Author: Lisa Robertson

Budget

Robby’s Budgeting Tips!

From time to time we like to share some of our staff’s suggestions on the best ways to manage your budget. Today we hear from Robby Dunn, Vice President of Counseling here at CCCS of Buffalo!

Robby’s Five Financial Budgeting Tips

  1. Create a balanced budget – This may seem like very simple personal financial advice, but the road to recovery from debt or the accumulation of savings begins with a balanced budget. This means that you have more money coming in than that is going out every month. Track your income and expenses for 30 days and find out if your budget is balanced!
  1. Consider viewing savings as an expense – Is savings an expense? Many individuals may argue that it is not as it is not necessary to save at all times, or every month. But, if you are saving, what are you putting those funds aside for? Home and Auto expenses? Vacation and gifts? Medical expenses? Those all sound like future expenses to us, and important ones at that! Perhaps if you view savings as an expense and make it a necessary item in your budget every month, your savings account may grow faster and you will be better prepared for what the future brings.

 

  1. Prioritize your “wants” – Make a list of all the monthly expenses in your budget that are wants and order them from top priority to the lowest. This can be a clear and concise way to determine what really is most important to you in your life, and what can be the first items to cut back on, or eliminate all together, in an effort to have an improved budget.

 

  1. “Meal prep” and pack your lunch – Meal prep has become a fancy new term often used by many athletes, body builders, and fitness competitors, but anyone can do it. Not only does it often lead towards healthier food choices, it is much more cost efficient. If you work Monday through Friday, use Sunday evening as a time to “meal prep” and make up to five lunches for the week in advance. Choose food items that will stay fresh and last the whole week like rice, pasta, beans, baked potatoes or sweet potatoes. Consider making a large batch of soup or chili that will last the week. Cooking in larger quantity always saves money and this will make it easy to pack lunches and avoid going out to lunch to spend up to $10 with relative ease!

 

  1. Remain optimistic! – Although at times it can be very difficult and stressful managing our personal finances, try and remain positive and optimistic. Life will throw many things at us, and in our financial lives many problems can arise. Think long term and big picture in order to weather the storm and get back on track.

To speak with a Certified Financial Counselor and receive guidance and recommendations on appropriate steps to take to improve your credit situation, please give us a call at (716) 712-2060. We are happy to help!

Debt, Student Loans

Most Medical Debt to Be Removed from Credit Reports; Student Loan Repayments Extended Until August 31st

CCCS Announces that Most Medical Debt to Be Removed from Credit Reports; Student Loan Repayments Extended Until August 31st

In a recent and welcomed policy shift, Equifax, Experian, and TransUnion announced that nearly 70% of current medical debt will be removed from credit reports, beginning this summer.

Millions of Americans are saddled with medical debt and the problem continues to grow. Studies from 2021 found that 37% of Americans had medical debt, while 23% did not currently have medical debt but had it in the past. The Consumer Financial Protection Bureau (CFPB) estimates that at this moment, some $88 billion in medical bills sits on 43 million credit reports. Equifax, Experian, and TransUnion Medical maintain reports on more than 200 million people in the U.S. Often, medical bills can be exorbitant and end up on credit reports, ruining credit scores and preventing people from accessing mortgages, car loans and even employment. Many of these people have paid their bills on time for their entire lives until forced into medical debt.

Expanding on their new policies, the three credit reporting firms have further stated that debt that was paid after it was sent to collections will be removed beginning this July. At the present time, even if these debts are paid off, they may remain on a consumer’s credit report for up to seven years. Under the companies’ new guidelines, new unpaid medical debts won’t get added to credit reports for a full year after being sent to collections—and unpaid medical debts of less than $500 will be removed in the first half of 2023. It is expected that the $500 threshold may rise.

These significant changes in the reporting of medical debt are likely due to the ongoing pressure exerted by the Consumer Financial Protection Bureau (CFPB), which earlier in March publicized that it would begin to hold credit reporting firms accountable for reporting erroneous medical debts.

The CFPB has also released research that indicates medical debt is less predictive of a person’s ability to repay than other kinds of loans.

The U.S. credit reporting system—including Equifax, Experian, and TransUnion—plays an inordinate role in determining who gets credit and who doesn’t. This is exacerbated by the fact that consumers have very little control over what is added to their credit reports which rely on information submitted by lenders, collections firms and others.

The CFPB said consumers submit more complaints to the agency about credit-report errors than any other problem and seldom receive any relief. They have made changes in the credit reporting system a major priority and the impact will be felt by consumers as early as this summer.

And while student loan forgiveness is still up in the air, the pause on student loan repayment has been extended through August 2022. Borrowers will not be asked to make payments until after Aug. 31 and interest rates are expected to remain at 0% during that period.

Anxiety was rising for many until the April 5th announcement of the extension of student loan repayments. Prior to the announcement, payments were planned to resume on May 1, 2022. For the past two years, most student loan borrowers have not been required to make payments on their balances and their interest rate has been frozen.

 

White House officials have repeatedly stressed that they would like to resolve the student loan forgiveness issue prior to the resumption of repayments, but discussions are still ongoing.

In a recent survey by the Student Debt Crisis Center, 92% of fully-employed borrowers are concerned about being able to afford their payments due to rising inflation. One in three borrowers claimed they’ve reduced spending on necessities like food, rent and healthcare in preparation for payments to resume.

With about 70% of college graduates leaving school with student loan debt, it is certain that student loans will continue to be part of the landscape for much of the WNY community. Last year, the average per person debt was $35,397 and the typical monthly payment–$393 per month. At current time, nearly 2.4 million New Yorkers have outstanding student loans totaling more than $90 billion combined.

Consumer Credit Counseling Service (CCCS) encourages anyone interested in reviewing their credit or looking for help navigating student loan repayments to contact them at 712-2060 or visit www.parachutecreditcounseling.org. CCCS is the only provider of student loan counseling in the region and has worked with hundreds of area residents struggling with all kinds of debt over the past several years.

 

Many individuals with credit card debt and/or student loans feel overwhelmed with anxiety and fear as they try to set up payment plans, with some falling prey to the abundance of unscrupulous companies claiming to help. CCCS specifically designed its program to meet the needs of this ever growing population segment.

 

CCCS can help with all financial issues and urges everyone to take positive action that will promote financial stability: For those interested in any type of help–call 712-2060 or visit www.parachutecreditcounseling.org  

Budget

Vacationing on a Budget!

Many individuals have varying financial goals, but often times an annual vacation or trip with family top the list of most.  Of course they don’t just happen with the snap of a finger. Vacations take financial planning, budgeting, savings, and research and creativity for finding affordable transportation, accommodations, and activities upon arrival. Vacations are well-deserved treats that are the result of hard work, and with the right preparation you should be able to enjoy it to the fullest without financial distress before, during, or after.

First and foremost planning for a vacation should start with setting an overall budget for the trip. This will allow to you determine how much you need to start systematically saving, ideally for several months up to a year in advance of the trip depending on the anticipated cost. The total cost can be the most difficult task to accurately estimate as you have to account for all expenses during your vacation, including and not limited to; Airfare and transportation, lodging, travel documents, food and groceries, dining out, entertainment, activities, local transportation expenses, souvenirs and gifts.

After you have determined your allotted budget for the trip, and most importantly begun saving for the adventure, it’s time to shop around for the necessary and most costly travel expenses; Airfare and Lodging.  One thing that appears not to be changing anytime soon is increasing flight prices.  With continued rising fuel costs, the era of cheap travel is over.  Although that doesn’t mean you can’t find an affordable flight, or perhaps even a “cheap” one at that. The best way to ensure that you do find an affordable ticket is by booking your reservation well in advance.  About 2-3 months in advance used to be plenty of time, but nowadays you will want to purchase your flight as soon as you know you want to go. Also, having some flexibility in your dates of travel can help reduce the cost. Flying on weekends is almost always more expensive, and if you can manage to travel on Tuesday through Thursday you will significantly reduce your cost of flying. You will also want to try and avoid holidays if possible as this is when many people are flying, which drives the prices up.

As for lodging, some of the same rules that apply to flying can be followed in order to find cheaper accommodations.  First and foremost though, you need to decide what level of quality lodging you want. Are you looking for somewhere that is simply clean and has a bed to lay your head at night and take a shower? Or are you looking for somewhere with big TVs, a luxurious pool, and a 5-star restaurant downstairs? Once you decide on the quality of lodging you would like you can begin your research.  In addition to standard lodging accommodations such as hotels and hostels, where you can find potential discounted rooms on websites such as www.priceline.com, take a look at options for renting from owners, such as www.VRBO.com (Vacation Rental By Owner) or www.airbnb.com. These could be great options for saving money, and staying somewhere that will fit your expectations. 

As for tips when you arrive at your destination, whether you are traveling locally or internationally, spending more time at “local” spots you will find that you take less of a hit on your wallet.  For example, you will find in Europe that most restaurants near tourist locations (parks, squares, museums, etc.) tend to have far more expensive prices, and likely a subpar quality of food.  Invest in a good guidebook of your choice, and learn some secret spots so you can go have fun with the locals…and save money. Happy travels!

 

Relief Programs

NYS Excluded Worker’s Fund has relief available, and CCCS of Buffalo can help!

Do you know anyone who is a cash worker or undocumented worker that lost income during the COVID-19 pandemic? The New York State Excluded Worker’s Fund helps these workers obtain the federal relief funds that they were left out of.

Consumer Credit Counseling Service of Buffalo is one of only three Western New York organizations selected by New York State to help individuals access financial help through the all new Excluded Workers Fund — the first of its kind in the nation.

The EWF officially began as of August 1st after its approval in the New York State budget this spring. It is a fund of approximately $2.1 billion and can provide benefits of as much as $15,600 per worker.

Applications for the EWF are available in 13 different languages and applicants are strongly encouraged to apply online. Applications will not be accepted by mail. 

To be eligible to receive benefits from the EWF program, applicants must show they:

  1. Lived in New York State before March 27, 2020, and continue to live in New York State;
  2. Are not eligible for and did not receive unemployment insurance or any other COVID-19 income relief or other specified benefits from the state or federal government;
  3. Earned less than $26,208 in the 12 months prior to April 2021; and
  4. Lost at least 50% of weekly work-related earnings or household income at any point in time between February 23, 2020, and April 1, 2021 due to total or partial unemployment, or inability or unavailability to work due to the COVID-19 pandemic or, became responsible for a majority of their household income due to death or disability of the head of household.

CCCS also offers credit counseling services and urges WNY residents to  contact them with their financial concerns at 712-2060 or www.parachutecreditcounseling.org. CCCS will assist individuals to attain financial stability and security.

Budget

Holiday Spending Plan

 

As the summer comes to yet another close, swiftly approaching is the holiday season. Have you started planning yet? Well… if not, you likely aren’t alone.  In less than 3 months a busy schedule lies ahead; Family gatherings and visiting relatives, attending parties and potlucks, entertaining the kids while they are eagerly home from school, and of course… shopping.  This should be the time of year to enjoy, and with the right planning, of both your time and your finances, you can have a great holiday season!

Like most successful endeavors, this will start with a detailed plan. Ideally this should happen earlier in the year; whether you are putting money aside in a savings club, or purchasing gifts intermittently throughout the year.  Perhaps that wasn’t the case this year but don’t worry! You can still have a great holiday season if you focus your attention on these 5 specific recommendations and tipsto maximize your dollars:

Make a list, and check it twice. Determine the amount you want to spend on each and every person, no matter the price of the gift. Carry the gift list with you so you can keep track of your purchases. This will help to limit your purchases to what you initially planned and eliminate any impulse spending. Don’t give in to discounts and sales if it means you will go over your allotted budget. 

Tame your expectations. This does not mean you have to sacrifice or leave people off your gift list, but more of in-depth look at your current personal financial situation to see what you can comfortably afford. Perhaps you have to reduce the amount you normally spend on your children, your spouse, or your best friend.  You shouldn’t feel bad, as almost certainly your loved ones wouldn’t want you feeling unnecessary financial distress over a few gifts.  If you have children, you can also use this as an educational experience by helping them better understand the importance of family budgeting.

Get creative. Nothing is better than receiving a gift that someone put thought and effort into, and the best way to create that gift could be by making it yourself. This could be artwork, pottery, custom-made playlists, photo albums, or something sweet you whipped up in the kitchen. You could also simply spend quality time with a person by treating them to a concert, ball game, or a movie.  And never forget the emotional value of a hand written note or card.

Shop around.  There are many ways that you can shop in order to save money. If you are comfortable shopping online, you can often find great value through sales or online coupon sites such as Groupon.com.  If you feel it would be worth investing the time and potentially testing your patience to the limits, Black Friday and Cyber Monday could be great opportunities to net big savings. Keep an eye out for sales year round and take advantage…But only if it’s on your list. 

Don’t overextend yourself.  While you may be sticking to your list, you still need to make sure you are spending wisely. Pay with cash as much as possible, and if you absolutely have to use credit, limit to only one card. You don’t want to worry about paying off your past purchases into the following summer, as this could be the time that you are planning for the next holiday season!

Now and go out and execute your plan, and have yourself a wonderful holiday season!

Budget

Budget Friendly Staycation Ideas

 

We all need a break from work from time to time. How do you take some vacation time but not get into debt or throw your budget off? The answer for many of us is to take a “Staycation.” You can have a good time by staying close to home or being a tourist in your own town!

Staycation ideas that won’t break the bank:

·         Check out local parks and trails to hike

·         Plan a backyard camping night

·         Have a movie night complete with snacks from the Dollar Store

·         Have a craft night with supplies from the Dollar Store

·         Wanting to have a swim? Check out local hotel deals for a cheap one night stay somewhere with a pool

·         Plan a picnic

·         Have a beach day if one is nearby

·         Have friends or family over for a potluck dinner

·         Plan a game night/day with cards or board games

·         See a matinee movie

·         Pick a recipe for a new food or cuisine that is not too expensive and make some new food at home

·         Have an at home spa/pamper day – give yourself a manicure, pedicure, face mask, etc.

·         Check out the local music scene – many restaurants/bars and other areas have free live music

·         Look for free events and activities in your area—Google “free things to do in your city”

·         Check out local museums or art galleries—many museums and galleries offer a free day once per month

The possibilities are endless! What budget friendly staycation ideas do you have to share?