loans

Your Personal RV Buying Guide

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It’s vacation time again. Maybe you’re thinking about doing something different and buying an RV, but RV lots seem so intimidating!  What do you need to know to take some of the stress off?
 

Summer is coming, and for many that means the call of the open road. It might even be ringing loud and clear. Nothing is more American than a summertime road trip, but long hours in the car can really suck the fun out of any vacation. That’s the beauty of recreational vehicles. The road IS the destination; anywhere you go, you’ve got luxury-class accommodations waiting for you.
Buying an RV is a big decision, though. If your biggest assets are your car and your house, this decision represents a purchase that is somewhere between the two. There’s a lot to know before you set foot on a lot, and the more you research now, the better things will go.
With that in mind, here are three questions to ask yourself before you start shopping for an RV. With these as jumping off points for research, you can make informed decisions about your needs. You’ll also be able to more clearly communicate what you’re after, which will make the sales experience more pleasant for everyone.
1.) What class are you in?
Broadly speaking, there are three classes of RV: Class A, Class B and Class C. Class A are the biggest and most comfortable. Built on big rig platforms, these are basically rolling houses. They feature full-sized couches and TVs, full bathrooms, kitchens and expandable bedrooms. Many also include storage underneath the vehicle (called the “basement” by enthusiasts) with enough space to stock supplies for a months-long journey. As one might expect for top-of-the-line vehicles, the price tags are as big as the vehicles, ranging from $60,000 to over a million for custom-built motorhomes.
Class B motorhomes are on the other side of the spectrum. These are built on full-size van platforms. They can include scaled-down versions of the same amenities in Class A motorhomes, but in a more maneuverable, less costly package. Expect to see a small kitchen, a compact bathroom, and enough sleeping space for 2-3 people for several weeks. The price tags on these vehicles run between $50,000 and $100,000.
Class C motorhomes offer a compromise between A and B. These start with cargo van platforms and extend the wheelbase somewhat to about the length of a small bus. Amenities will be more complete than in a Class B, but nowhere near as robust as in a class A. Definitely more vehicle than home, these usually run between $60,000 and $200,000.
There are other options, of course. Camper trailers, pop-ups, and fifth-wheel tow-behind campers can often fill the same needs at lower prices. It’s worth investigating these options, as well.
2.) What’s your budget?
Before you make a major purchase, you’ll want to be clear on how much you can afford. Given the significant cost of purchasing an RV, financing periods are typically 10 years or longer. Because RVs depreciate, interest rates are slightly higher than home loan rates, too. It’s not just the monthly payment you need to include in your budget: you’ll also need to factor in for fuel, insurance, registration, and maintenance — even if you don’t go anywhere!
Finally, It’s also worth figuring out what you can budget for a down payment. You may be able to finance 100% of the purchase price of your RV, but putting money down helps protect you against depreciation. That means you’ll be able to get clear of your RV payment if you decide to sell it later on down the road.
3.) When should you get financing?
While many dealers will try to work out financing in-house, it’s not a bad idea to go in with a pre-approval (Check out Destinations Credit Union’s RV rates and terms!). It’ll allow you to negotiate from a position of confidence, and it’ll also prove to the salespeople that you’re serious about buying. Getting pre-approval will also make sure you don’t fall in love with an RV you can’t afford. Nothing can ruin a fun vacation like a big bundle of “How are we going to pay for this?” stress!
If you’re thinking about an RV, the time to talk financing is now. How much RV you can afford should be at the forefront of your selection process. Getting your financing in order will help you figure that out.
Your Turn: Are you an RV wizard? How did you choose the one you’re currently driving? What features are absolutely must-haves in a new RV? Let us know your thoughts in the comments!
SOURCES:https://www.reserveamerica.com/outdoors/things-to-ask-yourself-when-buying-an-rv.htmhttp://www.rvuniversity.com/staticpages/index.php/Buying_Tips
https://blog.allstate.com/tips-buying-rv/
http://www.gonewiththewynns.com/buying-an-rv
https://rv-roadtrips.thefuntimesguide.com/rv_class/

Feeling Stuck In Your Car Loan? Might Be Time To Shop Around!

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Bills are a lot like bad weather. They’re going to come anyway, so you might as well not try to fix them, right? For some bills, that’s the case. For others, though, you can make a big difference in your monthly budget with a little legwork. 

One of the bills you can change is your car payment. Refinancing your vehicle loan can lead to a lower monthly payment, a shorter term, or both! It depends on a wide range of factors, including the value of your vehicle, how much you owe on your current loan, and your credit standing. 

If any of these factors have changed since you bought your car, you owe it to yourself to check out your refinancing options. Let’s look at some common life changes and when they might be cause to look at refinancing. Read on to learn about three scenarios where refinancing makes sense for your car or truck:
 

1.) Your credit improves
One of the biggest factors in determining your auto loan status is your credit score. When your lender is building a loan package, a credit report is pulled as a central part of that process. That number helps define your interest rate, whether or not you’ll have to pay a premium for insurance, and what other fees your lender might charge.
It’s worth keeping a copy of the credit report your lender pulled. That can let you see if your credit score has improved. It can take as little as nine months of steady repayment to boost your credit score, and that could result in a cheaper loan if you refinance.
If you didn’t have much experience with credit when you purchased your vehicle, refinancing can do you a world of good. Interest rates as high as 18% are common for borrowers who have little to no credit history. Having even a few months of solid payments on your side can cut that rate in half or more.
2.) You didn’t shop around before you borrowed
Many people feel railroaded throughout the car-buying process. They pick a car they like, then they are told what the price is, what the monthly payment is and everything else. It may seem like the choice of lenders for your car loan is predetermined.
Dealers tend to have a smaller range of lenders with whom they work exclusively. Those lenders know they have limited exposure to competition, so they can charge slightly higher fees and interest rates. By doing your own comparison shopping, you can save quite a bit on both the loan and any ancillary insurances or warranties you may have purchased. Dealer rates tend to be 1 to 1.5% higher than those offered at smaller lenders, like credit unions.
If you’ve never shopped around for a car loan, it’s definitely worth doing. By getting multiple offers, you can ensure you’re getting the best price available for your loan. Try to do your shopping inside a 15-day period. Otherwise, the multiple checks on your credit could negatively impact your credit score.
3.) You need to change your monthly payment
You may be in a much better financial situation now than when you bought your car. You may have a better job or more security. You may have paid off credit card or other debt. All of these things free up how much you can pay per month.
Most people don’t go into the refinancing process looking to increase their monthly payment, but you can save yourself money in the long term by committing to a faster repayment plan. If you can afford to pay more per month now, you can pay off the balance on your car faster. Shorter term loans usually also have lower interest rates, since the lender assumes less risk in making the loan. Once the car is paid off, you’ll have all that money to devote to other saving or spending priorities.
On the other hand, if money is tight, it might be a good idea to refinance into a longer term. While you might end up paying more in interest, you can reduce your monthly payment and save the money you need right now.
Your Turn: What do you do to save money on your car payment? Let us know your best tips and tricks in the comments, and don’t forget to stop by Destinations Credit Union to find out how refinancing can improve your financial life!
SOURCES:
http://www.bankrate.com/loans/auto-loans/10-steps-to-your-best-deal-on-a-car-loan/
http://abcnews.go.com/Business/long-improve-credit/story?id=33695732
https://www.learnvest.com/knowledge-center/ask-credit-karma-how-does-my-auto-loan-refinance-affect-my-credit/
https://www.creditkarma.com/article/refinancing-credit-effects
http://www.bankrate.com/auto/5-situations-when-it-makes-the-most-sense-to-refinance-your-car/ 

Personal Loans: The Swiss Army Knife Of Personal Finance

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There’s that old saying, “There’s no such thing as a free lunch.” Turns out, it’s not just lunches that aren’t free. Pretty much everything costs money, and it’s often more than you’d expect it to be.

You can easily plan and save for some expenses, while some come up out of nowhere. For those things, you need to borrow, and a great way to borrow is with a personal loan. Consider these uses for a personal loan. If you have one of these events coming up, you may want to consider a personal loan to finance them. 

1.) Weddings 

Love knows no season. When the time is right to get married, it doesn’t matter if a few more months of saving would make a difference. Timing is everything! If you or your child is dedicated to hosting a spring wedding, it’s just not possible to pay for it with a Christmas bonus.

The average wedding costs just over $30,000, which makes it too much for a single credit card, and the interest you’d pay would make it incredibly more expensive. Even single vendor costs, like event space or catering, may require separate financing. A personal loan will net you a better repayment plan and a better interest rate.

You may even be able to bring the price of those transactions down. Rather than putting a deposit down with a credit card, you can offer to pay more of the total cost up front in exchange for a reduced bill. Caterers, tailors and other small business owners are likely to appreciate the simplification of their cash flow. They can pay their employees and purchase supplies without going into debt themselves. They may be willing to pass those savings on to you. 

2.) Adoption 

Adopting a child is a fantastic way to show your love to the next generation. It can also be very expensive due to screenings and fees that stand between you and your child. Realistically, costs could be as high as $50,000 to adopt a child in the US, and even more to adopt an infant from overseas.

Obtaining financing for this process can be very difficult. Unlike traditional big expenses, there’s no collateral. No one can repossess your child if you fall behind on your loans. Traditional sources of financing are out the window.

Fortunately, a personal loan can make this process a reality. Because the terms tend to be short, you can have your loan paid off long before you start thinking about college costs for your new bundle of joy! 

3.) Short-term house sales 

The success of shows like “Love it or List it” and other fast-paced remodeling displays has inspired a new generation of people to pick up properties, fix them up and sell them for a profit. For those who are handy and love remodeling, it can be a dream hobby. It can even turn into a full-time job! There’s just one problem: capital.

When you buy a house to sell again, it’s likely that you’re borrowing as much as you can to pay for the property. That doesn’t leave much left over for new fixtures, paint, or repairs. Some of that can be done cheaply enough, but much of it will require capital. Since you don’t have much equity in the property, borrowing against it isn’t a real possibility.

A personal loan can be the answer. With affordable rates and flexible repayment terms, a personal loan can help you finance those value-boosting improvements. Best of all, when you sell the house, you can repay the personal loan early without a penalty! 

4.) Launching a small business 

They say all you need to make it is a great idea. That’s about half right. What you really need is a great idea and enough money to get it off the ground. Even the most thrifty of business owners will still face start-up costs in materials, license fees and equipment purchases. While these costs may not be much, it will be a while before your business turns enough profit to recoup these expenses.

A personal loan can broaden your timeline to profitability. Rather than being pressured to start turning a profit immediately, you can take your time and develop the business. Since your debt servicing is a fixed cost throughout the course of the loan, it’s easy to plan for repayment. You can give your business the boost it needs to get firmly established, setting you up for future prosperity. 

5.) Extra education expenses 

Depending on your personal financial situation, your student loans may be insufficient to cover the actual whole cost of your education. Sure, you can get loans to cover tuition, but what about books or a computer to handle schoolwork? If you’re going back to school later in life, many traditional funding opportunities may not be open to you.

In these instances, taking out a personal loan to cover the extra costs of your education can be a life-saver. Instead of paying for those costs out of pocket or with a credit card, you can pay for them up front with a loan you can budget for going forward. Many parts of life as a student are unpredictable; it’s nice to have one constant month-to-month. 

YOUR TURN: What would you do with a few extra thousand dollars? Would you fix up a car? Take a dream vacation? Cover an unexpected bill? Let us know how you’d use a personal loan!


SOURCES:
https://www.theknot.com/content/what-does-the-average-wedding-cost
http://www.adoptionhelp.org/qa/how-much-does-adoption-cost
http://fitsmallbusiness.com/fix-and-flip-loans/

How To Get By In An Emergency: Personal Loan Or Credit Card?

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Unexpected expenses, by nature, can come out of nowhere. Your check engine light comes on, and your car demands you put another thousand dollars into keeping it on the road. That cough that just won’t go away turns out to be more serious than you thought. Your air conditioner gives up during the longest heatwave you can remember. No matter what causes these personal catastrophes, they all have one thing in common: They’re expensive. 

The best financial advice suggests a rainy day fund for situations like these. However, for many people, that’s just not practical. Just getting to the end of the month can sometimes feel like an emergency. An emergency fund is one of those things it’d be nice to have, but there’s just no room for it after the bills have been paid.
 

If you feel the pressure of not knowing where your emergency spending could come from, you’re not alone. A Federal Reserve survey found that 47% of Americans would not be able to come up with $400 in an emergency. The way they’d cope with that emergency? They’d borrow.
As a credit union member, you have options when it comes to borrowing. Two of the most popular choices for emergency funding are a personal loanand a credit card.
There are pros and cons to both, so let’s take a look at a few.
1.) Limits
Credit cards are generally designed to cover day-to-day purchases. They have credit limits in the thousands, which is enough to handle most small appliance purchases and some car troubles. Most of the value of credit cards is in the convenience, though. Because it’s a credit line you have to use as needed, there’s no need to apply for a new loan each time you incur an expense.
However, many people may not have a high enough credit limit to cover a major medical expense, a significant home repair, or a big appliance. This is where many choose to utilize a personal loan.
Your personal loan approval amount depends on several factors, such as your income, credit score, and other assets. For borrowers who have a good credit history and a strong ability to repay, these loans could be $10,000 or more. That’s enough to cover most serious expenses that come up out of nowhere.
2.) Repayment options
Credit card repayment is typically handled on a monthly basis. You’ll have a minimum payment, which, if you’ve got a high balance, might take a long while to pay off. There’s no fixed term to repayment; so if you continue to charge while making only minimum payments due, paying off your loan can take forever.
A personal loan, on the other hand, will include a fixed monthly payment that will let you repay the loan in a set amount of time. You’ll sign paperwork at the beginning of the term, which spells out exactly when you’ll be done repaying the loan. The loan is amortized, or set up so you’re making equal payments to cover both interest and principal over the life of the loan. There’s no penalty for early repayment, either. So, if you find yourself ahead of schedule, you can pay off the balance and save some money!
3.) Usability
Credit cards only work at a merchant terminal. While they’re accepted in many places, they are not universal. If you’re trying to pay family or friends, a credit card may not be the easiest way to get it done.
A personal loan is deposited directly to your draft account. Although you’ll usually be sending it directly to the entity where the money is owed, the money is yours. You can withdraw it as cash, write checks, or use auto draft features.
If you’re trying to work out a reduced price for a major expense, many businesses are willing to offer a cash discount. Businesses pay for processing credit card fees, which can be quite a bit of money, so a cash payment can work to the advantage of everyone. If you’re working with a hospital on a medical expense or a dental office, they may be willing to negotiate a lower fee in return for cash payment as well.
4.) Interest rates
Credit card interest rates can be high. Exactly how high depends upon your credit score and the kind of card you have, but 15% is the global average. Some credit cards may offer introductory rates that are considerably lower, but at the end of that introductory period the whole balance is converted to the higher interest rate – meaning you’ll also be charged more interest on what has not been paid off.
Some credit cards also have fluctuating interest rates that can go up or down based on the prime interest rate (Destinations Credit Union’s MasterCard has a fixed rate that does not fluctuate). Credit card companies are allowed to change your interest rate if your credit score changes dramatically. Fluctuations in your interest rate can make it difficult to plan for your financial future.
A personal loan has a fixed interest rate at the time you get the loan. Provided you don’t miss a payment, your interest rate will never increase. You can make a budget for the future that involves paying a fixed amount over roughly a 5-year period.
Interest rates on personal loans also tend to be much lower than on credit cards. For people with average credit, interest rates can be as much as 5% lower than those on credit cards. For people with better credit and higher incomes, that interest rate is even lower.
As a member of Destinations Credit Union, you have access to the competitive rates for personal loans and loans in general. If you’re between a rock and a hard place, Destinations Credit Union can help you out. Call, click or stop by today!
Your turn: What’s your emergency financial plan? Where would you go if you needed $400 for an unexpected expense? If you’ve been through a financial emergency like that, any advice for those who might be in a similar situation?
SOURCES:

https://www.nerdwallet.com/blog/loans/cheap-personal-loans/
http://www.valuepenguin.com/average-credit-card-interest-rates

https://www.nerdwallet.com/blog/credit-cards/credit-card-issuer-raising-interest-rate-5-times/

http://www.theatlantic.com/magazine/archive/2016/05/my-secret-shame/476415/


What To Do When The Rent Is Due – But You’re Coming Up Short

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“Yikes! I’ve got a rent payment due in a couple of days. Payday will come too late and I’m a few bucks short! What can I do?“
Everyone can relate to this experience or one that’s similar. An unexpected bill or a short paycheck puts you behind, and you spend the rest of the month playing catch up. Finally, a big, important bill comes up and you’re out of backup plans. That grim feeling of panic creeps up your spine. Your heart races.
This is a financial crisis!
The first step is to silence that panic. Take two or three deep breaths. Although it is a problem, it’s one you need to solve, not one to give up on. A practical plan is needed to come up with the money.
Rather than going through a list of things you can do, it might be easier to talk about places to look. Let’s go through a few locations you can go to try to find those few extra dollars. This task is going to be equal parts creativity and hard work, so roll up your sleeves and get your thinking cap on!
1.) Your job
You may be thinking that if your job paid more, you wouldn’t be in this mess. That may be true, but it doesn’t mean there aren’t a few ways you can get a couple extra bucks out of your place of employment. Much of this is going to depend upon the kind of employer you have, but some of these suggestions may be of some help.
Begin by asking for a few more hours in the next week. Explain your situation briefly to your employer to see if there are special projects coming up in the future that you could get a jump start on now. Most employers are carrying around long lists of projects to be done and they’re waiting for someone to have the free time to tackle them. This could be the opportunity you need to prove yourself for a promotion while helping to bail you out of your tough spot.
If this doesn’t work, you might look for other odd jobs you could do around your office. If the floors need sweeping or the bathrooms need cleaning, this could be a way to turn a few hours into a solution to your financial woes. Your boss knows you and your work ethic, so she may be more likely to trust you than a stranger from off the street.
Consider asking your employer for an advance on your next paycheck. If your current situation is the result of an emergency, explain that to your employer. This will certainly be cheaper than a payday or title loan. Your “collateral” for the loan is your good name with your employer, so do this sparingly. Too many requests for an advance could be a red flag, signaling to the employer that you’ve got serious problems on the home front. Remember that this is money you’re borrowing from yourself from next month, so if you’ve got no cushion next month, all you’ve done is bought yourself a small bit of time.
2) Your house and neighborhood
Now might be a good time to take stock of your furnishings and appliances. Are there any you’ve been planning to upgrade in the near future? If you can do without them in the interim, you could move up your plans a little bit and put them up for sale. If you do, be sure to do as much maintenance as you can beforehand. If it’s a piece of furniture, give it a quick rub with furniture polish to cover any scratches or dings before you photograph it. If you have the time and energy, sanding and re-staining furniture can make an old piece of wood look new and beautiful. This little upgrade can mean the difference between selling for $20 and $100!
If it’s appliances you’re considering upgrading, the smaller it is, the easier it’ll sell. If you can use an old phone for a few months until your contract upgrade comes up, putting a smartphone up for sale can net you a few hundred dollars. The same advice applies to electronics. Dust them, polish any dings in the case, and round up the original box if you can. Make it look as new as possible.
For items that don’t sell well, like CRT televisions, you’ll really need to flex your creative muscle. It won’t sell as a television, but the front might work as a mirror frame! Taking the guts out and converting it into a planter or terrarium can also turn something worthless into something that might net you a few dollars.
While you’re testing the market for your used goods, you might also keep an eye out for day labor positions. Is your neighbor planning on doing some serious landscaping this weekend? Offer your skill with a rake for a few hours. The new parents next door might want a night out; could you sit for them while they grab dinner and a show? Maybe a bachelor neighbor can’t cook toast. He might enjoy a home-cooked casserole that just needs to be thrown in the oven! These likely aren’t enough to make you rich, but they could get you out of a jam.
3) Destinations Credit Union
That’s right. Destinations Credit Union is here to help you through thick and thin. Many of the services offered at our branch location are meant to solve the very problems you’re facing. Before you give up or turn to a title loan or payday loan service, give us a call.
There are several options available to you, including many services that other lenders charge much, much more for. As a member of Destinations Credit Union, you can get better terms, better interest rates and more personal service than you can at any place you’ve seen advertising on TV. We also provide financial self-help services that can help you avoid these sticky spots in the future. Whether you need help drawing up a budget, setting up a savings account for an emergency fund, or dealing with out-of-control debt, Destinations Credit Union is here for you!
SOURCES: 
http://www.creditcards.com/credit-card-news/employee-salary-pay-advance-1273.php http://www.moneycrashers.com/craigslist-selling-tips/ http://money.usnews.com/money/personal-finance/articles/2013/11/14/5-ways-to-make-money-faster-than-fast 

Your Real Net Worth

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For accountants, your personal net worth is one of the simplest calculations they might be asked to perform. Add up your assets in column A, add your debt in column B, then subtract B from A to find your net worth. It’s a number you should know, or at least be able to estimate, and it’s good to check it every year.  Since it’s March, which is the sweet spot between New Year’s resolutions, January credit check-ups and tax time, there might not be a better time to figure out your net worth than right now.  When you do, don’t forget all of the value that might not translate into worth. We’ve got a short breakdown for you, along with a way to maximize the value in your life while minimizing how much it costs you: 

Your education increases your net worth, even though it may not look like it. Very few investments offer the rate of return that continuing education does. Those who finish their college degree earn, on average, about twice as much as those with a high school diploma over the course of their lifetimes, and the gap has been widening for at least 35 years. Still, your future earning potential doesn’t show up on your net worth, even though your student debt does. If you’re trying to decide whether to go back to school, take a few extra classes or get a new certification, the cost may seem intimidating since there’s no immediate benefit. Don’t let that fool you. 

An education can also increase the value you get out of your life, helping you find a job that makes you happier or getting that promotion you’ve been wanting at your current employer.  Outside of work, going back to school can help you learn a new language or skill you’ve always wanted to learn, get you up-to-date on current technology and trends in your field, and model good life choices for your children.  Just wait until they see you doing homework on a Friday night!

It also doesn’t have to cost an arm and a leg, and you don’t have to try for federal financial aid.  We have a variety of products designed to put some money in your pocket now, whether it’s a home equity loan, a personal loan, or any of our other financial plans.  If you’re thinking to yourself, “But I’ll be 40 (or 50, or 60) by the time I finish,” remember, you’ll be 40 (or 50, or 60) anyway.  


Find out information about our loans that could make it happen.

Your kids are a drain on your net worth, but a blessing in your life.  Let’s face it, kids are expensive. The Department of Agriculture estimates that raising a child born this year to the age of 18 will cost about $250,000.  While a quarter of a million dollars is a lot of money, that only gets them to age 18, but with tuition prices skyrocketing and kids staying at home longer than they have historically, the actual figure of raising children today gets much higher much faster.  Financial analysts predict the average four-year tuition for a public university in 2030 will be $250,000, or about the same as it cost to raise that child from birth to dropping them off at the dorm.  If you have two children, you could easily spend one million dollars on them before they leave college.  In your net worth, this is only reflected as a constant drain on your savings, a net negative.

The value of children is probably pretty obvious to you, but there has to be a way to lower the cost of raising them, right?  First, let’s cut down those college costs, because that’s half the battle.  We’ve got a Coverdell IRA college savings programs that offer good returns while also being tax-deductible.  Getting to $250,000 might seem like a pipe dream, but saving even a little every month can add up quickly, thanks to compound interest.

Next, let’s find a way to save money on school while helping your child now. There are a lot of ways to encourage a gifted child, from tennis camp to musical instruments.  If your child wants to stare at the Internet all day, maybe you should talk to them about a new laptop and some software engineering classes for kids.  If they like the outdoors (or you’d like them to go outside occasionally), try a digital camera.  All of these ideas cost money now, but could result in scholarships down the road, all while giving them a head start on a career or passion they can follow their whole life.  If you’re wondering how you can pay for all of that, check out our savings accounts.  You can contribute a little money every month, and you’ll have enough for those classes or that camera before you know it.

Your home is your biggest investment.  When was the last time you checked up on it?  When you bought your house, it might have been the best available house in the neighborhood for the price. After all, if it weren’t, you would have bought some other house, right?  Is it still the best in the neighborhood for the price?  Is the neighborhood still regarded the same way by home buyers?  How do you know? This weekend, it’s time for window shopping. Take the value of your home from your last appraisal and check the Internet for houses in your area in the same price range.  How does your house stack up? Make a list so you can compare between houses.  Next, check your decor. When you moved in, did the house feel a little dated?  Did you do anything about it? How many of the houses you saw online seemed newer or more fashionable? 

After you finish your house hunting, you’ve got three options:  If you saw a house that you like as much as the one you’re in now, but it’s going for less money, you could think about moving there.  After all, mortgage rates are incredibly low for the time being, and if you could be just as happy in a less expensive house, then that’s money you could use on something else.  If your house is as good or better as the others in the neighborhood, but could use a facelift, you might want to think about remodeling.  Remodeling your home can increase its value and make it easier to find a buyer, so part of what you spend now may come back to you when you sell, with the added benefit of living in a nicer house in the meantime. Finally, if your house is still the best around, think about refinancing while rates are low.  You’re probably not going to find fixed rates this low for a long time (if ever), so locking in that lower rate now can save you tons of money going forward, while cashing out some equity can help knock down any pesky credit card debt you need to take care of, so you only need to write one check every month, while paying far less in interest.

Brought to you by Destinations Credit Union

New Year’s Resolutions

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By the end of January, many of us will have forgotten all about our New Year’s resolutions. It can be difficult to change our lives, even when it’s for the better. Knowing this, we want you to know that, in your financial life, there are changes you can make today that will last the entire year. Here are three resolutions you can set today and some follow-up goals for the rest of the year. 

Today:  Save money automatically.  If you want to improve your net worth, build financial security or make a big purchase at this time next year, the easiest way to do so is simply to automate your savings. You can set up an automatic transfer to savings so you won’t be tempted to spend it. With many of our savings products, you can even access the money if an emergency arises. 

Later:  Set up an emergency fund.  How much do you have set aside for a rainy day or to cover the unexpected?  If an emergency came up, would you have to sell investments, cash in your retirement or borrow from family?  Make this the year for setting up your emergency fund.  You’ll eventually want to have at least six months of income put aside where you can get to it. for now, start with $1,000, a month’s income, or whatever feels realistic.  It might be difficult to get in the habit of saving money, but this is the resolution you’ll be really happy you kept if something unexpected happens. 

Today:  Pay down your debt.  If you’re struggling with debt, there are three basic solutions for paying it down, getting your payments under control and getting ahead of debt.  You can make more frequent payments, pay more each month or lower your interest rates. 

Paying more frequently makes sense if you get paid every two weeks: You might already know about the advantage of bi-weekly payments, which let you make the equivalent of an extra monthly payment every year.  If you’re already doing that or you don’t get paid on a weekly schedule, you can also increase the amount you pay every month. Even an extra $25 per month is $300 per year, and you can set up those payments automatically. Make sure you increase your payments the most on the bills with the highest interest rates first, even if they don’t have the largest balances. 

Finally, you can get ahead of your debt by lowering your interest rates. You can call the creditors who are charging you the highest interest rates and pay the bill, transfer the balanceto a credit card or loan with a lower interest rate, or see if they’ll offer you a lower rate due to improved credit. One way to make this work is to arrange a home equity loan at a lower fixed rate, then move your balances with the highest interest rates to the loan. 

Later:  Get control of your spending. It’s time to make a budget and stick to it. Build rewards into the budget so you’ll actually be happy to follow it. Take a look at what you use your credit cards to buy, then budget at least some money for those items or activities. You’ll never keep a resolution like “stop eating out,” but you have a good chance of keeping a resolution like “don’t go over the eating out budget.” This also gives you 12 chances to succeed: Every month you can do better than the month before. 

Today:  Make a drawer.  Many of us who have had the misfortune to act as the executor on a loved one’s estate have had the terrible task of finding all the savings, debts, insurance policies and other financial parts of their lives.  Don’t do this to whomever is taking over your life. Empty a drawer in your kitchen or study and put as many relevant documents in it as you can find.  Make a list of everything in the drawer and everything that’s missing. Put a copy in the drawer and another with your will so it’s as easy as possible for the grieving individual in charge. As with any sensitive, personal data, keep this information in a safe place that only you and the likely executor(s) of your estate will have knowledge. 

Later:  Fill the drawer. What’s missing from the drawer? Do you have a will? How much life insurance do you have?  Do you have enough savings to take care of your children? What about a plan for how they will receive that money? 
Talk to a financial planner and insurance specialist to make sure you’re set. With any luck, 2016 won’t be the year you need it, but if it is, it’ll be better for everyone involved if there’s a plan.
And that’s it … three things to do today and three projects to complete during the year.  None of them are out of reach, so you’re setting yourself up for success by making resolutions you can keep.

Was There A Credit Union At The First Thanksgiving?

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Was there a credit union at the first Thanksgiving?

The short answer is no, there was not. The first Thanksgiving occurred in 1621, which was 150 years before the creation of the first credit unions. In fact, the first modern financial institutions wouldn’t reach the country of the Pilgrims’ origin until the middle of the 17th century.  However, the Pilgrims did believe in many of the principles that would come to define the credit union movement that swept the globe in the 19th and 20th centuries. 
The Pilgrims wanted to work together as a community.
While the extent of the religious persecution endured by the Pilgrims is a matter of debate, it is clear that they were united by a sense of community and togetherness.  Convinced they couldn’t maintain the values that most mattered to them if they stayed in England, they risked life and limb to cross the ocean, hoping to build better lives for their families.
That’s really the basis for credit unions.  We believe that, if we work together, we’ll all be better off. Destinations Credit Union is made up of members and employees that live in our community.  We work together and our kids play together.  There’s a good chance that, if it’s snowing on you, we’re shoveling our driveways, too. 
The Pilgrims were unsatisfied with a financial system that took away their power. 
When the Pilgrims wanted to travel to the New World, it was a difficult and expensive task.  A group who wanted to leave Europe would need to find an experienced captain, which was no easy task at a time when crossing the Atlantic took months and often killed those foolhardy souls who were willing to take on the challenge.  Then that group needed to pay the crew, save enough food and supplies for the journey and pay all sorts of taxes and fees.  In order to come up with enough money to make the trip, they couldn’t just get pre-approved online. There was no “online” or “pre-approved” or even a financial institution.
Instead, loan decisions were made by the King or a few incredibly wealthy individuals.  In today’s context, it would be like getting a small loan to start a business but your only choice of lenders were Barack Obama or the owner of your nearest NFL team.  The Pilgrims were denied a charter for a new colony by King James I, so they had no choice but to seek out the wealthiest individual they could find.  In their case, they secured a loan from Thomas Weston to pay for the trip.
Credit unions were first formed for the same reason.  As a drought ravaged parts of Switzerland, Austria and Germany, few banks were willing to extend loans to farmers who were unlikely to be able to repay the debts.  Of course, that meant that the drought turned into a famine, as farmers who have no food to sell and no capital to buy seeds have little chance to make money, which means they had no opportunity to buy food.  The first credit unions extended loans to these farmers, saving their communities from starvation.  Suddenly, people realized that they didn’t have to be powerless in the face of super-rich individuals who didn’t have their best interests at heart. 
They could have used a much better loan 
We all learned in grade school that the Pilgrims carried all of their possessions with them, and the historical record confirms that the passengers on the Mayflower were very poor, even for 17th-century colonists, a particularly poverty-stricken lot.  So, how on Earth did they secure the loan to head to the New World?  It was pretty ugly.  The terms of the loan were seven years of indentured servitude.  They wouldn’t make any profit or own any land for seven years, at the end of which half of the land would revert to Weston and the company to whom he sold shares in the Mayflower voyage.

At Destinations Credit Union, we don’t have shareholders, we have members.  We are not driven to generate profits for the pure sake of looking good on a quarterly report or justify embarrassingly large bonuses that mega-bank executives award themselves.  The money generated by your credit union is put into lowering the interest charges on your loans, reducing fees, enhancing our technology and more. You’ll never get a loan from us that you’ll end up regretting. 
The Thanksgiving feast was a celebration of the credit union spirit 
Of course, Thanksgiving isn’t just about Pilgrims.  We know a lot more about them than we do the native people with whom they shared dinner that November, but it was the feeling of community and well-being that brought everyone together.  While the history of the settlers and the natives would take a very dark turn later, for one night, it really looked like people choosing to help people was the basis on which the groups would work together forever.
This Thanksgiving, between the turkey and the football, we hope you’ll reflect on the spirit of the day. It’s a great time to think about your community and everything for which you’re thankful.  We’re thankful for all of you.  We exist to serve a community, and we’re thankful to do good work for the people we know and love.  We’re thankful that somewhere in our history, we all chose to come together and help each other, even if most of us didn’t make it to these shores for several centuries after that first Thanksgiving.
Happy Thanksgiving.
Sources: 
http://www.history.com/topics/thanksgiving/first-thanksgiving-meal  

http://www.travelinsurancereview.net/2010/03/17/how-did-the-pilgrims-finance-the-trip/  

http://www.history.com/topics/pilgrims  

http://www.history.com/topics/mayflower-compact  

The Financial Lessons Of Donald Trump

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Over the last 30 or so years, only a handful of people have entered pop culture simply because of their wealth. We know Warren Buffett, although he’s more famous for investing than he is for being rich.  Bill Gates is famous for being rich in many ways:  He’s referenced online in various scenarios revolving around the mathematics of his wealth — people calculate how much money he’d have to find on the street to make it worth his time to pick it up.  But Bill Gates is rich because he co-founded Microsoft and his philanthropic efforts ensure he will be remembered forever in a way that someone famous solely for being rich would not.  Therefore, there are only a couple of pop culture figures who truly are famous because of their riches:  Paris Hilton and Donald Trump. 
This article is about the financial lessons of famous individuals, so we’re going to ignore Paris Hilton, if only because the first rule would be “be born rich” and rule two would involve sacrificing every part of your humanity for fame.  Trump, however, is currently running for president of the United States, and the reason he has become part of the national conversation about the most important office in our country is the notoriety he has earned in the last 30 years for being rich.  So, what lessons can we learn from Trump’s personal biography that can help the rest of us reach our goals? 

Stick to your guns – Whether you plan to vote for him or not, Donald Trump’s career has been trending up for nearly three decades.  Not every famous person can run a reality show, not every reality show goes on to become incredibly successful, and even fewer can turn their reality show notoriety into a political career.
Trump attracts attention and popularity by speaking in bold declarations, whether that’s on TV or during political debates.  He sticks to his guns by following a path that only he can see.  How many commentators thought he wasn’t serious about the presidency?  How many still do?  You don’t have to agree with him to understand that absolute certainty is a kind of charisma, and faith in oneself is an absolute necessity to getting rich.  How many great ideas have you had but never followed through on?  What about that great business idea you never pursued?  That project at work that you couldn’t sell to your boss?  Even when you’re wrong, believing in yourself carries a lot of gusto. 
Use someone else’s money – Trump, like many of the other famous-for-being-rich celebrities, was born with money.  In fact, just about every article about Trump’s money discusses the idea that he started with money and still had to file for bankruptcy, as if that were a sign that he’d made a mistake. In this country, we have a complicated system designed to assess risk and defray those risks throughout our system, which rewards risk takers and minimizes the negative outcomes of a mistake. Bankruptcy is sometimes viewed as part of that process, which is why so many European countries have modeled their bankruptcy procedures after ours.  We’re not suggesting you go bankrupt or put yourself in such a position.  Instead, we’re suggesting that Trump took a calculated risk using loans and investments to speed up the growth of his real estate business.  Understand your risks, and don’t be afraid of them.  Use loans and investments, not your savings. Loans – when handled responsibly – can help you start a business, increase the value of your home or go back to school. If you wait until you can afford it, you may never get there.  Let us know what you want to do, and we’ll find the loan that will help you get it done. 
Accept your limitations – Donald Trump continued to call for Barack Obama’s long form birth certificate long after the rest of the country was satisfied with the president’s documentation. When he offends people, he doubles down instead of apologizing. Perhaps nowhere does he teach us the lesson of not accepting limitations better than his hair.  Like many men of a certain age, he’d be better off bald than trying to hide his hairline. 
First, it might be time for an honest look in the mirror.  Second, it’s time to identify your strengths and play to those instead of compensating for your weaknesses.
Don’t be Donald Trump’s hair.  If you take nothing else from this article, maybe that should be it. You need an honest friend who can tell you you’re not hiding your weakness and help you figure out a better solution, like a trip to the salon. 
Whether you need help supporting your million-dollar idea, a loan to build up your investment in your home or an honest friend who can show you where your portfolio is weak, let us know.  We’ve got professionals ready to help. 
Please note:  Destinations Credit Union does not endorse any political candidate as an organization.  The intent of this article is to look at personal financial issues.

Straight Outta Excuses: The Financial Lessons Of Dr. Dre

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With “Straight Outta Compton” being the box office surprise of the summer and a new studio album filling America’s iPhones for the first time since before iPods were invented, Dr. Dre is experiencing a late-career renaissance. While rappers’ careers are notoriously shorter than almost any other group of musicians, Dr. Dre is relevant for the fourth consecutive decade.  Perhaps even more surprising than his prolonged musical success is his financial success. With the 2014 sale of his iconic Beats headphone company for $3.2 billion, his share of the company vaulted him into uncharted territory: He claims to be rap music’s first billionaire.


Let’s take time to examine Dr. Dre’s personal narrative and see what lessons we might glean, because no matter who you are while you’re reading this, you almost certainly started with more than he did and currently have less. We could all use a prescription from this doctor.

Pursue your goals with drive and clarity.  One of the themes of Dr. Dre’s life is that he has followed his own vision, no matter what other people are doing. The biggest rap acts when Dr. Dre started were flashy pop-infused showmen like MC Hammer and Vanilla Ice, but he wanted to make serious music about the world he experienced. When he backed Eminem in the late 1990s, the idea of a white rapper was seen as a novelty, but Dr. Dre ignored appearances in favor of his faith in his ability to identify talent.  In each case, Dr. Dre believed in himself, understood what his goals were, and did what needed to be done.  

What are your goals?  Do you want to retire to the beach?  Do you want to ditch the rat race?  When you pass that billboard with the giant Powerball payout, where does your mind wander?  Let us know. We have ways to help get you there.  We may have expert advice because we’ve been there before.  Don’t be embarrassed if you think it’s crazy: It was crazy for Dr. Dre to get a local criminal, Eazy-E, to bankroll his band, but it was still the right move.  Let Destinations Credit Union be your Eazy-E (without the criminal background, of course).  Step one to your goals is call or e-mail us.

Be careful who you trust with your money.  One person who never comes out looking well in the Dr. Dre story, whether in Straight Outta Compton, Behind the Music, or even the US legal system, is Suge Knight.  The erstwhile villain of the film’s second act, Knight’s character uses violence and intimidation to force Dr. Dre to move on from his record deal with almost nothing.  Less violent is the film’s depiction of Jerry Heller, but the fictional version of N.W.A.’s manager is portrayed as similarly unscrupulous.  Everyone seems ready to steal Dr. Dre’s money.

Even among friends, money can make enemies.  The infamous early-1990s feud between Eazy-E and Dr. Dre had deep roots in questions of trust and money that poisoned the shared bond between N.W.A.’s most famous members.   

Who do you really trust with your money?  We all have people close to us to whom we might “lend” money without ever expecting it back, but how many people would you trust to hold your next mortgage payment for a few weeks? Bonds of friendship and family often fall apart when it comes to money.   As your credit union, we know you’ve put your faith in us to take care of your money.  You already know we exist by the members and for the members rather than a board of executives or stockholders, but it’s worth the reminder that our model was built to make sure you have someone you can trust.  We promise to live up to that trust every day.  

Own something that matters to you.  Dr. Dre didn’t get rich working for someone else.  Dr. Dre got rich making his own label, signing his own acts, then doing it all again.  Without releasing an album between 1999 and 2015, he still made a fortune by owning the label that released albums by Eminem, among others.  He didn’t earn his mega-wealth endorsing Beats headphones; he owned a large chunk of the company.  

What do you own?  Do you own your home?  Do you own a business? Do you own a share in your success?  Risk can be scary, and hanging out a shingle can be risky. But in exchange for risk, you are entitled to the fruits of your labor, and those can be fantastic.

If you want to own something that matters and set goals based around your family, you can offer them a home that is safe, comfortable and inviting.  You could take steps to improve the curb appeal of your house, to make your home easier to sell if you pass, add a movie room to transform those Saturday night Netflix sessions into unforgettable family experiences, or even buy a pair of Jet Skis to entice the grandkids.  You can check out our fantastic home equity rates.

Dr. Dre has been part of our lives for so long that we don’t really think about him much.  In a lot of ways, we forgot about Dre.  But his story is really extraordinary, and if we take a few minutes, we can probably learn some lessons from him for our personal financial health.

Sources:
http://www.businessinsider.com/beats-by-dre-almost-never-happened-2015-8

http://www.dailymail.co.uk/news/article-3209565/Straight-Outta-Compton-wrong-says-man-created-NWA-band-s-manager-says-film-s-hero-Dr-Dre-broke-black-Beatles-Ice-Cube-joined-Suge-Knight-used-death-threats-help.html