Money Management

Your credit record is the most important factor lenders consider when you apply to borrow money for any reason. It also plays a role in having your utilities connected, renting an apartment, or even getting a job. Building good credit is key to reaching financial independence.

Since your credit history plays a vital role in everything from routine matters such as having your utilities connected to securing financing for a computer, car or home, it is important to establish credit and maintain good payment practices.

Credit Reports & Scores

Since the information on your credit report is so important, you should review what is included on your report regularly. You can get a free copy from each of the three nationwide consumer reporting companies (Equifax, Experian and TransUnion) every 12 months at www.annualcreditreport.com. This is the ONLY authorized online source for you to get a free credit report under federal law.

Along with your credit report, lenders will also look at your credit score. This determines your credit risk at that particular point in time. If reflects your credit patterns over time and will change as new information is added.

The most common model for credit scoring is the FICO score. FICO scores range from 300 to 850. Higher scores can mean lower interest rates, while lower ones can mean rejection when applying for a loan. To get an estimate on the range of your credit score, use our Credit Score Calculator.

How We Can Help

Credit Card – A Palmetto Citizens Visa^® Credit Card can be a great tool in establishing your credit because of it’s low rate and no hidden fees.

Share Secured Loan - A secured loan is a great option to establish credit for the first time or improve your credit history. The loan is secured against money deposited in your savings account and the loan's activity is reported to the credit bureaus. As you repay the loan, you gain access to your secured funds.

Zogo Financial Education App – Palmetto Citizens has partnered with Zogo, a free financial education app that pays you to learn! Just download the app, play through the short modules, and earn gift cards to your favorite brands just for learning about financial topics.

Financial Education Center – View our "How Do I Build Credit?" and/or "How to Manage Your Debt" modules, interactive learning experiences in our Wellness Center, to learn more about debt management.

Free Financial Counseling – All members have free access to GreenPath Financial Wellness, a money management and financial education counseling service. Certified financial counselors are available to assist you with a variety of financial needs and can provide you with worksheets and action plans to help you stay on the right course.

Credit Report & Score Module - Take this short Credit Reports and Scores online course, offered through GreenPath Financial Wellness, to help you understand the information on a credit report and how a credit score is calculated.

Calculators – We offer a variety of online calculators to help you better manage your money and make wise financial decisions.

Palmetto Citizens is here to help if you need relief from growing debt. We will work with you to find solutions right for your financial situation. In addition to the no cost financial counseling service through GreenPath Financial Wellness and our online calculators, we offer several products and services to help put you on the path to financial freedom.

Credit provides many benefits, such as allowing you to spread out payments over time, but it can be expensive if not used wisely. Always keep in mind the actual cost of your purchase(s) over time due to the interest you will pay.

The following chart shows the interest you will pay each year if your average daily balance is $1,000, $3,000 or $5,000 depending on your interest rate.

Paying Down Debt: Debt Snowball vs Debt Avalanche

When you’ve accumulated debt across multiple loans and credit cards, paying off balances can seem daunting. There are two common strategies, both aggressively paying down one account at a time while making the minimum payments on all of your other accounts. The difference is how each plan chooses to prioritize the accounts that get paid down first:

• Debt Snowball: This method involves focusing all of your extra money on the smallest balance you owe. Each time you pay off a debt, you have one less minimum payment to make. As you eliminate your smaller debts, you take the money that was going toward those debts and fold it in to make larger payments on your larger balances. The debt snowball plan helps you build confidence and positive repayment habits by prioritizing the "easy" debts first.
• Debt Avalanche: This method involves paying off your balances with the highest interest rates first, generally saving you the most money. When you don't pay off these debts, they continue to accrue and compound interest. As you eliminate your highest interest debts, you take the money that was going toward those debts and fold it in to make larger payments on your next highest interest loan or credit card.

To determine which method is best for you, take a good look at your personal financial situation and be very upfront with yourself. If you find it easy to defer instant gratification in favor of future benefits, then debt avalanche is probably going to be the repayment plan for you. However, if you find it difficult to stay focused on long-term goals, and especially if you've had a hard time paying down large balances in the past, debt snowball can be a great way to build responsible repayment habits through small, manageable steps. Use our Debt Consolidation Calculator or Accelerated Debt Payoff Calculator to help determine how you can pay down your debt faster.

How We Can Help

Financial Education Center – View our "Rules for Using Credit" and/or our "Get Out of Debt" modules, interactive learning experiences in our Wellness Center, to learn more about debt management.

Free Debt Analysis - SavvyMoney Checkup is a free and completely anonymous tool you can use to get a detailed analysis of your debt with proposed payment schedules and personal action plans.

Zogo Financial Education App – Palmetto Citizens has partnered with Zogo, a free financial education app that pays you to learn! Just download the app, play through the short modules, and earn gift cards to your favorite brands just for learning about financial topics.

Free Financial Counseling – All members have free access to GreenPath Financial Wellness, a money management and financial education counseling service. Certified financial counselors are available to assist you with a variety of financial needs and can provide you with worksheets and action plans to help you stay on the right course.

Credit Report & Score Module - Take this short Credit Reports and Scores online course, offered through GreenPath Financial Wellness, to help you understand the information on a credit report and how a credit score is calculated.

Calculators – We offer a variety of online calculators to help you better manage your money and make wise financial decisions.

Loan Solutions – Apply online or contact one of our loan specialists today to discuss the options available to you such as lower interest rates, debt consolidation, equity loans and other low-cost solutions.

Saving now will help you achieve your dreams later - whether they are three months or thirty years down the road. However, it’s not enough to just dream about your financial aspirations; if you want to achieve them, you’ll need to set goals.

You can achieve your goals by creating a plan and making savings a part of your personal financial budget. At Palmetto Citizens, we can provide you with in-depth knowledge on a variety of saving and investment options designed to help you reach those goals. You can also use our Savings Goal Calculator to help you determine how long it will take to achieve your goal.

Pay Yourself First

To pay yourself first means simply that - before you pay your bills, before you buy groceries, before you do anything else, set aside a portion of your income to save.

One of the easiest ways to do this is to set up an automatic payroll deduction into your savings every time you get paid. When you plan to save, the “expense” called savings becomes a routine bill that you “pay” each month.

Set up an automated recurring transfer in online or mobile banking, or allocate a portion of your paycheck or other payment to be sent to your savings using your direct deposit to help you save.

Emergency Savings

Most financial experts agree that keeping 3-6 months of expenses in an emergency savings account is solid financial guidance. Having a safety net can help minimize worry, protect against uncertainty and give you access to cash rather than having to use credit.

To begin building this fund, start with $1,000, even if you must pay only the minimum on all bills. If your income is low you may settle for $500, or if it’s over $50,000, you might want to choose $2,000. After you have paid off any outstanding debts, you should start building your emergency fund up to 3-6 months living expenses.

Create your emergency savings fund before you begin investing for other financial goals. Keep these funds in a liquid account, like a savings or money market account, where you have immediate access without having to pay any penalties. If you have to use the funds for an emergency, make sure you replenish the funds as quickly as possible.

How We Can Help

Savings Accounts – Since we’re not-for-profit, we can offer you higher savings rates on a variety of different accounts. Talk to a representative today to find out what strategy is best for you.

Zogo Financial Education App – Palmetto Citizens has partnered with Zogo, a free financial education app that pays you to learn! Just download the app, play through the short modules, and earn gift cards to your favorite brands just for learning about financial topics.

Financial Education Center – View our "Saving With a Purpose" and/or our "Build Your Emergency Fund" modules, interactive learning experiences in our Wellness Center, to learn more about ways to help you save.

Calculators – We offer a variety of online calculators to help you better manage your money and make wise financial decisions.

Money Desktop – All members have access to this easy-to-use, helpful tool to assist you with budgeting, account aggregation, auto-categorization of transactions and debt management. Log into online or mobile banking and select Money Desktop from the menu to get started.

Free Financial Counseling – All members have free access to GreenPath Financial Wellness, a money management and financial education counseling service. Certified financial counselors are available to assist you with a variety of financial needs and can provide you with worksheets and action plans to help you stay on the right course.

Direct Deposit - Set up an automated recurring transfer in online or mobile banking, or allocate a portion of your paycheck or other payment to be sent to your savings using your direct deposit to help you save.