Debt & Credit Resources - 91şÚÁĎÍř /blog/category/debt-credit/ Official website of 91şÚÁĎÍř Mon, 02 Mar 2026 20:06:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 How can I avoid falling into debt? /blog/how-can-i-avoid-falling-into-debt/ Tue, 03 Mar 2026 06:00:12 +0000 /?p=5817 Discover practical tips to stay on track financially and avoid accumulating high-interest debt. Do one thing: If you...

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Discover practical tips to stay on track financially and avoid accumulating high-interest debt.

Do one thing: If you don’t have one already, set up a separate checking or savings account and designate it as your emergency fund. Move money into the account every time you get paid.

Avoid overspending with these strategies

Sometimes, when the going gets tough, even the toughest among us go shopping. Why is that? Buying something we want can trigger the feel-good endorphins in our brains that give us a boost, at least in the short term. But treat yourself one too many times, and you can end up living above your means, which can potentially lead to living with high-interest credit card debt.

Carrying Debt Month to Month?

Unfortunately, research shows that about half of Americans with credit cards carry debt from month to month, likely because they can’t afford to pay off their accounts in full at the end of each billing cycle. If this sounds like you, or someone you know, take heart.

There is Hope. The good news is, there are strategies you can use to avoid the pitfalls of such debt, specifically high-interest debt from credit cards, so you can ultimately save some money (by avoiding interest charges) and steer clear of the mental stress that can come from living under a mountain of bills.

Tip: Many of these same strategies can also help you dig yourself out of debt if you are in that situation.

Consider these practical tips from financial experts to help you avoid falling into high-interest debt.

1.ĚýOnly use cash

One way to keep from overspending is by using cash instead of debit or credit cards to make purchases, says Samantha Mockford, CFP, an associate wealth advisor with Citrine Capital in San Francisco. While this may not work for all of your monthly bills, you can certainly use this method for weekly incidentals and even groceries.

Here’s how to do it:

  • After you get paid, pull a certain amount of cash from your checking account to cover your expenses.
  • Only use cash for all your expenses.
  • When the money’s gone, it’s time to stop spending.

2.ĚýCreate a spending plan (or budget)

One key to achieving your financial goals is to know where your money is going every month. That’s why Mockford also works with clients to develop spending plans based on their goals and values. Those spending plans, or budgets, should include the following:

  • Your monthly bills
  • Regular expenses
  • Long-term savings
  • Irregular-but-expected expenses (such as replacing electronics, car repairs, and travel).

“If you choose to take on (more) debt,” she says, “confirm through your budget that you can make space for this new monthly bill.”

3.ĚýBuild an emergency fund

Eric Roberge, CFP and founder of Beyond Your Hammock, stresses to clients the importance of having an emergency fund – or rainy day account – to fall back on when life happens. “Keep an emergency fund of at least three to six months’ worth of expenses and keep this cash somewhere other than where you have your main checking and savings accounts.”

Separate Account

The reason for a separate account is this: “Out of sight, out of mind,” Roberge says. “Keeping your money for emergencies in a different account that you’re not constantly looking at anytime you log into your main online banking portal can help you keep that fund intact and available when you need it for an unpredictable emergency that you might otherwise have to take on some debt to handle.”

4.ĚýLearn to live below your means

I have been sharing this advice for years as a way to help people get out of debt and stay out, for good. Live below your means is Money Rule No. 10 in my book “Money Rules: The Simple Path To Lifelong Security.” If you’re not sure exactly what that looks like, here are some examples of living below your means as a way to save and invest more for your financial future:

  • Buy a smaller home or rent a smaller apartment than you can afford.
  • Purchase used vehicles instead of new ones.
  • Never pay full price if you can help it: Shop sales on everything from meat to sofas and shoes.
  • Save your raises by moving the amount of a pay increase into your 401(k) or IRA.
  • Get a library card so you can check out books and stream movies for free (or really cheap).

5.ĚýIn a word: Unsubscribe

One of the best ways to avoid temptation is to kick it out of your email inbox forever. We know it can be hard to resist those clever subject lines sprinkled with cute emojis waiting for you every morning. So if you signed up for email alerts from some of your favorite retailers, hotels, or wine-of-the-month clubs, it’s officially time to:

  • Scroll down to the tiny type near the bottom of those tempting emails.
  • Click the unsubscribe link.
  • Don’t resubscribe later.

After all, you can’t buy what you can’t see and don’t know about.  You can thank us later.

With reporting by Casandra Andrews

Track your debt and credit with Credit Score

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]]> Credit Score is coming to online banking /blog/credit-score/ Mon, 09 Feb 2026 15:53:38 +0000 /?p=5915 Financial wellness isn’t a destination; it’s a series of small, consistent habits. One of the most critical habits...

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]]> Financial wellness isn’t a destination; it’s a series of small, consistent habits. One of the most critical habits is keeping a close eye on your credit health. But we know that logging into separate bureaus or paying for third-party services can be a hassle. That’s why we are thrilled to announce a major upgrade to your digital experience. Starting soon, you will have direct access to Credit Score right inside your online and mobile banking platform. It’s free, easy, and designed to put you in the driver’s seat of your financial future.

What is a credit score and why does it matter?

Think of your credit score as a vital sign for your financial life. It is a three-digit number that lenders use to evaluate how likely you are to repay debt. A higher score often unlocks lower interest rates on loans, better terms on credit cards, and can even influence whether a landlord rents you an apartment.

Knowing your score empowers you. It helps you understand where you stand before you apply for a big purchase, like a car or a home. Instead of guessing, you can proceed with confidence.

Features designed for your financial health

We aren’t simply showing you a number and walking away. This new integration is a comprehensive toolset designed to help you understand the “why” behind your score. Here is what you can expect when the feature goes live:

Daily access to your credit score

Your financial situation changes, and your score should reflect that. You will be able to check your current score every single day without any penalty. Checking your own score through our platform is a “soft pull,” meaning it will never negatively impact your rating.

Real-time credit monitoring alerts

Identity theft and fraud are real concerns. With our new monitoring alerts, you will be notified if there is a significant change to your credit report. Whether a new account is opened in your name or an inquiry is made, you will know immediately so you can take action if something looks suspicious.

Personalized credit reports

A number is helpful, but context is better. You will get access to a full credit report that breaks down the factors influencing your score. You can see details on payment history, credit utilization, and the age of your credit accounts. This transparency allows you to spot errors and identify specific areas for improvement.

Special credit offers

Based on your unique credit profile, we will highlight offers that you may qualify for. This could include new loans or refinancing options that could save you money in the long run.

Take control

We believe that financial clarity should be accessible to everyone. By bringing Credit Score directly into the app you already use every day, we are removing the barriers between you and better financial health.

Mark your calendar. Beginning February 17, simply log in to your online or mobile banking account to activate this feature. It takes seconds to set up, but the benefits to your financial peace of mind will last a lifetime.

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]]> How to consolidate credit card debt and take control of your finances /blog/how-to-consolidate-credit-card-debt/ Wed, 16 Jul 2025 16:57:04 +0000 /?p=5552 Carrying a balance on your credit card is more common than you’d think. According to recent studies, the...

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]]> Carrying a balance on your credit card is more common than you’d think. According to , the average American credit card balance exceeds $7,300. When multiple card balances pile up, the stress can feel overwhelming, especially with interest rates climbing higher. That’s where credit card debt consolidation comes in.
If you’re looking for a way to manage your finances more effectively, consolidation could be the financial lifeline you need. This guide will walk you through everything you need to know—from understanding your debt to successfully consolidating it and maintaining financial health after consolidation.

Introduction to credit card debt consolidation

Consolidating credit card debt involves combining multiple balances into one loan or credit account. With this approach, you’ll typically aim for lower interest rates, a simplified payment process, and the ability to pay off your debt faster.
Think of it like cleaning up a messy room. Instead of juggling multiple payments, deadlines, and interest rates, debt consolidation puts everything in one tidy stack with one predictable monthly payment.

Understanding your credit card debt

Before jumping into consolidation options, it’s essential to get a handle on your current financial situation. Start by gathering the following details:

  • Your total debt across all credit cards
  • Interest rates on each card
  • Monthly minimum payments for each balance
  • Payment due dates

Seeing the full picture of your financial obligations may feel intimidating, but remember, it’s the first step toward a clearer, more manageable path forward.

Benefits of credit card debt consolidation

Why consolidate credit card debt? Here are some benefits to keep in mind:

  • Lower interest rates: Many consolidation methods offer rates well below the typical credit card APR (Annual Percentage Rate), helping reduce the overall cost of repayment. The median credit card APR as of June 2025 is 23.99% according to Investopedia.
  • Simplified payments: With just one payment to manage each month, you won’t have to stress about juggling due dates or missing payments.
  • Faster debt repayment: Lower interest rates and better loan terms can help you knock out debt more quickly.
  • Improved credit score (over time): Effectively managing a consolidated loan and reducing credit card balances can positively impact your credit score.

Different methods of credit card debt consolidation

Not all debt consolidation options are created equal. Here are some common methods to consider, each with its pros and cons.

Personal loans

A personal loan is one of the most popular options for consolidating credit card debt. Loans from banks, online lenders, or credit unions often come with fixed interest rates and payment schedules.

Pros:

  • Predictable monthly payments
  • Typically, lower interest rates than credit cards

Cons:

  • You’ll need decent credit to qualify for the lowest rates

Home equity loans

For homeowners, a home equity loan or a home equity line of credit (HELOC) can be an excellent way to consolidate credit card debt. These loans use your home as collateral, which generally allows for lower interest rates.

Pros:

  • Very low interest rates
  • Potential tax benefits for interest payments (consult a tax adviser for details)

Cons:

  • Risk of losing your home if you can’t repay

Cash-out mortgage refinance

With a cash-out refinance, you take out a new mortgage for more than you currently owe and use the difference to pay off your credit card bills.

Pros:

  • Combines mortgage payments with debt consolidation
  • Offers long repayment terms

Cons:

  • Closing costs can be significant
  • Extends your mortgage repayment timeline

How to choose the right debt consolidation method

Your personal financial situation will ultimately determine the best approach. Consider the following factors when making your decision:

  1. Your credit score: This impacts what interest rates and loan types you’ll qualify for.
  2. Your total debt: Choose a method that aligns with the amount you owe.
  3. Risk tolerance: Some methods, like home equity loans, require collateral.
  4. Monthly budget: Make sure the consolidated payment fits your budget.

Pro tip: Don’t be afraid to consult a financial advisor. They can walk you through the pros and cons of each option based on your unique circumstances.

Steps to consolidate your credit card debt

Once you’ve chosen a debt consolidation method, follow these steps to achieve a smooth transition into repayment:

  1. Understand your current credit situation by pulling a free credit report and reviewing your scores.
  2. Research lenders for your preferred method, comparing rates, fees, and terms.
  3. Apply for a loan or credit product, providing necessary financial documents like proof of income and identification.
  4. Review loan terms carefully, ensuring you understand the interest rate, monthly payment, and total repayment cost.
  5. Use the funds from your approved loan to pay off all existing credit card balances.
  6. Close or manage existing credit card accounts, keeping only one open for emergencies (and to maintain your credit score).
  7. Commit to on-time payments for your consolidation loan.

Maintaining financial health after consolidation

Consolidation is only the first step. Here’s how to build strong financial habits to stay debt-free:

  • Stick to a budget that prioritizes savings and avoids unnecessary expenses.
  • Avoid accumulating new credit card debt. Use credit sparingly and repay the balance in full each month.
  • Build an emergency fund for unexpected expenses, so you’re not forced to rely on credit cards.
  • Monitor your credit score regularly to track your financial progress.

Remember, the goal isn’t just to consolidate your debt but to create long-term financial stability.

Taking control of your finances today

Consolidating credit card debt is an effective way to regain control of your financial life. By choosing the right method and committing to responsible money management, you can turn high-interest credit challenges into manageable, predictable payments.
If you’re unsure where to begin, take it one step at a time. Start by reviewing your current debts, explore your consolidation options, and create a repayment plan that works for you. A debt-free future is within reach!

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]]> How to deal with “Santa Shock” and enjoy the new year without financial strain /blog/holiday-debt-management/ Mon, 30 Dec 2024 16:50:33 +0000 /?p=4139 The holiday season is often filled with joy, magic, and the excitement of giving. However, for many parents...

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]]> The holiday season is often filled with joy, magic, and the excitement of giving. However, for many parents and holiday shoppers, there’s a hidden downside that surfaces in January—”Santa Shock.” Have you experienced it? It’s that sinking feeling when you open your credit card statement after the festivities are over and realize you’ve spent more than you intended.

Santa Shock is common, but it doesn’t have to be inevitable. With a bit of planning, budgeting, and early preparation, you can tackle the holidays without carrying financial stress into the new year. This article explains what Santa Shock is, why it happens, and what steps you can take to prevent and manage it effectively.

Understanding Santa Shock and its financial impact

Santa Shock refers to the financial stress many families face after excessive holiday spending. Between gifts, decorations, special meals, and travel expenses, it’s easy to lose track of your budget during the hustle and bustle of the season.

While it’s tempting to go all out for your loved ones, overspending can have long-term consequences. Many families put holiday expenses on credit cards, leading to lingering debt months after the holidays are over. When combined with routine monthly expenses, Santa Shock can snowball into financial strain that’s difficult to recover from.

Understanding the numbers behind holiday spending is the first step to avoiding financial surprises.

Holiday spending and credit card debt

It’s no secret that Americans spend big during the holidays. Recent data reveals:

  • Average holiday spending: A study by the shows that the average household spends nearly $1,000 on holiday-related expenses annually, including gifts, food, and decorations.
  • Credit card debt surge: U.S. credit card balances hit a record , before most began their holiday shopping.
  • Post-holiday regret: According to a , 16% of shoppers say they’ll feel pressured to spend more than they’re comfortable with, up from 13% in 2023.

These numbers highlight one important truth: many families struggle to keep holiday spending under control. The good news? It doesn’t have to be this way. With careful planning, you can create a holiday season that’s merry and financially manageable.

Crafting a debt management plan

If you find yourself dealing with Santa Shock despite your best efforts, don’t panic. There are steps you can take to effectively manage and eliminate holiday debt. Here’s how:

1. Assess your debt

Start by reviewing your credit card statements to identify exactly how much you owe. Understanding the numbers will help you develop an actionable plan.

2. Consolidate your debt

Consider consolidating your credit card debt to minimize interest charges and simplify repayments. Here are a few options:

  • Home equity loans or HELOC: If you own your home, leverage your equity to secure a lower-interest loan for debt consolidation.
  • Personal loans: A personal loan with a fixed interest rate can help you pay off your balances faster.
  • Cash-out refinance: This option allows you to take out a new mortgage that’s greater than your existing one and use the extra cash to clear your holiday debt. This is a good option if you’re able to reduce your mortgage interest rate as well. If not, you may be better off with a different option for consolidation.

3. Prioritize payments

Focus on paying off high-interest debt first to reduce the total amount you’ll pay over time. This strategy is called the debt avalanche strategy. Alternatively, if you’re motivated by small wins, start with smaller balances to build momentum. This strategy is called the debt snowball strategy.

4. Cut non-essential expenses

Temporarily reduce discretionary spending in your monthly budget to free up funds for debt repayment. Sacrificing a few luxuries for a short time can help speed up the process.

Strategies for dealing with Santa Shock

The best way to avoid Santa Shock is by tackling holiday spending head-on. Here are a few strategies to help you stay on track:

1. Set a budget

Start by determining how much you’re willing to spend on the holidays. Include all potential expenses—gifts, meals, outings, and travel—and assign realistic limits for each category. Holding yourself accountable to a written budget will help curb overspending.

2. Track spending

Use tools like budgeting apps (91şÚÁĎÍř First’s Money Management tool in online banking), spreadsheets, or even pen and paper to monitor your holiday expenses. Keeping tabs on every dollar spent ensures you don’t surpass your budget accidentally.

3. Plan your gift list

Create a detailed list of gift recipients along with specific ideas and price ranges for each one. Stick to your list while shopping to avoid impulse purchases.

4. Consider homemade gifts

Thoughtful, handmade gifts can be just as meaningful as expensive store-bought presents. Think baked goods, crafts, or a personalized photo album. These options can stretch your budget while still showing your loved ones that you care.

5. Shop sales strategically

Take advantage of sales and promotions like Black Friday and Cyber Monday for the best deals. Doing so can significantly reduce costs without cutting quality.

The importance of early preparation

The key to avoiding Santa Shock next year is to plan ahead and start saving well before the holiday season. Here are a few tips to stay proactive:

1. Start a year-round holiday fund

Open a dedicated savings account for holiday expenses, such as an All Purpose Club account at 91şÚÁĎÍř First. Deposit a small amount into the account regularly, so you’ll have funds ready when the holidays roll around.

2. Shop early

Avoid last-minute shopping, which often leads to overspending. Picking up gifts throughout the year during sales ensures you’ll find the best deals—and less financial pressure in December.

3. Join a rewards program

If you plan to use credit cards for holiday purchases, join a card rewards program that offers cash back or other benefits. Earning rewards can offset some expenses.

4. Set expectations with family

Have an open conversation with family members about gifts and set reasonable expectations. Consider alternatives like a gift exchange or experiential gifts, such as shared outings, that don’t require large budgets.

Ring in the New Year without breaking the bank

Santa Shock is a common post-holiday reality for many families, but it doesn’t have to be yours. With thoughtful planning, smart budgeting, and year-round preparation, you can enjoy the holidays without carrying financial stress into the new year.

Whether you’re consolidating debt or starting a savings plan for next year, 91şÚÁĎÍř First is here to support you. Open an All Purpose Club account today and take the first step toward a holiday season that’s both joyous and financially sound.

Happy new year and happy saving!

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]]> Your ultimate guide to paying off debt [Tools and Calculators] /blog/your-ultimate-guide-to-paying-off-debt/ Mon, 15 Apr 2024 18:56:16 +0000 /?p=3617 At the end of the last quarter of 2023, the average household debt in the United States reached...

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]]> At the end of the last quarter of 2023, the reached $17.5 trillion while loan delinquency rates rose. Credit card debt reached a record high of $1.13 trillion and mortgage balances rose to $12.25 trillion overall. If you, like many other Americans, have household debt that is higher than ever, there’s still hope for you to create a plan to pay it off. In this guide, we’ve provided you with all the resources and tools to help you manage your debt and find your way back to financial freedom. Follow these links to get you there.

Debt Management Resources

  • Debt Payoff Strategies – create a debt payoff plan with the snowball or avalanche strategies. Plus, more tips to lower your bills.
  • Money Management Tool – budget and track your spending while forecasting your debt payoff with our Money Management and Debts tools in online banking.

Money Management and Debt Forecasting tool computer screen mockup

  • Manage your student loan debt – you may qualify for one of several repayment plan options that could lower your monthly payments.
  • Make extra payments to principal loan balances – easy practices to help pay off your debt faster.
  • . – These companies will often make you pay for services and leave you in more debt. Read this article from the Consumer Financial Protection Bureau (CFPB).
  • – and according to the Fair Debt Collection Practices Act (FDCPA).

Debt Calculators

Use these calculators to help answer your most pressing debt questions.

  • Debt Consolidation Calculator: Use this to calculate how much you could save by consolidating multiple debts at varying interest rates into one loan with one single monthly payment.
  • Savings Goal Calculator: Use this to calculate how much you need to save monthly to reach your debt payoff goal.

Debt Consolidation & Refinancing

  • Personal Loans – a personal loan up to $20,000 could help you consolidate credit cards and other high-interest loans to a lower interest rate.
  • Home Equity Loans and Lines of Credit (HELOC) – homeowner’s can use the equity in their home to consolidate high-interest loans at a much lower rate.
  • – but make sure you pay off your balance before the intro period ends, otherwise you can end up paying up to 30% interest again! Note: opening a new line of credit will affect your credit score.
  • Refinance a mortgage – speak with a loan officer to find our if refinancing can lower your monthly payment or your interest rate so you pay less overall.
  • Refinance a vehicle loan

Get Back on Track

Spend Less Without Doing Less

Keep up with 91şÚÁĎÍř First for new articles about debt management, saving, and budgeting.

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Third Party Link Disclaimer: These links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by 91şÚÁĎÍř of any of the products, services or opinions of the corporation or organization or individual. 91şÚÁĎÍř First bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

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]]> How to make extra principal payments and pay off your loans faster /blog/budgeting-principal-payments-loans/ Thu, 22 Feb 2024 06:00:44 +0000 /?p=3330 If you’re paying exactly what you have to toward your loans each month, then you’ll pay them off...

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]]> If you’re paying exactly what you have to toward your loans each month, then you’ll pay them off exactly when you are supposed to. But if you budget extra money for principal payments, you’ll pay off your debt sooner. How can you do that? You pay slightly more than your payment amount and, in turn, pay down your principal balance faster.

 

What is principal?

The total principal balance of your loan is essentially the amount of money the credit union lends to you. Your total monthly payment amount is made up of principal and interest payments (and sometimes taxes and insurances if it’s a mortgage). As a simple example, a breakdown of your total mortgage payment could be:

Principal – $1,200
Interest – $100
Total Due – $1,300

For a more detailed explanation, see Mortgage Payments 101.

 

How do I make extra principal payments?

Any funds you pay in addition to your monthly payment amount will be automatically applied to your principal balance unless you specify otherwise. Here are some suggested approaches to making your extra principal payment.

1. Make one extra payment each year

There are a few ways you could choose to do this. One way is to calculate 1/12 of your payment amount and add that as extra funds into each of your monthly payments. By the end of the year, you will have made one full extra payment.

Another way is to double up your payment when you receive either your tax return or a year-end bonus from your employer. Of course, you aren’t limited to making only one extra payment. So, if you chose to use both and make two extra payments, you would pay off your loan even faster.

2. Round up your monthly payment to the next $100

You may have a total payment amount of exactly $565.43 for your car loan. With this method, you would round that up to $600.00 every time you submit a payment.

3. Save up and make one large principal-only payment

Set aside money in a personal savings account. Perhaps a small portion of your paycheck is directly deposited in this account each week. When you’ve saved up a good chunk of change, you could withdraw a large sum of those funds for your principal-only payment. The life of your loan would then be much shorter.

 

Tips for making principal-only payments

Whenever you decide to make a principal-only payment, your regular monthly payment must be satisfied first. If you make a large mortgage payment at a time other than your due date, let the mortgage servicer know it is a principal-only payment so it is applied as such, and isn’t mistaken as an early payment for the next month.

 

Refinance to shorten your loan length

Refinancing your loan or mortgage is another way to help you shorten your payoff time. Contrary to what you may believe, refinancing your loan to a shorter term may not make your payment amount higher. In fact, it could lower it. It all depends on what your remaining balance is, and what interest rate you are refinancing to. Check out our refinance calculator to figure out if refinancing would benefit you.

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