Author Archives: PBTC Blogger

How to Tackle Student Loan Repayments

What they didn’t teach you in school, was how to pay for school. Many know what it’s like to look excitably into your direct deposit account or open that envelope on payday, to only be dissatisfied by the large withdrawal that was taken towards your student loan debt.

Confronting what seems like the impregnable wall of debt can be overwhelming. And many can feel unprepared-even duped at the debt to income ratio their college degree has given them. However, it doesn’t have to be this way forever. By changing your strategy and perspective on your educational investment, you can eliminate your monthly payments at an accelerated rate. Learning to tackle this debt in the right way, will become muscle memory for future financial discipline.

Choose the Right Repayment Plan

Americans owe $1.45 Trillion in student loan debt, spread out among 44 million people. While this may seem counter intuitive, choosing the right plan for your income can make a large difference in how much you pay over time. Eighty-five percent of student loans are either Stafford, Perkins, PLUS,or Direct Consolidated. They have 5 repayment options, with the lowest minimum payment starting at $50 for ten years, to the income based plan that takes a “fair” percentage of your salary (decided by the Federal Government) and forgives any debt left after 25 years.

Although it may be tempting to pick whatever has the lowest monthly payment right now, it isn’t the wisest. How much you pay, and on what terms can seriously impact future investments like a home or even being able to put enough away for retirement. Try to pay 10% of your gross (pre-tax) income towards your debt. By biting the bullet now, you will give yourself freedom in the future.

Scrap for Savings

There are some basic practices you can implement to prevent being delinquent on payments. One of those is consolidating your Federal loans. This won’t initially save you on interest, but it will help to relieve you from the headache of keeping track of many different loans. Having them all in one place with one simple payment will enable you to stay on track. Second, sign up for automatic withdrawals from your checking account. Doing so will cut your interest rate by .25 percent.

Keep Your Eye on the Prize

The average student loan monthly payment is $351 a month-and we recommend you paying even more than that if you can fit it into your budget. So, the most important thing you can do is to not fall off the wagon when it comes to tackling your debt. Stay focused on the goal set before you. The impulse purchases and comforts of the present are alluring, but ridding yourself of a financial burden is more rewarding. The more you take hold of your debt, the sooner you will win.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

First Steps to Financial Fitness

Starting a Financial Fitness routine may be one of the best things you can do for your health. You may not realize it, but financial stress can take a toll on your physical and emotional well-being. If you are one of those who have or are experiencing financial stress, you are not alone. In fact, the leading stressor of Americans is related to finances. Stress if left unchecked, can lead to changes in your body and mood such as:  heart disease, obesity, headaches and depression. Whether you are unemployed, have a growing stack of debt are simply bad at money management, you can start working your way to a healthy lifestyle starting with these five steps!

“You can always improve your fitness if you keep training.” -Pastor Maldonado

  1. Assess Your Fitness Level

In order to know where you’re headed, you need to have a full understanding of where you are starting. Know what you spend, what you have, and what you owe. The first month, simply track what you spend. You may be surprised at how many unnecessary purchase habits you make daily. Take note of what you are taking in post-taxes, so you have a baseline of what you have to work with every month. Of special importance is investigating all of your debt. Find out your credit score, and all debts that may have even gone to collections. This is the most overwhelming step, but don’t fret-you are on the right path. If you would like assistance with this, feel free to reach out to Peoples Bank & Trust to help you along in the process.

  1. Decide Your Fitness Program

What are you training for? This is where you map out where you would like to go. Create short and long term goals and what time frame you would like to achieve them. We suggest starting out with eliminating your debt, by paying off the lowest one first. What habits and routines do you want to establish? What do you want your budget to look like? You can build activity and goals into your daily routine. One aspect to understand is that this is not a quick-fix process. It will take time, so keep your activities simple and progress slowly into building habits. Building financial strength takes time.

  1. Assemble Equipment

Now that you have an understanding of where you are and where you want to be, you can put it to paper! Investing in a journal or a simple pad of paper is a great way to organize your daily routines and financial flexors. Additionally, there are many free apps! However you prefer to track it, make it practical and enjoyable!

  1. Get Started

Now that you have completed the first few steps, you are ready to begin! You have your well thought out plan, so now it is time to execute. You can be creative with your routine, if you want to find savvy ways to save on basic needed items-do it. Whether that be cooking a meal at home, or learning how to change the oil in the car.  It is your plan to tailor.

  1. Monitor Progress

Lastly, we recommend that you monitor your progress every month, as needs can change frequently. It will also help keep you in check and encourage you from straying far from your goals. You will know them by heart. If you need a Financial Coach to hold you accountable, reach out to a friend or trusted advisor. As your fitness level increases, you may find yourself able to be flexible and switch up your goals, or create new ones.  Training takes time, energy and self-control, but by following these steps you are well on your way to being fit!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

 

The Riches Reset: 30 Day Cash Only Challenge

You may have heard the suggestion, but in a day where even plastic purchases are becoming irrelevant, how can paying with cold hard cash be feasible or helpful? We challenge you to find out by going plastic-free for the next 30 days to shake up your spending habits for the new year.  We will begin by alerting you on some of the disadvantages you may experience, followed by the surprising benefits.

Cash Cons

Safety

Carrying cash can be a safety concern. You may feel more exposed to not only being pick-pocketed, but to losing the cash altogether.  When your debit card is stolen or lost, you have an inconvenience, but not a loss of protection. Check in with a member of our team at Peoples Bank & Trust to learn more about the safety features of our debit cards.

Inconvenience

Unless you write down all your purchases, you will have no way to track spending. You’ll need to ensure you have receipts printed or emailed to you if there is a chance of return.  Cash takes up a lot of room-especially if you have a pocket full of coins. This becomes consistently challenging if you only carry a wallet. You don’t want to be THAT person who spills their change all over the loud linoleum floor. To say nothing of the inconvenience you will cause others in line behind you, as their plastic taps impatiently on the counter. We recommend using all of the coins you can first, so you are not weighed down with change.

Credit Benefits

One of the primary reasons many utilize debit cards is the rewards.  With cash, the only reward you can hope to receive is a punch card for your next visit. Additionally, an obvious downside would be you are unable to purchase items online or make travel plans. This may be an economic imperative that you cannot accomplish with cash.

Cash Pros

It’s Painful

Leaning into the pain of cash-only can be good for you. Research shows that the act of spending cash is emotionally more painful than it is using a debit card. Because of this, you may in fact spend less. With each purchase you make, you see your cash value deplete. Unlike a debit card, the effects are immediate. You don’t need to wait until the end of the month to feel the pain when it is most likely too late.

You Become a Budget Master

Some people have had success with the envelope system in their budget planning. It is a way to limit your spending to a predetermined amount allotted in each envelope. They are separated into different categories such as grocery and gas.  It helps you to be aware of how quickly that $4 latte takes away from your Fun Money. This is more hands on than establishing multiple savings accounts.

Appreciation

Research shows that you also have more of an appreciation for your things when you buy them with cash. It’s an aesthetically pleasing reward as you are presently seeing what your money can get you. You are better able to see your hard work pay off. Moreover, if you find yourself taking better care of your belongings, don’t be surprised.

While it may not be possible to go cash-only forever, your Riches Reset will help to cleanse you of negative habits to start fiscally strong in the new year. Afterwards, come see us at Peoples Bank & Trust to see what products can help you reach your financial goals. Best of luck!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Common Cyber-Security Threats While Traveling

Whether you are traveling for work or pleasure, the last thing you want to battle with is having your cyber-security compromised. If knowledge is power, Peoples Bank & Trust has created a list of potential threats to your private information and steps to prevent damage while away from home.

Before You Go

Along with remembering to pack a toothbrush, you should also prepare your devices for travel. You should ensure all updates are completed. This will make your systems harder for hackers to penetrate as they have all of the necessary guards and protections the device has to offer at the time.

You may consider backing up your information on cloud storage. You would hate to have forever lost important documents and photos. Should your information become compromised, having these copies of your private information will be useful. We would also recommend changing all of your passwords prior to leaving and again when you return. It is also extremely important, especially when traveling abroad, to let Peoples Bank & Trust know where you will be traveling and when.

While You’re There

Unfortunately, you are at a higher risk the more you travel and use the internet abroad. However, this shouldn’t stop you should you use the proper precautions from these threats.

While convenient, public wireless networks are not secure. Nevertheless, if you need to connect, be sure is a legitimate network by verifying the account with employees. However, your mobile connection is going to be more secure. You are going to want to turn off auto-connect for wifi and Bluetooth as well. If you are able, purchase a VPN  (Virtual Private Network), so you can have peace of mind while surfing the web. We would recommend staying away from public computers-even the hotel and library. You cannot trust that these are on secure networks, and that Keylogger Malware is not present.

To many people’s dismay, you are being watched in ways like never before. You should get into the habit of guarding yourself at all times. When traveling to fun places, it is tempting to share your location. But waiting to share this information is best, so hackers don’t follow where you are, and maybe even make their way up to your hotel room to take your computer. This is another reason why you might consider eating meals outside the normal hours, as that is when most hotel thefts occur.

You can’t avoid purchase while on the road, but be aware of ATM skimmers, point of sale compromises and hidden cameras. ATM skimmers have been on the news frequently. If you can avoid using this altogether by sticking to credit cards or Apple Pay on the road, it may make the experience easier. Businesses card readers may be compromised or a hidden camera could be tracking your pin input. It’s important to always be aware.

We hope that these tips have informed you to be a cyber-secure traveler. For more information about Peoples Bank & Trust’s anti-fraud services, please stop by!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

 

3 Tips on How to Make the Holidays Less Stressful

While songs on the radio promise that this is a holly, jolly time of year, for most Americans, the holidays are anything but. A Healthline survey found that an average of 63 percent of adults in the U.S. experience an increase in stress level during the holiday season.

In a way, it seems almost unavoidable. Our routines are interrupted as we travel or host guests. Our healthy eating and exercise habits are thrown out the window. Our finances find themselves in a freefall as we spend just a little too much to buy that perfect gift.

Today, Peoples Bank & Trust would like to help bring the holidays back to the merry time they should be with these tips on how to combat holiday stress:

1)      Stick to your spending plan.

It’s true when they say it’s the thought that counts when it comes to gift-giving. Obsessing over the perfect one not only causes more stress, it can also cause you to overspend. If you start overthinking, stop, put the item down and walk away (or minimize your browser and walk away). Think about the big picture—that ultimately, spending quality time with family is better than anything you can buy them.

2)      Use Moderation.

You may not get to your exercise routine every day, due to schedule restraints. As long as you get up and move every day, give yourself a pass. Before you know it, the New Year will be here and there will be plenty of social pressure to exercise. In the meanwhile, practice watching portion sizes and passing on the extra cocktail. By all means, sample the sweets at the table—just cut yourself bite-sized pieces instead of an entire slice.

3)      Focus on what you have to be grateful for.

It can be easy when you have guests getting underfoot or are inconvenienced at the airport to resent having to spend time with friends and family. In these moments, remind yourself of the things you have to be grateful for—especially the fact that you have loved ones to spend time with. Not everyone is so lucky.

While Peoples Bank & Trust can’t cook your turkey or shop for gifts, we can help you reduce your stress when it comes to finances. Stop by your local branch office today to see how we can help get your holidays off on the right financial foot!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

4 Ways You Can Budget With an Irregular Income

If you work sales, freelance or are self-employed, you have a major issue to contend with when it comes to personal budgeting—an unpredictable income. While this can make it hard to plan your monthly spending, it’s not completely impossible. Today, Peoples Bank & Trust would like to offer you these tips to budgeting on an irregular income:

1)      Calculate the Bare Bones.

These are the minimum expenses you need to cover every month, usually in the form of your absolute essentials. Rent or mortgage, utilities, groceries, debt repayment and transportation all fall into this category. This way, you know what you absolutely need to get by.

2)      Figure out your discretionary expenses.

These are all the expenses you have after you’ve paid for the basics. This includes the cable bill, streaming services, entertainment, eating out and hobbies. Once you add that to your bare-bones spending, you can figure out how much you spend on average each month.

3)      Use the Zero-Sum budget.

This is where you use the income you brought in from last month to live this month. Once your bare-bone expenses are paid, put away a certain amount for savings, retirement and investments. The rest can then be spent on discretionary expenses.

4)      Have an emergency fund.

It’s recommended that you have three to six months’ worth of expenses in the emergency fund. That way, if you have a lean month, you won’t have to forgo paying a bill. This can be tricky to build, especially if you have no savings to begin with.

A few ways to build this up include setting aside a certain percentage of what you make each month or allocating unexpected income (such as selling something, a gift, a tax refund, etc.) directly into your savings account.

By following these steps, you should find yourself with less of a headache when it comes to living on a balanced budget. If you haven’t already set up a savings, checking or retirement account, come see the experts at Peoples Bank & Trust today. We can help set you on the right financial path.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Fall and Winter Home Prep to Save You Money

Fall and Winter Home Prep

As the seasons change, so do your bills. However, finding new ways to save can be tricky when you’re already super savvy. By creating a good savings foundation during the fall and winter, you will be able to start 2018 off in a healthy financial state. That’s why Peoples Bank and Trust has compiled a list of tips and tricks to prepare your home for the seasons to come in order to save some cash!

Install energy-efficient windows

A low-emissivity glass also known as Low-E glass is used to help block the rays of the sun up to 90 percent, and keep the heat inside when it’s cold and outside when it’s hot. Energy Star estimates those who replace a single-pane window with an energy-efficient model will save $126-$465. Now multiply that times the number of windows you replace and you’re looking at quite the savings.

Lower water heating temperature

If you lower your water heating temperature, you will save 4-22 percent annually on your bill. Instead of allowing the water to get scalding hot, you can set it to only become warm which will increase your savings every time you shower, wash your hands, or do dishes.

Adjust the temperature

By turning back your thermostat by 7-10 degrees for 8 hours a day, you can save up to 10% each year on heating and cooling bills. Each time you raise your thermostat by one degree, your heating bill is raised by 3%, so it’s important to avoid that mistake.

Weather stripping

Thirty to 40 percent of your heating costs are lost to air leaks, according to Energy Star. That’s why it’s important to find where drafts are coming from in order to cover the leaks with weather stripping materials, which start off at around $5.

Replace light fixtures

If you replace your home’s five most frequently-used light fixtures or bulbs with energy efficient ones, you can save $75 a year. Just imagine if you did that with more bulbs! 

Fix leaking faucets

If you fix a leaky faucet, you will save $35 and 1,661 gallons of water if it drips one drip per second. Little things like a leaky faucet end up having a big impact on your bills over time, so be sure to check your nozzles.

We hope that these home hacks will help you save this fall, winter, and hopefully the seasons to come! Contact Peoples Bank & Trust if you have questions about what else you can do in order to grow your savings.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Cyber Security 101 – Learning the Basics to Keep Yourself Protected

Cyber Security 101 - Learning the Basics to Keep Yourself Protected

Welcome to Cyber Security 101. Grab your pen and paper, it’s time to take some notes about cyber security! Thankfully, there won’t be a test after reading this blog, but not taking these tips into consideration can make a difference between protecting yourself or having your personal information land in the hands of the wrong person.

With so much to think abou

t, you’re probably wondering where you’re supposed to start. Luckily for you, Peoples Bank & Trust is here to school you in all things cyber-security.

Careful Clicking

Between social media, websites, and emails, we’re clicking on things all the time. Sometimes these links can be associated with what’s called “phishing attacks.” This is a tactic used to gather your personal data, like passwords and credit card numbers. Most of the time this type of attack occurs within an email. That’s why it’s critical to verify email addresses from trusted entities you know. Never open documents from these unusual email senders.

Password Protection

Creating complex passwords may seem like a no-brainer but about 35 percent of users have weak passwords and about 65 percent of passwords could be cracked. The goal should be to make it something that’s unrelated to you, so not using your birthday, your dog’s name, etc. We suggest using a password generator, or even making your password a sentence.

We understand you log into numerous accounts daily, and you can’t possibly remember all of these unique passwords. Even though your password list could be three feet long, you should never write them on a sticky note and perch them on your computer screen. Check out password management apps to help you keep all of your passwords in order.

Savvy Shopping

Online shopping continues to grow and is more enticing with offers like free shipping and online exclusive products and sales. With such a shift in purchasing habits, our security habits should also be changing. You sho

 

uld only be shopping on secure sites, which can be identified by the “https” at the start of the web address. If there’s no “s” the site is not encrypted and your information could not be secure.

Another way to protect yourself is to never give more information than is required. If they don’t ask for your phone number or address, do not provide it. This information could fall into the wrong hands.   Always be sure to read their privacy policy so you know where your information is going and how it’s being used.

Staying Up to Date

If you don’t already, now is the perfect time to get an anti-virus or anti-malware software program for your internet accessible devices. These programs work to protect your devices and help you stay ahead of any attempts to break security on your computer.

If you already have a security program in place, make sure you’re updating the software any time an update comes up. These companies are constantly working to fight potential security risks so anytime there’s an update, take the time to make the required updates.

We hope you took some great notes and are ready to tackle all things cyber-security. By taking these few steps you can help protect yourself from a world of trouble and inconvenience. If you have any more questions about cyber-security, contact us today. We’d be happy to answer your questions. Class dismissed!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

 

Money Advice Gone Wrong

Sometimes the best intentions can lend themselves to producing the worst results. While many friends and family members may offer quick solutions to your financial anguish, often times the best education is understanding those lessons first hand. At Peoples Bank & Trust Co., we’d like to showcase several of the most common pieces of advice we hear, and what you can do to remedy these particular miscommunications.

Bad Advice #1: You have to go to college to get a decent job.

While a college degree does open additional doors, it is not required for many well-paying jobs available around the nation. Social figures like Mike Rowe have made it their personal mission to spread the message that you can earn a living without having to sink into debt. Whether you’re interested in IT, manufacturing, grocery management, or other skilled work, you can find numerous positions through technical training or management programs, and avoid the majority of debt most four-year college students incur.

Bad Advice #2: Having debt is okay if you pay your minimum payments.

While it is important to make installments on your loans or debts, eliminating them all together should be the desired end goal. Did you know that when credit reporting companies review your credit score there are five factors considered? The two most important factors are your payment history and your debt to income ratio. If your monthly debt payments require more than 43 percent of your income, that may raise a flag to any future potential lenders.

Bad Advice #3: To build your credit score you need to purchase everything on your credit card.

While it certainly helps to have a long and healthy track record associated with your credit card usage, having an on time payment history is far more important. This payment history represents the largest factor of your credit score, which the reporting bureaus track. By never spending more than you have, you can make certain you are able to pay your bill in full each and every month. This action may have the potential to help foster growth for your credit score.

Bad Advice #4: Retirement savings can wait.

Contrary to what many young adults think, right now is the most important time to start saving for retirement. While later in life you might have more disposable income to save, you’ll also have less time before you need those funds. Once compound interest enters any equation, time becomes the most valuable commodity for growing your wealth. For instance, if you saved the Roth IRA maximum of $5,500/year starting at age 25, you’d have $1.17 Million by the time you’re 65. Who wouldn’t want to capitalize on those kinds of savings?

We think you can tackle any piece of advice with a few grains of salt. If you’re curious what your next financial move should be, stop by Peoples Bank & Trust Co. and speak to one of our dedicated personal bankers. Our team of financial experts is here to help you and your family succeed; get started today!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How NOT to Get Hacked

Every day you hear tips and tricks to ensuring the safety behind your personal information. While many of these offers and promotions are advertising a safety service, at Peoples Bank & Trust Co., we believe you can handle the majority of these precautions yourself! See what steps you’ll need to take in order to best prepare for your financial future. We’ll be there to help you every step of the way.

DO: Store your passwords in a secure app like LastPass.

DON’T: Write your passwords on post-its which you keep around your desk.

Remembering your passwords is important, but leaving them unattended for hackers could be dangerous. Ensure you keep your details out of plain site by utilizing secure password storage apps such as LastPass or Dashlane. Not only will this help you forget your passwords less often, but it helps you create more complicated passwords to help keep unwanted hackers at bay.

DO: Use social media to connect with friends and family.

DON’T: Connect with people you don’t know or share personal account information.

Even though social media can be a great way to interact with people you know, many users choose to become connected with individuals they’ve never met. If you find yourself with a friend request from someone you don’t recognize, always decline it, to keep you and your contact safe. If for some reason you’re unsure if you know the individual or not, you can always message them to see how you’re connected instead.

DO: Shop online and find great deals.

DON’T: Use your debit card when shopping online.

Both your debit and credit card can be used online, however, only your credit card offers a zero fraud liability with no strings attached. Should your debit card become compromised you will need to act more swiftly, and you may even have to wait weeks or months before you see any stolen funds returned to your checking or savings account. Always be proactive and use your credit card if you plan to purchase online!

While these three strategies will help to keep your personal information safe, there are always new tips and tricks to learn! Check back on our blog each month to see how you can continue to improve your personal cyber security, courtesy of Peoples Bank & Trust Co.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender