Part II: Managing Your Money
Cory and Tisha are back asking for your help, only this time the topics are cash management, credit use, and major purchase. Tempting credit card offers continue to come in the mail. Recall that they have Visa, Mastcard, Discover, and American Express credit cards as well as several other store cards, with a combined average balance of 1300. Minimum monthly payments equal approximately $32 although they typically pay $100 per month.
Tisha sister and her husband just bought their first home, making Tisha even anxious to move from their rented house. Cory wants to wait awhile longer before buying a home and has suggested that they should replace their older high-mileage car. Cory and Tisha realize that funds for another payment are limited, not to mention money for a house payment. Their options are to reduce payments on their credit cards or to reduce other expenses. At any rate, $300 a month seems to be the maximum amount available for an auto loan, not to mention any likely increase in their auto insurance premium associated with the new vehicle. Help them answer the following questions.
As a result of a recent corporate merger, Tisha is eligible to join a credit union. What are the advantages and disadvantages of doing so?
Higher interest rate than commercial banks
Open to its members only
Lower fees and minimum balances with its accounts
Loans are offered at favorable rate
Should they consider online banking? What are the advantages and disadvantages when compared to traditional banking services?
Depends on what services they are looking for, if the Dumonts need to seek financial advice from the financial institution, online banking might not be the good option. If the Dumonts are looking for a financial institution that provides them the ability to perform most of their banking operation at home, online banking is a good choice.
Advantages of online banking...