Tips to Help You Pay Bills During Inflation
Inflation is causing a rise in prices across the nation. From the food costs to utilities to that cup of morning Joe that we can’t give up, the amount we are paying continues to go up – for everything – and there’s no immediate relief in sight. Many people are struggling because of it and turning to their credit cards to help pay their monthly bills and everyday expenses. But, with interest rates on the rise, using your credit cards without paying off the balance each month, will get you into deeper debt in the long run.
If you have found yourself becoming more dependent on using credit cards to pay bills, we’ve got some tips to help you make smarter money decisions so you can see immediate results and set yourself up for greater success in the long run. Ready to live your life with fewer money worries? We’re totally here for it!
Tip #1
Pay off your high-interest credit card debt. You’ve heard it a million times, right? Of course you have, because it’s one of the quickest ways to see an immediate savings in your bank account! There are several ways to help you pay it off:
- Transfer balances to a zero-interest credit card so the payments you make go toward the principal and not to pay for interest.
- Consolidate high-interest credit card debt with a personal loan. The interest rates on a personal loan from Rock Valley Credit Union will likely be much lower than the interest rate on your credit card.
- Take a loan out on your vehicle with an interest rate as low as 2.99%*. According to LendingTree.com, the average credit card interest rate in America today is 21.5% – the highest since LendingTree began tracking rates in 2019.
- Consider taking out a home equity loan or a home equity line of credit (HELOC). If you have a lot of high-interest credit card debt, and you’re a homeowner with built-up equity, you could benefit from a much lower interest rate on the sum you borrow than what a credit card company would charge.
These options can help you drive down your monthly payments immediately, so the savings should be put in a high-interest savings account and used to pay off any outstanding debt and bills.
Tip #2
Monthly bills bringing you down? While you’re working to consolidate and pay down debt, consider picking up the phone and calling those you do business with. For example, contact your cell phone provider or insurance company and ask for relief. You might even discover other plans that better accommodate your needs and cost less.
Tip #3
Use cash to pay bills and everyday expenses. This includes using personal checks, a debit card, or just straight hard cash. First, track your income and compare that to your monthly expenses to determine if you need to cancel subscriptions, change spending habits (too many drive-thru meals?) or if you just need to rework your budget.
Tip #4
Ask for help. Managing money isn’t easy, so don’t be afraid to find support. At Rock Valley Credit Union we have a team of certified financial coaches who can work with you on your unique situation and provide you with tools and resources to get you on a better financial track.
We also have free, online money management resources available right at your fingertips. For more about our Banzai! and GreenPath financial wellness programs, click here.
Our Rock Valley Credit Union team is here to help! If you need additional assistance or want to schedule a time to meet with a certified financial coach, send us a message in our chat feature during regular business hours, complete our online form or call us at (815) 282-0300
*OFFER NOT AVAILABLE ON EXISTING RVCU LOANS. OFFER IS FOR NEW LOANS ONLY. MAY NOT BE COMBINED WITH ANY OTHER OFFER. OFFER SUBJECT TO CHANGE WITHOUT NOTICE. RATES DISCLOSED ARE EFFECTIVE AS OF JUNE 16, 2022. 1. APR = Annual Percentage Rate. Credit approval required. Your APR may vary based on creditworthiness, loan amount and term of loan and vehicle. A $35,100.00 loan at 2.99% for 60 months would require 59 monthly payments of $630.55 and a final payment of $628.98, finance charge of $2,732.70, for a total of payments of $37,831.43. The amount financed is $35,100.00, the APR is 2.99%. 2. Credit approval and initial $25 deposit required. Federally insured by the NCUA.
