Avoid credit card debt during the holidays for a smoother new year.

Make a List

You don’t have to make a naughty or nice list, but you should make a list of which family members and friends you’re getting gifts for and how much you plan to spend on each. It’s important that you have a realistic budget when you create this list so you don’t overspend. Sticking to a list and a budget is the best path to avoiding credit card debt.

Start Saving Before the Holidays

Ideally, you should start saving for the holiday season in January if possible. That gives you almost an entire year to save up. If you save $50 a year from January to December, you’ll have $600 saved for holiday expenses! Even if you haven’t been saving over the course of the last year, it’s not too late. Cut back on expenses like takeout, entertainment, or shopping for yourself. Use more coupons when you go grocery shopping. Every little bit adds up!

Start a Side Hustle

Starting a side hustle is a great way to avoid credit card debt during the holidays. The extra cash from your side hustle means you won’t have to resort to using credit cards if you didn’t start saving early enough this year. We have a list of side hustle ideas that are safe and profitable during COVID-19!

Pay Your Credit Card Bill in Full

Normally, we advise consumers to avoid using credit cards during the holiday season and use cash only. This works great if you can shop in person at a brick-and-mortar store. Unfortunately, because of COVID-19, it is not safe to be at a crowded shopping mall or department store. That means most of us will probably be doing our holiday shopping online this year using credit cards. However, treat your credit card like cash. Give yourself a set amount that you can spend, and when you’ve spent that amount, you’re done shopping. When you get your credit card bill, pay it in full so you can avoid accumulating credit card debt.

Skip Traveling This Year

Traveling is expensive, and this year, it’s not advisable anyway. Rather than spend money on plane tickets or gas for a road trip to see family, save that money for later. Put the money you would have spent on holiday travel into your emergency fund instead. If 2020 has taught us anything, it’s that having an emergency fund is the best way to avoid credit card debt in times of crisis!

If you struggle with credit card debt, ACCC can help. Sign up for a free credit counseling session today.  

1. Decide how much you are comfortable spending.

If you aren’t comfortable spending close to your entire year’s salary on your wedding, don’t! It’s important to be realistic and remember your other financial goals. Just because you’re planning a wedding, doesn’t mean all your other money management skills should go out the window. You still need to be saving for retirement, putting money away in an emergency fund, and saving for other goals you might have, such as purchasing a home. There are plenty of couples who have beautiful weddings for $10,000 or less! Once you come up with a total dollar amount for your wedding, come up with a savings plan to get there so you don’t have to rely on credit cards. Figure out how much money you and your future spouse will need to save every month until the wedding. It takes discipline, but it’s worth it!

2. Determine what aspects of the wedding are most important to you.

Maybe the venue is important to you, and you just have to have your wedding at a certain location. Allocate more money in your wedding budget to the venue. If there are things that aren’t all that important to you, then don’t go overboard with the spending. Maybe you and your friends and family don’t drink that much. Don’t spend tons of money on an open bar. It all depends on what your priorities are for the big day.

3. See if you can DIY anything to save money.

Wedding decor can be expensive. (Really, anything with the word “wedding” in front of it is going to be expensive.) If you can DIY it with some dollar store mason jars, go for it! Making the decor yourself with inexpensive craft items can save you hundreds of dollars. Other things you may want to consider DIY-ing include the cake (or other dessert if you opt to go non-traditional), flower arrangements, and hair/makeup if possible. Of course, before you buy or DIY anything, do your research and see what the costs are for each option. Sometimes DIY isn’t cheaper, and sometimes, it’s just not worth it if doing something yourself is going to be too stressful.

4. Don’t forget about secondhand items.

Whether it’s a dress that’s been worn before or decor that’s been used in another wedding, secondhand items can be a budget saver! If your mom still has her wedding dress, see if you can use her dress instead of buying a new one. Not only will that save you thousands of dollars, but it could be sentimental for both of you. Additionally, if you have a friend or cousin who got married recently, ask them if you can borrow or buy their decor off of them secondhand. There are also websites specifically for secondhand wedding items. A quick Google search will give you tons of options!

Final Thoughts

Keep in mind your wedding is just one day. It’s an important day of course, but it’s not worth accumulating thousands of dollars in debt. Talk with your future spouse about what your financial goals are for after the wedding too. As long as you’re on the same page and both stick to the agreed upon budget, your wedding shouldn’t be too financially stressful!

Follow ACCC’s tips on how to manage student loans.

How to Manage Student Loans

1. Understand your loans and loan agreements – It is important to understand the types of student loans you have, your student loan repayment options, and the programs offered to federal and private loan borrowers. Read your promissory note, which is a legal document.
2. Make payments on time – Making payments on time is the best way to avoid default and eventually pay off your loan. It’s also an excellent way to build credit. Building good credit helps when it comes time to make a big purchase, such as buying a house. One piece of credit counseling advice we can’t emphasize enough is to maintain good credit.
3. Create a budget – create a post-college budget that includes all expenses, from credit card payments to utilities and groceries. By sticking to a budget, you should have enough savings to pay your loans on time.
4. Keep good records and track your loans – Track all payment schedules. keep a paper record of every monthly payment. Utilize online tools and platforms to manage your loans and stay up to date.
5. Address any financial challenges quickly – If you are having trouble making your monthly payment, don’t wait to address the problem. Research your options and talk to your lender. You may be able to switch repayment plans, consider an income-driven repayment plan, change a payment due date, or secure a deferment or forbearance.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Minimize your risk of identity theft – and subsequent debt – with ACCC’s tips.

How to Minimize Your Risk of Identity Theft

Identity theft occurs when someone uses your personal information such as your name, Social Security number, credit card numbers, or other identifying information without your permission. Identity thieves use this personal information to commit fraud and other crimes in your name. Thus, the best way to help prevent becoming a victim of identity theft is to safeguard your personal information.

Identity thieves look for other people’s personal information everywhere they can. There are a number of ways that they may attempt to access your personal information, so always stay on top of your game to protect yourself! To minimize your risk of identity theft, take these preventative steps:

1. Protect Your Social Security Number

Change your Social Security number on your driver’s license to a State Identification Number. Also remove your Social Security card from your purse or wallet. Do not write or print your social security number on your checks. If you have to provide your number for anything, offer only the last 4 digits and request that your number be taken off any loan applications.

2. Protect Your Credit Cards

Identity theft can easily lead to credit card debt. Carry your credit cards separately from your wallet and void any incorrect receipts. Report any questionable charges in writing and send by registered mail to the credit card companies. Keep a secured copy of all account numbers and sign any new cards you receive. Never leave your credit cards unattended and protect all accounts with a password. Destroy account numbers on discarded cards and cut through account numbers.

3. Protect your ATM/Debit Card

Review all monthly statements for accuracy and report any discrepancies you may find. Check account activity regularly and do not carry your pin number on your person. Be alert for “peering eyes” when making a purchase and do not leave ATM receipts behind.

4. Protect Your Financial Documents

Shred all personal information in a shredder whenever possible and do not carry extra cards or identifying documents.

Finally, taking preventative steps to guard against identity theft is very important and will pay off in the end. If you do find yourself a victim of identity theft, make sure to move forward to correct the situation.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Here’s our credit counseling advice to earn extra money around the house.

Earn Extra Money Around the House

1. Rent out a room. If you have an extra room in your house, consider renting it out to gain additional income. Bedrooms with their own bathrooms and lodging with separate entrances, kitchen, and living spaces can command a higher price. Research how much money similar properties rent for in your area. Take nice photos of your space so you can find ideal tenants. Use sites like Craigslist and Airbnb to create listings.
2. Refinance your mortgage. Although it might seem extreme, refinancing your mortgage can be an excellent way to save money! You may be able to save by lowering your interest rate, reducing the term or length of your loan, or switching your mortgage type. Use the money you saved by lowering your mortgage payment to pay down credit card debt.
3. Sell stuff. Do you have more clothes than you know what to do with? Maybe you have old textbooks laying around. Well, sell them! If you’re never going to wear that vintage jacket again, you might want to consider bringing it to a consignment store for some quick cash.
4. Use storage space. You may not be the only one with lots of stuff. Rent out your closets, attics, and storage space for other people to use. There are tons of websites that help owners and prospective renters find each other. Be sure to establish guidelines in your contract, such as what renters can store in the space and whether or not you will be legally liable for their things.

Make sure to do your research! Touch base with your licensed agent to ensure your home is properly insured and that you’re complying with state and local laws.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Our debt counselors can help you come up with a plan.

1. Start by physically gathering current statements for all of your debts including credit card debt, student loans, mortgage, car loans / leases, etc.  Also, include any other bills you pay monthly such as utilities (electricity, gas, cable, and internet). Also, don’t forget to include a rent payment (if you are paying that).  Organizing all of your debts and bills into one space can be especially difficult with tools such as electronic banking and automatic bill pay because they are easy to forget about. Review your check book and online  statements to help you find specific bills and payments. Don’t forget to include bills that are paid on a weekly, quarterly, or annual basis.
2. Once you have created a list and gathered all of your statements, it’s time to organize! Begin by organizing your statements by due date. Mark each of these due dates on a calendar. You  download ACCC’s bill payment calendar shown below for free. Print this spreadsheet and hang it in a safe place or simply reference it on your computer. Be sure to mark each month. Creating a calendar is one solution to how to manage debt.

Now that you have created a calendar of all of your due dates, how should you store your bills? Keep reading for more tips.

Organize your bills by category; for example, credit card debts, education debts, or utilities. Punch holes in your statements and put them in a binder, divided by category. Or, you could organize your bills alphabetically if this makes more sense for you.  By storing all of your bills in one place, you will have an easy reference if you ever have a discrepancy.

Though organization alone will not pay off debt, it’s a great tool to help you learn how to get out of debt. Check back for more tips on how to manage debt, how to get out of debt, how to track debts, how to prioritize debts, and more.

If you’re struggling to pay off debt, schedule a free credit counseling session with ACCC today.

Here’s how to write a check.

How to Write a Check

Because so many people have online and automatic bill pay, the practice of writing a check is becoming less common. However, writing a check is still a necessary and useful tool that everyone should master.

1. Your Personal Information. The top left corner of your personal checks shows your personal information. It’s provided to inform the recipient who’s payment they are receiving. You can customize this to include your name and phone number if you intend to move frequently.
2. Date. When you write a check, enter the current date. Or, if you are post-dating the check (writing a check using a date in the future), users will write in the date that the recipient can cash the check. Post-dating a check can get tricky, especially if you are post-dating in hopes that enough money will be in your account to avoid the check from bouncing. If this is the case, you may want to seek credit counseling to help stabilize your finances.
3. Recipient Line. Then, next to “pay to the order of”, you fill in the name of the person, business, or entity that you are filling the check out to. Only the recipient can cash the check. If there is extra space after you write the name, draw a line so no one can write an additional name.
4. Dollar Amount. In the box to the right of the recipient line, write the amount of the check, in numbers. (ie: $20.50)
5. Written Amount. Next, write out in words the amount of the check. Be sure to include the number of cents on this line, represented in fraction form. (ie: Twenty dollars and 50/00). Also be aware that if a check is lost or stolen and the information is left blank, then anyone who finds it can enter whatever amount they want. This can be a dangerous scenario, so make sure to always fill out your checks completely! Write across the whole line so there is no extra space for someone to manipulate it.
6. Memo. When you write a check, the memo line is your opportunity to leave a note as to what the payment is for. This is helpful for the recipient and yourself if you need to remember why you wrote the check.
7. Signature Line. For a check to be valid, it needs a signature. Again, if you leave the check blank, be aware that someone could forge your name and attempt to cash it. If all portions of the check are filled out, you avoid this problem.
8. ABA Routing/Transit Number. Along the bottom of each check is a 9 digit code from the American Banking Association to locate the bank where you hold your checking account.
9. Your Account Number. Then there’s your account number that coincides to your checking account with the bank. To clarify, sometimes the order can be switched. In that case, know the longer number is your account number.
10. Check Number. Each check has it’s own identification number that appears in two spots, and it tracks the number of checks you write to avoid any duplication or missing checks going unnoticed.
11. Fractional Routing Number. This number that appears on some checks is the fractional form of the routing number. Here’s the breakdown:
    1. XX = the city/state bank located.
    2. ZZZZ = the first 4 digits of routing number at the bottom.
    3. YYYY = the next four digits of routing number.
    4. The last number of the routing number is the control number.
12. Your Bank’s Information. The last piece of information on a check is your bank’s name and address.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Think carefully about if you can afford a new pet or not.

Can You Afford a New Pet?

Before getting caught up in the whirlwind of bringing a new pet home, remember that getting a new pet is serious work. If you’re working on debt management, adding another cost to your plate may not be the best idea. Plus, buying a pet is a decision that that impacts the life of an animal; something that shouldn’t be done on a whim or without preparation. So, can you afford a new pet?

1. Initial Cost: While it can be tempting to visit a breeder to get your newest member of the family, pets can be costly. For instance, buying a puppy from a breeder could cost anywhere from a few hundred to over a thousand dollars. If you are considering visiting the pet store or a puppy mill, remember that the conditions are not always pristine. Adoption is a cheaper, more socially conscious, alternative. It’s no-to-low cost, and you could be helping an animal with no home and a sad ulterior fate.
2. Food: Animals get hungry! And the food, treats, and accessories for any pet can add up. Even with a fish, you have to buy the tank, rocks, filter, food, and equipment to clean it’s water.
3. Medical Care: Animals need medical care, too. Regular visits to the vet, keeping animals up to date on shots, and spaying/neutering are all costs to consider before bringing Fido home. And don’t forget the unforeseen expenses associated with having a pet; animals can be mischievous. Plus, you never know when they’ll need an emergency trip to the doctor. An additional bill at the end of the month could throw a wrench in your plan to eliminate debt.
4. Time: If you’re seeking a pet like a bird, fish, or hamster, you may not have to invest too much time into their care. But animals like dogs, cats, horses, etc. require lots of attention. Can you afford to invest the time and energy to care for them? Between walks, training, exercise, and making your home pet-friendly, you will be spending tons of time on your new little guy or gal.
5. Traveling: Animals need daily care. There’s no picking up and leaving when you have an animal at home. Do you often travel or leave town for business or pleasure? Can you afford a house sitter or dog-walker? Or, the costs of boarding your pet?

Getting a pet is so exciting. Just make sure to really consider how it will impact your financial situation before hastily making a decision. If you and your family can take on the additional costs of pet ownership, that’s great! But, if reading this article made you second guess whether getting a pet is feasible,  you may want to consider if that’s the best choice both for you and the animal.

If you’re struggling with debt, ACCC can help. Sign up for a free credit counseling session today. 

Avoid credit card debt with these tips.

Money Saving Tips for Stay-At-Home Moms

1. Cook at home with inexpensive ingredients. 

   Eating out is expensive enough for one person, let alone a whole family. Cooking at home is a much cheaper option, especially if you have teenage kids who are eating the same amount (or more!) than adults. You can save a lot of money by making cheap meals, like pasta, that can feed the whole family without breaking the bank. This will help you stay on budget.

2. Work from home or part-time.

   If your kids are old enough to be left alone for a few hours, consider getting a part-time job to bring in a little more income for your household. If they can’t be left alone, try finding a job where you can work from home. I’m not a mom, but I worked as a social media content creator from home as a side-hustle. I liked being able to work when I wanted to from the comfort of my own living room! I didn’t make a bunch of money, but it was still extra income that I was able to save.

3. Find free activities to do with your kids.

   Entertaining kids doesn’t have to be expensive. Museums are often free for kids under a certain age, and your neighborhood park is always free too. Additionally, there are many free library resources for kids, such as story time or sing-along programs or special events. Many libraries offer programming for kids of all ages as well as a children’s area for toys and reading.

4. Keep kids’ birthday parties simple.

   Birthdays are a big deal for kids, but you can make your kid’s birthday fun and special even if you’re on a tight budget. Instead of buying a cake from a bakery, make one yourself. The birthday cakes my mom made me as a kid always tasted better than store bought cakes anyway. Also, instead of inviting the whole class to a big birthday party, limit it to just a few close friends. Having a few friends over at the house to watch movies, do nails, eat cake and sleep over were my favorite birthdays as a kid!

What can you do with the money you saved from these money saving tips? The possibilities are endless! You could start saving for your kids’ college expenses or perhaps start paying off credit card debt.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

If your credit report seems like a mystery to you, ACCC has answers.

What is a Credit Report?

A credit report is a history of everything you’re doing with your credit now and what you’ve done with it in the past. Organized into a list of information from lenders, your report includes records of payment history, payment totals and payment frequency. Your lenders send both positive and negative information about your accounts to the three credit reporting agencies (Equifax, Experian, and TransUnion). Then, the agencies compile the data into a report.

The information that your creditors decide to share can impact your credit report. For example, if you are late on one payment, but generally pay on time, it’s possible that your creditor will not share the late payment. On the other hand, if you have accumulated a lot of consumer debt, any related negative information will be included in your report and will affect your credit score.

In short, your relationship with credit reflects your reliability. Your ability to get credit, loans, housing, and more are all impacted by your credit report and score.

Who Can Check It?

Now that we’re clear on what a credit report is, let’s see who can access it. Essentially, any possible lender or entity who is financially assisting you can access your report. This includes but is not limited to:

• Creditors
• Mortgage lenders
• Landlords
• Utility companies
• Student loan lenders
• Insurance companies
• Employers
• Government agencies
• Collection agencies
• Judgment creditors
• Entities that have a court order

If you want to look at your report too, it’s pretty easy to access. It’s important for consumers to check their report and understand any and all information presented. This way, you can quickly catch any inaccurate or potentially fraudulent activity.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.