| by First Nebraska Author , General | In Newsletters
Managing Debt as Interest Rates Rise
By GreenPath Financial Wellness
Debt can be a challenge to manage, even in the best of times. Now, with the economy in the news nearly every day, how do you effectively manage your debt as the cost of borrowing for things like homes, cars, and credit cards rises?
Here are five general questions to ask in order to minimize the hit to your wallet in the face of rising interest rates.
Knowing this information helps you understand how rising interest rates will apply to you. Some research shows that only 33 percent of Americans checked their credit score in the past year. Regularly monitoring your credit can alert you to errors, protect you from fraud, and provide you valuable information to strengthen your credit score –which can potentially minimize the rising cost of borrowing.
What’s your debt portfolio?
Another helpful course of action is to make a list of your current debt such as credit cards, car loans, student loans and other debt. Although it’s a simple step, this can make a big difference in visualizing the big picture of your financial situation. Part of seeing the impact of rising interest rates is understanding exactly where you stand.
What are your current interest rates?
An effective next step is to regularly review your balances, terms, and interest rates on a monthly basis. By staying on top of this vital information, you can make adjustments and informed decisions about reducing any existing balances more aggressively. As a debt paydown strategy, it often makes sense to start with the highest interest credit cards or loans.
What is a realistic payment plan?
As you are able, consider paying credit card balances in full by the due date each month. You can avoid interest charges on what you purchase, which means rising interest rates may not have much of an effect on your household finances.
What is your overall financial plan?
To stay financially healthy and minimize the impact of rising interest rates, it is key to earn more than you spend, so that you have enough money to build savings for the future. Keeping an eye on your spending is an important step in the effort to create a budget without the cost of high-interest debt. Once you develop a household budget and track income and spending, it becomes clear where the money is going and where you need to adjust your spending to achieve your financial goals. By setting financial goals, preparing a financial plan, sticking to a budget, and setting up an emergency fund for the unexpected, you ensure that your financial well-being does not suffer as interest rates rise.
Trusted Resource
There may be times when you need additional help to manage everything going on financially – especially as the cost of borrowing becomes more expensive.
Our partner, the trusted national nonprofit GreenPath Financial Wellness, provides guidance to help you understand your credit history, as well as debt management advice. Contact a caring GreenPath counselor to address your financial concerns, and develop a plan for debt payoff, building savings, and creating a financially solid future.
This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.
Two new ITMs are now available at the Bedford drive-thru for your convenience. You can do MORE at the machine, and if you need teller assistance, just touch the screen, and they’ll be there for you.
The ITM is like an ATM, but with even more services, such as:
Choose $1, $5, $20 & $50 bills.
Choose specific cash withdrawal amounts, such as $23, $57, etc.
Transfer money between your Savings and Checking accounts.
Check your Savings and Checking account balances.
Deposit up to 50 checks or cash, all at once.
Make a Loan or Credit Card payment (during business hours; with the help of a teller on the screen)
If you need a teller’s assistance, you can touch the screen and speak with an FNCU teller, which are located at our Bedford branch.
2024 NCUL Professional Distinguished Service Award Ann Loftis, President and CEO of First Nebraska Credit Union, received the 2024 Professional Distinguished Service Award from the Nebraska Credit Union League in June.
Ann has 45 years of experience in banking & finance, having worked in every facet of financial services operations. She started at the credit union as a loan officer in 1992, implementing mortgage lending and risk-based lending programs and overseeing loan operations. Ann has also served as the Mortgage Loan Manager, VP of Lending, and Executive Vice President prior to being promoted to her current position as President and CEO.
Ann has a passion for helping people, pursuing excellence in work, and in all that she does. She has continued educational and professional development for herself and others over the years. Ann has attended multiple advocacy meetings and events, she is heavily involved in collaborating with other Credit Unions, the Nebraska Credit Union League, and Americas Credit Unions, and takes every opportunity to promote the Credit Union Movement and to expand and share her knowledge.
Under Ann’s leadership and guidance, the credit union has grown exponentially. Her ability to inspire and lead has cultivated a culture of excellence and integrity at the Credit Union. She has always been at the forefront of innovation, ensuring that the Credit Union stays ahead in an ever-changing financial landscape. Her initiatives have not only modernized credit union services but has also made them more accessible to First Nebraska members.
Ann has truly demonstrated the credit union philosophy of “People Helping People” over the years. She approaches each credit union member with a philosophy of seeking first to understand the members’ story before identifying how best to meet their needs. Often, Ann would explore all avenues to, in her words, “find a way to say YES to the member.” As CEO, Ann employs a leadership style that always puts the membership first with the focus of serving the underserved.
We are proud to have Ann as our President and CEO, and enjoy working with her! Ann is an inspiration to anyone who wants to help others.
About the League: Celebrating its 90th year, the Nebraska Credit Union League (NCUL) was organized in 1934 to serve as an advocate organization for the state’s credit unions and their 575,000 members. For more information about the League LIKE us on Facebook or visit www.nebrcul.org.
As a Credit Union, we are always looking for ways to assist our community while reinforcing the credit union philosophy of “People Helping People.”
Elkhorn Parade
What a great turnout at the Elkhorn Days Parade in June! The theme was Peace, Love, Rock & Roll, and our tagline was “Get PEACE of mind at First Nebraska.” Parade-goers received peace keytags.
Thank you to Country AUTO for letting us use their truck. If you’re looking for a different vehicle, stop by Country Auto in Blair.
Pictured: Cami L, Dale K, Michele B, Rachel T.
Understanding Credit Scores:
Tips for Improving and Maintaining a Healthy Credit Score
Your credit score is a 3-digit number that can impact your financial life in significant ways. From getting approved for loans to determining the interest rates you’ll pay, understanding your credit score is essential. The good news is, if you follow a few simple practices, you can rebuild your credit, even if you have had bad credit in the past. Here are some steps you can to take to help you improve and maintain a healthy credit score: -Check your credit report. –Pay your bills on time, every time. –Keep your credit card balances low relative to your credit limit. –Avoid opening too many new accounts within a short period.
Check your credit report. Regularly check your credit report from each of the three major credit bureaus – Equifax, Experian, and TransUnion. You’re entitled to one free report from each bureau each week, which you can obtain at AnnualCreditReport.com. Reviewing your report can help you spot errors or inaccuracies that could be dragging down your score. Pay your bills on time, every time. Payment history is one of the most significant factors influencing your credit score. Set up reminders or automatic payments to ensure you never miss a due date. Keep your credit card balances low relative to your credit limit. Ideally, aim to utilize less than 30% of your available credit. High credit utilization can signal financial strain to lenders, potentially lowering your score. Avoid opening too many new accounts within a short period. Each time you apply for credit, it triggers a hard inquiry, which can temporarily ding your score. Be selective about the accounts you open and space out your applications. Building and maintaining a healthy credit score takes time, and it requires you to be patient and consistent. By prioritizing responsible financial habits and keeping a close eye on your credit file, you can gradually improve your score and strengthen your financial standing.
Remember, our Premier, Secure and Select Checking accounts provide you with complimentary access to continuous credit monitoring, including alerts, to help you keep track of your credit file – but don’t forget to register to activate this service! Following activation, if you receive an alert for activity that doesn’t look familiar, one phone call can put you in touch with a professional Identity Theft Recovery Advocate who can help you dispute fraudulent credit activity and more to keep your credit and your identity YOURS!
For Members who have the Classic Checking account, which does not include identity theft solutions or credit monitoring, contact us to see if you qualify for a checking account that includes it. And of course, if you see something out of place or suspicious on your credit report, or find or suspect identity theft for any reason, contact us so we can help.
First Nebraska is a drop-off site for the Salvation Army/KETV “7 Can Help Kids” backpack drive in July. FNCU employees will be donating to the drive, and we invite you to donate, too!
Bring donations to any FNCU Branch between July 1-31.
If you would rather give a cash donation, ask FNCU staff to take it out of your Checking or Savings Account.
We’re excited to welcome a new Senior Branch Assistant to our Elkhorn Branch. Trinh joined FNCU in May.
What our members are saying
I have used FNCU for years. They helped with our loans and savings! Great people to work with! Timely responses. – BrendaB.
Your Quarters Add Up!
We recently emptied the candy machines in our branches and gave $110.18 to the Children’s Miracle Network, which will go directly to Children’s of Omaha. If you want a little snack when you come into the branch, bring a quarter and help yourself! Every little bit helps! ALL proceeds go to the Children’s Miracle Network!
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