Short Term Do's and Don't for First Time Borrowers - Insane Visions

Short Term Do’s and Don’t for First Time Borrowers

Young adults fresh out of college and heading out into the world for the first time alone, generally have no real knowledge of budgeting. They take on an apartment, have a car payment, student loans and credit card debt. Even with a good job in their field, the total monthly expenses can really add up. And, without a budget in place, keeping up with these expenses can become difficult. 

Is a short-term loan the right answer

Getting into serious debt is a problem that affects people of all ages. It only takes a few late payment or one missed payment to lower your credit score and send your finances into an out-of-control mess. There are ways to solve the problem temporarily, but in the end lowering your debt is the real solution. If you have the means to repay a loan, then a short-term loan through an online company like BlueTrustLoans.com can get you the cash you need now, quickly, to restore your good name. The terms for borrowing are generally less stringent than your local bank, which requires a high credit score and collateral. Usually, these payday loan alternative loans, require you to be a U.S. Citizen, have a full-time job and a checking account. If on the other hand, your budget has no wiggle room for even a small monthly payment, you should try to borrow money from family or friends.

Reducing your expenses

When you’re young and first experiencing life on your own, you don’t realize how going out and purchasing frivolous items can take away from the money you need to cover your obligations. If you have a car payment, student loans and credit card debt, work up a budget that puts most of your extra cash towards paying down debt. By paying a little bit more on your car or credit cards you’ll reduce the interest owed and pay it off faster. In addition to paying down your debt, learn to eat at home. Many young singles and newlyweds eat out two to three times a week. This can add up to $500.00 dollars or more in just one months’ time. Not only will you save money but, more than likely you’ll also eat better.

Establish a savings account

When you’re in over your head the last thing you might think possible is opening a savings account. But it is. Not only is it possible it’s necessary to prevent the same situation from happening again. Before paying your bills take out a small amount each week or every other week, depending on how often you receive your paycheck. You can start with as little as $10.00 a week. In a year’s time this $10.00 turns into over $500.00 and while it might not seem like a lot of money it’s a good start. As your salary increases, or you pay off a debt, then add more to your weekly amount. The important thing is to be into the habit of saving for unexpected emergencies and things you want instead of taking out a loan or adding another purchase onto your credit card.

Learn to live within your means

You work hard and in your mind, you deserve to have nice things. While all of this is true, it still doesn’t mean that you take on payments until you can no longer afford them. Learn to save for the things you want and pay cash for them. Credit cards are not for unlimited shopping sprees. If used correctly, they can raise your credit score allowing you to acquire a new car and home for less. You can also use them for your vacations and then pay them off when you return. Many credit card companies have benefits that can save you money on many things if you use them correctly.

Throughout your lifetime many unexpected things will come your way. If you need to borrow for a car or a home repair, make sure to take out the right loan for you with repayment terms, you can handle.

Beatrice Santos

Beatrice Santos

Beatrice Santos is taking up units in business law and currently affiliated as an intern in a local law firm. She is passionate in helping those who have any queries regarding business laws and how these may affect their respective businesses.
Beatrice Santos