Greetings!

Last week Punxsutawney Phil declared that spring would arrive early this year. This is hard to believe when you look around at all the snow, but the white stuff does provide us with an excellent playground for winter activities. This past weekend hundreds turned out for the annual Winter Carnival at Lake George Regional Park. From the creative and amusing box sled races to the ice fishing derby and chili, the event had something for everyone and showcased one of our region's great recreational resources.

February is also a month to celebrate the ones we love with Valentine's Day just around the corner. This is one of the most popular days to get engaged, and if you are thinking of walking down the aisle, check out the story this month on finances to consider before the wedding.

Speaking of weddings, the average wedding celebration these days costs over $25,000 and the average amount of credit card debt for the American consumer is around $8,000. If you are looking to start your life together with less debt, or have made a resolution this year to create a better financial foundation for yourself and your family, our second story offers some tips on how to do this.

And remember, according to the groundhog, Spring is just around the corner.

  

Sincerely,

John C. Witherspoon

President & CEO

 

All You Need is Love...and a Financial Plan

    

~Adapted from the American Bankers Association~

  

It's the season of love, but before couples take the next step in their relationship, they should discuss their personal finances. If you are thinking of walking down the aisle, you should remember that marriage doesn't just bring people together, but their finances as well. 

It's no secret that people can become blinded by love, but if you stick to a plan, your financial situation doesn't have to be impaired. Money is often a stressful topic between couples, so you want to have clear expectations and a plan to address issues as they come up. Talking about finances before the wedding is a good way to begin your life together on the right track.

 Here are a few heartfelt suggestions to get started:

1. Be mine, or yours? Will you and your spouse-to-be keep finances separated or combine them? Consider individual money styles and find a system that works for you.

2. Love's Cost. Calculate costs and discuss how bills will be paid. Both may contribute to the bill payment, but who will physically write the check to pay the bills, monitor the investments and take care of the taxes? Consider setting a date every month to review and discuss finances.

3. Sharing Credit. It's important that spouses are aware of each other's credit situation. Marrying a person with bad credit will not drag down your stellar record. However, your other half's credit will be factored in when applying for joint financing. Knowing ahead of time will help you to plan more strategically.

4. Cupid's Arrow.  Couples should develop a plan to shoot down existing debt, starting with the balances that carry the highest interest rates. Whether or not the pair works as a team or alone, debt must be tackled.

5. Sweet Savings. Saving as a couple fosters teamwork and is essential in times of financial hardship. Decide how much you want to save as a couple and do it automatically from your paychecks.

Skowhegan Savings can help set-up joint checking and savings accounts or credit applications. Just call us today to make an appointment to meet with one of our customer representatives. With shared understanding of how your money will be managed, you can then tackle the tough issues like who will wash the dishes and have control of the TV remote.

Weighted Down by Debt?
Here are Ways to Ease the Load 

 

~Adapted from FDIC Consumer News~ 

 

If you're finding yourself overwhelmed by debt, it's crucial to find a solution. Your local bank and credit agencies can help craft a solution to get you on a course to solvency and help to rebuild your credit score. 

 

Contact your lender immediately if you think you won't be able to make a loan payment. "Lenders generally prefer to work with customers to find a solution that benefits both parties, so ask for their help, preferably before you miss the payment," said Sukari Smith, an FDIC Community Affairs Specialist. This advice also applies to other bills, such as those from utility companies.

 

With your mortgage, it's especially important to contact your lender or its loan servicer quickly to ask what can be done to keep your home. Our loan officers at Skowhegan Savings can help develop a customized plan, including refinancing, that may help you stay in your residence.

 

To learn more about refinancing and options for modifying a home loan, including guidance on how to get help from a housing counselor, see these additional tips. 

 

Reputable credit counseling organizations can help you develop a personalized plan to solve money problems. The quality of these organizations can vary, so interview several, check their background through the Maine Attorney General's office or local consumer protection agency. Always get key details and costs in writing before signing a contract, and ask about any disadvantages to a proposed solution.

 

Also be very careful of "debt settlement" companies that claim they can reduce what you owe for a fee. To curb certain deceptive and abusive practices, new Federal Trade Commission (FTC) rules require additional disclosures from debt settlement companies, including information about how long it will take to obtain the promised debt relief. The rules also prohibit debt relief services from collecting a fee until they have settled, reduced or otherwise changed the terms of at least one of the consumer's debts. However, the rules don't stop firms from charging high fees. 

 

Avoid scams. Warning signs of possible fraud include demands for upfront fees and requests to start making payments to the organization instead of your creditors directly. Also be wary of promises to quickly eliminate your debts or remove negative but accurate information from your credit file. There is no magic bullet to repair your credit history - only paying down your debt and paying bills on time, over time. 

 

Remember that you have rights when it comes to debt collection. The federal Fair Debt Collection Practices Act requires that you be treated fairly and without harassment. For example, if you dispute a bill in writing within 30 days of being contacted about payment, the debt collector must provide you with proof of the debt before contacting you again to collect the money. Also, debt collection companies that work for your creditor cannot call you at work if you ask them not to.

"And don't believe a debt collector who suggests you can go to jail for missing payments on a loan," noted Luke Reynolds of the FDIC's Community Outreach Section. Threats like this, or other intimidation tactics should be reported to the Maine Attorney General.

The recession and high-unemployment have put many into financial difficulty. However, by working with your loan officers and reputable credit counseling organizations, you can get out of debt and get your finances back in the black.