Sometimes life can throw you a curve ball.  You’re going along, everything is fine, and then WHAM! it hits you.  Something unexpected now is taking over your life, time and finances.

Life is unexpected, but what can you do to lessen the impact of these events?  We’ve put together a few thoughts on this very topic.  Read on..

Emergency Savings Account

Most importantly, if you haven’t already set aside money in an emergency savings account, start today.  Having money set aside BEFORE anything bad happens gives you peace of mind and saves your wallet big time.

There are so many ways to start saving.  After opening a sub-savings account, one specifically for emergencies, why not try:

  1. Cutting back on buying lunch once or twice a week and put the money that you would have spent into a savings account.
  2. Setting up Save the Change! This allows you to save the “change” with each debit card purchase.  You can choose where you’d like your savings to be deposited.
  3. See if you can cut back on your cell phone plan, internet or cable packages.  Take that savings and put it right into your savings.
  4. Set up automatic transfers when you get paid.  You can pull out money right from your paycheck and plop it into your savings account without the temptation to spend it.

If you start today, you can build up an emergency savings account in no time.

HELOC (Home Equity Line of Credit)

It makes good financial sense to establish and maintain an available credit line before you need one, eliminating any wait time in case of an unexpected emergency. Having available lines of credit set-up prior to starting a home improvement project will give you the flexibility to pay for the costs as needed. Tapping into the equity in your home is a great low cost way to borrow and in some cases the interest may be tax deductible. A Home Equity Line of Credit (HELOC) is a great way to finance any home improvement or needed home repair.

Possible Uses for HELOCs:

  1. Unexpected home repairs
  2. Home improvement projects
  3. Educational expenses

Credit Cards

Having an available credit line on a credit card is a smart way to make on-line purchases and pay for travel expenses. Monthly credit card statements are a great way to track your purchases and you can choose to pay the balance in full each month or make low monthly payments until paid in full.  Available lines of credit with no or low balances and a good pay history will assist in maintaining or improving your credit bureau score.

Here at Day Air we offer two main credit card options. We offer the Visa Platinum Rewards card, which has a rate as low as 9.24% APR* and it gives you rewards for travel or merchandise.  Our other card option is our Visa Platinum Low-Rate card, which has rates as low as 6.25% APR* and has no annual fees.

There are many ways to use a credit card:

  1. Purchase retail items
  2. Travel expenses such as airline tickets, auto rentals and hotel expenses
  3. Purchase gas at the pump
  4. On-line purchases
  5. And of course, unexpected emergencies

When using credit cards, make sure you are aware of the rate, payment dates and any fine print.  Look for cards that are simple, offer low-rates, generous grace period limits, no hidden fees, and will not raise the rates after a promotional period.  (for example, our cards)

So, no matter what life throws your way, you can be ready by preparing today.  If you have questions, or would like more help, your credit union is here.  We want to help you succeed in your financial life, and that includes preparing for the unexpected.

So contact us today and we will help you hit that curve ball out of the park.

Abby Hall | Consumer Lending Manager

*APR = Annual Percentage Rate.<\span>