The unexpected can happen, and when it does, your finances may be impacted. Take steps to protect your financial security.
Start an emergency fund.
According to the Federal Reserve, 40% of Americans say they cannot cover a $400 emergency expense. If you feel the same or your reserves are lower than you’d like, now is the time to begin putting away a set amount each week, no matter how small. Or, consider using your tax refund as the down payment on an emergency fund large enough to cover your expenses for a few months. Alltru has a great High Yield Online Savings account that makes for a perfect emergency savings account.
Develop a cost-cutting plan.
It’s time to think about ways to cut costs. Prepare and prioritize a list of your expenses now so you can be prepared to cancel non-essential expenditures quickly. If you aren’t traveling in your car every day to work, maybe you can cancel that music subscription. You can also freeze your gym membership for a few months to help cut costs as well. Learn how to create a budget.
Make sure you have credit available.
While you should be cautious about adding debt when finances are tight, it may be necessary to help bridge gaps between missing paychecks. A home equity line of credit, for example, can provide a ready source of cash in an emergency.
Refinance your loans.
Refinancing your mortgage, personal, or auto loans can help you save money over the life of your loan. Our members save hundreds (sometimes thousands!) each year through refinancing. Alltru frequently offers promotions like skipping your auto loan payments for your first 90 days. This is a great way to save money and free up extra savings by lowering your monthly payment.
Communicate with your Credit Union.
Most lenders will be more understanding if they know the challenges you are facing. If you think you may be unable to make a regular payment or need some form of assistance, please reach out to us immediately.
Stay in touch.
Circumstances change. Be sure to let us know when your situation changes. New information may help us help you. Communication is key here.
We are here for you and want to help you in every way that we can to protect your financial security.