New ATM is as Easy to Use as 1-2-3...

Last month, San Diego County Credit Union installed a new state-of-the-art ATM at the CAC building. The ATM is now located in the cafeteria on the fourth floor.

The new ATM accepts cash and check deposits without an envelope, making deposits easier than ever. Transaction receipts include an image of your check or the details of your cash deposit. Plus, in addition to $20 bills, SDCCU’s new ATMs dispense $1 and $5 bills - allowing users to withdraw an exact amount (for example, $43).

For more information about our ATM services, visit sdccu.com, call us toll-free at (877) 732-2848, or talk to a financial services representative at any one of our 28 branch locations.

To mark the occasion, a special ribbon cutting ceremony was held. Pictured from left to right; County of San Diego Clerk of the Board of Supervisors Thomas Pastuszka, County Supervisor Greg Cox, County Supervisor Ron Roberts and SDCCU Chief Operating Officer Tum Vongsawad.

Planning Your Family Budget

In these challenging economic times we all need to watch every dollar. The best way to do that is have a household budget. Budgeting helps ensure you're not overspending and that you're making the best use of the money that comes into your home. Budgeting also helps you plan for major financial goals.

To start creating your household budget, add up all your income for the month. Include dependable sources of income only, including alimony or child support. Total the household expenses; include everything you spend money on such as groceries, transportation, entertainment, rent/mortgage, etc. Don't forget to include irregular and variable expenses. These are those expenses that aren't due every month, like insurance premiums and property taxes. You should continue to include these in your monthly budget and set aside the money for expense so when it's time to pay you don't have to break the bank to cover it. If it's a semi-annual expense (due every 6 months), divide the total amount due by 6 and write that into your monthly budget. Or, if it's an annual expense divide by 12.

An important part of your family's budget is putting money aside for the future. Not only should you save and establish an emergency fund, you should also save for retirement, college tuition, and even the annual family vacation. As a rule of thumb, a single person should have the equivalent of three months’ worth of essential expenses set aside. For people who are providing for others, six months’ worth of expenses is recommended. Experts also agree that you are more likely to contribute to savings if you include it in your family budget planning.

For the first few months you will need to track your spending closely to make sure your budget is legitimate. If you go over in some areas, make sure you included enough money in your budget for that area. Otherwise, be more cautious the next month to make sure you don’t overspend in that area. If you notice that you’ve overspent in one area, you’ll need to cut back in another area to keep from spending too much. Updating your budget helps make sure you continue to make the best use of the household's income by planning appropriately for your future expenses. Budgeting may seem like a daunting task at first, but once you get going you will wonder how you got by without it.

San Diego County Credit Union offers a free MoneyTracker service to assist in setting up and maintaining a budget. For more tips visit sdccu.com, stop by one of our 28 branch locations or call toll-free, 1-877-732-2848.

Factors to Consider When Car Shopping

Are you thinking about purchasing a new or used car this year? Before you purchase, you need to consider many factors. One of the most important factors is financing. Auto finance requires knowledge of money, budgets, and even long-term planning. Nearly everyone can afford to finance the purchase of a car, but not everyone can finance the purchase of the same car. Therefore, be aware of your constraints and requirements before you begin the process of auto financing.

Here are three easy steps that will help you with your next auto financing need:

1. Know your financial limits.  It is essential that you are aware of your financial limits and constraints when you go in to finance the purchase of a car.  Work out a budget for what you can actually pay for a car before you even start looking.  You also will have to decide whether or not to make a down payment on the vehicle.  Additionally, your financial obligation will continue for several years after you buy a car. Do you have the income to support a sizeable loan?

2. Pick your car.  Make a list of all of the essential things that you will need from your new car, such as reliability, size, gas mileage and low maintenance costs. From there, look for cars that match your budget and your needs.

3. Research loans.  Every lender will offer you a different rate, loan amount, and terms of the loan.  You should research rates for the car you are interested in buying before you go to the dealership so that you have an idea of what to expect.  Don’t be afraid to compare rates and terms from different lenders.

San Diego County Credit Union offers a free auto buying service to help you select and finance a new or used vehicle.  For more information visit sdccu.com, call us toll-free at (877) 732-2848, or talk to a financial services representative at any one of our 28 branch locations.

Are You Protected?

Identity theft is one of the nation’s fastest growing crimes. Identity theft occurs when someone uses your personal information—name, driver's license number, social security number, credit card number, birth date or mother's maiden name—to access your bank accounts, open new checking accounts or apply for credit cards or other loans. Many victims learn about identity theft after they are declined for a loan, receive a past due notice for a credit card or loan they did not open or are contacted by a collection agency for bad checks they never wrote.

It is extremely important to constantly monitor your bank and credit card statements.  San Diego County Credit Union, along with most financial institutions, offers internet banking and online bill pay services.

There are great advantages, such as convenience and safety in using these services, but there are some risks. Here are a few suggestions to protect yourself and your finances:

• Check your credit report – There are three free credit reporting agencies (Equifax, Experian and TransUnion) to choose from. Requesting your own credit report will not lower your credit score.  We recommend you check your credit once a year.
• Shred personal information – Do not throw away or recycle any personal information. Tear or shred all receipts, bank statements, loan applications, etc.
• Memorize passwords and PIN numbers – Do not carry papers with passwords or personal identification. Never use birthdates, your address or your social security number as your password. 
• Ask questions – If you notice a charge you think is incorrect, contact your credit union, bank or credit card company immediately. Don’t be afraid to question about anything unusual.
• Never mail your bills from your home mail box, always mail items by depositing them in a blue US Postal Service mail box.
• Be smart - Beware of mail or telephone solicitations that offer prizes or awards, especially if you are asked for personal information or financial account numbers.  If an offer seems too good to be true, it probably is.

Lastly, never give out personal information over the telephone or via email. A financial institution will never call you and ask you to verify personal or financial information.  Identity thieves are very clever and often sound like financial service representatives on the phone. Be extremely careful when giving out personal information over the phone.

For more information about identify theft, visit the Credit Union on the web at www.sdccu.com, call toll-free 1-877-732-2848 or visit any of the 27 branch locations.

Good Debt vs Bad Debt

Not all debt is necessarily bad; particularly when it can help you build wealth. Experts encourage consumers to know the difference between good debt and bad debt. General rules of thumb may help sort the good from the bad.

If you buy something that immediately goes down in value, that's considered bad debt. Let's say you buy disposable items or durable goods with a high-interest credit card and you don't pay the balance in full when the bill arrives. You're being charged interest while that item continues to depreciate and lose value, so that's bad debt.

On the other hand, investment debts that create value, such as real estate loans and home mortgages (which may also be tax deductible), as well as business loans and student loans are examples of good debt. Debts that produce more wealth in the long run, like high-return stocks, bonds, and other investments, are also considered good debt.

What about taking on more debt to reduce current debt? A home equity loan at 6 percent is considered good debt if you can use it to pay off a credit card with an interest rate of, say, 17 percent. Additionally, interest paid on a home equity loan is often tax deductible. Of course, the key is not to run those debts back up.

What about auto loans? You might think they're always bad debt because most cars go down in value, but if you take out an auto loan for a car that gets better gas mileage than your old vehicle, you could be better off financially.

What's the best type of debt? The number one example of good debt is mortgage debt because most homes will appreciate in value over time. 

Other strategies for building wealth include:

• Set smart goals (specific, measurable, adjustable, realistic and time-oriented).
• Pay yourself first, and automate your savings using payroll deductions.
• Understand basic investing principles, such as compound interest, risk, diversification, dollar-cost averaging and asset allocation.
• Reduce debt. Start by paying off high-interest credit card debt, and avoid late fees. Paying your bills on time makes up about 35 percent of your credit score.

If you have any further questions about debt or would like to speak to a financial service representative, contact San Diego County Credit Union at 877-732-2848 or visit sdccu.com.