Health Savings Accounts (HSAs): Is an HSA Right for You?

Health Savings Accounts (HSAs) are similar to personal savings accounts, but the money in them is used to pay for health care expenses. You own and control the money in your Health Savings Account.

To open an HSA, you must meet the following qualifications:

•    You must be under age 65 

•    You must carry a high-deductible health insurance plan; this high deductible health plan must be your only health insurance  - you can’t be covered by any other health insurance.

High-deductible plans don’t start paying until you’ve spent at least $1,250 (for an individual) and $2,500 (for a family) of your own money on health care expenses. While the deductible is high with this type of plan, the premium is typically lower for high-deductible plans than for traditional plans.

Some potential advantages of an HSA are:

•    You decide how much money to set aside for health care costs.

•    You control how your HSA money is spent.

•    Your employer may contribute to your HSA, but you own the account and the money is yours even if you change jobs.

•    Any unused money at the end of the year rolls over (stays in your account) to the next year

•    You don’t pay taxes on money going into your HSA

If you think a Health Savings Plan is right for you, please visit one of our Member Service Representatives who will assist you through the process.

Stay on Top of Your Account Activity

Are you suffering from security breach burnout in the wake of the recent hacker attacks at Shaw’s and Home Depot?  You may have even been one of the unfortunate ones to have had your card compromised at some point.

Unfortunately, once you have swiped your card at a store, you no longer have control over the safety of your card information. However, you can help prevent fraud by keeping the following in mind:\

1. Never share your PIN number with anyone.
2. Never write your PIN on your card.
3. Never keep your PIN with your card.
4. Monitor your accounts regularly for any unauthorized activity through our online home banking or mobile banking. This will allow you to verify that what is being debited from your account was actually authorized by you.
5. Keep track of ALL transactions. Use a checkbook register even if you do not use checks.
6. Contact the Credit Union immediately if you suspect unauthorized activity on your account. This will allow the Credit Union to immediately block your card and investigate the activity.
7. NEVER RESPOND to strange phone calls, text messages or emails asking for personal and/or card information. 

There is no way to prevent all fraud, but by following the above steps, you can be proactive and help us prevent fraud.

My debit card is expiring soon. When will I receive my new card?

Generally, your new debit card is mailed to you the month PRIOR to it expiring. For security reasons, your debit card will arrive in a plain, unmarked envelope with only the Credit Union’s address on it. It is easy to mistake this envelope for junk mail, so be on the lookout.

FYI:  your debit card is valid until the end of the expired month.

Surf Dude and Shared Branching

Will you be SURFing during your summer vacation? With the Surcharge Free ATM network offered by the Lisbon Credit Union,along with other participating Maine Credit Unions, you can withdraw money from your accounts with us at an ATM from York to Fort Kent, and a lot of places in between! It’s one of the many convenient benefits of your Membership with the Credit Union, and it’s what makes credit unions different from banks.

Shared Branching offers even more convenience. At participating credit unions, you can perform many of the transactions you would normally do at your Credit Union. Surfing or swimming in Wells? Camping in Farmington? Sailing in Rockland? There’s a shared branching credit union in all of these locations, and many more! Shared Branching even reaches beyond our state border and covers you coast to coast. Visit co-opsharedbranch.org to find a location
wherever you may be traveling this summer.

Your Path to Financial Success

Today’s world can be harsh. Every day we face obstacles that drain us emotionally, physically, and financially. We somehow seem to muster up enough strength to get through the emotionally and physically trying times, but what happens when there is just NO money left? Fear, depression, and avoidance are common ways to handle financial difficulties.  It doesn’t have to be that way. Taking control, making a plan and asking for help are the best ways in which to deal with financial problems. Below are some ways to make a financial crisis easier to manage and produce positive results:

Track Your Spending: If your budget continuously comes up short, take a week or two and log all your purchases and spending. This will highlight areas that are draining your wallet. You just might be surprised to see how much you’re spending in a week on unnecessary items.

Make a Priority List: Sit down and make a list of all your “Must Haves.” Make sure to include the due dates and weekly expenses for each.  This list should include housing, utilities, and any expense needed to secure a roof over your head. Account for a vehicle, gas, and related travel expenses so that you can make it to work to earn that next paycheck. Also, debts with monthly payments, like credit cards or loans, should be listed. Keeping these on track will ensure no added fees, no increased interest rates, and no aggressive collection action. Food and personal items will also need to be calculated. Be honest with yourself… it’s your list!

Construct a Plan: Your Priority List will allow you to start making a financial plan. You will know what needs to be paid and when. You can start to budget individual debts weekly or biweekly depending on your pay schedule. It helps to make a plan on paper. If you see it, it will happen!

Talk About It: If, after making a plan, you are coming up short, be open and honest about it. Every credit union, bank, and utility company has a Debt Resolution or Collections Department. People are in place to help you! Making contact with these people will ensure a productive working relationship. Most have programs or ways in which to make it easier for you to make payment. Establishing an open line of communication is a great way to work through budgeting shortages, past due balances and avoiding aggressive collection action. We all know how hard it is in today’s world and it is okay to ask for help.

Debt Management Companies: There are companies that extend their services to help you create budgeting plans. Be sure to research which company you choose to work with. One trusted company is Money Management International, with offices in Auburn, South Portland and Bangor.

Your Credit Union encourages a proactive approach to financial hardship. We understand the stresses of life and that there seems to never be enough money to go around. We have a knowledgeable Collection Department ready and willing to help you. Contact us with any questions or to discuss an appropriate course of action for you. You may reach our Collection Department at 207-353-4144.
Just remember, where there is a will, there is a way!

Article written by: Tracy (Lisbon Credit Union Loan Collector)

Get Financially Prepared to Purchase a Home

Qualifying for a home loan remains a hurdle for anyone without a solid balance sheet.  A potential homeowner must have the right income, the right credit score and the right down payment to get the best rates available. What follows are a few tips to consider as you pursue the home of your dreams.

1. Assess your financial picture and see how much house you can afford. Before you get too involved in looking for a new home, you should take some time to evaluate your finances thoroughly. If you’re a first-time homebuyer and haven’t been saving money or have been living paycheck-to-paycheck while dealing with student loans and other debt, you’ll likely have to make major lifestyle changes to get in a better position to buy a home.

Ultimately, you want to get an idea of how much of your monthly income you can reasonably afford to spend on a home. We suggest you use a formula to calculate what you can afford: add up the monthly house payment – principal, interest, taxes and insurance – and divide this into your gross monthly income. Your monthly housing payment should not exceed 28% of your gross monthly income.


2. Budget like you were already a homeowner.  You have figured out roughly how much money you should devote to housing.  But other costs need to be considered, such as repairs and utilities which usually run higher than if you’re renting.  If you are currently renting, you should calculate the extra costs that come with homeownership and start setting aside that amount. This accomplishes two goals: saving money for a down payment and getting accustomed to the financial obligations of homeownership.


3. Shoot for 20% down. While lenders will allow homeowners to make a down payment as little as 3% of the purchase price, you should shoot for 20% down in order to avoid paying private mortgage insurance or PMI. This is a premium that is added to your mortgage payment and can be quite expensive.  In addition to a down payment, you’ll also have to set money aside for closing costs, which can run into thousand of dollars.


4. Tackle any credit score problems early.  A person’s credit score is a critical element in determining how much money homeowners can borrow and at what interest rate. Buyers looking for the most favorable rates on a home loan must have a FICO score of at least 720. Prospective homebuyers should check their credit report for any errors that may be weighing down their credit score.  Disputing errors can take months, so it’s best to get this process going well before you’d like to buy a home.

A potential homebuyer should also avoid taking on new debt in the months before you set out to buy a home, as new loans or credit cards can negatively affect your credit score.


5. Get financial documents in order.  When it comes to formally applying for a loan, you will need to provide at least two months of bank statements, paystubs and W-2s.  If you are self-employed, you will need two years of tax returns. You should start pulling this information together before you apply for a loan.


6. Get pre-approved for a loan. Before you begin your home search, you should speak with one of our Loan Officers about being pre-approved. Once you are issued a pre-approval letter, this is a solid indication of what you can spend. This will also let the brokers and the sellers know that you are serious about purchasing a home.


Our Loan Officers are available to assist you at any time and will be happy to help you with what can often times be an overwhelming process.

Lisbon Credit Union is an Equal Housing Lender.

Obtaining a Copy of Your Credit Report.

Question: I’ve been hearing a lot about Identity Theft. How would I go about obtaining a copy of my credit report to make sure it contains correct information?

Answer: Federal law requires that each of the three reporting agencies (Equifax, Experian, and TransUnion) give you a free credit report every 12 months, upon request. 

You can order your free report from
www.AnnualCreditReport.com, a site authorized by the Federal Government. You usually get the report immediately by ordering online. You may also make a request by phone or mail.  This could take up to 15 days. 

To request your report by phone, call 1-877-322-8228 and there will be a simple verification process. To request your report by mail, download the request form, print it and mail it to:
      Annual Credit Report Request Service
      PO Box 105281
      Atlanta, GA.  30348-5281

Please be advised that these reports do not include your credit score. It contains all the information that a credit reporting agency has gathered about you.