Everyone needs extra money from time to time, and this doesnât change when you have bad credit. Unfortunately, your options become much more limited when you have bad credit. This makes it difficult to qualify…
The post How to Get a Loan with Bad Credit appeared first on Crediful.
Student loan consolidation and refinancing can help you manage your debts, reducing monthly payments, creating more favorable terms, and ensuring you have more money in your pocket at the end of the month.Â
But how do these payoff strategies work, what are the differences between private loans and federal loans, and how much money can consolidation save you?
Private and Federal Student Loan Consolidation
Federal student loan consolidation can combine multiple federal loans into one. Private consolidation can combine both federal loans and private loans into a new private loan. The act of consolidation can improve your debt-to-income ratio, which can help when applying for a mortgage and greatly improve your financial situation.
Which Loans Qualify for Student Loan Consolidation?
You can generally consolidate all student loans, including Federal Perkins loans, Direct loans, and other federal loans, as well as those from private lenders. You cannot consolidate private loans with federal loans, but you can consolidate them with other private loans.
What Should you Think About Before Consolidating Student Loans?
Consolidating isnât just something to consider if youâre struggling to meet current terms. In fact, private lenders often require a minimum credit score in the high-600s and youâll also need to have a stable income (or a cosigner) and a history of at least a few punctual payments.
Federal student loans are a little easier to consolidate and available to more borrowers, including those looking to qualify for income-based repayment or student loan forgiveness schemes.
In either case, it can reduce your monthly payments, making your loans more manageable.
How to Consolidate Private Student Loans
Some of the private lenders offering this service include:
The rate you receive will depend on your credit score and whether you opt for a variable interest rate or a fixed interest rate, but generally, they range from 3% to 8%. Each lender has their own set of terms and requirements, but theyâll often require you to:
Be at least 18 years old
Have no more than $150,000 in debt
Be the main borrower (not the cosigner)
Complete a credit check
The lender will run some basic checks to determine your creditworthiness before offering you a consolidation sum that will clear your debts and leave you with a single monthly payment. There are different types of private loan depending on whether youâre applying to consolidate just private loans or both federal loans and private loans.
If you only have federal loans, you should apply for federal student loan consolidation instead.
What Will I Pay?
The main goal of student loan consolidation is to reduce your monthly payment. If you have a strong credit score you can get a reduced interest rate and may even benefit from a reduced repayment term. However, as with most forms of consolidation, itâs all about reducing that monthly payment, improving your debt to income ratio and increasing the money you have leftover every month.
Shop around, consider all loan terms carefully, run some calculations to make sure you can meet the monthly payment, and compare repayment options to find something suitable for you.
Donât feel like you need to jump at the first offer you receive. A personal loan application can show on your credit report and reduce your credit score by as much as 5 points, but multiple applications with multiple private lenders will be classed as ârate shoppingâ, providing they all occur within 14 days (some credit scoring systems allow for 30 or 45 days).
How Federal Debt Consolidation Loan Works
Federal student loan consolidation wonât reduce your interest rate, but it does make your repayments easier by rolling multiple payments into one and there is no minimum credit score requirement either.
When you consolidate federal student loans, the government basically clears your existing debt and then replaces it with a Direct Consolidation Loan.
You can consolidate directly through the government, with the loan being handled by the Department of Education. There are companies out there that claim to provide federal student loan consolidation on behalf of the government, but some of these are scams and the others are unnecessaryâyou can do it all yourself.
You can apply for consolidation once you graduate or leave school and you will be given an extended loan term between 10 and 30 years.
Just visit the StudentLoans.gov website to go through this process and find a repayment plan that suits you.
What is Student Loan Refinancing?
Student loan refinancing is very similar to consolidation and the two are often used interchangeably. In both cases, you apply for a new loan and this is used to pay off the old one(s), but refinancing is only offered by private lenders and can be used to ârefinanceâ a single loan.
The process is the same for both and in most cases, youâll see âconsolidationâ being used for federal loans and ârefinancingâ for private loans.
Student Loan Forgiveness and Other Options
You may qualify to have your federal student loans fully or partially forgiven. This is true whether you have previously been accepted or refused for repayment plans and it can help to lift this significant burden off your shoulders.
Public Service Loan Forgiveness (PSLF): Offered to government workers and employees with qualifying non-profit companies. You can have your federal loans forgiven after making 120-payments. This program works best with income-focused repayment plans, otherwise, you may have very little left to forgive (if anything) after that period.
Teacher Loan Forgiveness: Teachers can have their federal student loans partially forgiven if they have been employed in low-income schools for at least five years. They can have up to $17,500 forgiven.
Student Loan Forgiveness for Nurses: Nurses can qualify for PSLF and this is often the best option for getting federal student loans forgiven or reduced. However, there are a couple of highly competitive options, including the NURSE Corps Loan Repayment Program.
There are also Income-Driven Repayment Plans, which is definitely an option worth considering.
Income-Driven Repayment Plans
An income-focused repayment plan is tied to your earnings, taking between 10% and 20% of your earnings, before being forgiven completely after 20 or 25 years. There are four plans:
Pay as you Earn (PAYE): If you have graduate loans and are married with two incomes then you may qualify.
Revised Pay as you Earn (REPAYE): Offered to individuals who are single, donât have graduate loans, and have the potential to become high earners.
Income-Based Repayment: If you have federal student loans but donât qualify for PAYE.
Income-Contingent Repayment: If you have Parent Plus loans and are seeking a reduced monthly payment.
These programs can greatly reduce your monthly payment and your obligations, but they are not without their disadvantages. For instance, they will seek to extend the repayment term to over 20 years, which will greatly increase the total interest you pay. If anything is forgiven, you may also pay taxes on the forgiven amount.
You can discuss the right option for you with your loan servicer, looking at the payment term in addition to your current circumstances and projected income as well as your student loan terms.
Conclusion: Help and More Information
Student loan refinancing and consolidation can help whether youâre struggling with federal loans or private loans, and there are multiple options available, as discussed in this guide. If you have credit card debt, personal loan debt, and other obligations weighing you down, you may also benefit from a debt management plan, balance transfer credit card, or a debt settlement program.
You can find information on all these programs on this site, as well as everything else you could ever want to know about federal student loans and private loans.
A Guide to Consolidating and Refinancing Student Loans is a post from Pocket Your Dollars.
Buying a home, especially if youâre a first-time home buyer, can be daunting and nerve racking.
But it does not have to be. LendingTree’s online loan marketplace has got you covered – at least when it comes to getting a mortgage.
A 2016 study by the Office of Research of the Bureau of Consumer Financial Protection reveals that prospective buyers who shop for a mortgage when buying a home for the first time report âincreases consumersâ knowledge of the mortgage market and increases consumersâ self confidence in their ability to deal with mortgage related issues.â
The importance of shopping for a mortgage as a first-time home buyer is that it saves you money in the long term and âreduces the cost of consumersâ mortgages,â the study found.
The home-buying process can be intimidating. So being aware of these mistakes when buying a home for the first time can help you save thousands and thousands of dollars in the long term.
Tips for Buying a Home
To guide you through a major financial decision like the purchase of a home, you may want to talk to a financial advisor.
Luckily, SmartAsset’s advisor matching tool can help you find a suitable financial advisor in your area to work with.
Get started now.
10 Mistakes to avoid when buying ahome for the first time.
1. Not knowing your credit score.
We are all aware that the higher your credit score, the better.
Yet, despite this fact, many people fail to check their credit score before
buying their first home.
And a low credit score can lead to a high interest mortgage loan, or even worse, a loan rejection. Given the fact that your credit score is the number 1 item mortgage lender looks at, it pays off to know where you stand.
Credit Sesame will let you know what your credit score is for free and monitor it for you. It will also offer tips on how to raise your credit score and reduce your debt.
Just sign up for a free account â it only takes 90 seconds.
2. Not shopping and comparing mortgage rates.
Mortgage rates and fees vary across lenders. In other words, two applicants with the identical credentials can get different mortgage rates. Despite this, however, many fist-time homebuyers fail to shop and compare mortgage rates before buying their first home.
The study reveals that 30 percent first time homebuyers do not
compare and shop for their mortgages, and more than 75 percent reported
applying for a mortgage with only one mortgage lender.
The study further reveals that âfailing to comparison shop for a
mortgage costs the average homebuyer approximately $300 per year and many thousands
of dollars over the life of the loan.â
An easy way to shop and compare for a mortgage is with LendingTree. Their simple and straightforward platform can help you find and apply for the right loan all in one place.
3. Sticking with the first mortgage lender you meet.
While itâs tempting to work with your local mortgage lender whoâs
only a few blocks away from your home, this decision requires more time. Take
time to meet with at least three mortgage lenders before picking the best match
Fortunately, LendingTree free online platform, allows you to quickly browse several mortgage rates with several mortgage lenders without visiting a dozen bank branches.
4. Not knowing what loans are available to you.
If you’re buying a home for the first time, one thing you need to address is what types of loans are available to me. Sometimes the answer to this can be quite simple: conventional loan. This is because most people know about this type of loan.
But conventional loan requires at least 20% down payment. And the credit score needs to be in the 700. *Note: You can put less than 20% down payment, but you will have to pay for a private insurance mortgage (PMI).
Sometimes it’s not feasible to come up with that type of money as a first time home buyer. So knowing if other loans are available to you is very important.
One type of loan that is popular among first time home buyers is FHA loan. It is so popular because it’s easier to get qualified for it. And the down payment is very little comparing to that of a conventional loan.
For example, FHA loans require a 580 credit score and a down payment as low as 3.5% of the home purchase price. This makes it easier to qualify for a home loan when you’re on a low income.
VA loans are another great option for first-time homebuyers. However, you have to be a veteran. Unlike a FHA or a conventional loan, VA loans require no down payment and no mortgage insurance. This can save you thousands of dollars per year.
So if you’re in market for a loan to buy your first home, you need to educate yourself about the different available loans.
Not All Mortgage Lenders Are Created Equally
When it comes to getting a mortgage, rates and fees vary. LendingTree allows you to view and compare multiple mortgage rates from multiple mortgage lenders all in one place and at the same time, so you can choose the best rates for your needs. LendingTree makes getting a loan faster, simpler, and better. Get started today >>>
5. Not getting pre-approved for a mortgage
One of the first time home buying mistakes you should avoid making is not getting a pre-approval letter. You can simply contact a lender and request it. The mortgage lender will pull your credit report to make sure you have the minimum credit score requirement.
They will also need your bank statements, W2s, recent income tax returns, pay-stubs to verify your employment and ability to afford the loan.
Why this is important? A pre-approval letter means that you’re a serious buyer. It signals that you’re able to commit to the house once an offer has been accepted. It also makes you more desirable than the other potential buyers.
Get a Pre-Approval for a Mortgage Today
6. Not knowing how much you can afford
Buying a home is probably going to be the biggest expenses you’ve ever made. But buying a house you cannot afford can lead to financial trouble along the road. Paying an expensive mortgage for 15 to 30 years on a low income can be hard.
So it pays to know how much house you can afford before you start searching for your home.
The best way to know how much house you can afford is to look at your budget. Take into account your expenses and income and other costs associated with owning a home.
7. Not knowing other upfront costs
If you think that the only cost to buying a home is a down payment, then think again. There are several upfront costs associated with owning a house. These upfront costs include private mortgage insurance, inspection costs, loan application fees, repair costs, moving costs, appraisal costs, earnest money, home association dues.
As a first time home buyer, this may come to you as a surprise. So, be ready to have enough money to cover these costs.
8. Failure to inspect your home.
Although some banks would prefer you inspect your home before they offer you a loan, it’s not mandatory. But that does not mean you shouldn’t do it. Not inspecting your home can cost you a lot. Inspection discovers defects that you may not know about. Inspection costs can be anywhere from $300 to $700.
Don’t be stingy with these costs. It’s better to find out about any hidden defects , like a faulty wiring and plumbing, than finding about them later. To avoid regretting your decision or having to spend thousand of dollars on repairs down the road, consider an inspector.
9. Failure to check out the neighborhood.
Just because the street or the neighborhood your potential house is located is quiet or is not run down doesn’t mean crime is not a problem. So before buying your home, you should check out the neighborhood. Take a trip at night to get a feeling of the environment. Talk to residents. Most importantly, check with the local police station – they can be a great resource when it comes to crime rates in a particular location. This is simply one of the first time home buying tips you shouldn’t ignore.
10. Searching for a mortgage on your own.
There are several mortgage lenders available to you. But choosing one that is right for you can be tough.
The LendingTree online platform makes it easy and simple for you to find the right home loan for you. Now you can get matched up to several mortgage lenders all in one place and at the same time. And the whole process just takes a few minutes.
Follow these steps to get matched with the right mortgage:
Go to www.lendingtree.com;
Answer a few questions regarding the type pf loan yo need and you’ll use it. Within a few seconds, you’ll see multiple, competing offers from several lenders;
You then shop and compare offers side by side.
Ready to get started? Find your best loan!
The bottom line is when it comes to buying a home for the first time, you should not take any shortcut. Doing so can cost a lot of money down the road. So before buying your first home, make sure you get the right mortgage loan, inspect the home, and have enough money to cover some of the upfront and ongoing costs associated with owning a house.
Speak with the Right Financial Advisor
Still looking for first time home buying tips? You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAssetâs free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
The post Buying a Home for the First Time? Avoid These Mistakes appeared first on GrowthRapidly.
Imagine you’re shopping for a new car and finally find a reasonably priced set of wheels that you like. But when the dealer pulls your credit, that seemingly affordable monthly payment is no longer available to you. Instead, you’re offered a subprime car loan at 10% or even 20% interest because your credit isn’t strong enough to get a better rate.
How much does a cosigner help on auto loans when you’re facing this type of situation? Get more information below to help you decide whether seeking a cosigner is the right option for you.
How Does a Cosigner on a Loan Work?
A cosigner is basically someone who backs the loan. They sign agreeing that if you don’t make the payments as promised, they will step in to pay them.
If you don’t have much of a credit history or your credit is bad or poor, lenders are typically hesitant to give you an auto loan. They perceive you as risky. Will you pay as agreed? There’s not enough data or credit history for them to make that call.
However, a cosigner with a long history of good credit is different. The lender is more likely to believe that this person willpay as agreed. So, if you can get a cosigner to back you, you might have a better chance of getting a loan or getting better terms.
How Much Does a Cosigner Help With an Auto Loan?
How much can you save? Imagine you finance $37,851, the average price for a new light vehicle in the United States as of February 2020.
The average interest rate as of the end of 2019 for new car loans was 5.76%. If you’re able to get that interest rate and a loan term of 72 monthsâthat’s 6 yearsâyou would pay a total of $44,742. That’s $6,891 in interest and a monthly payment of around $621.
If you financed at 10% without a cosigner for the same terms, you’d pay a total of $50,488 for the vehicle. That’s $12,637 in interest and around $701 in monthly payments.
This is obviously just an example, but you can see that a cosigner can save you a lot. In this case, it’s $80 a month and more than $5,700 total.
Cosigner Versus Co-Applicant
It’s important to note that having a cosigner for a car loan is not the same thing as having a co-applicant. A co-applicant buys the vehicle with you. Their credit history and income are used alongside yours to determine if you, together, can afford the vehicle. The co-applicant also has an equal share of ownership in the vehicle purchased with the loan.
A cosigner, on the other hand, doesn’t have an ownership share in the vehicle. Their income may also not be a factor in the approval. Typically, they’re along only to provide a boost in the overall credit outlook.
What Are Some Downsides of Having a Cosigner?
Most of the risks or disadvantages are held by the cosigner. If you don’t pay the loan, they could become responsible for it. They could also suffer from a lower credit score if you’re late with car payments because it might get reported to their credit too.
As a borrower, you might experience a few disadvantages in using a cosigner. First, you have to get someone to agree to this, and you typically want it to be someone with good credit. Trusted family members are the most common cosigners, but that could mean that they might want to have a say in what type of vehicle you get.
And if something happens and you can’t pay the vehicle loan for any reason, you run a personal risk. You could damage your relationship with the cosigner if they do end up having to pay off the loan or face damage to their credit.
So, Should You Get a Cosigner for an Auto Loan?
The decision is personal. Before you do anything, check your credit and understand where you are financially. That helps you know what your chances for getting approved for a loan are on your own and how much loan you might be able to afford.
Then, check out some potential auto loans and consider whether you should apply for them on your own. If you know your credit is too poor or you try to apply for a loan and don’t get favorable terms, talk to a potential cosigner. Be honest about your situation and have a plan to pay the loan on time each month so they feel more confident supporting you as you make this purchase.
Apply for an auto loan today!
The post How Much Does a Cosigner Help with Getting Auto Loans or Better Loan Terms? appeared first on Credit.com.
We recently covered the new Haunting of Bly Manor, director Mike Flanaganâs so-called sequel to the epic mini-series The Haunting of Hill House. And while we were anxiously waiting for the series to drop on Netflix, we thought weâd try to distract ourselves by taking a trip down memory lane and re-watching the first season.Â
Are the two seasons connected? Kind of.
Now, the two parts have nothing to do with each other in terms of plot, but youâll get to see some familiar faces from the first series. Director Mike Flanagan is obviously taking cues from American Horror Story, which tends to re-cast the same actors in each season, much to our delight.
Another thing that the two seasons have in common is a central character in the form of a mansion that brings all the other characters together. Both The Haunting of Hill House and The Haunting of Bly Manor are based on iconic gothic novels, namely Shirley Jacksonâs Haunting of Hill House and Henry Jamesâ The Turn of the Screw.
While Bly Manor, according to Jamesâ short novel, is welcoming and warm, bearing no signs whatsoever of anything evil lurking inside it, Hill House is a different story. Mike Flanagan might have strayed from the plot and the characters found in Jacksonâs novel, but the central character is the same: a classic, creepy, dark and mysterious haunted mansion.
Hill Houseâs dark allure
Hill House, both in the novel and in the Netflix adaptation, is sinister-looking, unwelcoming, ominous even, like a warning to those who dare enter. In Flanaganâs version, Hill House is a living and breathing organism that manages to haunt the Crain family for decades, luring them back one by one.
The Crain family, which includes Hugh and Olivia and their children, Theo, Nell, Shirley, Luke, and Steven, moves into Hill House as the parents have a passion for flipping houses. Hugh and Olivia plan to renovate the crumbling mansion and then sell it to build their dream house, designed by Olivia herself. However, Hill House has other plans in store for the Crains.
Repairs take much longer than anticipated, as if the house itself was committed to causing trouble and keeping the family close. Gradually, the family starts experiencing some strange phenomena. Kids are seeing âbent-neck ladiesâ in the night, hearing strange noises, while Olivia becomes increasingly unhinged, much to Hughâs concern.
Things progress and get worse, until one fateful night when Hugh and the kids are forced to flee and escape Hill House, apparently leaving Olivia behind. What truly happened that night is only explained at the end of the series, when the kids, now adults, return to Hill House with their father to finally learn the truth.
We donât want to give too much away, in case you havenât seen the series yet – if thatâs the case, stop reading right now for crying out loud and go binge-watch some Netflix. Basically, the house has a strange grip on each of the members of the Crain family, and many years later it manages to lure them back, one by one, for reasons that are only revealed in the final episode.
Is Hill House a real place?
Fortunately, Hill House is an entirely fictional place, so no worries about being inexplicably lured to it like the Crains. However, there is a real place that inspired the look and feel of Hill House, located in LaGrange, Georgia.
Dubbed Bisham Manor, the imposing estate at 1901 Old Young’s Mill Road might look like the house in the series, but thatâs pretty much where the similarities end. The interior shots were filmed on a set, and they look nothing like the interior of Bisham Manor, which is far from creepy. In fact, Bisham Manor is a popular and charming wedding and event venue, so itâs safe to say itâs attracting visitors for non-evil purposes.
Bisham Manor, according to Zillow, boasts roughly 11,000 square feet of space, and is a 1920s English Tudor-style home that was redeveloped in the early 2000s by master-builder Ben Parham. The four-story estate is being used as an event venue for corporate events, meetings and team buildings, weddings, parties, and so on.
Though it might look like an old English castle, it comes decked out with modern amenities like a gym, spa, sauna, steam, wine cellar, and an outdoor pool. Nothing evil about that, as far as we can see. But Bishamâs former owners might disagree.
Neil and Trish Leichty purchased Bisham Manor in 2013, and they reported that the house is definitely haunted by a couple of ghosts of its own. The couple described music playing in the basement despite there being no sound system installed, strange smells permeating throughout the house, and things disappearing in the night.
The Leichtys soon moved to a different home, but continued to experience strange events, much like the Crains were haunted by Hill House decades after they left it. Coincidence? Weâll let you be the judge of that.
If you havenât watched The Haunting of Hill House, you still have some time until The Haunting of Bly Manor drops on October 9. Prepare to be spooked, but donât worry, the house is purely fictional. If, on the other hand, youâve already seen it twice, then check out these other haunted houses weâve covered here on Fancy Pants Homes. Halloween season is not too far away, so you better start getting ready!
More haunted houses
Behind the Evil Eyes: The (Real) Story of the Amityville House The Haunting of Thornewood Castle â Where Stephen King Filmed the Rose Red Miniseries Is It Real? The Creepy House in Stephen Kingâs âItâ The Winchester House â The Haunted Mansion that Inspired the Name of Supernaturalâs Winchester Brothers
The post Is It Real? The Creepy Mansion in âThe Haunting of Hill Houseâ appeared first on Fancy Pants Homes.
There are times in life when you just need a little extra cash, and a personal loan can fit the bill. Perhaps, youâve sprung a leak in the home or need to consolidate mounting debt. Your childâs tuition assistance may not have come through yet, or perhaps you need an extra boost to get through […]
The post The Best $20K Loans Options appeared first on The Simple Dollar.
More and more are choosing to attend college and work at the same time.
Whether you are working a part-time or a full-time job, it can be tough to balance both. There are many working students in college who are able to manage both, but there are also many who aren’t able to.
If you don’t balance them both correctly, it may lead to stress, lower grades, low-quality work being produced, and more.
No one wants that and I’m sure you don’t either.
Related: 21 Ways You Can Learn How To Save Money In College
This is supposed to be the time of your life where you are growing and changing, not feeling like you are drowning in everything that is going on around you.
There are ways to get around it and manage both successfully at the same time, though.
I took a full course load each and every semester, worked full-time, and took part in extracurricular activities. It was definitely hard and I won’t lie about that. However, sometimes a person doesn’t have a choice and has to do everything at once or maybe you are choosing to multi-task and you are wanting to better manage your time.
Related post: How I Graduated From College In 2.5 Years With 2 Degrees AND Saved $37,500
Whatever your reason may be, below are my tips for working college students. The tips below are what helped save me!
Carefully plan your class and work schedule.
My first tip for working college students is to carefully plan your class and work schedule.
Some students just choose whatever classes are offered. However, it is much wiser to carefully craft your school and work schedule so that everything flows together efficiently with minimal time wasted.
You can do this by researching into what classes are offered when and trying to eliminate any gap that may be in-between each class. Having an hour or two break between each class can quickly add up. Also, if you happen to have time off between classes, then using this time to do your homework and/or study can be a great use of time as well.
Related post: How I’m a Work-Life Balancing Master
Eliminate any time that may be wasted.
There are many time sucks that you may encounter each day. A minute here and a minute there may add up to a few hours wasted each day.
The time you save could be used towards earning more money at your job, studying, socializing, or whatever else it is that you need or want to do. For working college students, every minute is important.
There are many ways to eliminate any time wasters including:
Cut down on your commute time. If you can find a job near your college campus then you can eliminate a lot of traveling time.
Prep your meals ahead of time. If you can bulk make your meals instead of individually making each one, you will be able to save a lot of time.
Be aware of how much time you spend on social media and TV. The average person wastes many, many hours on social media and watching TV. Cutting back on this may save you hours each day without you even realizing it.
Related post: 75 Ways To Make Extra Money
Separate yourself from distractions.
Working college students experience a lot of distractions.
Noise in the background, such as with a TV that is on or a party your roommate may be throwing, can distract you from what you need to be doing. If you are trying to study or do homework then you should try to find a quiet place to get work done.
You may want to close your bedroom door, hide the remote from yourself (trust me, this works!), go to the library, or something else.
Related: 16 Best Online Jobs For College Students
Have a to-do list and a set schedule.
Having a to-do list is extremely helpful for working students in college because you will know exactly what has to be done and by when. You will then have your responsibilities sitting there right in your face so that you will have to face reality.
Plus, I know that when I am stressed it can be easy to forget things, so having a to-do list eliminates any valuable minutes I may waste debating about whether I forgot to do something.
Working students in college need to be realistic.
While one person may be able to work like crazy and attend college at the same time, not everyone can do that.
If your grades are dropping, then you may want to analyze whether you should drop your hours at work or school. What is more important to you at this time and for your future?
With the tips above for working students in college, you’ll be able to rock both your job and your college classes at the same time. Don’t forget to fit in time for fun as well. Good luck!
Are you one of the many working college students out there? Why or why not?
The post How To Balance Working And Going To College appeared first on Making Sense Of Cents.
One of the most common questions I am asked as a financial planner is âshould I lease or buy my car?â Leasing commercials on the radio make it sound like leasing a car is the only cheap, intelligent choice. However, it really depends on how you define âcheap.â If it means a lower monthly payment, then leasing is usually cheaper. If it means what you pay long term, though, leasing is usually not the best option.
Whatâs the Process of Buying a Car?
Buying a car is a relatively straightforward process. Essentially, you negotiate the price of the car at the dealership and you secure financing. After providing a down payment, youâd finance the entire remaining value of the car, usually through a loan from a bank or credit union. You would then make payments that include both principal and interest for a specified period of time. Once your contract is complete, and the loan or other financing is paid off, youâd own the car outright.
At that point, you could decide to keep it or sell it. If you sold it, youâd have to negotiate the sale to get the price you want. One disadvantage of owning the car is that thanks to regular wear and tear and other factors, you have no guarantee of what the car will be worth at the end of the financing period.
How is Leasing Different from Buying?
Leasing is a bit more complicated, but itâs basically just another method of financing a car. The difference is you arenât financing the entire carâjust the use of the car during the first few years of the carâs life. The payments you make would still consist of principal and interest, but only for the portion of the carâs life youâd be using up.
The biggest difference is that unlike buying a car, you donât own anything once a lease is completeâand if you still needed a vehicle, youâd have to acquire another one. Typically, you can purchase the car for a pre-set price (known as the residual value) once the lease term is over, or you can give the car back to the leasing company and decide to either purchase or lease another vehicle.
Do You Have to Pay Extra Fees to Lease a Car?
Many advertised leases also require a down payment. If youâre short on cash, you can skip the down payment, but your monthly payment would be higher because youâd be financing more of the car. Also, keep in mind that youâre still responsible for the condition and mileage of the cars you lease. When you turn the car back in, if it isnât in good condition or if youâve driven more miles than your lease allows (around 12,000 miles per year), then youâll have to pay extra.
When Is It Better to Lease Rather Than Buy?
Before you decide to lease or buy, youâll also need to determine how many miles you drive per year and how long you like to keep your cars. If you are a high mileage driver (say, more than 15,000 miles per year) or you like to keep your cars for three years or more, you are most likely better off purchasing the car. If you donât drive much and you prefer driving new cars, then leasing may be a better option for you.
Regardless of whether you lease or buy, youâll need good credit to qualify for a low interest rate. So before you shop for a car, see where you stand: check your credit score for free at Credit.com.