How to Regroup from Holiday Debt

Another holiday season has begun, and you have some bad news. As you look at your finances and think about how much you have been and will be spending in the next few weeks, you may be wondering, “How can I regroup from holiday debt?”

Review these top tips to regroup from holiday debt and prepare for the upcoming year.

1. Create a Yearly Budget and Stick to it

One of the top ways to regroup from debt is to make a budget. Review each of your accounts. Determine where to decrease monthly expenses and use that money towards paying off your holiday debt.

2. Find a Seasonal or Part-time Job

If you have the ability and time, find a seasonal job to work during the evenings and/or weekends. It won’t be fun to work the hours, but depending on the amount of debt, it may only be for a few months. Use that extra, hard-earned cash towards your debt.

3. Make Your Own Starbucks at Home

Although everyone loves a good Starbucks coffee, it can be quite draining on the wallet. Instead of purchasing your daily $5 Starbucks beverage, make your coffee at home and save that money. That $5 will quickly add up to be applied towards your holiday debt.

4. Use Your Tax Return and Holiday Bonus

Instead of taking that big vacation, use your tax return and holiday bonus to pay off your holiday debt. Once it’s paid off, you can then easily save your money to take a paid vacation in the future.

5. Look Into a Personal Loan

Most credit cards have a high-interest rate which means spending even more money due to that interest. Look into acquiring a personal loan with a lower interest rate through South Metro Federal Credit Union. You can then apply that money to pay off your high rate credit card(s) and save money in the long-term.

6. Transfer to a Low-rate Credit Card

Similar to a personal loan, you can also transfer your high interest rate balance to a low-rate credit card. Although not many banks may offer a low-rate credit card, South Metro Federal Credit Union does. If you go this route, ensure you budget paying off the low-rate card as soon as possible.


These tops tips can help you regroup from holiday debt. As part of the first tip, ensure you create a budget for upcoming holidays to help prevent seasonal debt in the future. Check out South Metro Financial Education Services and South Metro’s Budgeting Tools that provide services and education to achieve personal and financial goals and improve your quality of life.

Showing Member Appreciation at South Metro Federal Credit Union

At South Metro Credit Union, we like to take the time to celebrate you, our members! As a federal credit union, we are a member-owned, not-for-profit financial cooperative, meaning we are here to serve you, not our bottom line. Our membership is open to anyone living or working in Scott County, as well as select consumer food cooperatives, housing cooperatives, and their members in the area.

We appreciate our members, and as such, we hope that you value these benefits of being a member of South Metro Credit Union.

Your Trustworthy Financial Advisors

• As a credit union member, you are not a “customer” but part-owner of a financial cooperative in which all the members pool their resources to enable lower rate and help one another.
• Credit unions are uniquely able to turn their resources back over to their members, for their long-term benefit. 
• Credit Unions have a not-for-profit tax status similar to churches, charities, and other groups that work to better the lives of those involved.

Great Member Services

• One of our main goals is to provide financial education and resources to our members, enabling you to reach your financial goals. We offer budgeting tools, financial education services, and online tools and advice.
• Investment and insurance services, one on one.
• Real-Time Control for your debit card. Protect your account by limiting the geographical area, spending limit, time of day, or specific merchants for which your debit card may be used.
• Specialty checking accounts are available for non-profits, businesses in Scott County, or members over 50. Plus, dividends are paid on any checking account balances over $100.
• Avoid returned checks. South Metro can automatically transfer funds from your savings to your checking to keep your checks from being returned, as a no-fee service.

Convenience

• No need to wait in line: 24-hour remote access (Online banking and Mobile banking)
• Electronic E-statements
• Checkholders can use VISA Debit Cards at ATMs and any location that displays the VISA© logo. 
• Avoid ATM fees when you withdraw cash from our network of over 30,000 surcharge-free ATMs.

Day to Day Perks and Discounts

• Get exclusive credit union discounts from outside vendors. Visit LoveMyCreditUnion.org for more information.
• This plan includes the Sprint Credit Union Member Discount Plan, which includes 10% off most Sprint service plans, and free activations and upgrades. Learn more about the Sprint Credit Union Member Discount at LoveMyCreditUnion.org/Sprint.
• Family fun discounts at Valleyfair, the Minnesota Zoo and the Minnesota Renaissance Festival.

Special Member Perks!

Until October 31st, we are offering special rates on all Auto Loans (New, Used and Refinancing). Members pick one of three additional bonus perks!

• $50 Visa Gift Card for gas
• 90 days no payment or 
• 1% off their APR
• If a member closes within 10 days of applying for their loan, they will get ALL 3 perks.

South Metro’s Personal Loans At Low Interest Rates

During the month of July, South Metro Federal Credit Union is promoting our personal loans to help you finance your future. Learn just what a personal loan is, what our bank can offer you, and what you can use your personal loan to accomplish.

What Is A Personal Loan?

You have probably heard about mortgages, car loans, boat loans, and lines of credit, but personal loans are something different. Personal loans are used to fund large expenses without requiring collateral, otherwise called unsecured. Sometimes life requires a chunk of change you just do not have. Personal loans can help with that!

Personal loans are typically somewhere between $5,000 to $40,000 and interest rates vary with each financial institution. At South Metro Federal Credit Union, we offer an unsecured personal loan with an interest rate as low as 8.99% during the month of July. Personal loans are installment loans: you receive the entire amount borrowed upfront and then you make fixed monthly payments, usually for terms ranging from 24 to 60 months.

What Are Personal Loans Used For?

The great thing about personal loans is that their usage is discretionary. Whatever large purchase coming up in your life that you need money for is valid. The most common use for personal loans is to pay off credit card debt because credit cards oftentimes have a much higher interest rate. Paying off a credit card with a 17.99% interest rate with money from a loan with a lower rate will save you thousands in the long run.


Another use for a personal loan is to consolidate debt. If you have payday loans, car loans, and student loans to keep track of, it can be advantageous to consolidate your debt into one loan with a fixed rate, fixed monthly payment, and closed term. It is also common for people to take out a personal loan to complete home renovations or finance their wedding. Sometimes life catches you off guard and you find yourself having to pay substantial medical bills or funeral costs. These are lots of reasons people opt for a personal loan.


A personal loan could be just the solution you are looking for. Our personal loans offer lower rates and fewer fees, allowing you the flexibility to finance anything life will throw at you. Stop in today to inquire about how you can take advantage of July's personal loan promotion.

South Metro Federal Credit Union: Your Better Financial Option

South Metro Federal Credit Union is your trusted advisor to achieve your individual financial goals through our array of member services. We’re happy to serve the residents of Scott County, MN, and we operate branch locations in Prior Lake and Shakopee for the convenience of our members.

Our Member Focused Mission

South Metro Federal Credit Union is a member-owned financial cooperative which provides financial products, services, and education enabling members to achieve personal and financial goals to improve their quality of life.

Core Values for Our Members

South Metro Federal Credit Union has adopted a set of Core Values – those guiding precepts that we believe will never change regardless of how the business environment evolves.

• Provide a “safe haven” for our members’ funds such that their money will never be subject to extraordinary risk
• Assure non-discriminatory treatment of all classes of members
• Value individual employee productivity, creativity and innovation
• Assure integrity in the handling of all business transactions
• Recognize “respect” as a valued commodity to be given to our members and earned from the community
• Make every reasonable effort to serve member needs

Member Resources

Our motto is “Get There. Start Here.” We are here to help you reach your goals, providing members like you with services that will achieve the ultimate goal – improved quality of life for you and your family.

• Checking, Savings, and Business accounts
• Loans for Automobile, Boat, RV, Mortgages, Home Equity, and more
• Investment and Insurance Services
• Budgeting Tools and Financial Education resources
• Virtual Banking and Mobile Banking Services

It's Easy to Become a Member!

If you aren’t already a member, join South Metro now! Members enjoy all of the services above as well as additional discounts and perks to enjoy in the south metro. Begin the application here and start enjoying the benefits!

We hope you will continue to check back to our blog for credible financial advice, clear and concise information, and helpful tools to help you achieve your goals. We’re here to help!