In this episode of the Best Life Podcast, Tony invites Jackie Urban, Credit Management Supervisor at Altra Federal Credit Union, to tackle the challenges posed by rising inflation and mounting credit card debt, with total US balances now surpassing $1 trillion. Jackie emphasizes the need to distinguish between needs and wants in a spending plan while promoting a thoughtful, frugal approach to spending. This episode also talks about recognizing the signs of financial strain, where to seek help, and highlighting the many resources at Altra, like our Financial Coaches in our offices and GreenPath Financial Wellness. This episode will guide listeners toward financial stability in these uncertain times.
Best Life Podcast – Episode 18 – Dealing with Debt and Inflation
(Tony Beyer)
Hello and welcome to the Best Life Podcast were we here at Altra Federal Credit Union are helping you live your best life. I'm your host, (Tony Beyer), thank you so much for tuning in. Recently, it's been reported by the Federal Reserve Bank of New York, they regularly track all this economic data and everything like that, and they say that credit card balances are up to a total of more than $1 trillion, trillion with a “T,” and with prices of many of the items we buy…they're not going down. It's easy to see why average Americans are taking on more debt, especially credit card debt. So, to help us navigate through these turbulent times and to share some ideas to help our finances, we welcome back to the podcast, (Jackie Urban), she is Altra Federal Credit Union’s Credit Management Supervisor. Welcome back to the podcast Jackie!
(Jackie Urban)
Thanks Tony, I'm excited to be here.
(Tony Beyer)
We really appreciate you being here. We spoke to Jackie, I believe that was at the end of 2021 talking about how we can set ourselves up for a great 2022 with some great ideas and ways to get started with budgeting. So, it makes total sense to have Jackie back. We really appreciate it. Super incredibly knowledgeable and in addition to being the Credit Management Supervisor, you're also a financial counselor as well, working with our members.
So, Jackie, I was curious, what are some of the ways that people can kind of weather this challenge of inflation causing prices to rise on pretty much everything? What are some things people can do Jackie?
(Jackie Urban)
You know, Tony, that's a that's a tough question. I think the first thing that comes to my mind is examine what's important. If you don't need it, don't buy it. The second thing that kind of flips it in my mind's eye is becoming the king and queen of frugality. Wouldn't that look great on a T-shirt?
(Tony Beyer)
It would look awesome.
(Jackie Urban)
You know, my dad used to say to me, “Jackie, you can't have everything, but you can have some things.” And when he said that to me, I really kind of made me a little angry. I was like, “What does that got to do with the price of beans?” Of course, I want everything. But then later, when I got to think about it, you know, I think what he was really trying to say to me is, you know, you really need to make sure that you're doing the important things, that way then, you know, you'll be able to have those important things.
(Tony Beyer)
Yeah, that make sense.
(Jackie Urban)
You know, I was thinking, if, you know, if I did purchase the unimportant things, then I wouldn't really have the things I needed or the, you know, the money would be gone.
(Tony Beyer)
Absolutely.
(Jackie Urban)
So, you need to think about those. I think the other thing that always really frustrated me about, you know, growing up in a home that didn't have a lot of funds is he would always say to me, “Need and want are two different things, Jackie.”
And I'd say, “Well, I know,” but that need would kind of disguise itself, you know, like “I need those shoes,” or “I definitely need that fancy coffee,” somedays, there's no doubt about that. But I don't want that shoe habit or that coffee habit to affect my well-being.
(Tony Beyer)
Yeah, and it's important to keep the long term or the big, big picture in mind. You know, don't give up the the long term, you know, needs or what you really, really want in the future for something that you want right now.
(Jackie Urban)
Yes. Yes. You know, Tony and I have gone without and I really don't like it. So, I really need to examine what's important to me so that I truly can be okay, first and foremost.
(Tony Beyer)
Sure. And in order to help us do that, you know, some some great you know, we could talk about budgeting and talking about having a spending plan for our money that can really help determine, you know, the difference between those needs and wants, how could someone get, let's say, started with a budget or just kind of some basic steps with that?
(Jackie Urban)
Yeah, good question. I think the first thing that comes to my mind is always having that budget in place. You know, it's always going to be your best friend. And I, I sometimes think that “budget” word is kind of like a swear word. And so, you know, I try to use like, say it's a “spending plan” and I know it's kind of a mix on words, but it really does allow you to kind of map out that money so that you can see the pitfalls, you know, the shortcomings, the shortfalls. So, not only to map it out, but to map it out a ways, you know, go out a month or two, maybe even three that way, then you'll be able to see that pitfall. And, you know, we can avoid a pothole if we see it. You know, see, we really want to know when it's coming. You know, I think that's probably the thing that jumps out at me. The second thing I think then is the safety nets, you know, And what does that mean exactly? What's what's the safety net? Well, it might mean different things to different people, but, you know, need to underestimate the income, overestimate the expenses, maybe sticking $10 into your pocket on payday so that you have it because you're going to run out of gas three days before payday.You know just those little safety things. Yeah. And then you can build them up over time.
(Tony Beyer)
Yeah, absolutely. I mean, every journey starts with a single step or every, you know, emergency savings it starts with a single dollar, you know, So any little thing is is definitely, definitely going to help.
(Jackie Urban)
A trickle of water will fill a bucket so…
(Tony Beyer)
There it is. I, I remember like there's something that Jackie said like, yup, there it is. It's true. It's absolutely true. So for those that might be struggling with debt, what are some strategies or what are some things you can put in mind to to try to reduce or try to or possibly even eliminate that debt Jackie?
(Jackie Urban)
Yeah, that's a good question. You know, I know things can get super tight and when they do, it's a daunting task. It truly is. It sometimes will be so overwhelming, it'll stop you dead in your tracks and you'll do nothing, which is a terrible thing. So, I practice what I affectionately call my “Stop Budget.” I do it whenever I'm out of my mind. And by the way, that's code at my house for being completely crazy and scared and overwhelmed. And I'm I'm sure you can maybe relate to that sometimes where you just don't know which way is up. So, I literally just kind of hold out my hand and say, “Hold on, I just need to stop, think about some things,” and then count off on my fingers the things that can be shut off, taken away, or protects me, gas the tank, food in the tummy, and then everything kind of just folds up underneath there. But what that does is, it assures, I have electricity, I have a home, I have a car to get me to work, have gas to get me there, and then I have a little piece of mind, I can think and I can function. I think that's really, really important.
(Tony Beyer)
Absolutely. Absolutely.
(Jackie Urban)
You know, I do recommend that if you are a little bit overwhelmed, always make sure that you do one thing for me, and that's not to be embarrassed about it. I think that will be one thing that will topple a family is, you know, they’re so scared they don't do anything or they'll binge shop, you know, so you want to be really careful. So, don't go it alone, don’t be embarrassed.
(Tony Beyer)
Yeah. Yeah. And as we know with that data, I mean, more than a combined, $1,000,000,000,000. And so there's a lot of debt around. And I know that you've been a financial counselor and all of your years and years of experience, you know, money problems are something that that people…they'll talk about anything else, any other problems before they get to money sometimes, and it's really nothing to be ashamed at. And it's, you know, the first step in getting better is to get some help and address the problem is, a lot of times money problems, like they don't go away, they…
(Jackie Urban)
They'll get worse. You know, we definitely have to pay attention. I think that spending plan is very powerful. You know, really, that spending plan isn't to limit you, it's to help you. And then once you got that, believe it or not, you can then actually put some of the things in there you truly want maybe a vacation or put that goal in there, something that would get you out of bed on Monday morning, you know?
(Tony Beyer)
Yeah, absolutely. That's important to keep in mind those priorities, what's important to you that needs to be in your spending plan along with obviously those needs that you know, like you said, keeping the the electricity on, keeping the water running, making sure you can get back and forth, you know, to to work so you can earn an income, have clothing, food, all those things, all very, very important.
(Jackie Urban)
I think, too Tony. I think sometimes people think, you know, well, if I pay for the things that can be shut off, taken away and protects me, one of the protections that are in there is your health as well. So, I know sometimes people will forego meds or something like that. No, we need to put that in there. That's definitely something that protects your ability to function and go to work. So, and I know they are expensive, truly, but that all comes inside that that “Stop Budget” is to take care of yourself. Be careful. But, you can overspend too.
(Tony Beyer)
That's true. So, if someone's putting together their spending plan and and things just aren't adding up, what are some things they can consider or what could someone do?
(Jackie Urban)
You know, when you do put your budget together, you really it will reveal some things to you. It's frightening sometimes is that it can be it can be kind of daunting and scary. And to sit down and kind of think about what you're spending your money on and believe it or not, you'll find some spending leaks. And what does that exactly mean? Well, I like to call the “vending machine” spending leaks, because, you know, have that soda. So, you know, and so, you know, you examine it and you will find it. You'll find sometimes there's some spending leaks. And when I did this on my own, I found that at my house it was satellite TV. Now, I'm not a TV watcher. I love to read, I'm a ferocious reader, but my husband loves satellite TV, you know. So, you know, we had to be kind of approach that gently because otherwise it was some loud discussions going on. But what I was finding out is that he wasn't watching it. He was doing something else. He was watching the YouTube videos or the fun videos that they have out there. I was finding that he was doing that. So, we kind of talked about that a little bit. And believe it or not, in a couple of months later he came back. You know, we could shut that off. Well, there was $100 in our budget. We found, you know, a spending leak. It wasn't something that was important to him. Truly, we found a different way to get what we wanted at a discount. So, you know, it's it's really that examination will find it. The other is sometimes you will reveal that you aren't making enough money and you do maybe need to have a little bit of a “side hustle.” So, what does that mean for you? Might be different for another person. It might be a part time job, it might be something like that. But I always caution people that when you look at a part time job that you're looking at what that purpose is. What is it for? You don't want it to enter into the normal budgeting. You don't want to be 65 years old working full time, part time just to make ends meet. So if you are going to do a “side hustle,” make sure it's extra. What is it for? What's the purpose? So, at some point you can, you know, relax a little and downsize and you don’t wear yourself out.
(Tony Beyer)
And one of the things that we, you mentioned before, being the Queen of Frugality” and kind of want to mention that being frugal and being cheap, those are two different things, right Jackie?
(Jackie Urban)
Yes, they certainly are. You know, you want to buy the best you can afford. So, buying something really inexpensive and it breaks, you know, paying a little bit extra for some more quality might be a better, better plan. You know, Yes, it cost, you know, $20 more, $50 more, but it will last longer. So, you're absolutely correct. Cheap does not necessarily constitute or equal frugality.
(Tony Beyer)
Yeah, yeah, yeah. If it's something that you're going to use, you know, looking for something that you're going to get value out of and something that's going to to last instead of buying two or three of a cheap thing when you're spending more on those cheap, then you could have just bought something initially a little more quality. So it takes a little more time, a little more research in order to do that, to be frugal, but it is an important thing, frugal. It's not a dirty word whatsoever. And I like your idea of putting it on a on a shirt.
(Jackie Urban)
I will say, you know, one of the things I guess I'm kind of a cliche, I like I like little quotes, things that kind of keep me moving in the right direction or remind me of something and one of my favorites, and I use it on my little brother a lot and he'll toss it back at me. So, we giggle about it when we're really being cheap, when I'm not willing to spend the money for that one thing, and I'll say to him and he'll say back to me, “Price is only the issue in the absence of value.” So, if it has value, sometimes it makes sense to spend the money. Be careful. Certainly examine. Make sure you're getting what you need.
(Tony Beyer)
Yeah, exactly. So, Jackie, you're meeting all the time with members, going through spending plans and, you know, thinking, you know, and finding what's going to work. Are there any common topics or themes that that have been coming up with your, you know, meetings with members and how can they, how can we help them at Altra?
(Jackie Urban)
Yeah. Tony, I'm truly blessed to be in a position and have the opportunity to learn from members. Some of the greatest ideas have come from my members. I did some of the stuff, I didn't come up with myself, you know, I learned from them as much as they learn from me. And I think the common theme is that they just want to be okay. ”I want to make ends meet. I want to be comfortable.” You know, everybody wants good credit and they sometimes will sit down and they'll say that to me, “I want I want good credit,” and that is a reoccurring topic in my office, but it really comes down to, you know, people just want to be comfortable. They want to be okay, and so the good conversations that you have about money is really good food for thought. I think one of the most memorable I had was I had an opportunity to work with some young folks, not unlike what you do, your money camp, you know, your money camps that you do at Altra. And we were discussing where you could save money and I was looking for the place, you know, where can you save you know, in a piggy bank, in a in a credit union or in a passbook savings or, you know, those kinds of things. That's what I was looking for. But what they started tossing at me was like, “Thrift shop for your clothes” and, you know, “Make your own pizza” and maybe “Walk to work versus drive.” So, it was kind of an epiphany for me. It was a good experience, and everybody really does want something or a discount. So, it's tell people, you know, we'll talk about trying to get what you need at a discount and those kinds of things. So, that common theme really is, is that we just want to be okay.
(Tony Beyer)
Yeah.
(Jackie Urban)
And so those things will help us.
(Tony Beyer)
Absolutely. It's great advice. And Jackie, what are some signs that maybe the debt might be a little too much or it might be out of control or are there any, you know, telltale signs or anything that, you know, people can be on the lookout for when it comes to their debt?
(Jackie Urban)
I would say, you know, you know, you're in trouble and to be honest with yourself. You're looking, oh, yeah, I'm struggling a little. And those signs are there. They're huge and you don't want to ignore them because they will only get worse. You know, if the balances are keeping you up at night, or you're paying a bill late chronically, or maybe your family's just having some loud, loud discussions about money and it seems to be a point of contention and certainly you do want to address them. And again, as I mentioned earlier, please don't be embarrassed about that. I think sometimes hiding that from even yourself is a bad thing.
(Tony Beyer)
Yeah. You know, and money problems that can affect all areas of a person's life, like you said, you know, families, relationships, friendships, internal stress, you know, all of those things can happen. If somebody wanted help or any additional resources or anything like that, who could they talk to at Altra or what could they what could a member do?
(Jackie Urban)
I'm super glad you asked that, because you do need to find a friendly table to spread that out. Then you can start weeding out and weeding in and making it so that you can control the money versus it controlling you, because that's exactly what it does. It kind of consumes you. So, find a friendly table and you know, you can reach out to your friends, your family, that kind of thing but know that your financials have trained financial coaches. They have partnerships with organizations like GreenPath Financial Wellness. They've been in business a long time in financial wellness, and they want and can help you kind of work through and win that money game because that's really what it's about. A little bit of planning. We all want to win that money game, you know, so you do a little bit of planning, and you can win that game then.
(Tony Beyer)
Yeah, and there's plenty of resources on our website, Altra.org. You can also access GreenPath Financial Wellness through our website as well. And you mentioned the financial coaches and in many of our offices we have certified financial coaches that are able to meet with our members and kind of take a look at that spending plan and get an idea of, you know, what's important, what can we focus on and creating a plan as well. So yeah, there are a lot of resources out there. Is there anything that that's all the questions that I have, Jackie, and I know you're incredibly busy. Are there any questions that that I haven't asked Jackie?
(Jackie Urban)
I can't think of anything that you didn't ask. It's a large subject. It's all consuming sometimes. And I think the one thing I wish for folks to know is that people that do what I do for a living, they love it. They want you to come. They they want you to seek that help. We want to win at the money game and we want you to win at it, too. And so seek us out. I mean, we don't claim to know all the answers, but we serve. We'll just love to strategize with you all day long. So come on in, you know, reach out. Find that table that I mentioned, that friendly table so that you can win.
(Tony Beyer)
Very good. Well, we really appreciate you taking the time to be on the podcast, Jackie. We really appreciate it. Thank you so much.
(Jackie Urban)
You're welcome. Thank you for having me.
(Tony Beyer)
On this episode of The Best Life Podcast, we spoke with Jackie Urban, who is the Credit Management Supervisor for Altra Federal Credit Union. Well, that's going to do it for this episode of The Best Life Podcast presented by Altra Federal Credit Union. We appreciate you taking a moment to learn how you can live your best life. If you have a question or a topic you'd like us to cover, send me an email at tjbeyer@altra.org and who knows, it may even make it into a future episode. Don't forget to follow the Best Life Podcast pretty much wherever you get your podcasts or find it on our website at altra.org.
Thanks again, be well, and we'll talk to you again soon.
