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July 15, 2024

If you’re struggling to pay off multiple debts every month, you may have considered a debt consolidation loan. But how do you know if a consolidation loan would be helpful for your situation?

What is debt consolidation?

Debt consolidation is a form of debt refinancing that allows you to combine multiple debts into one single loan, with one single monthly payment. You can use a debt consolidation loan to pay off unsecured debts such as credit cards, medical expenses, back taxes, legal and gambling debts, and even secured loans such as vehicle loans. While this may sound like a perfect solution to your financial situation, there are a few things to consider before going down the debt consolidation route. The results of a debt consolidation loan should be to decrease your total monthly payments, lower your interest rate, and/or reduce total time to pay off your debts.

Will your total monthly payment decrease?

One way to determine if debt consolidation will be helpful for you is to determine if the total monthly payment will increase or decrease. To do this, add up all the monthly payments you make to your credit cards and other debts you’d like to consolidate. Then use an online debt consolidation calculator to help you determine how much your consolidation loan payment would be. Compare the two payment amounts and see if the consolidation loan payment is less. Make sure the reduced payment amount is now affordable for you. If it’s not, talk to your credit union about other possible solutions.

Will your interest rate decrease?

Pay very close attention to the interest rate you are offered on your debt consolidation loan. It should never be higher than the average interest rate you’re currently paying on your outstanding debts. If you’re offered a higher interest rate on a debt consolidation loan, then you will end up paying more money over the course of the loan than if you had just continued paying down your debts individually. There are companies that will charge up to 35%, but you can easily find a lower interest rate at a credit union.  

Will your time to pay off your debts decrease?

Compare the length of time it would take to pay off your debt consolidation loan to the time it would take you to pay off your debts individually. The length of your loan can affect your monthly payment and interest rate, so it’s important to pay attention to this. Typically, a short-term loan will have a lower interest rate but could have a higher monthly payment due to the short time frame. A longer-term loan may come with a higher interest rate but can often result in a lower monthly payment due to the extended time you have to pay it down. However, if you are struggling to pay down revolving debts like credit card balances, a longer, fixed term may be exactly what you need to finally pay off your debt.

Are you still uncertain what is best for you?

SRP Federal Credit Union offers our member-owners financial counseling from certified financial counselors. Call or you can meet in person and discuss your best options. Click here to learn more and schedule an appointment.

SRP also offers free financial guidance and services online through BALANCE. The site offers webinars, articles, and you can speak to a certified financial counselor on the phone. Learn more at srpfcu.org/balance.

This article is for informational purposes only. All loans subject to approval and rate may vary depending on individual's credit history and other factors. Refinancing restrictions apply. All Credit Union loan programs, rates, terms, and conditions are subject to change at any time without notice. Membership required. SRP is federally insured by NCUA.

Article Credits: CUNA

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July 1, 2024

Few of us can imagine going a day without using our cellphones. For many people, it’s become their preferred method of communicating and doing business. Scammers take advantage of our reliance on cellphones and use them to trick us into giving them our personal information. It’s important to be aware of the kinds of scams they use.

One common scam is phishing. Thieves “phish” by sending emails or text messages claiming to be from authentic organizations, like credit unions, to get you to reveal your private information.

These phishing scams can come in two forms: vishing or smishing attacks. Both aim to trick people into revealing their Social Security numbers, credit union account numbers, personal identification numbers (PINs), passwords, etc. Usually, the messages use scare-tactics to make you panic and act quickly. For example, they will say your account will be terminated unless you act immediately.

The term “vishing” comes from “voice” plus “phishing” This involves the fraudster claiming to be from a company or financial institution, calling you and requiring that you provide or confirm personal information. For example, they might send a recording informing you that your credit card has been used illegally. You are asked to call an 800 number and confirm account details. The consumer's answers are saved and later used to commit identity theft.

The term “smishing” comes from “SMS” plus “phishing” (SMS stands for “short message service,” or text messaging). In smishing, the thief attempts to get your information by sending a text message instead of calling.

A common smishing ploy goes like this: You receive a text message, seemingly from your credit union, stating that your account has been closed. To reactivate it, you're told to click on a link they provide. When you do, you're asked to enter your account number and PIN. The link may also install malware to your phone.

It’s important that you never click on the links or call phone numbers listed in messages from unexpected or unfamiliar sources. The best protection against either vishing or smishing comes down to a simple strategy: Don't respond.

If it's a vishing scam, refuse to answer questions and hang up. If it's a smishing attack, don't do what the text message instructs you to do. If the scammer claims to be from SRP Federal Credit Union, call us immediately to let us know. Then block the number on your phone.

Remember, SRP Federal Credit Union will never ask you for personal information over the phone or by e-mail. We already have this information. If you’re unsure if the message is legitimately from us, simply call us directly at (803) 278-4851 to ask.

This article is for informational purposes only. Membership required. SRP is federally insured by NCUA.

Article Credits: CUNA

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June 14, 2024

In your household, does one person handle all the finances? Who pays all the bills, files the joint taxes, deals with insurance matters, and knows where all the important papers are saved?

What happens if that person becomes ill and can’t take care of these tasks?

At SRP Federal Credit Union, our members come first. We understand the importance of keeping everyone in the family informed of finances. Here are a few steps to help get all the adults in the family up to speed and involved:

Step 1: Have a family budget meeting

Sit down with your spouse, partner, or adult children and talk about spending habits and savings. Go over your combined incomes and total expenses, including the amount spent on groceries, mortgage, insurances, entertainment, kids, etc. Review all your debts together, including credit cards, medical bills, and student loans. This will help you understand where you currently stand financially as a family. If you or your spouse have a written budget in place, make sure both of you agree with and follow it. If there isn’t a budget in place, this is an excellent opportunity to create one together.

Step 2: Review your retirement accounts

This is your financial future, too; it’s important that you know how much you both are contributing to your retirement accounts and what the current balances are. You should know where your accounts are held and how to access them. Make sure everyone knows where important financial documents are kept, physically or digitally.

You should visit your financial planning advisor at SRP so they can go over and explain your current accounts. It’s also a great time to review the beneficiaries on your accounts.

Step 3: Understand you insurance coverages

Know what is covered by all your insurance plans, including life, health, home, and auto. Make sure you know who to contact to file a claim and what your deductibles and co-pays are for each policy.

Tips for Staying Involved:

Once all the adults in your family understand your current finances, it’s important to continue staying involved. Start having monthly budget meetings with your spouse, partner, or adult child to review current spending and planned expenses for next month.

Feel free to meet with one of SRP’s financial counselors. Our counselors have extensive training and are certified to extend financial counseling services. They can assist you by helping you understand financial principles, create financial goals and strategies to achieve them, and so much more. In addition, our counselors work with people of all ages, so they can help every member of your family be financially conscious.

Become a member of SRP today!

Getting involved in managing your family finances enables you to feel more empowered and ready to handle any unexpected life events that come your family’s way.

With SRP Federal Credit Union by your side, you can be sure that we’ll help your family every step of the way. If you have an immediate need we can help you with, don't hesitate to get in touch with us. Become a member today!

This article is for informational purposes only. Membership required. SRP is federally insured by NCUA.

Article Credits: CUNA

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Buying your first house is an exciting time, but it can be a little scary as well. If you are in the market for a home or have already found your dream home, you need to know how to financially navigate to reach your goal. SRP Federal Credit Union in the Augusta area has been making loans for over 60 years, so we need to talk if you're considering buying a home. With competitive rates, flexible terms, and unparalleled service, you'll be in the home of your dreams in no time.

To minimize your anxiety, the following will help you prepare for your first meeting with a loan officer.

Know your credit report

Go to annualcreditreport.com and get your credit report from all three of the reporting agencies. You get one free report a year. Your credit score can make a huge difference in how much you qualify to borrow and the interest rate you’ll pay.

If you find errors on your report, correct them. That won't happen overnight, so the sooner you clean it up, the better you’ll be.

If the facts are accurate but your credit history could be better, expect to spend at least 6 to 12 months cleaning it up by paying down debt.

Here's how much of a difference it makes: On a $150,000 30-year fixed-rate (3.85% annual percentage rate) mortgage, with an excellent score of 760 or higher, your monthly payment would be $703, and you'd pay $103,033 in total interest. But a credit score of 620 would cost $846 a month (5.4% APR) and rack up $154,407 in total interest payments.

Know what other documents will be useful

You'll need several other records when you talk to your lender:

• W-2 forms – from the past two years.
• Paystubs – your two most recent ones.
• Financial account statements – for the past 3 months.
• Lines of credit – anything that wasn’t opened with your credit union.
• Information about vehicles you own – make, model, and resale value
• Auto-loan account information – account numbers and statements
• Credit card account information – numbers and types of cards, balances, and minimum payments
• Other loan account information – include student loans and personal loans
• Gifts – If any money for your down payment was given to you, identify how much and where it came from. Have a document ready showing that it's a gift and not a loan.

Some of this information may be available online. When you call to make an appointment, ask what papers you should bring.

Know what you can afford

The elements that come into play are your income and its stability, how much you have for a down payment, and how much debt you have.

Maybe you have heard the 28 / 36 guideline. This means:

• Your total monthly housing commitment—mortgage principal and interest, property taxes, and homeowners’ insurance—should be no more than 28% of your gross monthly income (income before taxes and other deductions. So, if your gross monthly income is $3,000, the monthly house payment should be $840 or less.
   
• Your total debt—meaning house payments plus student loans, car loans, and credit cards—should be no more than 36% of your gross monthly income. That means if your gross monthly income is $3,000, all monthly debt payments should not go over $1,080.

If you would like to determine your financial stability further, don’t hesitate to speak to one of SRP’s Financial Counselors. Our Certified Financial Counselors are here to help you solve your money issues and take control of your finances.

Our counselors have extensive training and are certified to extend financial counseling services. They can assist you by helping you understand financial principles, create financial goals and strategies to achieve them, and so much more.

Down Payment and Closing Costs

You'll have to come up with a down payment from 5% to 20% on a conventional home loan—or from $7,500 to $30,000 on a $150,000 house.

In addition, be prepared for these expenses:

• Closing costs for title search, appraisal fee, loan origination fee, and more
• Utility hook-up charges
• Prepayment of taxes, interest, and property insurance
• Moving expenses

Your credit union lender can help you calculate what you need and how much you want to keep on hand for the inevitable expenses that arise after you buy a house.

Become a member of SRP today

If you are interested in purchasing your first home, SRP is the perfect place to start. SRP Federal Credit Union is here to help make the dream of homeownership a reality. Don’t hesitate to get in touch with us today.

This article is for informational purposes only. All loans subject to approval and rate may vary depending on individual’s credit history and other factors. Refinancing restrictions apply. All Credit Union loan programs, rates, terms, and conditions are subject to change at any time without notice. Membership required. SRP is federally insured by NCUA. NMLS #612441.

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Gift cards are extremely popular, to give as well as to get. They’re a convenient way to treat someone to a meal at their favorite restaurant, purchase an item of their own choosing at a favorite store, or simply to give them cash to use anywhere the card is accepted. Unfortunately, scammers also love gift cards and have come up with creative ways to convince you to purchase cards for them.

In 2021, consumers reported over $148 million lost to gift card scammers. Many consumers reported being contacted by the IRS, Social Security, and power companies who told them they were liable for penalties. Others say they were contacted by Amazon or Apple to pay to continue service. Some say they were contacted by law enforcement and told to pay a fee to avoid a warrant.

In most cases, the scammer attempts to scare or alarm you, claiming something terrible will happen if you don’t pay them immediately. They want you to act quickly so you don’t have time to think it through or to check into the issue further.

You are told payment must be made using a gift card instead of a check or online payment. You don’t need to mail the card; just simply tell them the serial and personal identification numbers on the back.

Here are a few more scenarios gift card scammers use:

Relative in distress – You receive a call from someone claiming to be a loved one, usually a grandchild. They tell you they have had an accident, or they are stuck in a foreign country unable to get home. They ask you to send money immediately using a gift or a prepaid card.

Clergy members – They claim they are raising money for a worthy cause. They contact you by phone, text, or email, ask you to purchase gift cards, and give them the numbers.

Resale or auction sites – Once you have shown interest in an item, the scammer will offer a discount if you buy it with a gift card. You give them the number and never get the item you purchased.

Be suspicious if a government agency, legitimate company, or loved one asks you to pay them with a gift card. If you’re unsure, contact the agency or company using their official website, not a number provided in the questionable message. If it’s someone who claims to be a relative, contact the immediate family and ask them to verify that a payment is needed.

SRP Security Guidance

If you are a member of SRP Federal Credit Union in the Augusta area, be aware that the company will NEVER solicit you for personal information via email, text, or telephone. If you require assistance, please send a secure message by using the Message Center in SRP Online or SRP Mobile.

In addition to gift card scams, we have a multitude of other online security tips at SRP that will help you defend yourself against harmful phishing scams.

• Make sure you log out of your accounts each time you leave them, especially when using public computers.
• Delete emails from unknown senders with nonsensical information, subject line typos, or suspicious links.
• Only send personal and account information through secure messaging, such as on SRP Online. Never share this information using email.

Visit the SRP Security Guidance page on our website to learn more about how SRP can help you keep your accounts safe.

Visit SRP Today

Like cash, once a gift card is handed over to someone, it’s very hard to get the money back. You are not protected from fraud like you are with major credit cards.

If you are contacted by anyone insisting that a payment must be made with a gift card, it’s very likely a scammer.

At SRP, we exist to serve our members and make the communities we serve better. Protecting our members from gift card scams and credit card fraud is extremely important to us. If you have any questions about gift card scams or have an immediate need we can help you with, don’t hesitate to get in touch with us or visit one of our many locations throughout the CSRA.

https://www.aarp.org/money/scams-fraud/info-2019/gift-card.html

https://consumer.ftc.gov/articles/gift-card-scams

Article provided by CUNA

This article is for informational purposes only. Membership required.

SRP is federally insured by NCUA.

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Most of us assume we'll retire at some point. Some couples plan to retire together, but other times it makes more sense to stagger retirement dates. Having one spouse work longer often can help maximize retirement income or preserve health insurance.

Other times retirement has less to do with finances and more to do with personal satisfaction. And sometimes it's not really a choice. One spouse might leave the work force because of illness, injury, or unexpected job loss, but the other can't always follow immediately.

Money Matters

Retirement timing usually boils down to dollars: Couples plan to retire when they've got enough money to maintain the kind of lifestyle they want for as long as they expect to live. That number will be different for everyone, and how much couples need to save varies widely based on their ages, debts, lifestyles, and where they live.

At SRP Federal Credit Union in the CSRA, we can help you save for retirement with savings accounts that earn you monthly dividends with no minimum balance. We also offer share certificates at competitive dividend rates. This account requires a minimum deposit of $500.00, the funds to remain on deposit for seven days or more, and carries a penalty for early withdrawal.

Concerns About Health Insurance

Health insurance is another reason some couples stagger retirement. Medicare doesn't kick in until an individual reaches age 65. Very few companies offer health insurance to retirees. That means folks retiring before they qualify for Medicare must pay for their own coverage—and it’s not cheap. According to Health Markets, an individual retiring before age 65 can expect to pay upward of $438 per month ($5,256 a year) for single-only coverage. If both spouses retire, that price tag doubles. Even if a couple can afford the premiums, a significant health issue could motivate one spouse to work longer if it meant better coverage or more continuity in care.

At SRP in Augusta, our certified financial counselors can help you solve your money issues and take control of your finances. Our counselors have extensive training and are certified to extend financial counseling services. They can assist you by helping you understand financial principles, create financial goals and strategies to achieve them, and so much more. Through our in-person, individual assistance, they will help you chart a path to achieving financial wellness through financial counseling and education.

Become a Member of SRP Today

Long before leaving the workforce, spouses should discuss how they wish to live in their retirement. This will determine how much money they will need for retirement and how long they must work to get there.

At SRP Federal Credit Union, our financial counselors are here to help you get well on your way to retirement. In addition to offering individual assistance, our counselors also work with groups virtually and in person, teaching financial literacy to all ages free of charge.

Don’t hesitate to get in touch with us today to get started on your retirement planning.

Article provided by CUNA

This article is for informational purposes only. Membership required. SRP is federally insured by NCUA.

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At SRP Federal Credit Union, we understand the importance of financial literacy for teens. We are dedicated to equipping young individuals with the knowledge and skills needed to make wise financial decisions.

We offer programs that cover a range of topics that are essential for building a strong foundation in personal finance.

Elements of Money®

If you’re a teen between 13 to 17 years old, you may have financial questions, and SRP offers the Elements of Money® website to our teen members to help answer those questions.

Learn how to plan for college expenses. Interested in buying a car? Find out how much driving a car can cost. Can you get a credit card? Find out.

There are articles on matters that are important to you, plus podcasts, quizzes, videos, and more. Are you more into social media and contests? Elements of Money® has it all.

SRP Financial Counselors

SRP’s Certified Financial Counselors are here to help you solve your money issues and take control of your finances. They can also teach your teens the fundamentals of budgeting, including setting financial goals, tracking income and expenses, and creating a realistic spending plan.

By understanding the concept of budgeting, they will be able to manage their money effectively and develop a habit of saving.

Our counselors have extensive training and are certified to extend financial counseling services. Through our in-person, individual assistance, they will help you chart a path to achieving financial wellness through financial counseling and education.

Our counselors also work with groups virtually and in person, teaching financial literacy to all ages free of charge.

Choose the Right Credit Union for Your Teen

Choosing the right financial institution for your teen can be difficult with so many options available to you. Your goal should be to find an institution that serves you and not the other way around.

At SRP, we exist to serve our member owners. Since our founding, we have always been dedicated to our members. The members are the heart of our credit union and the sole reason for our existence.

Today, we serve as the financial institution for over 195,000 members; we continue to provide sound savings programs, checking accounts, competitive loan options, and a variety of other convenient services tailored to fit our members' needs. Everything your teen will need financially, we can supply.

Visit SRP for Your Teens

Financial literacy is important for teenagers to learn to prepare themselves for adulthood. At SRP, we have numerous educational opportunities for young people to learn.

We are eager to serve you at one of our many convenient locations. Don’t hesitate to get in touch with us today.

Article Credits: CUNA

This article is for informational purposes only. Membership required. SRP is federally insured by NCUA.

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According to William Van Tassel, Ph.D., manager of driver training programs for the American Automobile Association (AAA), it's essential to consider safety, affordability, and reliability when purchasing a teen's first car.

It is also important to consider a reputable credit union to help you obtain an auto loan. At SRP Federal Credit Union in Augusta, Georgia, we have programs that can help your teen drive off with their first car with peace of mind.

Understand the cost

The combined cost of owning and operating a car is an important lesson to share with teens. The 2019 edition of AAA's Your Driving Costs report puts the average annual cost of driving a sedan 15,000 miles a year at 61.88 cents a mile—$9,282 a year. Put that figure into perspective for teens by converting the vehicle's cost into hours worked. To get an approximate figure, take the number of miles the teen will drive each year, multiply it by 62 cents a mile, and divide the result by the teen's hourly wage.

In addition, there are auto loans to consider. At SRP, we want you to get the best deal possible. Not only do we offer great rates everyday and flexible terms, we provide research materials to help you through the auto-buying process. We also provide advantages that will save your teen money:

• Qualified members select loan terms to fit their needs
• Little or no down payment required on new vehicles
• Simple interest financing
• Convenient payment options by mail, by automatic debit, by payroll deduction, in person, or through SRP Online
• No application or service fee
• Same-day loan approval

Make an agreement

If parents have a financial stake in the teen's car—a down payment, loan payments, insurance, or other costs—then they can consider creating a written agreement. The agreement should cover:

• Who pays for specific types of expenses, such as insurance or repairs.
• How the teen's behavior affects driving privileges.
• What the consequences will be if the teen fails to live up to the agreement.

If you would like more ideas on how to create a written agreement, visit one of SRP’s financial counselors. Our counselors have extensive training and are certified to extend financial counseling services. They can assist you by helping you understand financial principles, create financial goals and strategies to achieve them, and so much more. Through our in-person, individual assistance, they will help you chart a path to achieving financial wellness through financial counseling and education.

Avoid the rush

Many credit union lenders have seen teens rush into "deals" only to find they paid too much, agreed to a loan at exorbitant interest rates, lacked a clear title, or bought a car with serious defects. Parents and teens alike can benefit from taking time to share stories, do their research, and consider what owning a car will cost over time. It saves a lot of headaches in the long run.

At SRP in Augusta, we make applying for your auto loans super easy. We offer anytime, 24/7 Lending. Call us at 803-278-4851 to apply for a loan over the phone! You can also check your online application status at any time!  If you have an immediate need we can help you with, don't hesitate to get in touch with us.

Article Credits: CUNA

This article is for informational purposes only. All loans subject to approval and rate may vary depending on individual's credit history and other factors. Refinancing restrictions apply. All Credit Union loan programs, rates, terms, and conditions are subject to change at any time without notice. Membership required. SRP is federally insured by NCUA.