Why bad credit will hurt you later on in life


May aspects of your life can be influenced by your credit. Bad credit can bring a lot of problems into your life. Even having no credit history has its own set of problems and limitations. Bad credit has an effect on different areas of your life which include your home, your job, and many other factors. There are surprising effects that your credit score could have on your life. The main reason for a low credit score has to do with money. If you are unable to pay what you owe to a lender, then that will have a major effect on your credit score.


How Bad Credit Affects Your Life

Among the things that could be affected by your credit score are:

  • Relationships
  • Emergency Money
  • Higher Prices for Various Needs
  • Employment Prospects
  • Inability to Refinance a Mortgage

It is amazing the amount of damage that bad credit can cause. Relationships can be damaged because of the need for friends to bail you out. Even employers look at your credit score as a factor to whether or not you can work for them. Other things that your credit score could mess with is your ability to rent an apartment.


Dreaded Interest Rates

One of the issues that come with bills is interest rates. If you have bad credit, you will have to pay higher interest rates. This means you are going to have to make a greater effort to pay off any debt you have with a bad credit score. As you can see, it is costly to have bad credit. The worse your credit gets, the more trouble you are going to have in multiple areas of your life. For some people, it gets to be a vicious cycle that is hard to break. Fortunately, there is good news.


How to Improve Credit Score

It is possible to improve your credit score. However, it is easier said than done for a lot of people, especially for those who have accumulated a lot of debt. Fortunately, there are steps that you can take in order to break free of bad debt. The steps to take in order to clean up your credit are:


  1. Pay off your bills in a timely manner. The more you are on time with your payments, the better your credit score gets.
  2. Keep a low balance on your credit cards
  3. Keep credit on an as needed basis.
  4. Don’t move around your debt.


Getting Help with Debt


You can also get help when it comes to paying off your debt. There are financial advisers that can help you come up with a plan in order to tackle all of the outstanding debt that you have accumulated. No matter the type of debt you have, you can still gain the help of an agent in order to come up with a plan that will not only help you pay off what you owe, but also save money in the process.

Good Ways To Pay Off Your School Debt

school-debtSarah Lawrence College in Bronxville, New York is the most expensive school in the United States of America today. To enroll there, you will need about $44,220 for tuition for an entire year. This is not inclusive of fees and accommodation. If we were to include the two, one would have to dig deeper into their pockets and add an extra $14,000. Being a student here will require you to seek help to clear out your tuition costs. And it is not only students from Sarah Lawrence College who are affected by the high tuition fees. The cost of education, particularly college education has gone up by 130% in the past two decades. This has in turn affected many college students throughout the country. Many students now have to take up student loans in order for them to finish school. And whereas taking up the student loan is easy, paying it back can be quite challenging. This can be attributed to the increased unemployment levels the country is facing. However, in this article, I will be sharing with you some of the best ways to ensure that you pay off your school debt with much ease and the shortest time possible.


  1. You can do better than the minimum payment

This is one way of ensuring that you repay your college loan in the shortest time possible. It might be a bit stressful to pay a little bit extra than the required minimum payment especially if you don’t have a job. However, this doesn’t mean that you should add a lot of money. If you can add an extra $20 or $10, it’s still okay. To make this easier, you can set up an automatic payment with the extra cash added on top.


  1. Consolidate and Refinance

This is a very effective way of clearing your school debt. When you refinance your student loans, the interest rate decreases. When you refinance your loan, a majority of your income goes towards clearing the debt. You usually get one consolidated loan that comes with a one-month payment plan when you refinance your student loan. Many people only take up loans whose interest rates can be lowered through renegotiation.


  1. Pay every two weeks

You can decide to pay your loan every two weeks instead of paying it every month. This does not mean that you have to pay double the amount you usually pay in a month. Here, you will divide your monthly payment into two and pay each half every two weeks. If you do this for a whole year, you will realize that you actually made an extra payment.


  1. Use your raises

Most of us work in places where we receive raises at the end of every year. Instead of using your raises to buy expensive gifts like big TVs or a car or going on holiday, why not use it to pay your college debt? Although you may want to treat yourself at the end of a very stress full year, don’t you think that it would be better to live a debt free life?


  1. Cut back on your budget

One way of increasing your savings is by reducing your spending. When you cut down on your spending, you will have more money to use in clearing out your student debt. Although you may have to cut down on a number of things you love like cable TV, alcohol, going out to restaurants among others, clearing your college debt will be more fulfilling.