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For Immediate Release Contact: Patrick Harris Director of Media Relations Ohio Credit Union League pharris@ohiocul.org 800-486-2917

Get Fiscally Fit in 2010 with Financial Resolutions

Paying down debt, reviewing your budget,
and saving are keys to a fiscally happy New Year

Columbus, Ohio (December 22, 2009) – The end of the gift-giving season usually brings about one of two scenarios: you did not have enough money to spread as much holiday cheer as you would have liked, or, you spent so much money on friends and family that you find yourself deep in debt and with a drained savings account.  Avoid these situations one year from now by embracing the New Year and taking steps to strengthen your personal finances.

Ohio’s credit unions are encouraging Ohioans to review their finances and incorporate these five steps into their New Year resolutions.

Pay down credit card debt.  According to Consumer Reports, 6 percent of consumers, or 13.5 million people, are still carrying debt from last year’s holiday season (2008).  Set a goal to pay off your credit card debt by making monthly payments above and beyond the minimum amount due.  Pay the card with the highest interest rate first.  Once paid off, keeping the account open will improve your credit score.

Review your monthly budget.  In tough times, it is important to know where to cut back on spending.  The only way to visualize the in-and-out flow of your money is to create a monthly budget.  Tracking your spending identifies unnecessary expenses such as excessive cell phone usage, eating out, movies, and other forms of entertainment.  After tracking a month’s expenses, most people are shocked by where there money is going.

Save for 2010 and beyond.  If you are able to cut back on discretionary spending enough to have money left over at the end of the month, save it.  The best way to save is to always “pay yourself first.”  Before paying any expenses, take an amount out of each paycheck and put it in savings.  In these difficult economic times, it is smart to have at least 6 months of salary saved.  If you are looking to save long term, visit www.oucu.org/home/calcs/retirement to see how much you need to retire.

Check your credit report.  Your credit score affects your finances in more ways than you think.  Most people know that their credit score impacts the interest rates on auto, home, and education loans.  It can also influence whether or not you get a job, or qualify to rent an apartment.  Check your credit report once a year for free at www.AnnualCreditReport.com. 

Educate your children about money.  It is never too early to begin teaching your children about money.  A great New Years’ gift would be to give a child a piggy bank, open a college savings account at a credit union, or start an allowance.  The earlier children understand the concepts of saving, budgeting, and differing wants from needs, the more likely they are to continue these important behaviors into adulthood.  Learn how to teach your children about money at www.MoneyAndStuff.info.

Many credit unions offer free personal financial counseling to help you achieve your personal financial goals.  To find a credit union you can join, go to www.FindACreditUnion.com.

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The Ohio Credit Union League, with offices in Columbus, is a state trade association representing 402 credit unions. Credit unions are not-for-profit financial institutions owned and democratically-controlled by their members. Ohio credit unions provide savings, loans, and other consumer financial services to their 2.66 million members. To learn more, visit www.OhioCreditUnions.org.