October is all about spooky creatures and scary stories, and we’re no different at credit unions. In fact, one favorite activity of credit union employees during Halloween is to sit around, lit only by the lights of the Advisor Supported Kiosks, and tell spooky stories about money.
So sit back and enjoy some of the all-time scariest stories involving money. We don’t want to scare you too badly, though, so we’ll also let you know what you can do to stop these spooky stories from happening to you.
The Devil’s Mortgage
Ellen and David had wanted a house for years. Finally, after several walkthroughs, they found a house they loved, and after meeting with a mortgage broker, discovered that they were preapproved for even more than they needed.
It wasn’t until they were at the closing that they realized how much they would have to pay on the mortgage each month—and that didn’t even include their utilities. They faced each other and realized that they would either have to buy a house they couldn’t afford or lose the money they made for the down payment!
Unfortunately, this scenario can happen to anyone who doesn’t start the homebuying process by thinking about how much house they can afford. However, you can easily figure out how much you can safely manage to spend on a hosue payment by using a free mortgage calculator, like the one First Alliance Credit Union offers. This useful tool will let you figure out what your monthly payments will be based on the amount you want to borrow, among other factors.
Figure out your mortgage payment today 
The Horror of Pay Day Loans
Lola needed money to pay her monthly bills, and her account was drained since her son had to go to the doctor. If only she could just get a quick loan. That’s when the neon Pay Day sign caught her eye…
It all seemed so innocent at first—she would get the loan for two weeks at most, then pay back the money, plus interest, using a post-dated check. When her next paycheck came, however, she realized that the interest the Pay Day lender had charged would be more than her paycheck could cover! The only thing she could do was accept the Pay Day lender’s offer of another loan, even more expensive than the first.
Calling Pay Day lenders bloodsuckers is an insult to vampires everywhere. They prey on the most vulnerable members of society, offering them quick and easy loans. The problem is that that the interest rates they charge on their loans are usually well over 100%. Worse, when many people attempt to pay back their loan, they realize they won’t have enough money to last until their next paycheck, and they need to take out another, more expensive Pay Day loan.
The best way to free yourself from a Pay Day lender is to avoid them. If you’re having financial difficulties, talk with someone at your bank or credit union about your situation and see if they have any small loans available. First Alliance, for instance, offers a No Hassle loan that lets you borrow $1,000 for 12 months, with same-day approval.
Even if you have taken out a Pay Day loan, an unsecured personal loan can still help you get free from their clutches. All you have to do is get a loan big enough to cover the amount you owe.
The Unfortunate Accident
Zeke was a good guy. He had a stable job, lived within his means and was responsible with his money. Then he got into a bad car accident and was in the hospital for months. When he finally got out, he discovered that he had thousands of dollars in medical expenses, all of his bills were late, and to make matters worse, his employer had put him on unpaid leave while he was recovering!
This might just be the scariest scenario, because a medical emergency could strike someone at any time. Health insurance will help defray some of the costs, but you’ll still need to have some way to pay your day-to-day living expenses, especially if you live alone.
The only real way to avoid this scenario is to make building up your savings a priority, and the best strategy for that is to regularly save 10% of each paycheck if you can manage it. Eventually, you’ll have around $3,000 in your account, which is enough to get you through most emergencies.
For the worst financial emergencies, though, you should keep putting money in your savings account until you have at least three months of salary saved up. This will help keep your head above water until you can either find a new job or are able to return to your old one.
Avoid Financial Nightmares With First Alliance Credit Union
Everyone likes a good spooky tale, but scary stories involving money always makes people’s blood run cold. Fortunately, you don’t have to follow any superstitious ritual or carry a talisman to protect you against them. All you need to do is make sure you have enough money in your savings account to deal with unexpected emergencies and make sure you know what you’re getting into when you apply for a loan or a mortgage.
