TOP

Managing Credit Card Debt

If you want to be the master of your credit card debt load, follow these key rules:

  1. Take inventory. How many credit cards do you have? What's the balance and minimum monthly payment on each? What's the total balance? If it's more than you thought or can afford, it's time to pare down.
  2. Check out the cost of your credit cards. What's the interest rate on each card? What's the annual fee? Does your card offer a grace period? If the card doesn't have a grace period, if you carry over a balance or take a cash advance, you're usually charged interest right away.
  3. Get one low-fee or lower-interest card and use it wisely. Make TCU your first stop when starting your search. Check to see if you can transfer existing debt from your various credit cards to your new lower-interest credit card.
  4. Make the largest monthly payment you can afford. Even though you may not be able to pay your balance in full, paying the monthly minimum may do little more than cover the accrued interest.
  5. Watch out for "teaser rates." Your mailbox may be brimming with unsolicited credit card offers that promise attractive low-interest rates. But if you read the fine print, you'll see that after six months or so the issuer may double the low introductory rate.
  6. If you get in over your head, don't bury it in the sand. If you're having trouble making your monthly payments, contact your creditors before they contact you. If you're already screening calls from bill collectors, or refusing to open your mail, you need help. Contact TCU for help.
TOP

How to Reconcile a Share Draft Account

You wouldn't throw away your money, would you? That's what you could be doing if you don't establish good share draft/checking habits.

Regularly make certain there are no discrepancies between your records and your account statement. If there are mistakes, correct them as soon as possible.

At the very least, verify funds you've deposited right away, so you're not writing checks against nonexistent funds before you take the time to reconcile your account. Reconciling your account isn't very time-consuming and, as you become more skilled at it, it will take up even less of your time.

To start, you'll need withdrawal and deposit slips for the month, including receipts from automated teller machine (ATM) and debit transactions, if you haven't already recorded them in your share draft register.

Verify all the funds you've deposited are listed on the statement. Confirm both the date and the amount. Place a check mark on the statement for each one. Using your share draft carbons or your check register, compare each draft that appears on the statement with the entries in your share draft register. Place check marks next to each of these entries on the statement.

Now verify all transactions made at ATMs and POS (point of sale) terminals.

Next, do some elementary math:

Start with the balance in your register.
$__________________

Subtract service charges included on the statement.
-$__________________

Add any dividends your account earned.
+$__________________

This is your new register balance.
$__________________

Add funds you've deposited not on the statement.
+$__________________

Subtract drafts written and ATM or debit withdrawals you've made since the statement.
-$__________________

This is your new balance.
$__________________

If this new balance equals your new register balance, your account reconciles. If they aren't equal, go over your records again until you find your mistake. Talk to a TCU Member Service Representative for any assistance.

Any links to external websites are links to alternative sites not operated by TCU. TCU is not responsible for the content of the alternate site. The privacy and security policies of the alternate site may differ from those practiced by TCU. TCU does not represent you or the third party if you enter into a transaction with the third party.