December 2024 - High Point FCU

8 Ways To Beat Holiday Stress

‘Tis the season to be merry-except sometimes, it’s not.

If you tend to feel stressed when the holidays roll around, here are eight tips to help turn that frown upside down.

1. Watch the buck

Nothing kills holiday cheer like a mountain of debt. Stick to a budget when doing your holiday shopping, and only spend what you can afford. Be extra careful not to overspend as the holidays draw near, and you’re feeling the pressure to finish your shopping in time.

2. Give back

According to the American Psychological Association, one of the best ways to reduce stress is to give back to the community.

Beat the stress by sharing holiday cheer with those who are less fortunate. You can bring some toys to the local hospital to brighten up a sick child’s holiday, volunteer at a soup kitchen or visit a nursing home and put a smile on the residents’ faces.

3. Stick to a schedule

Lack of quality sleep can make stress levels soar. You don’t need to follow your regular routine over the holidays, but it’s a good idea to keep some sort of schedule. Make sure you’re getting enough shut eye, and if a physical workout is part of your daily routine, don’t neglect it over the holidays.

4. Party smart

If you like to party, you can end up getting sick over the holidays. Do yourself a favor this year and watch what you imbibe. Enjoy a glass or two of your favorite alcoholic beverage but try to keep the drinking to a minimum. Similarly, it’s OK to break your diet over Christmas, but it’s best not to go overboard.

5. Delegate

If you’re hosting a large crowd this Christmas, all the extra work can bring your stress levels through the roof. Here’s the good news: You don’t have to do it all! There’s nothing wrong and there’s everything right with asking for help.

6. Take some “me” time

“Me” time is important, and in the chaos of the holidays, this need is often neglected. Consider getting a manicure, taking a solitary half-hour walk, or just locking yourself in your room for some peace and quiet. You’re not being an antisocial snob if you need your “me” time; you’re just being human.

7. Give up the guilt

If you tend to overanalyze every interaction you have with family and friends, you can really beat yourself up over the holidays, questioning everything you’ve said. Try to let go this season and give yourself a break.

8. Lower your expectations

A common cause for holiday stress is unrealistic expectations. It’s best not to build huge castles in the air and to keep your expectations to a minimum. If you don’t expect perfection, you won’t be struggling with mountains of disappointment this holiday.

Here’s wishing you a Merry Christmas from all of us here at High Point FCU.

HIGH POINT FCU DONATES $7,000 TO LOCAL FOOD PANTRIES

High Point FCU has donated $7,000 to support seven local food pantries in their field of membership during the holiday season. This donation reflects the credit union’s dedication to making a meaningful difference in the lives of their members and exemplifies their community-focused approach to business.

The Olean Food Pantry, Creekside Chapel, Portville Community Food Pantry, Harvest Field Outreach Center, CAC Food Pantry, Salvation Army of Bradford Food Pantry, and Hinsdale Ischua Food Pantry each received $1,000 donations.

“Our commitment to community remains steadfast,” said Rich Yeager, President & CEO. “Through our continued collaboration with local food pantries, we aim to create a lasting impact on those facing food insecurity, reinforcing the strength that comes from people helping people.”

High Point FCU is the 2^nd largest credit union in Western New York, with assets of over $400 million. The credit union currently serves over 20,000 members with four branch locations, 1201 Wayne Street and 206 North Clark Street in Olean, 180 West Main Street in Allegany, and 160 South Main Street in Portville.

Q&A: How Should I Fund my Holiday Expenses?

Q: I’ve listed all my anticipated expenses for the holiday season and I’m ready to hide under my covers until January. There’s so much to buy and so little money! How can I pay for my holiday expenses?

A: Yep, ‘tis the season to shop until you drop and your budget goes pop! But with proper planning, you can celebrate the holidays with your budget intact. Here are four ways you can pay for your holiday expenses along with the pros and cons of each.

1. Credit cards

Pros:

Convenient. Credit cards negate the need to carry cash around and are accepted at most retailers.
Rewards and cashback. Many credit cards offer rewards points, miles or cashback for your purchases.
Purchase protection. Most credit cards offer protection on big purchases so you can reverse a charge if a product turns out to be different than promised. Some cards also offer extended warranties, price matching and coverage for lost or damaged purchases.

Cons:

High interest rates. If you don’t pay off your balance each month, interest charges can pile up, making your holiday spending far more expensive.
Overspending. The ease of swiping a card makes it easy to overspend, especially during the holidays.
Debt accumulation. If you carry a balance into the new year, you might be stuck with lingering debt that could take months, or years, to pay off.

2. Holiday club accounts

Pros:

Encourages saving. Holiday clubs help you save for the holidays throughout the year.
No debt. Using money you’ve saved helps you avoid going into debt from holiday expenses.
Set it and forget it. You can set up your holiday club to take automatic monthly contributions from another account or payroll deposit throughout the year.

Cons:

Limited access. The funds are usually only accessible at the end of the year, which can be problematic if you don’t have other liquid savings to cover you in case of an emergency.

3. Unsecured/personal loan

Pros:

Fixed payments. Unsecured loans offer predictable monthly payments, which can make budgeting easier.
Low interest rates. Unsecured loans tend to have lower interest rates than credit cards.
No collateral needed. Most personal loans are unsecured, which means you don’t need to risk your home or car.

Cons:

Increased debt. Taking out an unsecured loan adds to your overall debt load.
Interest costs. While rates are lower than credit cards, you’ll still be paying interest on the money you borrow.
Eligibility requirements. You’ll likely need good credit to qualify for the best rates; some people may not qualify.
Temptation to overspend. Borrowing a large lump sum can tempt you to overspend.

4. Home Equity Loan (HEL) or Line of Credit (HELOC)

Pros:

Lower interest rates. Since these loans are secured by your home, they typically come with lower interest rates than credit cards or unsecured loans.
Large borrowing capacity. You can potentially borrow a significant amount of money.
Flexible terms. A HELOC allows you to borrow what you need, when you need it.

Cons:

Risk of losing your home. You risk losing the home if you default on the loan.
Fees and closing costs. HELOCs and HELs may have application fees, appraisal costs and more.
Long-term debt. Using home equity to fund short-term holiday expenses could result in carrying debt for years.

There are several ways to pay for your holiday expenses, and each option has its own benefits and drawbacks. Use our guide to choose the one that best suits your purposes.

Q&A: Should I Choose to Buy Now, Pay Later?

Q: When shopping online, I often see an option to Buy Now, Pay Later. Is BNPL a good option?

A: The option of paying for your purchase over time can seem attractive, but it’s important to understand how BNPL works and the potential disadvantages

What is buy now, pay later?

BNPL is a financing option that allows you to purchase items right away while breaking up the full cost into smaller, interest-free payments over time. Typically, BNPL plans charge no interest as long as payments are made on time.

What are the advantages of buy now, pay later?

The BNPL option has several advantages:

1. Interest-free payments

Unlike paying with a credit card, which typically means paying interest on the purchase, BNPL is an interest-free payment structure, as long as you stick to the payment plan.

2. Budget-friendly flexibility

BNPL provides flexibility, making expensive items more accessible to consumers who might not have the cash to pay in full upfront.

3. No credit check

Many BNPL services do not require a credit check for approval, which can be a relief for those with less-than-perfect credit or for those who want to avoid a hard inquiry that could lower their credit score.

4. Convenience

BNPL services, like Afterpay, Klarna and Affirm, are integrated into many popular retail websites. There’s no need for a lengthy application process, and your approval decision is usually instant.

What are the disadvantages of buy now, pay later?

The BNPL payment model is not without disadvantages. Some of these include:

1. Encourages impulse spending

Choosing the BNPL option can be an easy way to fall into the trap of overspending. Knowing that you don’t have to pay for the full amount immediately can tempt you into making purchases you might otherwise avoid.

2. Late fees and penalties

While BNPL is typically interest-free, many of these services charge fees for late or missed payments, which can make the total cost of your purchase significantly higher than expected.

3. No credit building

Unlike credit cards, which report to credit bureaus and can help you build credit when managed responsibly, BNPL services generally do not contribute to credit building.

4. Limited purchase protection

Credit cards often come with purchase protections, such as extended warranties, fraud protection and dispute resolution if something goes wrong with your purchase. With BNPL, these protections are either very limited or nonexistent.

5. Potential debt accumulation

BNPL can still lead to debt accumulation if not managed carefully. The ease of splitting payments might encourage shoppers to take on multiple BNPL plans at the same time, which can lead to future budgeting challenges.

When should I choose buy now, pay later?

BNPL can be a helpful tool if you’re making a planned, necessary purchase and you’ve already budgeted for the payments. Additionally, BNPL can be useful if you need something immediately but can’t pay for it right now. Finally, if an item you plan to buy soon is temporarily discounted, it can be worthwhile to buy it now and pay it off, thus saving on the purchase price. Before you choose BNPL for any reason, though, be sure you can pay off the balance within the agreed timeframe.

When should I avoid buy now, pay later?

It’s best to avoid BNPL if you’re prone to impulse purchases or if you’re already carrying debt. If you struggle with managing payments or keeping track of bills, the risk of late fees and penalties likely outweighs the benefits of spreading out payments.

Use our guide to learn about BNPL so you can make an informed decision before choosing this payment option.