Even though most reports tell us the American economy is strong, most US citizens are feeling the squeeze of a rising cost of living. Rent, groceries and other common expenses are at an all time high, and your members’ wages just don’t go as far as they did a few years ago. So how can your credit union help members to achieve financial freedom? Here are four things your credit union can do.
1. Refinancing Options
We’re all familiar with how much interest rates have skyrocketed in the last few years, but credit unions can typically offer better rates than the average large bank or fintech. By using data to see where your members are spending their money, you can identify those members making car or mortgage payments to other institutions, and market refinancing options to them. Even by offering a rate that’s a fraction of a percent lower, you can help your members to save hundreds of dollars each year that they can then use to reduce their debts in other areas or to afford basic necessities.
2. Balance Transfer Cards
American’s collectively hold $17.69 trillion in credit card debt, and delinquency is rising. With an average interest rate of 27.7%, trying to stay on top of payments – let alone reducing the overall balance – can feel like a losing battle for many Americans. By offering your members balance transfer cards with lower interest rates – or perhaps even no interest for a certain amount of time – your credit union can help members to start to reduce their pile of debt and move closer to achieving financial independence.
3. High Yield Savings Accounts
Financial freedom doesn’t just come from reducing debt obligations, but in being prepared to handle emergency expenses. High yield savings accounts can help members to raise an emergency fund faster, preparing them for setbacks and allowing them to focus their energies elsewhere.
4. Education
Perhaps the best way to help your members build a foundation upon which they can reach financial freedom is through education. Financial literacy in Americans averages at around 50%, and 37% in Generation Z in particular. By helping your members to better understand their finances, you can help them to make better choices overall and avoid costly mistakes that could take them years to pay off.
Financial freedom is everyone’s goal, but achieving it takes time and planning. Help your members to achieve that dream by providing them with the resources and education needed to make good financial choices and to start taking steps towards financial freedom.
This article was written by Bill Lehman, Chief Marketing Officer at Trellance.
