Unlock Summer Fun Without Emptying Your Wallet

Summer can be a time for fun, relaxation, and making memories. However, it can also be an expensive time of year with vacations, activities, and increased utility bills. By being mindful of your spending and implementing some smart strategies, you can enjoy all that summer has to offer without draining your bank account.

Budgeting and Planning

  • Create a Summer Budget: Before summer begins, take a good look at your finances and determine how much you can realistically allocate for summer-related expenses. Factor in any vacations, day trips, entertainment, potential higher utility costs, and any summer camps or activities for children. Just a little bit of planning can go a long way!  
  • Track Your Spending: Once you have a budget, keep track of where your money is going. This will help you identify areas where you might be overspending and allow you to make any adjustments as needed. You can use budgeting apps, spreadsheets, or even a simple notebook.
  • Plan Affordable Getaways: Summer vacations are a highlight of the year for many, but they don’t have to be extravagant. Consider budget-friendly destinations, explore staycation options in your local area, or travel during off-peak times to save on flights and accommodations. Look for deals on hotels and activities well in advance.
  • Take Advantage of Free Activities: Many communities offer free events during the summer, such as outdoor concerts, movie nights in the park, and festivals. Check your local listings for free entertainment options. Parks and recreation centers often have low-cost or free programs and activities.  
  • Pack Lunches and Snacks: When heading out for day trips or activities, pack your own food and drinks instead of buying them along the way. This can save a significant amount of money, especially for families.

Saving on Everyday Expenses

  • Save on Cooling Costs: Warmer temperatures often lead to higher energy bills. Use strategies like closing curtains and blinds during the day to block sunlight, using fans to circulate air, and adjusting your thermostat a few degrees higher. Consider using smart thermostats to optimize energy usage. Regularly maintain your AC unit by cleaning or replacing filters. Try to run the AC in off hours (early in the morning or at night) to take advantage of cooler temps.  
  • Cook at Home More Often: Dining out can add up very quickly! Take advantage of seasonal produce and cook more meals at home. Plan your meals in advance and make a grocery list (and stick to it!) to avoid impulse purchases. Consider grilling outdoors to avoid heating up your house.  
  • Look for Sales and Discounts: Keep an eye out for summer sales events, such as holiday weekend discounts and back-to-school promotions, for potential savings on various items. Many museums and attractions offer discounts for local residents or through daily deal sites.  
  • Reduce Transportation Costs: When possible, walk, bike, or carpool instead of driving alone. This can save on gas and reduce wear and tear on your vehicle. Check if local public transportation offers summer passes or discounts.
  • Utilize Free Entertainment Resources: Take advantage of your local library for free books, movies, and even events. Explore free streaming services or borrow DVDs instead of going to the movie theater.  If you do go to the movies, go to the matinee whenever possible. Ask for student and senior discounts.

Smart Spending Habits

  • Differentiate Needs vs. Wants: Before making a purchase, especially on non-essential items, ask yourself if it’s a need or a want. Prioritize essential spending and be mindful of impulse buys. Then, direct any savings to summer fun. 
  • Use Cash Instead of Credit: For discretionary spending, consider using cash. This can help you stay within your budget and make you more aware of how much you’re actually spending.
  • Automate Savings: Set up automatic transfers from your checking account to your savings account at the beginning of each summer paycheck. Even small amounts can add up over time without you having to actively think about it.  
  • Review Subscriptions and Memberships: Take a look at your recurring subscriptions and memberships (e.g., streaming services, gym memberships) and cancel any that you don’t use regularly.  
  • Consider a Spending Cleanse: Before summer begins, try a “no-spend” week or weekend to reset your spending habits and identify areas where you can cut back.
  • Involve the Family:  Give small jobs to each member of the family for shared summer goals. Have the kids look for and save change, host lemonade stands, help neighbors with errands or lawn work for some extra spending money. 

By implementing these summer savings tips, you can enjoy the season’s activities and maintain a healthy financial outlook. Remember that even small changes in your spending habits can lead to significant savings over time!

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan by clicking Get Started Here:

GET STARTED HERE

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.

Federal Student Loan Collections Have Resumed – Act Now!

Federal Student Loan Collections Have Resumed – Act Now!

This is an important update regarding federal student loans. The pause on collections for defaulted federal student loans has ended.

What’s Happening Now:

Effective Monday, May 5, 2025, the U.S. Department of Education’s Office of Federal Student Aid (FSA) resumed collecting on defaulted federal student loans. This impacts over 5 million borrowers.

  • Treasury Offset Program: The government can now withhold federal payments, including tax refunds and Social Security benefits, if you have defaulted student loans.
  • Administrative Wage Garnishment: Later this summer, administrative wage garnishment will resume, allowing up to 15% of your disposable income to be withheld.

If You’re in Default – Act Immediately!

The FSA is urging all borrowers in default to take immediate action to avoid these involuntary collection measures. You should receive an email from FSA in the next two weeks with details on how to contact the Default Resolution Group. They can help you explore options like:

  • Setting up a monthly payment plan.
  • Enrolling in an income-driven repayment (IDR) plan.
  • Signing up for a loan rehabilitation program to get your loan back in good standing.

How Parachute Can Help (NY Residents):

For New York residents, Parachute offers free, confidential student loan counseling. Our counselors can help you understand your options, navigate the repayment process, and develop a plan to manage your student loan debt, especially if you’re in default. Contact us at (800) 926-9685 to schedule a session.

For those in other states, please visit StudentAid.gov for information on repayment options. You can also search for a local non-profit organization in your region that provides student loan counseling, such as those affiliated with the National Foundation for Credit Counseling (NFCC).

Taking proactive steps now can help you avoid serious financial consequences.

FREE June 24 Virtual Workshop – “Have a Blast on a Budget: Summer Savings Hacks”

Have a Blast on a Budget: Summer Savings Hacks   

NEW TIME!! Tuesday, June 24 from 6:00 p.m. – 6:30 p.m.

Don’t let rising temperatures lead to runaway spending! Discover smart ways to save on food, entertainment, and even your utility bills.

We’ll show you how to make small changes that add up to big savings. Unlock a summer that’s memorable and budget-friendly!

Register at: https://bit.ly/parachutesummer

Spread the word! Share the attached flyer with your employees, friends, family, clients – anyone who could benefit from these valuable tips.

See you there!

P.S. Don’t miss out on this FREE opportunity to take charge of your finances!

All workshop attendees will be entered to win a free Parachute appointment!

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.

Student Loan Delinquencies Surge, Threatening Credit Scores and Financial Stability

A new report from the Federal Reserve Bank of New York’s Center for Microeconomic Data reveals a sharp increase in student loan delinquencies, raising concerns about the financial health of millions of borrowers.

The report, which includes data updated through the first quarter of 2025, shows that after a five-year pause, student loan delinquency rates have returned to pre-pandemic levels. Nearly one in four borrowers (23.7%) with a payment due are now behind on their student loans. This surge is attributed to the expiration of pandemic-era protections that temporarily halted loan payments and reporting of delinquencies to credit bureaus.

The consequences of this rise in delinquencies are significant. The report highlights that borrowers who have become newly delinquent are experiencing substantial declines in their credit standing. Over 2.2 million borrowers saw their credit scores drop by more than 100 points, and over one million saw decreases of at least 150 points. This credit score damage will lead to:

  • Higher borrowing costs for future loans (auto, mortgage, etc.)
  • Difficulty obtaining new credit cards
  • Challenges securing housing and employment

The findings underscore the vulnerability of borrowers, particularly those over 40 and those with already subprime credit scores, who now face increased financial hardship due to these delinquencies.

“The resumption of federal student loan collections marks a significant and potentially destabilizing event for millions of borrowers who have already faced economic hardship. The end of this long-standing pause demands immediate attention and action from borrowers to understand their repayment options and avoid the severe consequences of default, including wage garnishment and the withholding of essential federal benefits,” says Noelle Carter, President & CEO of Parachute Credit Counseling.

For those facing student loan challenges, Parachute Credit Counseling offers free, confidential support. Our experienced counselors advocate for borrowers, helping them understand their options with the Default Resolution Group and assisting them in choosing the path that aligns with their best interests. For more information, borrowers can call 716-712-2060 or visit https://parachutecreditcounseling.org/.

From Chaos to Clarity: A Live Briefing for Student Loan Borrowers

We are excited to invite you to a FREE student loan webinar in collaboration with Education Debt Consumer Assistance Program (edcap) on Thursday, May 22, 2025 at 12:00PM ET!

Get the latest updates and expert advive to help you manage and eliminate your student loan debt. Plus, a live Q&A with student loan experts!

Together, we’ll go over:

  • An overview of student loan repayment options.
  • How Income-Driven Repayment (IDR) plans work.
  • Steps to qualify for Public Service Loan Forgiveness (PSLF).
  • Other forms of federal student loan relief.
  • The newest changes and developments in the federal loan system.

Please secure your spot and register at: https://www.zoom.us/webinar/register/WN_eZ4MPSKZSMuokRnYxdnKRw#/registration

If you’re in need of one-on-one advice and guidance regarding your student loan situation, Parachute is your resource for free student loan counseling https://parachutecreditcounseling.org/services/credit-budget-counseling/#student-loan-counseling Call us today! 716-712-2060

A Quick Guide to a Debt Free Life

Avoiding debt is a crucial step towards financial stability and peace of mind. Here are some practical strategies that you can begin to use right away.

Budgeting and Saving

  • Create a realistic budget: Track your income and expenses to identify areas where you can cut back.  
  • Build an emergency fund: Aim for 3-6 months’ worth of living expenses to cover unexpected costs. Emergency Fund Calculator: Calculate Your Safety Net (pnc.com)
  • Prioritize needs over wants: Differentiate between essential purchases and impulsive ones. Don’t confuse needs versus wants and don’t elevate wants to needs. 

Responsible Credit Card Use

  • Pay your balance in full each month: Avoid interest charges by clearing your balance completely.  
  • Limit credit card usage: Rely on cash or debit cards whenever possible.
  • Choose cards wisely: Look for cards with low interest rates and rewards that align with your spending habits. Read more at 10 Strategies to Avoid Getting into Debt | Central Bank

Smart Spending Habits

  • Cook at home: Eating out can be expensive; preparing meals at home saves money.  This is one of the top ways people report gaining traction with their savings.
  • Find free or low-cost entertainment: Explore your local parks, libraries, and community events.
  • Avoid impulse purchases: Take time to consider whether a purchase is necessary before buying. Wait at least 48 hours.  Read more at How to Identify and Eliminate Unnecessary Expenses (firstcomcu.org)

Long-Term Planning

  • Set financial goals: Define your short-term and long-term financial objectives. Think very specifically about what it is you truly want, when and how you can get there.  The more specific you are, the more likely you will succeed!  
  • Invest wisely: Consider retirement savings and other investment options.
  • Educate yourself: Continuously learn about personal finance and money management.

Additional Tips

  • Avoid payday loans and high-interest debt: These options can trap you in a cycle of debt. These are very short-term loans with very high interest rates.    
  • Negotiate bills: Contact service providers to discuss potential discounts or payment plans.
  • Seek professional help if needed: Credit counselors can provide guidance and support.  

Remember: Building a debt-free life takes time, consistency and discipline. Small steps can lead to significant results!

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 situation? Check out our Financial Counseling Session https://parachutecreditcounseling.org/services/debt-management/#financial-counseling or call 716-712-2060