Parachute Services Archives

Using Credit Wisely

Credit cards can be a powerful financial tool when used responsibly. They offer a convenient way to make purchases, build credit history, and earn rewards. However, they can also lead to significant debt problems if not used carefully. Here are some credit card essentials to help you use your cards wisely:

Understand your credit limit: Your credit limit is the maximum amount you can borrow on your credit card. It’s important to stay within your credit limit to avoid paying high-interest fees. In fact, creditors want you to use no more than 30% of your available credit. This is known as credit utilization. Doing this helps you raise your credit score, which helps you get better terms (e.g., lower interest rates) for future borrowing.

Make timely payments: Pay your credit card bill on time every month to avoid late fees and damage to your credit score. Aim to pay off your balance in full to avoid accruing interest charges whenever possible.

Pay more than the minimum payment: If you can’t pay off your balance in full each month, be sure to make more than the minimum payment. Double it, if possible. This will help you pay off your debt faster and save you money on interest.

Beware of fees: Credit cards often have fees associated with them, such as annual fees, late fees, and foreign transaction fees. Read your credit card agreement carefully to understand all the fees involved before applying for it.

Utilize rewards programs: Many credit cards offer rewards programs, such as cash back, points, or travel miles. Choose a card that offers rewards that align with your spending habits. Some people focus more on the rewards over their responsible usage of their cards. Be careful to not get too preoccupied with the rewards over your reasonable usage of your card.

Secure your card: Protect your credit card from theft or fraud by keeping your PIN and CVV number confidential. Shred old paper statements and keep your card in a secure place when not in use.

Monitor your credit report: Regularly review your credit report for any errors or fraudulent activity. Dispute any inaccuracies promptly. Remember, the only government authorized website is annualcreditreport.com. You can now check your credit reports weekly for free.

Budget your spending: Create a realistic budget to track your income and expenses. Use your credit card only for purchases you can afford to pay off in full each month. You don’t want to treat credit like it is an added source of income.

Avoid overspending: Don’t use your credit card to finance wants instead of needs. Stick to your budget and avoid impulse purchases that you cannot afford. Walk or look away from the item you want for at least 15 minutes and think about longer term, bigger financial goals you may have like a vacation, car or a house.

Consider a secured credit card: If you have a limited credit history or poor credit, consider a secured credit card. You’ll deposit a security deposit, which acts as your credit limit. Use the card responsibly to build your credit score.

Seek financial advice: If you have questions about credit cards or managing your finances, consult a credit counseling agency like Parachute for personalized guidance.

Remember, credit cards are a tool, not a source of income. Use them responsibly to maintain your financial well-being over time and to gain long term financial stability and avoid debt traps.

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/

Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your budget? Check out our Financial Coaching Session https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching or call 716-712-2060.

Budget, Parachute Services

Money and Relationships

Money can be a major source of stress and conflict in any relationship and often is quoted as the top reason for break-ups and divorces. Therefore, it is especially important to manage it carefully in romantic partnerships. Here are a few tips for managing money and relationships.

Communicate openly and honestly about your finances. This includes sharing your income, debts, and spending habits. It’s important to be upfront with each other about your spending habits and financial situation so that you can make decisions together and find ways to strengthen your financial future as a team. It can be uncomfortable and even embarrassing to share some aspects of our financial lives, but it will ultimately help empower you both to establish good money habits.

Create a monthly spending plan (budget) and stick to it. This will help you track your income and expenses so that you can make sure you’re living within your means. There are many different budgeting methods available, so find one that works for you and your partner. You could even try a blend of methods to help you reach those goals! Sound spending plans are the foundation for establishing financial stability and wealth building.

Set financial goals together as a united front. Do you want to buy a house? Save for retirement? Pay off debt? Once you know what your goals are, you can start working towards them together and potentially reach them faster. Place the goals in writing somewhere you will both see them regularly (e.g., on a mirror or refrigerator, on your cell phones).

Don’t make major financial decisions without consulting your partner. This includes things like buying a car, taking out a loan, or making a large purchase. Talking about these decisions before you make them can help to avoid conflict later. Think about if your partner made a major financial decision without consulting you and how you might feel. Remember the team approach.

Be respectful of each other’s spending habits. Even if you don’t agree with how your partner spends their money, it’s important to be respectful of their choices. If you’re concerned about their spending, talk to them about it in a calm and constructive way that stays centered on your shared goals.

Couple discussing money

Don’t let money problems come between you. If you’re having financial problems, it’s important to work together to solve them. Don’t blame each other or let your problems fester over time. Take action to address the issue before it gets bigger.

Seek professional help if you need it. If you’re struggling to manage your finances or communicate about money with your partner, a financial advisor, financial social worker, or a therapist can help.

Money can be a difficult and emotional topic to talk about as people most often feel a range of emotions such as fear and shame, but it’s important to have open and honest communication about your finances in order to maintain a healthy relationship. By following these tips, you can help to avoid conflict and build a strong financial foundation for your future together and also serve as an effective financial role model for your children.

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/

Budget, Credit, Debt, Parachute Services, Student Loans

Latest News: January 2024 Financial Update

Governor Hochul introduces legislation to protect New Yorkers from “bad actors” and medical debt;

New report highlights significant issues with student loan repayment after an unprecedented 3 year period

Parachute Credit Counseling Offers FREE Assistance and Counseling

Parachute Credit Counseling, formerly known as Consumer Credit Counseling Service of Buffalo (CCCS), is the Western New York region’s premier organization providing our community with the best strategies to master their credit. Today they announce a number of notable financial news items emerging this month. Along with these new items, Parachute reminds residents that beginning the new year with a financial “check up” is an invaluable service to their families and themselves.

Call 716-712-2060 or visit https://parachutecreditcounseling.org/ for more information.

The State of Student Loans

On October 1st, Americans resumed paying their student loans, after a 3 and a half year break in payments. Financial experts predicted issues with payments after such a long period, stating that about 20% of student loan borrowers had risk factors that indicated they could struggle when payments resume. These issues have been worse than predicted, confirmed when the Department of Education announced in December that nearly 9 million borrowers–roughly 40% of the 22 million borrowers who had bills due in October–missed their first student loan payment.

Outstanding student loan debt presently exceeds outstanding auto loan debt and credit card debt.

Earlier this month, the Consumer Financial Protection Bureau (CFPB)—the federal government agency that ensures that consumers are treated fairly by banks, lenders, and other financial companies—issued a report on the agency’s monitoring activities of federal student loan servicers since the restart of required payments. Per the CFPB, many borrowers are making their first payment ever on their student loan, and many are also navigating their loan repayment options, including options that allow borrowers to make lower payments based on a percentage of their income. The report discusses challenges faced by borrowers with respect to contacting their servicer, enrolling in alternative repayment options, and billing statement errors. According to borrowers, there have been many problems navigating loan repayment since restarting on October 1^st.

The CFPB pledges to work on this situation and to continue to carefully watch loan servicers and work with federal and state agencies to hold accountable those that violate laws protecting borrowers. The CFPB also has resources for student loan borrowers needing more information. Borrowers can also visit the Department of Education’s Federal Student Aid website for more information on restarting student loan payments. In addition, consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).

Parachute Credit Counseling recommends that borrowers contact their office to enroll in their free Student Loan Counseling program, available to all residents of the eight counties of Western New York. Parachute’s Certified Financial Counselors will help WNY residents consolidate their student loans and review other potential relief options and changes to existing programs available to help borrowers reduce or eliminate their debt as well as assist them in making payment plans. Call 716-712-2060 or visit https://parachutecreditcounseling.org/ for more information on our Student Loan Counseling Program and other financial counseling services we provide.

Proposed Consumer Protection Legislation

Governor Hochul has proposed a few pieces of new legislation designed to protect New York residents from unfair and negative business practices and from the all too common issue of medical debt.

Governor Hochul introduces consumer protection legislation

“Buy Now Pay Later” loans have become popular as a low-cost alternative to traditional credit products to pay for everyday and big-ticket purchases, but they remain unregulated and can charge hefty fees. Legislation proposed will require “Buy Now Pay Later” providers to get a license to operate in the state, and to authorize the New York State Department of Financial Services to propose and issue regulations for this rapidly growing industry.

The Governor has additionally called for increased protection measures that strengthen the state’s ability to enforce consumer protections and to penalize “bad actors”.

Governor Hochul introduces legislation to protect New Yorkers from medical debt

Medical debt is a critical issue for many, including over 700,000 New York residents who currently have medical debt in collections. Those with medical debt often forego necessary medical care and historically minimize important social determinants of health, including food, heat, and rent. Overall, this threatens the health and financial stability of New Yorkers. The proposed legislation will limit hospitals’ ability to sue patients earning less than 400 percent of the Federal Poverty Level ($120,000 for a family of four), helping to eliminate medical debt lawsuits filed against low-income New Yorkers. Per the Governor’s office, the legislation would also “expand hospital financial assistance programs for low-income New Yorkers, limit the size of monthly payments and interest charged for medical debt and implement other protections to improve access to financial assistance and mitigate the deleterious effects of medical debt on New Yorkers.”

Regional Bankruptcy Update

Bankruptcy rates up by 2.7%: first year-over-year increase for Buffalo since 2018

The Buffalo News recently reported a rise in bankruptcy filings, based on data from the federal bankruptcy court. According to financial experts at Parachute Credit Counseling, they have been seeing people with higher levels of debt which, coupled with higher interest rates, stagnant wages, and inflation can cause financial stress and instability. Bankruptcy can be attributed to some of these issues.

Parachute Financial Counselors assure the WNY community that, depite some environmental concerns, there are simple, proven techniques to facilitate economic security. Now is the time for borrowers to seek unbiased counseling.Parachute counselors will provide expert strategies for attaining financial stability including any financial assistance needed, from budgeting help to credit repair to buying a home. Call 716-712-2060 or visit https://parachutecreditcounseling.org/ for information on financial counseling services.

Credit, Debt, Parachute Services

Ways to Reduce Debt

Reducing debt can be a challenging task, but it is definitely achievable with the right mindset and strategies. Here are some effective ways to reduce debt:

Create a budget and track your spending: The first step to reducing debt is to understand your spending habits. Create a detailed budget that includes all of your income and expenses. Track your spending for a month or two to see where your money is going. This will help you identify areas where you have budget leaks and can cut back, if even on a temporary basis.

Pay more than the minimum payment: Paying more than the minimum payment on your credit cards can significantly reduce the amount of interest you pay over time. Even an extra $25 or $50 per month consistently can make a big difference, especially on high interest credit cards.

Prioritize high-interest debts: When paying off multiple debts, it’s important to prioritize those with the highest interest rates. This is because you’ll pay more in interest on these debts over time. There are two main strategies for paying off high-interest debt: the debt avalanche method and the debt snowball method. The debt avalanche method involves concentrating on paying off your highest-interest debt first, followed by the debt with the next highest interest rate and so on. This method may help you reduce the high interest charges. The debt snowball method is where you gradually pay off your debts, smallest to largest and gain momentum while doing so. As one debt is paid off, you add those funds to your payment of the next highest debt and so on. It snowballs!

Increase your income: One of the most effective ways to reduce debt is to increase your income. This could involve getting a second job, taking on freelance work, or starting a side hustle.

Reduce your expenses: There are many ways to reduce your expenses, such as cooking at home instead of eating out, canceling unnecessary or unused subscriptions, finding cheaper ways for entertainment, and reducing habitual habits like coffee/snacks and personal care practices like getting your nails done. Even changing these habits in the short term (6-9 months) can help.

Avoid taking on new debt: The best way to reduce debt is to avoid taking on new debt in the first place. This means using your credit cards responsibly and only making purchases that you can afford to pay off in full each month.

Negotiate with your creditors: If you’re having trouble making your debt payments, don’t be afraid to contact your creditors and try to negotiate a lower interest rate or monthly payment.

Consolidate your debt: If you have multiple debts with different interest rates, you may be able to consolidate them into a single loan with a lower interest rate. This can simplify your debt repayment and save you money on interest.

Seek professional help: If you’re struggling to manage your debt on your own, consider seeking professional help from a credit counselor at an agency like Parachute. We can help you create a debt management plan and provide you with additional guidance on how to reduce your debt. A debt management plan is a structured payment plan to repay your debts in full in five years or less, by lowering interest rates, minimum payments and stopping fees.

Stay motivated: Reducing debt takes time and effort, so it’s important to stay motivated. Set realistic goals and celebrate your progress along the way. Keep your eyes on your future goals and think about how good you will feel when your debt is reduced or gone!

Remember, reducing debt is definitely a journey, not a race. Be patient with yourself and the process and work to keep your focus on your end goal.

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/

Budget, Parachute Services

Post-Holiday Budget Hacks for the New Year; It’s Never Too Early!

Post-holiday budget planning is the process of getting your finances back on track after the holiday season. This can be a challenge, especially if you overspent. But, by taking some simple steps, you can get back on the right track and avoid financial stress in the new year. It can take some time to recover financially after the holidays, but consistency can make a huge difference over time. Be patient with the process and regroup for next year!

Additionally, reading this BEFORE the New Year of 2024 rings in can also be super helpful for this year’s holiday season.

Here are some tips for post-holiday budgeting:

Review your spending. The first step is to take a look at your spending and see where your money went during the holidays. This will help you identify areas where you can cut back in the future. You can use a spreadsheet or budgeting app to track your spending.

Pay down debt. If you overspent during the holidays, you may have some credit card debt to pay off. Make a plan to pay down this debt as quickly as possible to avoid high interest charges. Pay more than the minimum payments required, if at all possible. If possible, consider using all or part of any tax returns to pay down this debt.

Revise your budget. Once you have a good understanding of your spending and debt, it’s time to revise your budget. This may involve cutting back on unnecessary expenses or increasing your income, even if on a temporary basis. You may be back on track after a few months!

Set financial goals. Having financial goals will help you stay motivated. Some common financial goals include saving for a down payment on a house, retirement, or a child’s education. Really be specific with your financial goals to help them materialize. Write out those goals and look at them frequently.

Create a holiday spending plan for next year. Start thinking about your holiday spending for next year now. This will help you avoid overspending again.

Shop around for the best deals throughout the year. Compare prices at different stores and online before you buy anything. Consider dollar, thrift, and discount/liquidation stores.

Take advantage of sales and coupons. There are always sales, coupons and promo codes available, so be sure to check for them before you buy anything.

Take advantage of post-holiday sales. Many retailers offer discounts on leftover holiday merchandise after the holidays. This is a great time to stock up on items you need or want at a reduced price. Be sure to store them in a place you’ll remember!

Return unwanted gifts. If you received gifts that you don’t want or need, return them for a refund or exchange. This will help you get some your money back and/or buy things you actually need.

Regift items. You can regift items that you do not want or need. Keeping inventory of what gift you received from what person can help this be a successful plan from year to year.

Sell unwanted gifts or belongings. If you have unwanted gifts or belongings that you can’t return, consider selling them online or at a garage sale. This is a great way to declutter your home and make some extra money.

Cancel unused subscriptions. Take some time to review your subscriptions and cancel any that you’re no longer using. Be honest with yourself about what you are likely to use in the future. This could include magazine subscriptions, streaming services, and gym memberships.

Here are some additional tips:

Automate your finances. Set up automatic transfers from your checking account to your savings account each month. This will help you reach your financial goals without even having to think about it. Start with a small amount, if needed, and increase it as is feasible for you.

Use cash instead of credit cards. When you use cash, you’re much more likely to be mindful of your spending. People tend to spend less when using cash.

Review your insurance policies. At the beginning of each year, make sure you’re getting the best possible rates on your insurance policies. You may be able to save money by bundling your policies or shopping around for new providers.

Getting back on track financially after the holidays can be challenging, but it’s important to remember that you’re not alone. There are many resources available to help you, and with a little effort, you can get back on track!

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/

Parachute Services, Uncategorized

We’re Hiring a Financial Wellness Specialist!

We are excited to announce an opportunity to join the Parachute Team as a Financial Wellness Specialist. Please spread the word!

A Financial Wellness Specialist’s primary responsibility is to conduct counseling sessions with individuals and families regarding budgeting, debt and credit issues. A Specialist will provide financial education and guidance while recommending various educational and community programs in order to improve clients’ financial situations. Financial Wellness Specialist’s empower clients to take control of their financial lives, in an empathetic and compassionate manner, while always accounting for what will be in the client’s best interest based on the client’s unique situation. Financial Wellness Specialist’s also provide Counseling Intake support at the initial contact point for clients and all general incoming calls, requiring patience and positive energy. Financial Wellness Specialists answer incoming calls, direct calls, greet clients and guests in-person at reception window.

Qualifications:

Strong teamwork skills essential
Knowledge of computer applications, with proficiency in Microsoft Word and Excel
Excellent oral and written communication skills
Ability to multi-task
Must be able to work efficiently under strict deadlines/timeframes
Must attain educational certifications, as required
Position requires attention to detail and basic math/accounting skills
Prior case management and/or counseling experience helpful, or experience within Agency
Associate and/or Bachelor Degree preferred

About Parachute

Parachute is a non-profit, full-service credit counseling agency, providing confidential financial guidance, financial education, counseling and credit repayment assistance to consumers since 1965. Parachute helps consumers trim expenses, develop a spending plan and repay debts. Counseling is available at our Main Office in West Seneca, by telephone and online.

Hourly rate range for this position is $17.00 – $20.00. Individual compensation is based on various factors unique to each candidate, including skill set, experience, qualifications and other job-related reasons. We offer growth opportunities for professional development along with hourly pay increases. Other benefits include:

401(k) Plan
Paid Holidays
Paid Personal Time Off (PTO)
Life and Disability Insurance
Health Insurance
Remote work availability one day a week with supplemental throughout the year

Please send resumes to: robert.dunn@parachutecredit.org