Overcoming debt and building credit can sometimes feel overwhelming. For many, financial situations like these can also feel isolating. Everwise Credit Union provides both in-person and online resources to its clients so that they know they are not alone.
“Everwise has multiple tools to help manage your debt, understand good and bad debt, and find ways to consolidate debt,” said Katie Cortes, manager of Everwise’s Valparaiso and Chesterton branches.
To begin, Everwise works to make sure all its members understand the differences between various types of debt.
“One of the key concepts we like to stress is that not all debt is bad,” said Cortes. “For example, getting an education/advanced training or buying a home may require you to take out a loan, but in the long run, you may be able to increase your annual income with higher credentials and your home’s value may appreciate over time.”
According to Cortes, a good way to categorize bad debt is one that doesn’t lead to greater potential wealth in the future.
“For example, loans with high interest or loans taken out for things that depreciate in value over time can be problematic and would be considered riskier/bad debt,” said Cortes.
After understanding the types of debt, Everwise recommends simply monitoring what you spend daily.
“At Everwise, we recommend tracking your daily/monthly spending and creating a budget that not only helps you meet your needs but also your wants and savings goals too,” said Cortes.
In fact, according to Cortes, reviewing your spending is an exercise that can truly help identify what is important to you and where your priorities lie.
“When you’ve reviewed all your spending, it’s important to identify areas where you can cut back, such as monthly subscriptions and dining out. Plus, it can help with creating savings goals, as well – including emergency savings for life’s unexpected events,” said Cortes.
Knowing what money comes in and goes out can help determine the next step to both building credit and reducing debt – creating a solid budget and plan for your financial future.
“When you have a consistent plan in place and know where every dollar is going, you feel more confident and prepared to avoid unwanted debt so you can better pursue your dreams,” said Cortes.
To ensure that clients feel comfortable, Everwise takes a relationship-first approach with each and every conversation.
“We focus on building relationships with our members,” Cortes said. “Our personalized conversations can help us identify savings opportunities, uncover ways to consolidate and manage debt, as well as encourage healthy financial habits.”
These truthful conversations can lead to not only building and maintaining good credit, but they can also lead to many of life’s big milestones.
“Our team thrives on helping our members buy their first car, qualify for their first mortgage, or get out of debt,” said Cortes.
Providing first-class support both in and out of the office, Everwise has resources online as well. In fact, Everwise’s Financial Planning & Education webpage is free to all and allows readers to learn about money management at their own pace.
“The more you learn about money management, the more confident you’ll be in meeting your goals and building a solid financial future for yourself and your family,” said Cortes.
Additional tools such as a Financial Wellness Journey and Personal Finance Program are also available to the public as well.
To learn more about Everwise Credit Union, please visit everwisecu.com.
