“Buy today with no money down and zero interest!”

You’ve seen the ads when shopping for new furniture, household appliances or an entertainment system. The text differs slightly each time, but each ad offers the same thing: the option of spreading the cost of your purchase over several months or several years, with a zero-percent interest plan. To fund your purchase, you may need to enroll in a payment plan with the company, sign up for its credit card or open an unaffiliated credit card offering an introductory no-interest period. It sounds like a fantastic deal—but is it really?

Here are the potential pitfalls of going this route and the surprising benefits of financing a large purchase under specific circumstances—even if you have the cash to pay for it today.

What happens when you finance a purchase?

Setting up a payment plan for a purchase or charging it to a no-interest credit card essentially means pushing off the payment of the purchase and spreading it over several months or even years. The retailer is eager to offer you this plan because it makes you more likely to overspend and buy something you can’t afford. Consumers love these deals because it enables them to divide a large purchase into bite-size pieces.

When is financing a bad idea?

In general, it’s not advisable to buy something you can’t really afford. But what if the total price of the sofa is prohibitively expensive and you can easily pay the monthly installments?

Here’s where it gets tricky. First, it’s important to note that nearly every no-interest offer is only temporary. Once the promotional period runs out on these deals, you’ll almost always be hit with a double-digit interest rate. Second, most of these plans come with a deferred-interest clause stipulating that any missed payment will be charged with retroactive interest after the no-interest period is over. Both of these caveats mean that missed or late payments will cost a lot more than you may believe.

With this in mind, it’s best not to finance a large purchase if any of these apply:

• Finances are extremely tight. If you regularly have trouble making it through the month, you’ll likely find it difficult to meet the monthly payments on this purchase.
• You are not a careful spender. If you technically have the money for the monthly payments, but you know you tend to blow your budget, you’ll be better off skipping a financed purchase.
• You don’t have an emergency fund. If you can fit the monthly payments into your budget, but you don’t have any cash set aside for emergencies, you might not want to finance a purchase. If you do go forward with it, any unexpected expense that arises could throw your budget off and cause you to miss one or several payments.

When financing can work in your favor

In certain circumstances, the smarter choice may be financing a large purchase you can actually pay for today. In these cases, you are confident you have enough money in your monthly budget to meet the monthly payments and you have the discipline not to spend that money elsewhere.

Here are two reasons you may want to finance a purchase you can pay for now:

1. To boost your credit rating. If you’re working on improving your credit score, adding a payment plan, also known as “installment credit,” to your credit file can help boost your score. This will only work with a payment plan since retail credit cards opened to fund a specific purchase generally only cover that purchase, which increases your credit utilization rate and hurts your score. In addition, a credit card won’t help diversify your credit file. It’s also not a good idea to go this route if you’re planning on taking out a large loan in the near future. Opening a new line of credit now may hurt your score in the short term, which will lower your chances of getting the best possible terms on the bigger loan.
2. To invest your cash in a high-yield account. If you have the cash saved up for a large purchase and are offered a no-interest payment plan that you know you can afford, you may want to invest that money (where it will be earning more) instead of using it to pay for your purchase. Remember: This can only work if you are absolutely sure you will be able to meet the monthly payments on time.

Whether you choose to finance a large purchase ultimately depends on your financial reality, personal discipline and personal preferences. Be sure to consider every angle of this decision before making a decision.

Your Turn: Have you ever financed a large purchase? Why, or why not? Tell us about it in the comments.

Checking out at the grocery and left your wallet at home? Relax; you can still pay your way!  Dig out your phone, choose the mobile wallet app of your choice, thumb out the amount you owe and pay the cashier. Or, just hold out your watch until the payment clears. Checkout, done!

The app market is full of mobile wallet apps allowing you to make a payment without touching a card by using near-field communication, or NFC. Any participating retailer or merchant terminal that is NFC-enabled can accept payment from these apps.  While most mobile wallet transactions are unlimited, some financial institutions cap these transactions at $50.

Mobile wallet apps keep your information secure by using tokenization, which creates a one-time security code for each transaction and protects against data breaches.

Let’s take a look at some of the most popular mobile wallet apps on the market.

1. Julius Caesar introduced the first calendar leap year in 46 B.C.  

The Earth takes exactly 365 days, five hours, 48 minutes and 45 seconds to circle the sun. The occasional Feb. 29 ensures we don’t lose six hours every year.

2. Leap year babies are called “leapers” or “leaplings.” 

You’d get a special name, too, if you had to wait four years to celebrate your birthday.

3. Feb. 29 has traditionally been a day on which women were allowed to propose to men. 

Sounds hopelessly outdated for the 21st century, but this is the way it has worked in many cultures for centuries!

4. Some cultures consider Feb. 29 an unlucky day.

In Italy, people say, “Anno bisesto, anno funesto,” which translates as, “leap year, doom year.”

In some countries, like Greece, people warn against planning weddings during leap years.

5. Feb. 29 is not really a legal day.

Many companies don’t recognize Leap Day as a “valid day.” They make leapers choose

Feb. 28 or March 1 as their birthday instead.

6. Lots of people work for free on Feb. 29. 

Most employees who are paid fixed monthly incomes will work for free on Feb. 29 because their wages are likely not calculated to include the extra day.

7. There are two “Leap Year Capitals of the World.”

If you want to celebrate this special day in a big way, head to Texas — or New Mexico. Anthony, Texas and Anthony, New Mexico both claim the title “Leap Year Capital,” while holding lavish, multi-day celebrations each leap year.

Your Turn: Do you know a leaper? Tell us when and how you celebrate in the comments.

It may be a new year and a new decade, but scammers are still looking to con you out of your money. In fact, experts are warning of a new scam that is as simple as changing the date on a personal check, financial document, or another important paper.

Here’s what you can do to protect yourself:

The 2020 scam

The newest scam of the decade involves the dates on important documents. Most of us are accustomed to abbreviating the date by using the last two digits anytime we need to write it. For example, if we were dating a document for March 2, 2019, we might write it out as 3/2/19.

While it was fine to do so in the past, continuing this practice in 2020 can be problematic. With the two sets of digits that make up the new year being identical, abbreviating the date on important documents opens us up to all sorts of scams. It only takes a few seconds for a scammer to change the “20” on a document to “2021” or to “2019.” This can lead to multiple problems for the document signer.

What kind of damage can be caused by this scam?  

There are endless ways that date modification can be employed in a scam.

First, let’s take a look at what happens if the date is changed to an earlier year. If a scammer gets their hands on a check that was made out to you and decides to backdate it, the check may no longer be valid. Similarly, if you signed a legal document or a contract this year and a scammer adds “19” to the end of the “20” that you wrote to indicate the year, it now looks like you signed this document in 2019. As a result, your contract may no longer be valid. If this scam is pulled off on paperwork for an outstanding debt, your debt will now appear to be overdue. Thanks to this ruse, you might be charged late fees for a loan that is not yet due, or you may be charged a monthly fee for a time when you did not yet owe any payments.

The other way this scam can be executed is for the date to be changed to a future year. To pull this off, criminals will use the “20” you scrawled for the year, and change it to “2021” or later. If someone signed a document agreeing to start paying you for services you rendered in 2020, they can make it appear as if they don’t owe you any money until next year. Also, if you’ve neglected to pay a debt that is already past the statute of limitations, a scammer can modify the year on the relevant documents to make it appear as if you are still accountable for the debt.

While this scam is as new as the new year, and it’s still too early to know what kind of damage it can cause, financial experts agree that the threat is very real and precautions should be taken.

Avoiding this scam

As scams go, the 2020 scam is fairly easy to prevent. As you work on breaking free of bad habits and making improvements, add this to your list of New Year’s resolutions: Don’t abbreviate the year. Train yourself to write out “2020” in its entirety anytime you need to date a check, financial document or important paperwork of any kind. This simple precaution will keep you from falling victim to a date manipulation scam. It’s also a good idea to write out the full month when dating an important document, especially in January and February, since “1” and “2” can easily be changed to look like you wrote 10, 11, or 12 as the month. The stroke of a pen can push off the date on your document by nine full months or more.

Remember: the habit that was harmless in 2019 could make you vulnerable to fraud in 2020.

Your Turn: Can you think of any other ways scammers can manipulate a date to their benefit? Tell us about it in the comments.

Press Release

Thursday, February 13, 2020

Vicksburg, Miss. – – Mutual Credit Union is pleased to recognize Rae Perry, V.P. of Human Resources for her recent achievement. In January of 2020, Rae received her SHRM-CP (Society of Human Resources Management – Certified Professional) designation. President of Mutual Credit Union, Michael Mathews said this of Rae, “Human Resource Management is a key function in any organization.  Rae has demonstrated her knowledge and desire to ensure Mutual exceeds expectations in all aspects of our operations.”

Rae joined the Mutual Credit Union team in 2017 as the VP of Human Resources. She is a Vicksburg native and is an experienced Human Resources professional, with a focus on employee benefits, onboarding, and handbook development.  She has received her certification as a Credit Union HR Compliance Professional and received her designation as an SHRM-CP.

She earned a Master of Science in Instructional Technology and a Bachelor of Business Administration in Management from Mississippi State University. During her free time, she enjoys traveling with her husband James, cooking, volunteering with the Meals on Wheels program, and attending Mississippi State sporting events.

For more information about Mutual Credit Union please follow this link to our webpage. For additional questions, please contact the marketing department at marketing@mutualcu.org or by calling (601) 636-7523 ext. 1226.

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Myth #1: Debit is always better than credit. 

The real deal: Credit cards may actually be the payment method of choice on occasion. First, many credit cards offer rewards in the form of travel miles, cash back, and other bonuses. Second, building and maintaining a strong credit history is crucial for your financial wellness; the best way to achieve this is by using your credit cards and paying your bills on time. Finally, lots of credit cards offer purchase protection, which makes them the smarter payment method for big-ticket items. 

Myth #2: Buy a home at all costs. 

The real deal: For many people, including those who are not yet ready to put down roots or who anticipate a career change that necessitates moving across state lines, renting a home or apartment might be the better choice. It can also be a financially expedient option if you live in a super-expensive area. 

Myth #3: Investing is for rich people. 

The real deal: Anyone with a small pile of funds can get a foothold in the stock market. A smart investment strategy puts you on the track to financial independence. 

Myth #4: My partner manages our finances, so I don’t need to think about money. 

The real deal: While it is fine for one partner to actively manage the family’s money, it is crucial for both partners to be aware of the state of the family finances. They both should also be capable of managing household expenses and investments if something were to happen to their partner. 

Myth #5: Credit cards will get me through any financial crisis. 

The real deal: Depending on credit cards to get you through a financial emergency is the perfect way to dig into a deep pit of debt. Thanks to interest, you’ll be paying back a lot more than you spend. 

Credit cards should not be relied upon for a real financial emergency, such as a job loss, divorce or illness. It’s best to build an emergency fund with three to six months’ worth of living expenses so that you’re completely covered in case the unexpected happens. 

Myth #6: I’m so young; I don’t need to think about retirement. 

The real deal: The younger you are when you start building your retirement fund, the less you’ll be required to put away each month, and the more you’ll save by the time you’re ready to retire. Gift yourself with a comfortable retirement by maxing out your 401K contributions and/or opening an IRA or another retirement fund. Start today and let compound interest work its magic! 

Myth #7: I have enough money in my account for my expenses, so I don’t need to budget.  

The real deal: Budgeting is for everyone, regardless of their financial standing. A budget will force you to make responsible money choices, and ensure  that you’re fully aware of the state of your finances at all times. 

Your Turn: Which money myths have you bought into in the past? Tell us about it in the comments.

SOURCES:

https://www.google.com/amp/s/www.thenest.com/content/amphtml/money-myths

https://www.listenmoneymatters.com/top-10-money-myths/

https://www.daveramsey.com/blog/foolish-money-myths

https://www.fidelity.com/viewpoints/personal-finance/6-money-myths

As you prepare for graduation and begin scouting different employment opportunities, be sure to look at the larger picture before you accept a position.

Hopefully, you’ve chosen a career path that will bring you joy and gratification. Equally important, though, is a job that can support your lifestyle choices. While the positions you consider for your first post-college job will likely offer the opportunity for growth, you’ll still need to pay your bills—and make your student loan payments—as soon as you graduate. A job that brings you satisfaction and a pleasant working environment will not last long if the salary it offers causes you to sink into debt.

How do you determine what kind of salary will be large enough to support your desired lifestyle?

To get this information, you’ll need to create a mock monthly budget for your post-college self.

Using a spreadsheet or paper and pen, create two columns, one for expenses and one for actual dollar amounts. In the expense column, list your typical monthly expenses, including housing costs, transportation costs, health insurance, groceries, entertainment costs, clothing costs, dining out, savings, etc. In the dollar column, list the amount of money you expect to pay every month for each expense.

Your budget should look something like this:

It will take some research and some hard, honest thinking to come up with these numbers. For housing costs, take a moment to think about where you see yourself settling down after college. You don’t have to know the exact neighborhood you’ll live in, but it’s good to know the city that will work best for you in terms of lifestyle, career path, and family plans. You can narrow this down to a few choices so long as you keep it reasonable. Once you’ve chosen your desired location, research the median rental prices in the area on real estate sites like Zillow and Redfin.

Next, work on transportation costs. If you already own a car, you’ll have an idea of what it costs you each month. Otherwise, spend some time thinking about what kind of car you want to drive. You can find listings on Carfax.com. Include costs like auto insurance, gas, and upkeep, in this category.

Or, if you plan on living somewhere with reliable public transportation, you might choose this route instead. Make a calculation of how much you’ll spend on bus and/or train rides, along with the occasional cab or ride-share ride.

Complete your budget using your best estimates for each category. Once you’ve filled out each expense amount, add up your total and multiply it by 12 to give you the amount of money you’ll need each year for supporting the lifestyle of your choice. (This number will increase with inflation, but since current salaries will likely increase along with the inflation rate, this exercise can still give you an idea of the annual salary you’ll need.)

Now that you have these numbers, you’re ready to go ahead with your job search. When considering possible positions, you don’t have to choose the one that pays the highest salary if there are other things about the job you don’t love. However, it’s best to pursue positions that can actually support you.

Your Turn: Are you choosing your first job for the salary or for other factors? Share your take with us in the comments.

When parents hear, “Mommy!” yelled from their child’s room, it’s usually the result of a minor ouchie, or perhaps a stomach ache.

But, for recent users of a doorbell security camera, hearing, “Mommy!” come from their daughters’ bedroom turned their dreams of peace of mind into a nightmare.

Hackers have recently been gaining access to users’ homes via their systems’ two-way talk features. Two-way talk allows users to see what’s going on in their homes and talk to the occupants from a remote location via smartphone or tablet.

One recent attack involved an 8-year-old girl who was told by a male voice over the Amazon Ring security camera in her bedroom that he was Santa Claus and wanted to be her friend—all after calling her racial slurs and telling her it was OK to mess up her room and break her television.

The frightened girl could be seen and heard calling for her mother in the video provided to the media.

In another instance, a woman was awakened while sleeping in her bedroom by a strange voice coming from her Ring security camera. The voice was yelling for her to wake up and calling her dog.

Google’s Nest Cam security cameras are not immune to hackers, either.

One couple experienced hearing a man’s voice over the camera system. It was talking to their baby and then yelling obscenities at them before asking why the homeowners were looking at him (the crook). They also reported that the hackers had made adjustments to their thermostat.

In yet another Nest Cam incident, hackers warned a family about a supposed North Korean missile strike.

A spokesperson for Ring told The Washington Post in a recent statement that the Santa incident “is in no way related to a breach or compromise of Ring’s security. Customer trust is important to us and we take the security of our devices seriously.”

They added that the hackers “often re-use credentials stolen or leaked from one service on other services.”

Nest’s parent company, Google, told CBS News that Nest’s system was not breached, adding that reported incidents stem from customers “using compromised passwords … exposed through breaches on other websites.”

The Ring spokesperson told the Post, “Consumers should always practice good password hygiene and we encourage Ring customers to change their passwords and enable two-factor authentication.”

To prevent these incidents from occurring, CNET.com urges companies to require two-factor authentication (2FA), not just suggest using it.

“2FA would need a second form of identity, often a one-time code sent to a phone after a username and password are entered, or a physical token that’s plugged in,” according to CNET.

The report adds that hackers are using a technique called credential stuffing, a practice of acquiring lists of stolen usernames and passwords and then trying to use them on different accounts. Software tools have been created to specifically hack Ring cameras.

Ring’s representatives told Vice, “As a precaution, we highly and openly encourage all Ring users to enable two-factor authentication on their Ring account, add Shared Users (instead of sharing login credentials), use strong passwords, and regularly change their passwords.”

Take precautions before hackers take your peace of mind via your home security system.

Your Turn: How do you protect yourself from home security camera hackers? Tell us in the comments.

NOTICE TO THE MEMBERSHIP

January 10, 2020

Mutual Credit Union’s annual BUSINESS meeting will be held February 20, 2020 at 6:00 PM in the Cherry Street branch lobby located at 1604 Cherry Street, Vicksburg, MS. This meeting is a chance to review the state of the credit union and the 2019 annual report.

This is a business meeting of the membership, there will not be door prizes or refreshments available during this event.

Elections for the volunteer board of directors and supervisory committee will be open from January 13 through February 14, 2020. Voting will be held electronically through a secure portal on the mutualcu.org website, or by accessing the voting site directly at mutualcu.cuballot.com. You may also request a paper ballot by contacting us at 833-282-6595. Voting is fast and easy!