Monthly Archives: March 2017

Why You Shouldn’t Use Your Debit Card Online

Debit Cards

Now that you can pay for a taxi ride through your phone, order household essentials with the click of a button, and easily pay all your bills online, it’s becoming increasingly easy to depend on the internet for your financial transactions. At Peoples Bank & Trust, we want to shed some light on the various myths surrounding the use of debit cards online. With this information you can keep your information safe and secure while utilizing the latest fintech solutions:

Myth #1: It’s best to use your debit card online to pay for things.

Fact: While debit cards certainly have the capability of use for online purchases, other payment options such as credit cards, offer more advanced security safeguards and a decreased liability for the consumer.

We recommend using your debit card for any in-store purchases and utilizing one credit card for any transactions completed through the internet. This method ensures that should an online purchase become compromised, the safety of your savings, checking, and other bank accounts will remain secure while the credit card company eliminates any unwanted purchases within your account.

Myth #2: Wifi networks, like those found in coffee shops and hotel lobbies, are typically safe to use.

Fact: Many times cyber criminals target these hot spots by searching for potential victims to hack into through the use of a false wifi portal.

To avoid this circumstance, we suggest asking an employee of the establishment to verify the wifi network name and the associated password. In addition to this, it is always best to stick to non-personal sites, and avoid credit card and banking logins, while on public wifi.

Myth #3: If my debit card gets compromised, I will automatically get my funds back.

Fact: Because the funds are yours, the bank acts as a third party to help you file reports and maximize your chance of getting those funds back. However, there is no guarantee of recouping that money if you’re past certain timelines.

The sooner you report a card as lost or stolen, the less liable you are for unauthorized transactions. According to the Federal Trade Commission, if you report the card within two days of learning of its theft or loss, you are only liable for up to $50. However, if you wait up to 59 days after your bank statement is sent to you, you could be liable for up to $500. After 60 days, if the card in question has not been reported, you may be liable for the entire missing amount. To prevent this, we recommend reporting any loss or theft of your debit card as quickly as possible to reduce the potential damage to your personal finances.

After clarifying some common myths about debit card safety, we hope you will be inspired to become a safe shopper both online and offline. Whether you’re curious on how to best use your mobile banking or need to report a lost debit card, our dedicated team at Peoples Bank & Trust is always here to help! Drop us a line or stop by today.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

6 Traits of People with Excellent Credit

Credit Score

Did you know that your credit score is considered when you purchase a car, apply for an apartment, or buy home insurance? To increase your potential for prosperity in these future endeavors, Peoples Bank & Trust would like to share the top traits of consumers with excellent credit, to help inspire you towards success. See if you can work towards these benchmark goals, and push your credit score to the next level:

  1. They are organized. Unlike most Americans, people with excellent credit utilize a monthly budget to help them track and plan their spending for both long-term and short-term goals. Whether it’s a household budget, vacation budget, or wedding budget, keeping your money organized can make a big difference in how you visualize your spending strategies.
  2. They are patient. Instead of purchasing something that catches their eye at the store, those with excellent credit have mastered the skill of waiting. By sleeping on the idea of the purchase, and talking about it with a significant other or friend, they can ensure their money is not wasted on unneeded expenditures. Not only does this help to reduce spending overall, but also ensures that alternative options can be weighed before they reach a decision.
  3. They are efficient. Technology offers a wide array of tools to help users make the most of their finances; our favorite example of this is automation. Those with excellent credit are great utilizers of financial automation to help pay recurring bills, create monthly savings deposits, and assign allowances for their kids. By putting their money on a consistent timeline, they can ensure that all of their financial obligations are completed on-time each and every month.
  4. They are timely. Outside of their scheduled payments, people with excellent credit tend to regularly pay their miscellaneous bills early or on-time. This allows them to be certain their monthly debts are paid before they look to complete any additional transactions. To further ensure they have not missed a payment, these individuals tend to also check their credit score on a monthly basis. Typically, if a payment is missed or there are too many inquiries in too short of a time, this will raise a flag for credit reporting bureaus, causing them to lower the associated credit score. This can serve as the clue for the consumer to see an issue and resolve it before any further damage is done.
  5. They are forward-thinking. People with excellent credit aren’t thinking about the next day, or the next week, they’re thinking about the next 5, 10, or 20 years. Their goal is to have a continuous history of fiscal success, while also building savings for retirement, education, and other milestones throughout life. By preparing for these achievements ahead of time, they can create a fund that covers the entirety of their needs instead of only a portion.
  6. They are goal-oriented. No one ever said money management was fun, but those with outstanding credit know it’s worth it. Whether it’s creating a better life for their kids, reaching their personal dream, or obtaining the capabilities to create a new one, these people create a well-rounded vision of where they want to be, and how long it will take them to arrive.

With these traits, you too can accomplish your financial dreams! Peoples Bank & Trust would love to help you along your fiscal journey. Check our blog throughout the month for helpful and informative tips and tricks to help you continue to succeed in your money management.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Where Will You Be in 5 Years?

Financial Goals

Establishing your personal finances isn’t an overnight process, but deciding to start can be! Whether you want to save $1,000,000 for retirement, pay your child’s education, or become debt-free, choosing your next fiscal goal is the first step. At Peoples Bank & Trust we want to help you not only achieve your next financial aspiration but each and every one that follows! To help you start planning for the future we’ve compiled this strategic list to ensure you start your journey on the right foot. Here’s where to begin:

The first 2 Years:

  • Establish Financial Goals
  • Pay Yourself First
  • Create an Emergency Fund

During these years your primary priority is creating a solid foundation for your personal finances.  By deciding which goals mean the most to you, establishing monthly savings, and working those initiatives into a well-rounded emergency fund, you can be certain that whatever life throws at you, you and your finances will find a way to get through it.

Years 3 and 4:

  • Begin Your Debt Snowball
  • Build Your Credit History
  • Start Your Retirement Savings

The following two years will be creating the framework of your ongoing financial aspirations. These components will help ensure that your continued savings efforts are brought to fruition through retirement planning and debt elimination. Once you become debt free, the world is your oyster! Your final step to financial freedom is choosing where you want your journey to take you next.

The 5th Year:

  • Choose a Giving Strategy
  • Begin Investing
  • Determine Your Next Goal

Throughout the final year of this financial compilation, you should become focused on the future. Now that your debts are erased, your savings have been started, and you have put your money to work, it’s time to decide what you want to do with those funds. This is an extremely personal choice and should be made with the best intentions and available information. However, should you need assistance or further insight into possibilities, our dedicated team is here to help.

 
Over the next five years, we believe you can accomplish all of these endeavors and more. If you’re ready to begin your financial journey, stop by your nearest Peoples Bank & Trust branch today and speak with one of our personal bankers to get started. We’d love to help you achieve your personal and financial goals, one year at a time!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How to Tuck Your Coins Away by St. Paddy’s Day

Savings

St. Patrick’s Day is always reminiscent of older times, filled with meaningful songs and dances, delightfully filling food, and timeless jokes or antics. Each year we celebrate the livelihood of the Emerald Isle, and the heritage of the Irish culture, through a wide variety of events and gatherings. To help your bank account prepare for the festivities, Peoples Bank & Trust offers these tips and tricks to help you save without missing out on the fun!

 

  • Avoid Dining Out ($150/month): The key aspect to achieving this savings is patience! If you can take the time to plan meals ahead of time, and shop only for what you need to make them, you can not only reduce your restaurant spending but your grocery spending as well!
  • Cut Cable ($75/month): With technology like smart TV’s, Fire Sticks, Apple TV, Sling and more, there are now endless options to view and stream your favorite shows without the high cost of cable. By bundling some of these internet based services you can reduce your expenses without limiting your entertainment options.
  • Pack Your Lunch ($100/month): Instead of eating out for ten meals throughout the month, designate two days you’ll bring your lunch from home and save the extra $10 day. You can increase your savings even more by utilizing leftovers from your home-cooked dinner the night before.
  • Carpool ($50/month): While commuting to work may allow you to live in a certain area, it does come at a cost. See if you can reduce that amount by finding fellow co-workers to share the ride in with. While $50 may seem small for a month, over the course of the year that easily becomes $600 or more that you can put toward other saving ventures.
  • Automate Your Savings ($100/month): The phrase, “Pay yourself first,” comes to mind every time we share this tip. Did you know that you can invest in your personal development by contributing your savings goals? Once all the immediate bills such as housing and utilities are paid, we recommend contributing to your savings before budgeting how much to spend in other areas for the month. This way you can make your ongoing financial wellness a priority before deciding on spending habits for the month-to-month purchases.

 

Before the festivities begin, Peoples Bank & Trust challenges you to put these strategic saving tactics into place. If you’re curious how to get started, or want to set up a designated savings account for your extra earnings, our dedicated team is here to help!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

The Most Common Money Problems Americans Face

Savings Tips

For most Americans, the development of personal money management is a lifetime learning process. Faced with firsthand lessons and ongoing expenses, it can be difficult to master the appropriate practices for many common financial obstacles. At Peoples Bank & Trust we want to help you obtain the best financial education possible, and offer these time-tested solutions to get you started.

 

  1. Creating a Budget

There are countless varieties of budgets, with different structures for all types of lifestyles. The real obstacle is finding the option that works best for you, and sticking to it! Nearly any budget format you choose can help you allocate and manage your money, however, it only works when it is consistent. Be sure that you check your balances at least twice a week to be safe. This will guarantee that you adhere to the amounts specified, keeping your expenses in line with what you’ve planned.

 

  1. Managing a Credit Score

The largest aspect of successfully managing your credit score is grasping the reins on where your number currently is. Sites such as annualcreditreport.com offer a federally authorized FREE report once per year from each of the three reporting bureaus. This gives you an all-encompassing view of your current credit standing, showcasing some key places for improvement. Many credit card companies now offer additional credit monitoring tools to help you keep an eye on your score month-to-month. We recommend checking it at least once every three months, to be sure you catch any errors or inquiries that may occur.

 

  1. Saving for Retirement

Due to the longevity of this venture, many people postpone the start of this savings process. However, in this situation, time is of the essence! An extra decade of saving could effectively double your money if you have an appropriate compounding interest rate.  We recommend starting your savings as early as possible, through either a company 401(k) or an independent IRA. The sooner you start, the longer you have for your funds to grow while you continue contributing to their ongoing prosperity.

 

  1. Paying off Student Loans

Debt is never something we want to hold onto. However, with over 44 million Americans borrowing funds to cover their continued education, the issue of student debt has become increasingly relevant. While we do suggest paying your loans off as quickly as possible, it is also important to ensure you take advantage of your time when starting to save for retirement. Every situation varies, and there is no blanket statement for every scenario. However, as a general rule of thumb, we recommend approaching your student loans with the snowball method, paying them off in order of least amount owed to greatest, while making the minimum contributions to your retirement savings.

 

Whether you’re ready to set-up a new savings account or create a new budget to better manage your debt, our team of professionals is here to help! Stop by your nearest branch, and speak with a qualified personal banker today.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender