re just paying the minimum payment right now, pay it on time every month. This alone will make the biggest difference to your credit in the shortest amount of time. Whenever possible, pay more than the minimum payment.

Credit Counseling
If you can’t afford your monthly payments, use the free financial counseling service, BALANCE,  at Neighborhood Credit Union. Or, seek free counseling from the Consumer Credit Counseling Service of Greater Dallas to see if you qualify for their debt management program.

Stop Using Your Credit Cards
Unless you can afford to pay the full balance each month, cut up your credit cards so you’re not tempted to use them. You might save one for emergencies, but don’t carry it in your wallet. Some people actually store their emergency card in a block of ice in the freezer to keep from using it on impulse.

Review Your Credit Report for Mistakes
Negative activity on a credit report will lower your credit score, even if it’s inaccurate. Get a free copy of your credit report at annualcreditreport.com and review it carefully for errors or misleading information, accounts that are not yours, bankruptcies over 10 years old, negative information over 7 years old, etc. Report any errors to the credit bureau for investigation.

Open a Checking and Savings Account
Even if you keep low balances in your accounts, creditors can see that you have the means to pay your bills and are making an attempt to change your ways by saving money. If you have negative history with previous financial institutions, consider our Fresh Start or Second Start accounts to get back on track.

Stay the Course
Repairing your credit often feels like you’re running in place. Just remember that every small change you make is adding up to bigger changes down the road. It also helps to think of your credit as a work in progress. As you make gradual changes, your score will continue to increase.

You, Too Can Be Debt Free

 

 

 

 

 

 

 

 

 

One Family’s Story About Paying Off Their Debt

Debt can be overwhelming. You make monthly payments on your loans and credit cards, but the debt never seems to go away. Does this sound familiar? You’re not alone.

· About 4o% of American families spend more than they earn each year.

· Average households carry some $8,400 in credit card debt.

· Personal bankruptcies have doubled in the past decade

 Lynnette and David were one of those households. Actually, their debt was higher than the average American household.

“I had maxed out my credit card on partying and drinking. It was about $6,000. Not my brightest moment. Dave had run up his bill and then got laid off from work. His debt was about $4,000. When we met, we already had our debt,” said Lynnette.

The couple started their marriage with $10,000 of debt, but they wanted to enter parenthood debt free.

“The turning point for us was when we decided I was going to be a stay at home mom,” said Lynnette. “At that point Dave applied for and got a new job with better benefits and a better salary. Even though I was working full time, we started living only on Dave’s salary just as we would when our first child was born. We wanted to be sure we’d be able to pay the bills and put money in savings on one salary. Then we took everything I made and started taking chunks out of our credit card debt. We paid it all off before our daughter was born and closed all of our accounts. We vowed never to open another line of credit after that.”

Lynnette and David have been free of credit card debt for nearly five years.
“Our only current debt is the mortgage and my car payment. Dave paid off his truck in '03, and we're going to keep it until the wheels fall off. We plan on doing the same with my car, Lynnette said.”

Lynette offers the following tips for living debt free:

· Keep your vehicles as long as you can after they are paid off

· Live on a budget. If you don’t have the money for something, don’t spend it.

· Build up your savings for emergencies and the things you want to own instead of living a life of instant gratification.

· Cut up your credit cards so you won’t be tempted to use them.

 

From Apartment to House in One Year

A home may be the biggest purchase you’ll ever make, and now is a great time to buy in the Dallas area. Property values are down and so are selling prices. If you’re ready to make that commitment, here’s how you can do it in a year or less.

Check Your Finances
Figure out how much you can afford. Write down all of your monthly expenses including rent and compare   it to your monthly income. How much can you realistically add to your current rent payment before it gets uncomfortable? That will determine your price range when shopping for a home. Keep in mind that a home comes with added expenses, like higher utility bills and routine maintenance costs. Mortgage payments also include loan interest and property taxes. If you don’t have money for a down payment, start putting money aside today. Most lenders require some type of down payment.

Check Your Credit

Your credit history helps lenders determine whether or not you’re likely to pay back your loan. Bad credit will disqualify you for a mortgage loan or may qualify you at an extremely high interest rate. Get your free credit report from https://www.annualcreditreport.com/cra/index.jsp, and dispute incorrect items. If your report is full of late payments and delinquencies or other obvious problems, seek help from a service like Consumer Credit Counseling Service of Greater Dallas.

Pre-Qualify
A Pre-Application helps you know what size mortgage you qualify for and offers faster processing than a full application, so you can start searching for a house now. Complete our form here. Start gathering paperwork now to complete your full application later on.

Shop
It’s a buyer’s market. You can find super deals on new and existing homes right now. Hot On Homes DFW is an excellent source for finding new home communities and builder specials like quick move-ins, closeout inventory, grand opening specials and more. In addition to its website, there’s a television show that airs every Sunday at 10:30 a.m. on Channel 8. Realtors have access to all kinds of information on existing homes for sale, including foreclosures. Remember to shop in the price range determined by your pre-application.

Application and Closing
Complete your full application as quickly as possible after finding your home to allow time for loan processing. Lenders frequently ask for additional information throughout the process. When you have an idea of the date your loan will close, consider locking your interest rate. Mortgage rates fluctuate daily and even ¼ percent makes a big difference.

Call the Movers and Turn on the Lights
Ask friends about reputable movers and schedule a moving date. Remember to establish utility services in your new home so they’re working before you move in (electric, gas, water, trash, internet, etc.).

Best of all…Welcome Home!

Prize Savings Account Grand Prize Winner!

Esau Flores was the Neighborhood Credit Union Prize Savings Account Grand Prize winner for 2009. We appreciate your long relationship with Neighborhood Credit Union and we hope your excellent savings habits will inspire others to follow your example. Congratulations Esau!