The Bottom Line
Small business is important to Central Oregon, and to Mid Oregon. Find tips and resources for business, and information about Mid Oregon’s commercial services and business members.
Marrying Your Finances
Before you say “I do,” it’s a good idea for the two of you to talk about finances and agree on how you’ll handle them. Marrying your finances will ensure your marriage gets off to a good start.
Financial Baggage
Have a discussion about how you’ll handle premarital debt. Will your spouse be solely responsible for paying off his or her old debt or are you going to pay a portion of it? Keep in mind that if your partner has many large debts and has a pattern of irresponsible spending, the behavior may not stop after you’re married.
You’re not responsible for any debt your partner accumulated before marriage. However, if you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), after you marry, you and your spouse are jointly responsible for any debt either of you accumulates. If you apply for credit jointly and your spouse has a poor credit record, their record can damage yours. It may also affect your ability to meet shared financial goals, such as buying a home.
Combining Finances
There are several different ways to combine funds. Some couples keep their financial accounts separate and divide expenses equitably. Others open a joint account for shared expenses as well as keep their own personal accounts. Many pool all their money into a shared account.
Agree on a Budget
In marrying your finances, it’s important to create a realistic budget. Have an open discussion to figure out short- and long-term financial goals that will work for both of you.
Decide…
• How much you will invest?
• How much you will deposit in savings each month?
• How much will be set aside for emergencies?
• How much should each of you be able to spend as you wish?
• Will both of you have full-time jobs, or will one of you work part time or stay home?
• If one of you has higher income, will you each pay an equal amount for joint expenses or pay a percentage of your income?
Who’s In Charge of Our Money?
It’s a good idea to decide who will manage your money. Who will keep track of your checking, savings, credit cards, loans, investment accounts, or bill payment? You can divide the responsibility if it makes sense for you, but both of you should be aware of where your money is going. If you don’t identify these responsibilities upfront, bills may go unpaid and accounts might get neglected.
Not everyone is the same. We all have different skills, aptitudes and shortcomings. Someone who is good at making a budget, for example, may not be so good at making a good deal on a car. Discuss who has an easier time staying organized, keeping track of bills and finding ways to save on expenses. Don’t be judgmental.
Agree to have frequent meetings to discuss your finances to make sure you’re sticking to your budget and are on track toward meeting goals. If you anticipate major expenses, discuss how you’ll handle them.
Having these financial discussions before you marry may not be a very romantic thing to do, but they’ll help ensure your relationship remains happy, stable, and strong.
Credit Scores at All Time High- And Consumer Debt is Rising
Credit Scores at All Time High
The average American’s credit score reached 700 in April, an all-time high. It’s never been higher, but consumer debt level is rising. Then what is going on?
A CNN Money post on June 20, 2017 by Anna Bahney titled “Americans: Your Credit Score is Going Up“, stated: “The average FICO credit score has hit a new milestone: 700. That’s considered “good” credit — and it’s the highest average score since FICO began tracking 12 years ago. Your credit score, which evaluates your credit worthiness on a scale of 300 (poor credit) to 850 (excellent credit), is a primary indicator for lenders evaluating how much credit to extend to you and on what terms.”
Why Are Credit Scores Up?
According to a U.S. News & World Report article from May 30, 2017, “America’s Shifting Debt Dilemma” by author Andrew Soergel, “Scores have been bolstered in part by years of consumer wariness after the housing bubble collapsed and the U.S. plunged into the Great Recession. Those burned by the recession were more reluctant to take on significant levels of personal debt, and many opted instead to pay off existing debts and play a waiting game until conditions got better, pushing savings higher.”
Consumer Debt Level Increasing
In the Federal Reserve Bank of New York’s May 17, 2017 Quarterly Report on Household Debt and Credit, they reported that total household debt reached $12.73 trillion in the first quarter of 2017. As a result it finally surpassed the $12.68 trillion peak reached during the recession in 2008.
“Almost nine years later, household debt has finally exceeded its 2008 peak but the debt and its borrowers look quite different today. ”
U.S. News & World Report’s Soergel described part of the change, noting, “Consumers’ debt portfolios simply look different than they did 10 years ago, as mortgage obligations have taken a backseat for many while student, auto and credit card loans have soared.”
Summarizing the current situation, Soergel wrote: “The average American’s credit score has never been higher, but rising levels of consumer debt have some analysts worried a bubble is forming.”
What About You?
Is your debt level going up? Is your credit score up as well? Borrowing is more affordable with a better credit score, and your existing debt less costly. Can your credit score use a boost?
Mid Oregon can help. Talk to one of our loan officers to get some tips, and find out how doing a few key things can make a big difference.
But first, take a look at our post, “Boost Your Credit Score? Ten Things You Can Do To Improve”, to learn more.
Ignore These 4 Travel Myths
Traveling This Summer? Ignore the 4 Travel Myths
If you’re planning a road trip this summer, ignore these 4 travel myths as your finalize your travel details.
Myth 1: The day before Thanksgiving is the busiest day for travel.
Nope, according to USA Today, the busiest travel days generally occur during the summer, the exact date changing from year to year. According to the Department of Transportation, the busiest day in 2014 was Aug. 8. But the big holidays, such as 4th of July and Labor Day, tend to see a spike in travel, so you can assume the road and airports will be busy.
Remember, this year the eclipse will be a major event in Central Oregon, so consider planning your vacation to somewhere not impacted by the eclipse. It might be less busy, easier to move around and get lodging, and possibly even less expensive.
Myth 2: The best airfare deals are available on Tuesdays
According to a 2014 study by the Airlines Reporting Corporation, Sundays 50 to 100 days before your departure date are the best time to buy coach tickets, costing on average $110 less than the overall average ticket price.
Myth 3: “Staycations” are always less expensive
If you’re flying, it’s not always cheaper to stick close to home–especially if you’re not flying from a major hub city to another hub city. Check airline prices online, and you might be surprised that greater distances don’t always correlate with a greater price.
Myth 4: Nothing is ever free
If you’re travelling to a tourist destination, there are always freebies available–particularly for kids. A simple Google search can save you money. There are often coupon books available which are usually distributed to locals, too.
When you are ready to travel…
Remember to let Mid Oregon know about your vacation plans. You debit or credit card transactions in that far away place won’t be questioned. If you use our CardNav℠ mobile debit card technology, be sure you adjust any geographic use restrictions for your destinations.
Our Summer Skip-A-Pay program for many of our loans might also be available to give you a little extra cash for that great vacation. For more details, and to participate in Skip-a-Payment, get started here.