How to Confidently Handle Your Student Loan Debt

Getting a college education is one of the most important decisions you can make for your future. Unfortunately, with a college education comes student loan payments, which can be confusing and intimidating for most students who borrow money. Navigating the student loan process is challenging enough, but without making the best financial choices, you’ll surely fall behind in your student loan payments. Fortunately, this article will help you so that you can confidently begin paying off your student loan debt.

Make additional payments to get ahead

To avoid falling behind, you’ll want to pursue every chance you can to get ahead. Getting ahead of your student loan payments means making as many payments as you can in a month. So, maybe you have some extra money lying around from your financial aid stipend. The tax season is approaching and you’re expecting your tax return to be deposited into your bank account in the near future. To succeed in paying off student loans, recent graduates should look to use lump-sum payments to get ahead. That way, you can enjoy a little extra time should you miss some payments later down the road.

Apply for loan forgiveness or deferment options

Fortunately, there are certain types of forgiveness programs that you can use to get student loan relief. If you were disabled, for example, and were no longer able to make your payments, you can talk with your loan servicer to get these loans discharged. Remember, loan forgiveness is different from loan discharge. Being employed by a government agency or not-for-profit is more lucrative than you think. You might be eligible for loan forgiveness. The U.S. Department of Education points to resources for graduates to explore student loan forgiveness options. Additionally, if you can’t afford to pay now, student loan deferment can help you avoid paying for now, increasing your chances of earning more income to confidently manage your student loan debt.

Consolidate multiple loans

Student loans will collect interest that will hurt you financially if you can’t keep up with payments. These interest charges worry about people paying back student loan debt as they closely resemble the problem with paying late fees. Paying interest in addition to the original balance can eventually catch up to you after a few months. That’s why it’s a good idea to consolidate multiple loans into one. The benefit of consolidating your loans is now you’ll only have to worry about a single monthly payment rather than keeping up with multiple lenders. The convenience of consolidation is an option many recent graduates should explore. Choose from the U.S. News & World Report’s list of best student loan consolidation and refinance lenders. To pay your loans off effectively, you’ll have to choose an organization that can promise you the lowest interest rates.

As long as you have the right mindset, paying off student loan debt is a real possibility. Many student loan borrowers will feel frustration and confusion about how much to pay back, how often, and when. But if you can consolidate the budget, apply for loan forgiveness or deferment, or start a side hustle, you’ll be in a better position. The best expert wants you to succeed; that is, David Geithner of On Location experiences.

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Personal Finance: Digging Your Way Out of Debt

Debt is a major struggle for many Americans, and if the situation is not handled early enough, it could easily lead to significant issues. Debt has led to the downfall and reputation damage of many top companies and famous individuals. It is rarely a choice to fall into debt. Financial problems could have originated from theft, continuous business losses, or loss of a job. However, it’s still possible to operate debt-free if you intentionally decide to work on it.

In this article, a Philadelphia bankruptcy lawyer takes time to advise you on how to take charge of your personal finance and start the journey to living a debt-free life:

Acknowledge and List Down Your Debts

The first step to accountability is acknowledging that you’re in debt, figuring out your mistakes, and making a list of everything you owe. However, if a financial mistake is what has dragged you down into this mess, there’s no need to beat yourself up about it as you’ve gotten to the first crucial process of it all.

Create or Adjust Your Budget

After writing down all of your debts, the next vital thing is creating a budget or adjusting your budget if you already have one. Here are the basics:

• Mark Your Income- Your income includes the fixed amount of money you get each month from your job, plus any other side hustle. A good rule of thumb is to put 10% of your monthly income directly into a savings account so that you have money for later.
• Note Your Expenses- Make a list of your regular monthly expenses. These expenses include living payments like rent or mortgage, utility bills like electricity and wifi, car payments, grocery payments, and other consistent, recurring expenses. Add these personal expenses together and subtract the total amount from your income to see what’s left. You should
• Acknowledge Your Debts- After accounting for the cost of living expenses, allocate the remaining monthly income to paying off your debts.

Check Your Credit Score

If you are in debt, it’s almost definite that your credit score is not ideal. It marks how great or bad your financial footage is, and you can dispute errors if any. Lending institutions often use the credit score to check your financial standing when you want a loan and to see if you pay your debts within the required time frame for fair consideration. In this situation, though, you are not checking your credit score for that purpose. Checking it ensures that you improve your credit score as you check on every wrong financial move you make as you take a step towards improving.

Set Financial Goals

It can be tricky to set financial goals, especially when you’re trying to settle your debts. However, this is the surest way to make sure that you’re fully in charge of your financial growth to solid financial ground. Also, you may have gotten into this financial debt situation because you didn’t have a fallback plan when you didn’t have enough money or when the bad eventualities happened.

An emergency fund will ensure that you don’t add to your debts by borrowing money or using your credit card to cater to unplanned emergencies. Imagine the eventuality of you losing your job or a steady source of income? At least an emergency fund will sustain you for a while before getting a stable source of income.

Strategize on a Payment Plan

Every debt is unique and has a different repayment period time frame. Arrange your debts in the hierarchy of high-interest rate debts to the low-interest rate debts. It’s advisable to clear your debts monthly, starting from the smallest debts, and then work towards settling them. It also boosts your esteem that it’s possible to clear your debts once you put your mind to them. Later on, you can start your journey towards clearing the large debt till you’re completely debt-free.

You may also try the “avalanche method” of paying off your debts. Begin by prioritizing the debt with the highest interest rate, not the highest amount owed. This way, you start to take out the most significant contributors to your debt over time and remove them from future payments. Continue by paying off each subsequent highest interest rate.

Get Professional Help

No one is a wizard at making clever financial moves all the time, especially when it comes to debts. Therefore, if you’ve been having money management issues for the longest time, it would be wise to consult a debt specialist. These experts will give the best tips to help you manage your debt. They can also help renegotiate the interest rates with your creditors or the initially agreed upon repayment strategy.

Well, we don’t want you to also get into another debt specialist payment plan for the consultation. So, it would be wise to ask them to give you a payment tracking method that you can use to track all your debts to ensure that you’re paying your debts correctly and in full.

While it’s not easy to stay out of debt, especially if you’re living in an economically strained society, building a solid financial strategy is critical for your success. It may seem complicated and almost impossible initially, but it’s doable if you’re keen and focused on it. You can change your financial look if you put the work into it and maintain a positive mind.

About the Author

Roni Davis is a writer, blogger, and legal assistant operating out of the greater Philadelphia area.

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4 Things To Know About Debt

Have you been thinking of getting a loan like the one that Maxlend loans gives you? Before you jump the gun and sign a loan contract, you should consider these 4 key points about debt. Keep on reading to see how you can improve your finances.

Nearly Half of America is in Debt

You’d be shocked to find that approximately 47% of Americans are deep in credit card debt. That means approximately 120 million people are struggling to pay off their credit card debt. If you’re a millennial, you’re likely to be affected by this debt more than any other age group. There are various factors that have contributed to this spike. For instance, student loans, unemployment, and unequal pay have been the main reasons. What’s even more concerning is that your average American household has a credit card that has more than $10 000 in debt. This also means that your household is spending a considerable amount paying the interest on your credit card debt.

Good Debt does Exist

Did you know that there’s a difference between bad and good debt? If you want to make better financial decisions, you should understand how to use good debt to your advantage. The thing is, you can take out debt to ensure that it works in your favor. But how? Is that what you’re asking yourself? Let’s say that you want to increase your net worth by buying an asset like your home. If you’ve heard the saying that goes “it takes money to make money”, then you should understand that taking out a mortgage loan to finance your purchase is considered good debt. This type of debt helps to improve your creditworthiness. Moreover, you should have a certain credit profile to ensure that you can get approved for what’s considered good debt. Essentially, the main idea behind good debt is to increase your overall credit profile and, ultimately, your net worth.

Debt is Generally Bad

While you can find yourself considering taking good debt to improve your credit profile, you shouldn’t forget that most debt is bad debt. But do you know what’s considered bad debt? According to research, any debt that you take for any asset that depreciates is considered bad debt. For instance, borrowing money to buy your car is one of those financial decisions that aren’t a good idea. The fact of the matter is that your car depreciates in value from the moment that you seal off your deal. However, if you have to borrow money from a lender to finance your car, you should consider choosing a loan option that has little to no interest. This is why it’s important for you to compare different quotes before you commit to taking out a loan.

Pay High-Interest Debt first

Paying off debt is different for everyone. For example, your debt payment plan is different from your friend, Joe. So, there’s no right method that you should follow when you start your payment journey. Yet, starting with your high-interest debt is advisable. When your debt has a higher interest rate, it follows that it’ll take you longer to pay off when you compare it with the rest. If you want to get a handle on your debt payments, then you should consider starting with your high interest rate. Pay the maximum while you pay the minimum on your other debt.

In summary, it’s important for you to find a way to make your debt work for your financial needs and obligations. Essentially, you should find a way to decrease your debt as much as you can.

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How Debt Relief Has Changed Over the Years

Debt relief, like any industry, has changed a lot since its beginning. The debt relief of 10 years ago was an entirely different ballgame than the debt relief of today. Why? Well, a combination of factors have come together to advance the industry.

First of all, people simply have faster, better access to technology. This means consumers can do thorough research before enrolling in a debt relief program—and they can understand the process beforehand. People can also read reviews to get a feel for what to expect, and this social proof is very important in keeping debt relief organizations accountable for their actions.

Another factor that shaped the debt relief industry is increasingly stringent federal regulations meant to protect consumers from scams.

Here’s more on how debt relief has changed over the years and why it matters.

How the Advance Fee Ban Changed the Industry

You can really divide debt relief into before and after chapters divided by the date October 27, 2010. This is when the Federal Trade Commission moved to protect consumers by putting in place regulations colloquially called the “advance fee ban.”

According to the FTC, this advance fee ban prohibits debt relief providers from collecting fees until:

1. The debt relief organization has settled or changed the terms of at least one of the enrollees’ debts.
2. The consumer and creditor have reached a settlement, debt management plan or other agreement.
3. The consumer has made at least one payment to the creditor resulting from this agreement negotiated by the debt relief organization.

Before this ban took place, companies tended to collect monthly fees even before they’d settled any debts—an environment that unfortunately “allowed bad actors to survive and thrive” rather than rewarding companies for getting results, according to Freedom Debt Relief co-founder Andrew Housser. He notes that it ended up being a great thing for the industry because it “cleaned out most of the knuckleheads.”

Finding Legitimate Debt Relief & Avoiding Scams

If you’re one of the many, many Americans unsure of how to handle serious debt and are considering debt relief as a solution, knowing about this advance fee ban can help you identify a huge red flag.  Companies that asks for payment up front before actually settling a debt should be avoided. Reputable companies will stick to FTC regulations closely, so avoid any organization that tries to extract payment before they’ve provided even the most basic service to you.

Another warning sign to watch for is any company that guarantees it can get rid of your unsecured debt. While debt relief organizations can negotiate with creditors, they cannot control them. So, there’s never a guarantee that they’ll be able to achieve a certain result. Any organization that asserts this ahead of time is “writing a check they can’t cash,” so to speak.

Doing the Research

Finding legitimate debt relief is a matter of doing your research before enrolling. Luckily, we all have access to a wealth of information at our fingertips. You can find out a lot about various debt relief organizations by looking through consumer reviews online. Verify that whatever program you’re considering has a track record of helping people actually settle debt, and a web presence that backs it up as a legitimate company. Any legitimate organization will make sure you’re a good fit before accepting you as an enrollee; and will be willing to provide transparent information about their operations before requiring you to sign anything or hand over your account information.

Final Thoughts

Debt relief has changed for the better within the last decade, but it’s still important to know what makes an organization legitimate so you can maximize your chances of settlement success.

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Using Social Proof to Find the Best Debt Relief Solution

The internet makes seemingly endless information about debt—and ways to get rid of it—available in seconds. The positive way to look at this is that consumers can take control of their own financial destiny more so than ever before. But there’s still the challenge of sorting through the information to decide what’s legitimate. And, even out of your legitimate options, there’s still the task of choosing the best solution for you based on factors like how much debt you have, how much income you make, the type of debt you carry, etc.

Fortunately, consumers are never alone in asking these tough questions about debt and seeking solutions. Most people in America owe money—around 80 percent of U.S. consumers carry debt. This includes millennials, Gen Xers, and baby boomers. It also accounts for a variety of types of debt ranging from mortgages to student loans, medical bills, credit card debt, personal loans, etc.

You can learn from others’ journeys toward debt elimination, starting with using social proof to find the debt relief solution that best meets your needs.

The Power of Social Proof

First, it’s important to understand the psychology of social proof. Here’s one basic working definition: “The influence that the actions and attitudes of the people around us (either in real life or online) have on our own behavior.” When people see others doing or saying something, especially en masse, they’re more likely to think it’s correct.

It’s only natural to be skeptical of things you read online—especially when you’re looking up debt solutions. Many offers will sound too good to be true. Others will seem downright confusing at first. One way to wade through this swamp is to use social proof as a guide.

Ask yourself: What are other people saying about their experiences with a certain program? Use real consumers’ ratings and reviews to help you assess your options. Take note of how many reviews there are and consumers’ feedback. If you’re considering debt settlement as an option, look through the more than 6,500 Freedom Debt Relief reviews on Best Company to see what verified enrollees are saying about this program in particular.

Using social proof as a metric will give you insight into others’ experiences so you can get a feel for a solution before signing up yourself. As one popular phrase states, there’s safety in numbers. Treat finding the ideal debt relief solution for you just like you would shopping for any product online: See what people are saying, both positively and negatively, before you commit yourself.

Always Avoid These Debt Relief Red Flags

The testimonials of other consumers go a long way in providing insight into the quality of a debt relief solution, and they can also help you know what to expect if you do decide to sign up. Furthermore, understanding debt relief red flags will help you know what to avoid like the plague.

Be aware of “red flags” as you’re researching your options. Avoid organizations that:

• Charge you an up-front fee before actually settling any debt.
• Provides “guarantees” they can get eliminate your debt.
• Promises it can put an end to collection calls or lawsuits.
• Only provides important information about its services if you provide personal or financial information first.

Final Thoughts

Using social proof can help you vet various debt relief options based on what other real consumers are saying. This allows you to learn from their stories, helping you avoid possible missteps and adjust your expectations accordingly. The internet puts thousands of ratings and reviews at your fingertips so you can make the best choice for you when it comes to debt relief.

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Top Ways to Get $500 Quick

It is a sad fact that many of us these days live paycheck to paycheck.  Saving up for an emergency fund can be tough if you don’t have a large income, are unemployed, or if you have a bit of bad luck.  If an emergency occurs, many times you will need to have a couple of tricks up your sleeve to come up with some money quick.  The following are some top ways to get $500 quick if you find yourself in a jam.

Sell Your Extra Stuff

One of the best ways to come up with some extra cash is to sell stuff you are not using anymore.  This could be that old guitar you haven’t touched in years, or some old shoes.  You get the idea – if you haven’t used it in more than a year, you can probably let it go!  Ebay or Craigslist are great ways to get rid of your items.  The downside to this approach is that if you need money right away, you may not get as much for your stuff as if you have the time to find the highest bidder.  Most of us could get a couple hundred bucks quickly just getting rid of our old stuff without even breaking a sweat.

Borrow Money from a Friend or Relative

This is another quick way to come up with some money, but there are huge downsides!  There is no faster way to tarnish a good relationship than to borrow money from a friend or loved one and not pay them back.  If you are going to go this route, be very sure you can pay them back in full in a reasonable amount of time!

Get a Cash Loan

Another way you can get $500 quickly is by taking out a cash loan.  Many loan companies, such as 24Cash, can get you a cash loan in under one hour.  These loan companies can be great if you are in a jam and need money immediately.  As with the tip above, you need to be sure you can pay the loan back quickly.  Some of these loans have very high interest rates, so if you ever hope to save up for an emergency fund you need to use these types of loans responsibly!

Work Extra Hours

If you have a job and work hourly, then this is a great way to get some extra money quickly.  Work some overtime if your company allows it, and you’ll be able to pick up some extra bucks in short order.  The downside to this is that with normal pay-cycles you may not see the money show up in your check for a week or two.  So, this isn’t always the fastest option.  Those of us that work salary jobs are out of luck here!

Perform Odd Jobs Around Town

This is a good idea if many of the above options won’t work for you.  Cut grass, rake leaves, shovel snow, you get the drill.  These are quick ways you can help out neighbors and make money at the same time.  Just be sure you put your back into it!

Final Thoughts

These are just a couple of the ways to get $500 quick.  Life throws all kinds of situations at you, and sometimes you just really need some money quickly.  If you really need the money, try out some of the above tips.  If you don’t think those will work for you, just put your mind to it and you’ll be sure to identify a couple ways that you can get $500 quick!

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Your Complete Guide to Buying a Car

So, you’ve saved up a nice little chunk of change and you can’t stand driving your old car anymore—but how do you go about buying a new one? If you want to make sure you get the best deal on a reliable car, you need to do your due diligence.

Before buying a car, you should do plenty of research and carefully determine your budget. When shopping, be sure to find out everything you can about your potential car. Here are some other tips for making sure you get the best car next time you shop.

Car Needs and Budget

The first step to shopping for a car is determining what you actually need and how much you can spend. If you’re looking for a vehicle that has some hauling capability and is good for manual labor, you’re probably in the market for a truck or a van. If gas mileage is your primary concern, a simple sedan is going to be your best bet.

You’ll also need to think about what you want in your vehicle. There are tons of different makes and models of vehicles, each offering different things when it comes to looks, features and strengths and weaknesses. Chances are you’re going to be driving this car for quite a while, so it’s important to find something you actually enjoy driving.

Your budget is the biggest factor in shopping for a car. No matter what kind of car you want, you can only spend as much as you have or have access to. Before you go looking at lots and talking with salespeople, make sure you get an idea of what you can spend, whether it’s in the form of a lump sum of cash or a preapproval for a loan.  Check out my guide to buying a used car if you’re sure a used car is for you.  If you are not sure, it is always good to leave your options open.

Car Loan Tips

Unless you’re only spending a few thousand on a car and you have the money in cash, you’re going to need to take out a loan to pay for your car. This means providing information for a bank or dealership to run a credit check and putting money down. The good news is, these loans allow you to increase your car budget without paying a fortune in interest since the rates are relatively low.

If you happen to live in Canada, then when looking for Ontario auto loans, it’s important to make sure the loan you apply for has a fair interest rate and monthly payments. You will spend the next few years paying this loan off, so the last thing you want is a payment schedule or amount that you can’t work with!

While dealerships do offer loans, it’s best to apply for an auto loan with a bank with whom you already have plenty of history. This is doubly true if you bank with a local credit union since they often have the best interest rates.

Due Diligence When Car Shopping

Whether you’re testing out a new car at the lot or meeting up with a private seller to learn more about the vehicle you’re interested in, it’s important to ask plenty of questions and take your time to determine what, if anything, is wrong with the car you’re considering buying. Many private sellers sell cars that need something minor replaced, such as tires or one of the gauges. Make sure you ask about any problems like this when you’re looking at a car.

Test driving is also a good way to determine the worth of a car. Even cars that look very nice may have problems exposed by a simple test drive. The key to a successful test drive is making sure you take the car through a range of different conditions. You should drive the car both fast and slow, up and down hills, and make sure you turn left and right. Also take this time to check any other functions of the car, including lights and turn signals, windshield wipers and washer fluid, and heating and air conditioning.

If something is broken in the car you’re looking at, it’s best to be aware of that fact before you decide to make the purchase. This is why it’s important to do plenty of your own research without jumping the gun.

Final Thoughts for Buying a Car

No matter what you do, buying a car is a bit of gamble. However, taking the right steps before buying is the best way to make sure you get a good deal on a good car.  Take your time so that you don’t let your emotions make this large financial decision for you.

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Simple Ways to Maintain a Debt-Free Lifestyle Forever

According to the report of The Urban Institute, 77 million Americans are in credit card debt. The report is indicating that people are becoming reckless credit card users to maintain their lifestyle and ignoring their credit card bills.

Unfortunately, debt is a way of life for most of the people in our nation. Now most of us think that debt is the medium to get things in life.

No, debt is not the ultimate, it can be an exception. Debt spoils the peace in your life. It is dangerous and welcomes financial instability. You should try to get out of debt and remain debt-free in your life.

The struggle of staying debt-free

A debt-free lifestyle not only gives you mental peace, it also offers financial freedom. However, getting financial freedom is not easy. You have to make some sacrifices. You need to be determined to remain debt free forever. To do so, you may experience some things that you may not have expected. Some costs that you may need to pay to maintain a debt-free lifestyle like the pressure of managing money properly, fear of skipping monthly bill payments, and stress due to overwork. However, taking these costs into account, people who are living a debt-free life agree that the struggle is worth it.

How can you embrace a debt-free lifestyle easily?

Well, changing a lifestyle is not easy. It requires your commitment for living a financially disciplined life. At first, it can be difficult for you to lead a debt-free lifestyle, but once you infuse some good financial habits you can adopt a debt-free lifestyle easily.

Here you go:

1. Save enough money

The main reason for falling into debt is lack of savings. People either use their credit cards or take out a loan to fulfill their desires. When you have a saving cushion, you can easily use the money without accumulating debts. Also, you need to be prepared for some future expenses like education cost for your children,  medical cost, and cost of buying a new home. Thus, the importance of good savings is crucial.

How can you save more?

• Eliminate unnecessary expenses

To save more money, you need to eliminate all the unnecessary expenses first. Try to reduce your expenses by $200 or more a month. To do so, you need to analyze your previous spending. Check out your credit card statements, or old bills to identify the expenses you are paying are not necessary. By doing so, you can save some more.

• Create a spending plan

After cutting down unnecessary expenses, you need to create a spending plan (Budget) to track your money. By following a budget, you can easily understand where your money is going. Thus, you can control your spending. It will also help you to pay your monthly bills while setting aside a certain amount. Make sure you set aside some money for savings while creating your monthly budget.

• Boost your income

If you see that your spending is more than your earning, then you have to increase your income. Otherwise, you will not be able to save money even after cutting down extra expenses. Because, expenses increase day by day, so you have to increase your net worth.

2. Practice self-control

In short, you have to live within your means. To do so, you need to say “No” to many tempting things like eating out, fancy shopping, lavish traveling, and frequent partying, etc.

When you are trying to stay away from debt, you shouldn’t accept every invitation to go out to eat with friends or party every Friday night.

Practicing self-control and the ability to curb the desire of spending money are the crucial things to maintain a debt-free lifestyle.

How can you practice self-control?

I agree that this practice isn’t easy, especially for people who love spending. But, it can be a little bit easier once you define your needs and wants logically.

Your needs are something that you have to have and your wants are something that you would like to possess.

Balancing the needs and wants can help you to demonstrate self-control. By doing so, you will be able to fulfill long-term goals over the year.

3. Get ready to overcome an emergency

A lot of people say that they accumulated debt due to an uncertain emergency. Since they had no money in hand, they had to take out a loan to overcome the situation.

Yes, the scenario is quite possible and can happen to anyone. An accident, job loss, illness, and car breakdown can happen anytime. Thus, it is important to build an emergency fund to avoid accumulating debt to overcome an emergency.

Remember, you need to save at least 3-6 months of savings in an emergency fund.

4. Become a responsible credit card user

As I mentioned earlier, most of the people are in credit card debt trouble because they are not responsible credit card users. People should understand how to use credit cards properly. Keeping multiple types of credit cards and swiping them recklessly can create trouble.

Remember, when you are buying an item with your credit card, you should make the payments within the stipulated time. If you don’t make the payment, you start accumulating interest.

How can you avoid using credit cards randomly?

Use a credit card only when you know you can afford the bill. Remember, reward points and discounts are all marketing gimmicks created by the credit card companies. So, you shouldn’t spend more than your affordability just to earn the reward points.

• Use cash as much as possible

Using cash is a good way to avoid credit card debt hassle. People often spend more with a credit card because they don’t need to pay the bill immediately. When you carry cash, you have to stop spending when you are out of cash for the day.

This practice can help you to stay away from costly credit card debt.

5. Payoff your existing debts

Paying off the existing debt is necessary to make yourself free from debt trouble forever.

Ignoring a debt doesn’t help to mitigate the problem. Your creditor or lender can sell your debt to the collection agency. It will create more trouble for you. Thus, you have to get out of your current debt by following a solid debt relief strategy.

How can you pay off your current debts?

There are many ways for coping with debt. You can opt for the legitimate debt relief assistance from some debt relief companies or you can pay off your debt on your own by following some DIY debt relief methods.

Remember, if you think making the minimum payments on your debt can help you to get out of the debt, then you are wrong. You have to make the larger payments toward the highest interest rate debts to pay them off faster. Once you pay off your existing debt, try to avoid further debt.

Lastly, considering major lifestyle changes can be difficult for you, but keep in mind that you’re doing it for your financial wellbeing.

Author bio: Amy Nickson is a web enthusiast. She loves social media, as it gives endless opportunities to reach out to a larger audience in a more unbiased way. She also loves writing financial articles and always search for good platforms to share her personal financial insights. She is not an expert, but her life taught her a lot of things in a hard way.

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Don’t Forget to Get the Most Out of Your Credit Cards

The credit card industry is incredibly competitive. There are many companies offering tons of products, each with the intent on lending you money with interest. While credit card companies certainly profit when their customers spend money, they offer a legitimate service. Oftentimes people need to make purchases when they don’t have cash, either on-hand or in the bank. On the other hand, when people overuse credit cards they tend to accrue large amounts of high interest debt.

Credit Cards Can Be a Good Thing!

This leads some people to use their credit cards almost not at all. This can seem like a good strategy. “If I don’t use my credit card, I can’t go into debt.” While that’s technically true, this strategy leaves money on the table. Because the credit industry is so competitive, credit cards are produced which offer incredible benefits and returns to their users. Here are some of the best which are available. If these are offered on a credit card you already own, take advantage of them. If you pay off your balance monthly, you could earn many benefits that you wouldn’t have simply using cash.

Purchase Protection Insurance

This is one of the coolest perks offered by credit card companies, but most people don’t even know it exists. If your card offers this kind of insurance, you could have the entire purchase price of new goods refunded if they are damaged or stolen soon after purchase. This insurance sometimes also pays you back the difference in purchase price if you find a cheaper price on an item with months of buying it for a higher price. Another of the several benefits of credit card protection is the fact that some policies will simply refund the full purchase price of an item if you are unhappy with it but the retailer from whom you made the purchase will not accept a return. These are all powerful tools, and should be used if offered through your credit card.

Cash Back

Some credit cards offer cash back for certain purchases like groceries, hotels, or retail goods. If you often pay for these things, a credit card with this reward program will be well worth the time it takes to sign up. 3% back on regular purchases could save you hundreds per year.

Personalized Rewards

Travel rewards are some of the most popular rewards offered through a credit card. Travel miles may come in a lump sum as an introductory offer for signing up with some cards, with even more coming if you spend $X in the first months of holding the card. If you love to travel, this can help pay for your airfare on an international trip, one of the restricting expenses that prevents people from traveling overseas more often. Discounts to hotels, food, and transportation may also be had.

Final Thoughts

There are many ways which credit cards reward their users, but most people neglect to take full advantage of them. If you have a credit card with great rewards, you’re wasting your time (and probably some money) if you aren’t realizing these benefits.  

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How to Tackle Debt as Newlyweds

When officially tying the knot, you and your partner pledge to always be there for each other in good times and bad — for better or worse — and of course you mean it. But if one or both of you is struggling with financial debt, it’s important to treat the matter carefully to avoid adversely affecting your happy union.

Talk Openly About It in Conversations

The two of you probably feel like you share almost everything with each other, from the ultra-embarrassing moments of your dorky teen years to the few regrets that sometimes cause twinges of guilt. However, when it comes to finances, you might not feel ready to share the nitty-gritty details. Money is a difficult thing to talk about, and that’s a reality experienced by people in all situations, not just those who are recently married.

Individuals have different priorities that dictate their spending patterns, and many of those are heavily influenced by the paths they take in life. There is also a frequent misconception that happens when people look at their acquaintances, colleagues, friends and teammates and think “Those people seem very financially secure,” even if the assumption is not a reality. After making that judgment, those who are financially struggling may stay tight-lipped about the matter.

Together, all these things might make you feel tongue tied when it comes to money-related conversations, even when the person you’re engaging with is a spouse. By keeping debt-related worries bottled up, you’ll probably feel extremely stressed and may even make your partner wonder if the thing you’re secretive about is a relational matter, not a money issue.

You might not feel able to express yourself as clearly as you’d like, but as long as the focus is on being honest about the situation itself and how you’re coping, it’s possible to start making progress. After all, solving a debt problem is difficult or maybe even impossible if both you and your spouse keep your lips sealed except when it comes to goodnight kisses.

Come Up With a Feasible Plan

Debt-related fears often make people feel paralyzed, so even if they have good intentions of working towards a more prosperous financial future, they believe they are powerless to make actual improvements. If you are feeling that way (whether the debt is your own, your spouse’s or an amount you have accumulated together), disclose the emotional battle to your spouse and confess you’d appreciate figuring out how to become debt free and making it a team effort.

Sometimes, the simple act of bouncing ideas off another person and listening to his or her feedback is enough to generate realistic ways for making the debt a thing of the past. Depending on the amount you owe, fixing the situation may be as simple as downloading a spending tracker app that coaches you to curb how much you buy once the totals in certain product categories get too high. Any important life decision you make together should consider your debt. For example, if you want to buy a house, you need to choose a home that would fit both your lifestyle and budget. And if both of you have cars, maybe downsizing to a one-car family might cut costs. Remember, there are so many things you both can cut costs on as long as you stay open-minded and communicative. In more severe cases, making appointments with a credit counselor may help.

Don’t Play the Blame Game

Like politics and religion, money is a subject that can make emotions run high. That may mean fingers get pointed and nasty words uttered, all in the heat of the moment. If you and your spouse start to lapse into the common pattern of placing blame for the debt, take a moment to step back, breathe deeply and rise above the momentary unrest.

Studies show that money is the top cause of relationship stress, and if you’ve ever had a fight about funds, it’s not hard to imagine why cash creates so much chaos. Even if the reason for the debt lies solely with one of you, remember various factors can combine and make debt a problem. Often, it occurs when a person is trying to do something that’ll eventually result in long-term financial stability, such as seeking a degree for a lucrative career.

Blaming your spouse for the financial strain you’re bearing is not likely to have fruitful outcomes. Rather than fixating on what has already happened, seek out the things that can be done to make positive changes now.

Dealing with debt as newlyweds may seem wholly detrimental. However, realize that the ways you two manage it may make you stronger in challenging situations that span beyond money woes. If that happens, you can look forward to a more nurturing marriage, no matter what comes your way.

Anum Yoon is a personal finance blogger and writer. She created and maintains her personal finance blog Current on Currency. You can subscribe to her blog newsletter right here for her weekly updates.

The post How to Tackle Debt as Newlyweds appeared first on MoneyAhoy.

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