GCS Credit Union

Common Retirement Account Mistakes

As life expectancy increases, so does inflation, which means that current retirees need to have more money saved than their parents did, and their children will need even more. People can now live two or even three decades after retirement if they are in good health, and they will need to budget accordingly so that they don’t have to live in increasing poverty as they age.

Some common financial mismanagement mistakes that people make with their retirement accounts include withdrawing too much money before actually retiring, mismanaging inherited or rolled over IRAs, and forgetting about existing 401(k) accounts from previous employers.

Planning for retirement can be a confusing, time-consuming process. A financial planner can help you manage your retirement and create concrete, achievable financial goals so you can enjoy your golden years. To speak with a retirement services representative, call GCS Credit Union today at (618) 219-8600. 

Using a Personal Loan to Deal with Credit Card Debt and Expenses

Because credit cards often come with high interest rates, buyers often end up paying much more than the original price of the items they charge, especially if they only make the minimum monthly payment. If you have a large amount of outstanding credit card debt, you may wish to consider taking out a personal loan to essentially refinance that debt, or to make a large purchase without increasing the outstanding balance on your card. In order to successfully implement this financial strategy, follow the tips below.

Consolidate Your Debt
Using a personal loan to restructure your credit card payments can be especially helpful if you have outstanding balances on more than one card. Rather than keeping track of various monthly payments that are due on different dates, you can use the money from the loan to pay off all the cards completely, then repay the loan in one convenient monthly payment.

Look for Lower Interest Rates
Average credit card interests rates hover around 15%. If you have a good credit score, you may be able to secure a much lower interest rate for a personal loan, especially if you apply at a financial institution such as a credit union instead of at a large bank.

Don’t Run Up the Balance on Your Credit Cards Again
In order to ensure that the loan has a positive overall impact on your credit score, make sure that you keep the balance on your credit cards low while you are paying the loan off. Keeping the credit cards open and building your history will have a positive impact on your credit score—just make sure you keep your purchases small and pay the full balance off each month.

If you are considering restructuring your debt, or if you simply need money to make a major purchase, call GCS Credit Union today at (618) 219-8600. One of our financial professionals can help you take out a personal loan with a term and a rate that will fit your budget. 

Use Mint.com's Trusted App to Get Help Managing and Budgeting Your Finances

Keeping track of your savings and spending can quickly become very confusing, especially if you have multiple checking accounts and credit cards. It’s very easy to spend more than you should, especially on little purchases that add up like lunches out, morning cappuccinos, and other incidental, everyday expenses.

Download Mint.com Personal Finance for your iPhone, and you can consolidate all your financial accounts in one easy-to-read app. Mint can even factor in any loan debt and retirement accounts that you have, and keep track of your discretionary budget.

If you are searching for a reliable financial institution that you can trust with your savings, call GCS Credit Union today at (618) 219-8600 to discover the benefits of opening an account with 

A Parent's Guide to Helping Children Build Develop Responsible Savings Practices

Beyond instilling moral values in them from a young age, one of your main jobs as a parent is to equip your children with the skills they will need to live as independent adults. Financial responsibility is one of the keys to a successful life, so you should teach your kids how to budget and save from a young age. Even before you open a savings account for them, you can begin to teach your kids financial skills with the strategies below:

Provide Them with an Allowance
Even if they are too young to have a job, you can still show your kids how to budget on an income by providing them with a weekly allowance. Some parents like to make their kids perform household chores such as doing the dishes or cleaning their rooms in exchange for allowance money, but others feel that chores should be a family duty independent of financial concerns.

Let Them Learn From Their Mistakes
Parents sometimes try to micromanage their kids’ budgets, but one of the ways that children learn good financial habits is by making mistakes. For example, if your child wishes to spend $10 on a giant ice cream sundae on $30 on an expensive toy, allow her to make the purchase and evaluate on her own whether the temporary gratification was worth depleting her savings account.

Open a Checking Account for Them
Sooner or later, every kid will have to outgrow the piggy bank and learn about interest. Once your child has amassed a small savings in coins and bills, you can take her to the bank and have her open an account. It’s a good idea, however, to wait until your child is high-school aged before providing her with a debit card.

GCS Credit Union can help you teach your child financial responsibility by allowing you to open a savings account for him or her. We also offer a wide range of financial services for adults, including mortgages and auto loans. To speak with one of our friendly team members, call (618) 219-8600 today.

Consolidated Personal Loan Basics

Borrowers who are making several payments per month on different loans and debt obligations may wish to consider merging all debts into a single consolidated personal loan. This can considerably simplify the repayment process, and may result in a lower overall monthly payment. Also, the fewer bills you have to keep track of, the less likely it is that you will miss a payment and accrue late penalties and added interest.

When consolidating your debt, you will take out a loan that is enough to pay the full balance on all your other outstanding loans at once. Then, you will pay back the principal and interest at one rate, to a single lender. As you make payments, your credit score will also improve rapidly. Having all your debt consolidated into one payment will also make it easier for you to calculate when you can afford to make more than the minimum payment.

You can apply for a personal loan to consolidate credit cards and other forms of debt by calling GCS Credit Union today at (618) 219-8600 and speaking with one of our helpful staff members today.