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!

        
 

Could $25,000 Change YOUR Life?

When Neighborhood Credit Union member Tiniska Brooks opened her Prize Savings Account last year, she was hoping to win a plasma TV. That’s the quarterly prize awarded to one lucky member with a Prize Savings Account. Ms. Brooks never did win that TV. Instead, we surprised her by showing up at her home on New Year’s Day with a $25,000 check. She was our 2008 Grand Prize winner. What a way to start the New Year!

And talk about perfect timing. Ms. Brooks had recently left her job and was getting ready to start down a new path in life. Her $25,000 prize made it possible to pursue her passion, and all she had to do was save money. That’s how she won. That’s how all of our prize winners have won, and that’s how you can win in the coming year.

Plain and simple, our Prize Savings Account rewards you for saving money. Neighborhood Credit Union gives away $2,000 in prizes every month, a plasma TV every quarter and one $25,000 grand prize each year to members with a Prize Savings Account. You get one (1) entry monthly for every $25 average daily balance in your Prize Savings Account for monthly prizes. If your average daily balance is $200, you get 8 chances-if it's $2,000 you get 80 chances. The more you save, the more chances you have to win big each month!

Good luck and Happy New Year!

 

Merry Christmas From Neighborhood Credit Union

Merry Christmas from your Neighborhood Credit Union family. We hope this holiday season brings you peace, joy and love (a little something extra under the tree). Your membership is a gift to our credit union every day, and we thank you whole heartedly for continuing to trust us with your financial well-being.

This holiday season, we hope you’ll remember that Neighborhood Credit Union exists for your benefit. Our job is to be your financial partner, and we take that job seriously. Our employees are dedicated to helping you with whatever financial needs you may have.

We know this has been a challenging year for some of our members. We want you to know you’re not alone. If you’re having problems making ends meet, lean on us. We have ways to help you lower your monthly payments on loans, credit cards or even your mortgage. Our solutions are as unique as your needs, so please lean on us for support. For other needs you and your family may have, there are organization listed below who may be able to help you.

If you are fortunate to be in a healthy financial state, we encourage you to help someone in need this holiday season. It could be as easy as providing a holiday meal for a family you know, or purchasing gifts so they can have something under their tree this year. There also are many local organizations which could still use your help this holiday season.

North Texas Food Bank

This local food bank supports people and programs in 17 North Texas Counties. Each $1 donated to the North Texas Food Bank feeds four hungry people. Donations of money and food are always needed. To date, the organization has provided 5.6 million meals just this year.

DFW Salvation Army

This organization helps families in crisis, the homeless, children and youth, senior citizens and others with food, shelter, clothing and money. Monetary gifts are accepted online. Of course, you can always drop money into the red kettle you see outside of many local retailers this time of year. Many locations now have cashless kettles where you can swipe a debit or credit card to make a donation.

Mission Arlington

Mission Arlington provides gently used clothing, household items, baby items, toiletries and more to local families in need. Monetary donations are always accepted, as well as the items listed above.

Our wish for all of our members this holiday season is that you have what you need and that you give to others when you can. Have a very Merry Christmas.

8 Ways to Save $50 Per Month Now (Part Two)

Note: This is part two. Please see post below for part one.

When your budget is tight, it can seem impossible to save $50. Here are eight ways to help you do it quickly and relatively easily. Give it a try. You might be surprised at how easy it can be.

 5. Groceries

Coupons can save you a fortune when matched with weekly sales, but it does take time that some people are not willing to spend. What if you could do it electronically? Several stores in the area, including Kroger, Tom Thumb and CVS give you the ability to upload manufacturer coupons directly to your store cards. That saves you both time and money. Check out http://shortcuts.com/stores or Proctor&Gamble Everyday Solutions. You can also sign up for free daily e-mails from Never Pay Retail Again, which tells you what coupons match sales at various grocery stores nationally. It also provides information on deals at other retailers.

 6. Entertainment

Movies and eating out add up quickly – especially if you have a family. Brown bagging your lunch just one or two days a week is all it takes to save $50. Or, instead of take-out, buy from the deli at your local super market. Often, you can get the same thing for half the price. Also, look for restaurant coupons in your local sale papers or at restaurant websites.

Movies are another big budget buster. You can rent three of four movies for the cost of seeing one movie at a movie theater. If you’re not willing to sacrifice the big screen, consider the matinee, which is significantly less expensive than regular price.

7. Jobs and Hobbies

If you have a job that offers overtime, working just one extra hour a day can really add up. If you do not work outside the home, consider which of your hobbies may earn you some extra money. Are you an excellent cook? Try selling your cooking services to busy families for a small fee once a week. Do you make jewelry? Sell your wares at a local boutique or on Ebay or Craigslist. Do you have children? Offer babysitting services in your home one day a week. Do you sew? People are always looking for a reliable seamstress. Which of your hobbies can you turn into a money maker?

8. Debt

Credit card or other revolving debt can take a serious bite out of your budget. If your credit is good, look for offers to transfer your balances to credit cards with lower interest rates. Just be sure to make your payments on time or that low rate will quickly rise to double digits. Refinancing a car or a mortgage could also save a bundle on monthly payments.

8 Ways To Save $50 Per Month Now (Part One)

When your budget is tight, it can seem impossible to save $50. Here are eight ways to help you do it quickly and relatively easily. Give it a try. You might be surprised at how easy it can be.

1. Pay Yourself First

Some people have the $50 but spend it before it gets saved. The best rule of thumb is to pay yourself first. If your household receives regular paychecks, have a specific amount automatically deposited to your savings account. You’ll be surprised how fast it adds up.

2. Do It Yourself

Are you paying people for services you can do yourself like yard maintenance or house cleaning? If these services are taking a significant bite out of your budget, you might try doing them yourself or cutting back on how often they are performed by someone else.

3. Utilities

Review your monthly bills for cable, internet, cell phone and similar providers to see if you are being billed for services you don’t use. You could easily save $50 a month by cutting out internet access on your cell phone or reducing the number of channels you subscribe to on cable, FIOS or Satellite television. Pay for what you use and drop all the extras you can do without. Switching providers could also save you a bunch. That includes electricity.

4. Transportation

Gasoline expenses and auto loan payments can really impact your ability to save more money. If you are paying on an auto loan from another financial institution, see if you can refinance it at Neighborhood for a lower interest rate and lower monthly payment.

The easiest way to save on gasoline is to drive less, but that’s not always practical in the Dallas area. Other options include the DART rail. Many companies in the area purchase monthly rail passes for their employees and some will even purchase them for spouses. Toll Tag expenses can also add up. See how much you spend a month on the Tollway and figure out if it’s more cost efficient to take another route.

The Kroger chain of supermarkets gives fuel discounts to customers who shop with their Kroger card, which has helped some people cut their gasoline expenses in half. Tom Thumb and Wal-Mart offer so many cents off per gallon when you use their card.

 

Note: Stay tuned for part two as we will reveal four additional tips to start saving money now.

Welcome To The Neighborhood CU Blog

Welcome to Neighborhood Credit Union’s blog. Here at Neighborhood Credit Union we’re about “world-class service and neighborhood convenience.” As part of that service we are now bringing you a new blog.

The blog is not about us—it’s about you. This is a place to find financial information specific to the Dallas-Fort Worth metroplex and to use a new method to communicate with the credit union.

With that in mind, we’re going to cover topics we think you’ll find interesting, such as:

• 8 ways to start saving $50 per month now
• How to get from an apartment to a house in one year
• Cheap and fun places to take your kids on a three day weekend
• Help, my credit is in the toilet

Those are just a few samples. We plan to offer new posts frequently. And please let us know what information you’d like to see on the blog.

We don’t want our blog to be one-way communication. In fact, we hope you’ll post a comment or e-mail us at blog@myncu.com.

As you come back to our blog on a regular basis, we’ll continue to post stories, interviews, videos and other relevant information about financial issues that matter to you.

We look forward to our conversations,

Chet Kimmell
CEO