Skip to main content

What are some financial challenges in life?

Life's Financial Hurdles

For many young people, graduating from an institution of higher education is one of the biggest steps toward adulthood that they have ever made. But what happens when it’s time to go off the beaten path? Navigating the job market, making major purchases such as a car and a home, and figuring out how to pay off all of your debt can be overwhelming at first. But with a little planning and some reflection on what you would like to achieve financially, you’ll be able to clear life’s financial hurdles. Here’s how.

Student loans 

This is one of the biggest obligations you’ll have to shoulder as a young adult, especially now that the costs of college have risen dramatically. However, it’s important to see the light at the end of the tunnel; you will most likely have options for how you want to pay off your debt. Some graduates choose to make regular monthly payments of the same amount, and others may choose a graduated payment scheme where they can contribute more towards monthly payments once they’ve found a stable job. You should also research loan forgiveness opportunities; some professions, such as jobs in the non-profit sector, may make you eligible to drop some of your educational debt without repayment.

Credit cards

While student loans are a good kind of debt (they are investments in your future self, after all), credit card debt does not fit this category. You should repay your credit card balances as soon as possible, but this is easier said than done. Some tips to help you keep your card balances under control include calling your card company when you fear that you won’t be able to make a payment and trying to negotiate a better interest rate. Many cardholders don’t know what opportunities they are missing out on because they never pick up the phone to talk with a representative from the credit card company. If you remain in contact with them, there’s a good chance that they will be more helpful in assisting you with payment issues. And for now, you can make sure that you don’t incur more debt by leaving the cards at home.

Mortgage rates

If you’re successful at managing your finances over the next few years, you may even find yourself in a position to buy a home of your own. Home ownership begins with a good credit score, so make sure that you check your credit report at least once a year. This will help you spot discrepancies that could hinder your financial progress. And saving up for a larger down payment can help you avoid years in interest fees as you pay off your home loan. The most important step of all, however, is to shop around for a lender. You’re applying for a loan, but remember, you should have some qualifications of your own that a lender should meet to gain your business. 

Buying a car

Last, but not least, you’ll need a way to get to work and back so that you can increase your earning potential as a young professional. If you find yourself on the market for a new car, it pays to do some research before you go to the dealership. The more information you have about the car that you want to buy, the better your chances are of getting a good deal on it. Car salesmen are notoriously sneaky in adding in fees and raising prices, so remember to negotiate your financing separately from the price of the car. Or better yet, get financing from your bank or credit union before you go to the dealership to buy. This will make sure that you keep the upper hand in auto negotiations.


Popular posts from this blog

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Brief Overview of Credit Card Machines

The world has witnessed so much of modernization eliminating the cash transactions from businesses. These days we have all sorts of online transaction which is popularized by the help of credit card machines. This is a device that can do transactions with a debit card or a credit card. Credit card machines securely transmit funds from one account to another. It is a Point of Sale terminal that can do transaction with a credit / debit card. This machine allows a merchant to insert, swipe, or key in manually the required credit card information and transmit such data to the merchant service provider for consent and then later on the transfer the fund to the merchant. It is used by merchants to directly capture card information instead of manually entering it in card details. Credit card machines are efficient enough to provide the benefit of decreased transaction processing times.

Four Things to Know About the Housing Market in 2021

Due to the Covid-19 pandemic, the increase in the number of people working from home as well as the initial ban on property transactions in the first lockdown, the housing market in the UK was majorly affected. After the first lockdown, the housing market restarted in the UK and was allowed during the second and third lockdown. The government introduced the stamp duty holiday which definitely helped boost the housing market as well as the buyer's confidence, and due to its overwhelming success, this scheme has been extended till July 2021. Even though the demand for homes increased, the average price of property rose in certain areas and government schemes worked like a charm, the housing market was nowhere close to where it was before the pre-Covid era. While no experts can predict with any amount of certainty the future of the housing industry in the UK, here are the four things that you need to know about the housing market in the UK in 2021. Increase in demand for properties in

Peer-to-peer Lending Oprions for Students

Is peer-to-peer lending safe? Going to college is necessary in this day and age if you hope to get a good paying job. However, finding the money to do so isn’t always easy. One method of getting money for college is to take out a student loan from the government. Another is to go a private lending institution, such as a bank or credit union. A third method, and one that is becoming more and more popular, is to get a loan from a private individual. This type of loan is usually called peer-to-peer (P2P) lending. Following are a few options for students who are seeking a peer-to-peer loan. What Is Peer-to-Peer Lending? Peer-to-peer lending is essentially a financial agreement that takes place between individuals. One party, you, borrows money from someone else. It works the same way as a traditional loan because unlike a scholarship, grant, or gift, you will be expected to pay the money back, on time, and with interest tacked on. You and the lender agree on how much will be paid back wit

Responsibilities a Property Management Company Needs to Handle

When you are considering investing in a residential or commercial property, you need to plan a number of things. At such times, getting help from the right professionals may be of immense help. You may consider opting for property management companies for handling the responsibilities. Understanding the tasks, before and after the purchase, these companies handle is necessary before you employ them.

Why comparing ISA rates is a necessity?

Investment is not about the capital you put in an account, it is your ability to judge risk and return trade-off. Unless you weigh your decision carefully you may end up making no profit. Choosing the best ISA provider therefore could be a difficult task. If you are investing in cash ISAs you must have few hundreds of options to test the best. One should compare ISA rates for the bigger return. But who can help you on this? How do you know which Cash ISAs is giving better interest rate? What are the terms and conditions? Who are the account providers? Are these accounts easily accessible? What others are talking about those ISA accounts?  How advantageous cash ISAs could be in terms of risk coverage?