MEMBER: Can you tell me what I can expect to happen if my house goes into foreclosure?

CREDIT UNION: Well, let me first ask you this; are you having trouble paying your mortgage?

M: Not yet. But the holidays are coming up and my credit cards limits are starting to lose the wiggle room I used to count on. So, I’m thinking I’ll just skip my mortgage payment next month. Then, I can use that money for holiday expenses.

CU: You’ll what?

M: I know … it sounds crazy. But you heard right — skip paying the mortgage for a month, maybe two.

CU: (Sigh) You know I am going to have to break the news to you that going this route is never a good idea, don’t you?

M: I know, I know … foreclosure and all that. But tell me what I could expect to happen if I go this route.

CU: Whoa — let’s back up a second here. You’re looking for a way to cover your holiday expenses, right?

M: Yes.

CU: Well, there are much – MUCH – better ways to do that than skipping your mortgage payment!

M: Like what?

CU: First of all, you can try to scale back this year. Take a look at your list of holiday expenses and trim it as much as possible. There’s no need to go deeply into debt just to get through the holidays.

M: I can do that. But even after I cut back on my holiday spending, I’ll definitely have some expenses I can’t afford. Still need some cash. And the mortgage payment …

CU: OK, hear me out. After you cut your budget as much as possible, look into your options for finding the funds to pay for it all.

M: Like what?

CU: Well, for starters, you can take out a personal loan at Mutual Credit Union. Our personal loans feature low interest rates and a reasonable payback plan you can probably afford. You can also choose to open up a Mutual Credit Union credit card with a generous spending limit, but that might not be the smartest move if you’re already pushing your existing credit card limits.

M: I see. Well, the loan might work for this year, but I don’t want to fall into the cycle of taking out an annual loan for the holidays.

U: Mmm hmm. Smart. Paying for expenses with a loan means paying more for your purchases because of the added interest charges.

M: Is there any other way?

CU: Actually, there is. You can open a Mutual Credit Union Christmas Club Account to help pay for your holiday expenses.

M: A Christmas Club Account? What’s that?

CU: It’s a way for you to cover your holiday expenses in an affordable manner.

M: Through another account at the credit union?

CU: Yes, but this is one is built especially for the holidays.

M: How’s that?

CU: Your Mutual Credit Union Christmas Club Account is a savings account we created to help you better finance your holidays. You’ll contribute a little bit to the account throughout the year so that you’re planning ahead for these expenses instead of being hit with a mountain of bills each January.

M: So I keep this money in the account and add to it all year until the holidays?

CU: That’s right. There’s a penalty for withdrawing your funds more than twice in a twelve month period of time, so you’ll want to keep the money in the account until the holiday shopping season begins.

M: That makes sense.

CU: Yes, it does. A Christmas club account is a way for you to plan for the holidays responsibly.

M: It sounds amazing. My holiday expenses will be so much more manageable when they’re spread across the entire year.

CU: Exactly. And don’t forget the dividends!

M: Dividends?

CU: Yes. Instead of being charged interest by a credit card issuer or a lender for the privilege of borrowing to pay for your purchases, the money you save will earn dividends so it actually grows.

M: Wow! Why didn’t I think of this?

CU: That’s what we’re here for! The current APY rates on a Mutual Credit Union Holiday Club Account can be found by visiting mutualcu.org. Your money will grow just by being here.

M: Wow! Is there a minimum balance for opening a holiday club account?

CU: There is a minimum, but it’s very reasonable, at just $10. We understand that you’ll be saving up for the holidays all year, so you might not have a large sum to work with when you first open the account.

M: This sounds fantastic! I’ll be putting away money for the holiday season all year, and when it’s time to hit the shops, I’ll have the funds I need waiting for me in my Christmas club account. No more Santa shock in January! And my money will be growing all this time, too.

CU: Doesn’t this beat going into foreclosure?

M: You bet! Where do I sign up?

Interested in opening a Christmas Club Account? Visit mutualcu.org 24/7 for complete details.