This St. Patrick’s Day, personal finances require more than luck

By Jim Lemieux

This St. Patrick’s Day, we could all use a little luck of the Irish. Many Mainers are struggling to get ahead in today’s economy. We see the word “affordability” everywhere, but it’s still far too elusive.

From Portland to other parts of the state, Mainers face higher inflation with tighter budgets than the rest of America, whether it means dealing with food prices, electricity rates or other costs of living. At grocery stores or restaurants, sticker shock is all too real.

For a healthier Maine economy, there are many pieces of the puzzle. One is increasing wages and salaries. Another is saving more money or investing in the future. And another is leaning on trusted financial partners. I have provided financial advice to members of all income levels for decades and my message is the same, “You are not alone.”

Too often, Maine consumers feel like they’re swimming against the economic tide on their own, trying to budget without a helping hand. And, too often, they feel like financial advice is a luxury of the wealthy — a pipe dream. Nearly 90% of consumers are actively looking for financial advice, and that is good news. It shows that people are trying to take control of their finances, but it is easy to assume that guidance is too costly, especially when big banks and other large corporations act like they don’t care about their customers.

Over and over again, I have seen people fall out of love with their bank, either because they feel like they are being nickel-and-dimed or because the services just don’t feel personal enough (or both). Traditional banks — once the go-to partners for financial affairs — can sometimes come with high interest rates, hidden fees and impersonal service. While there are plenty of quality banks out there, traditional banking isn’t for everyone.

Credit unions can help fill the gap. Unlike big banks that are driven by profits, credit unions like ours pass on the savings to members in the form of more attractive rates and other offerings. From providing extended hours to engaging in community initiatives, credit union experts are also known for being local experts. They meet you where you are, at your unique place on the financial journey.

Debt is one area where credit unions and other financial partners are especially valuable. On average, Mainers have thousands of dollars in credit card debt. Nearly one third of state residents have $5,000 or more in medical debt, compounding the crisis. It is incredibly difficult to stay afloat, let alone get ahead, under such circumstances. I truly sympathize with people who are trying their very hardest to find some semblance of financial freedom, only to be weighed down by current economic conditions.

How do you get rid of the debt burden? There are several options, such as debt consolidation loans, home equity loans or Visa credit cards featuring a low 9.9% APR. Credit unions can provide a lifeline for Mainers seeking to manage their finances more effectively.

The numbers don’t lie. According to the latest data, a consumer receiving a $40,000 loan over six years from a credit union saves $15,000 over the life of the loan compared to auto finance companies and $10,000 compared to banks.

As Tax Day approaches, trusted partners are ready to save people their hard-earned money. Mainers can work with financial experts to determine the best tax benefits for themselves. For example, it is possible to contribute to last year’s IRA until April 15, and I would encourage people to contribute to their current year’s IRA if possible.

That’s not luck; that’s free financial advice! Ahead of St. Patrick’s Day and amid tax season, it’s worth remembering that managing personal finances isn’t about luck. It’s about having the right guidance and support.

The good news? You don’t have to figure it out alone.

Lemieux serves as president and CEO of Sebasticook Valley Federal Credit Union.