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5 Budgeting Ideas Students Should Consider While on Debt

a student posing with a piggy bankHigher education in the U.S. is one of the most expensive investments a person could have. It continues to increase every year, leaving 44 million people in debt. What’s worse is that many people, including senior citizens, are still tied up to their student loan debt. Nowadays, students will have to spend between $9,650 and $49,320 annually to complete a four-year college degree.

Expensive as it may seem, there are ways students can do to save funds and greatly reduce their debt while in school.

  1. Students may consider writing all their fixed expenses and source of income. This is important especially if the parents of these students in Utah used to take cash and payday loans for them to determine where they could adjust their spending. Usually, rentals, food, and allowances are some of the fixed expenses of students.
  2. Academically achieving students may consider applying for scholarship grants or other programs in their school to reduce college cost. Schools also offer grants to achievers and athletes.
  3. Exert effort to lessen daily expenses. There are students who learn to cook and bring packed lunch instead of eating in costly restaurants that are often unhealthy. Vices like smoking and habitual drinking should also be avoided as those are just waste of money and bad for the health.
  4. Try looking for some menial part-time jobs. Students may want to scour the internet for easy clerical jobs for them to maximize their idle time. It will not only earn them additional income, but it could impress some potential employers if part-time jobs are indicated on the resume.
  5. Students may want to re-evaluate their belongings and sell the things they no longer need. This is worth considering for students who want to declutter their place and at the same time earn a little by selling old books and other things could still have some value for other people.

Currently, student loan debt has increased to more than $1.45 trillion, and if you are a student, you may want to reconsider your budgeting to break free from such debt.

January 11, 2018 at 9:26 amMind of Money

Here Are 3 Things a Great Mortgage Lender Will Do for You

Couple talking to mortgage lenderMillions of people buy homes each year, with the majority of them taking mortgages to finance the homes. So how does one decide which loan to take and which to shun? Obviously, you’ll want to get the best rates. But even more importantly, you want to work with a mortgage company like City Creek Mortgage in South Jordan you can trust. Here are traits that will tell you’ve gotten the right person.

They ask questions

When a mortgage provider seems in a rush to give you a loan without inquiring important information about your financial status, take a step back. There is no way a lender can give you a precise quote of the mortgage you qualify for without first asking for information regarding your credit rating, monthly income, the type of home you want to buy and so on.

They communicate clearly 

There are many things involved in a mortgage application, some of which you may not know. A great mortgage provider should be able to explain everything in a way you can understand. Every signature you put on a document will have financial implications for you. Ask questions where you don’t understand.

They work in your comfort zone

Often you’ll find that you can get approved for a certain amount of mortgage whose repayment may prove a bit uncomfortable for you. A reliable mortgage lender will look for a solution that makes you more at ease. They could give you the option to take a smaller loan size, for instance, or offer you a different loan program.

You may have heard about excellent loan lenders and terrible mortgage providers, but unless you’ve ever dealt with both, you’ll never tell the difference.  However, once you are aware of the signs of a reliable mortgage, you can find someone who’ll make the process much easier for you.

December 22, 2017 at 12:50 amMind of Money

3 Credit Card Mistakes to Avoid

credit card purchaseCredit cards are one great invention that has revolutionized operations. Connecticut banks know this. If you use it correctly, a credit card can build your credit score and earn you offers. On the other hand, if you use it in the wrong way, a credit card can affect your credit history.

With that in mind, here are three mistakes to avoid with your credit card irrespective of whether you are using it for the first time or not.

1. Making “Just Enough” Minimum Monthly Payment

A credit card has a minimum monthly balance, and it is tempting to want to pay that exact amount. While doing so might save you some cash, you might end up paying more interest on a purchased commodity if your balance is low. Pay more than the minimum monthly payment to clear the balance quickly.

2. Getting More Than One Card

Every time you fill in a credit card application form, your credit report gets a hard inquiry. This causes a drop in the credit score, and having more than one such makes the matter worse. Does that mean that you cannot have more than one credit card?

No. You can have more than one credit card, but do not apply for your second credit card right after getting your first one. Allowing ample time between card applications will be good for your credit report.

3. Taking Large Cash Advances

Cash advances have higher interest rates than most purchases. These accrue interest from the first day. Cash advances also have a flat fee and a small percentage of the cash you are taking out as a cash advance. Avoid taking cash advances unless absolutely necessary.

Credit cards are part and parcel of personal banking. You can shop with ease and access money whenever you need it. However, using your credit card can either improve or worsen your credit score. Avoid the common credit card mistakes mentioned here for financial success.

December 19, 2017 at 1:00 amMind of Money