Family and Consumer News: A to do list for fine tuning your finances
By: Adrianne Vidrine
Any time is a good time to prioritize your financial goals and begin taking steps to achieve them. Here are suggestions to consider for your financial to-do list provided by the FDIC Consumer News.
If you’re having problems making loan payments or meeting other financial obligations, get help as soon as possible. Recent news reports have focused on people at risk of losing their homes because they had adjustable-rate mortgages that were resetting at higher, unaffordable monthly payments. But even in the best of economic times, people can have trouble making ends meet, especially after a job loss, divorce or separation, or a death or illness in the family. The most important thing you can do is address the problem.
Many times, people don’t see the warning signs until it’s too late and they face the prospect of spending several years getting back on track. If you answer “yes” to one or more of the following situations, you could be in danger with debt:
•You will be unable to make your mortgage payment.
•Your credit cards are close to or over the limit.
•You can only pay the minimum monthly amount due on your credit card.
•You are borrowing money to pay some of your monthly bills.
•You have started working overtime or a second job just to cover food, housing and other basic living expenses.
When it comes to a problem paying an existing loan, whether it is a mortgage, a credit card, an auto loan or any other substantial debt, contact your lender as soon as possible, preferably before you miss any payments.
Find ways to spend less and save more. Consumers get a better handle on how much they’re spending, and where, by keeping a log of their expenditures. It’s important to write down every purchase, even sodas from the vending machine for one month. You may be surprised to learn how these expenses, even the small ones, can add up.
Other ways you can cut back your spending include: pay as much as you can on your credit card each month. Pay in full, if possible, to avoid or limit interest charges. Pay your loans and other bills on time to avoid late fees and damage to your credit record. Order a free copy of your credit report and correct inaccuracies that can keep you from getting the best interest rate on a loan or credit card. Whenever possible, use your own bank’s automated teller machines to avoid fees charged for using another institution’s ATM. Also comparison shop for financial services the way you would for any purchase.
Simplify your financial life. Examples include signing up for direct deposit of your pay and benefit checks and other regular income, having a certain sum automatically transferred each month into a savings or investment account, and exploring banking and bill paying by phone or online. These services can help you save time, reduce stress, lower the fees you pay, and maybe earn a little extra on your savings and investments.
Also consider arranging and updating your financial files to help you and your family locate important documents (such as wills and insurance policies) in an emergency.
Review your insurance coverage. About once a year, make sure you have enough insurance without over-insuring or paying too much. This periodic checkup is especially important if there’s been a big change in your life, such as a marriage, a new child, or a change in employment, that could result in a need for more health, life or disability insurance (to replace lost income during a serious illness).
For further information, you may contact Adrianne Vidrine at the LSU AgCenter at (337) 788-8821 or you can also visit our website at http://www.lsuagcenter.com.
Source: FDIC Consumer News