Student Loans Are Hurting Millennials’ Net Worth

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Student loan debt in America has topped $1.5 trillion dollars, and millennials hold a large amount of that debt burden. As of 2017, 37.5% of Americans with student loan debt were under the age of thirty.

A new study by MagnifyMoney highlights the difficulties millennials face because of their debt. Since student debt draws money away from other savings and investment opportunities, the long-term effect on net worth can be devastating.

The short-term effect on net worth is striking as well. According to the study, millennial households without student debt have an average net worth of $114,376. Millennial households holding student debt have an average net worth of $29,087 – approximately 75% less than their student-debt-free counterparts.

The discrepancy shows up in all financial aspects.

Millennial households without student loan burdens have almost twice as much in their savings and checking accounts compared to those with student loans ($10…

Black Friday Predictions

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Black Friday arrives on Friday, November 23. Do you plan to join the frenzied early sales with hundreds of your fellow consumers, scour the Internet for online bargains as soon as you’ve digested your Thanksgiving turkey, or wait until the first shopping wave dies down and take your chances a little later in the day?

Whatever your strategy, a battle plan is important – and battle planning requires reconnaissance. Here are a few Black Friday predictions to consider as you formulate your plans.

Spending Increases – Here’s an easy prediction – people will spend more over the period from Thanksgiving Day to Cyber Monday than they did last year. BestBlackFriday.com predicts an average spending of $340.33 per consumer, up almost $5 from last year.

The online spending component is exploding. Last year marked the first time that Black Friday online shopping topped $5 billion. BestBlackFriday.com predicts $5.8 billion, an increase of mo…

Identity Thieves Can Still Use Your Credit Despite A Fraud Alert

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With all the security breaches in the news, you’ve decided to protect your credit by placing a fraud alert on your account with the major credit reporting agencies (Experian, Equifax, and TransUnion). Now you can rest easy, right? Guess again.

A fraud alert notifies businesses that you have reason to believe identity thieves may open fraudulent accounts in your name. Businesses are expected to verify your identity and get your consent before approving credit requests in your name, using whatever contact method you specify (typically by phone).

However, while a fraud alert notifies businesses of the fraud prevention steps to take, there’s no legal obligation for businesses to follow through. If potential creditors are not paying attention or cutting corners, they could potentially issue credit in your name to others. In addition, creditors aren’t obligated to tell you that someone tried to establish credit in your name.

If that’s the case, what good is a…

Before You Apply For That Store Credit Card…

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You’re making a major purchase at a department store or big box retailer. You’re offered savings and promotions if you sign up for a store credit card on the spot. Why wouldn’t you take advantage of the offer?

A store credit card might be an excellent option for you – or it may be a regrettable decision. A recent survey by CompareCards suggests that the odds are close to a coin flip.

The survey found that approximately three-quarters of Americans have had a store credit card, and almost half of those Americans regretted getting one. Younger Americans (millennials and Generation Xers) and parents of children under eighteen were more likely to regret their decision.

The more money you make, the more likely you are to regret getting a store card. In households with incomes of $100,000 or more, 88% have had at least one store card and 58% regretted their decision.

Why all the regrets? Store cards may come with deals and promotions, but they also t…

Simple Debt Reduction Guide

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Any proper discussion of methods for reducing debt load should begin with the following disclaimer:

Dealing with excessive debt is, in several ways, analogous to losing weight. You did not acquire all that weight/debt quickly, and it may take you even longer to lose it — and without changes in eating/spending habits, the weight/debt will come back. Any debt consolidation measure must contain some form of credit counseling. At the very least, you should understand what habits got your personal or business finances into this predicament in the first place, and have a strategy to change them.

“If you are facing a mountain of debt, the first thing you need to do is stop digging,” counsels financial writer Tiffany Aliche known as the Budgetnista. “Put down the credit cards, right. Because if you are swiping and swiping away, you are going to keep digging and digging, so first things first, stop digging.”

Three terms related to debt reduction are often us…

Five Arizona Title Lenders Sued

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Five loan companies in Arizona have been sued by the Consumer Financial Protection Bureau (CFPB) for failing to follow disclosure guidelines in online advertisements. Guidelines state that lenders must follow specific formats for disclosing any interest rate changes in online marketing. The five lenders, which make loans secured by the borrower’s car title, did not include information related to the APR of their loans.

Named in lawsuits by the CFPB, the five companies are Interstate Lending, Auto Cash Leasing, Phoenix Title Loans, Presto Auto Loans, and Oasis Title Loans. Allegations against the companies state that the listed rates in the advertisements were lower than those borrowers would be given.

All the loans offered by …

Refinance More Than A Mortgage

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While the term ‘refinance’ is most often used with mortgages, it can apply to any type of loan. Many borrowers have taken advantage of low interest rates to refinance their home loans, but some have also refinanced their auto loans, student loans, and even credit card debt via a home consolidation loan. For some, even renters, taking advantage of refinancing can be the key to getting out of crushing financial debt.

Physician Loans Help New Doctors Purchase Homes

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Doctors, dentists, and many others who go into the medical field often graduate with high amounts of student loan debt that they have to begin paying back after six months of graduation. While they may not be making a large amount of money immediately following graduation and have a large amount of debt, they are also very likely to earn a high salary as they advance in their careers.

This is why a number of mortgage companies offer what is commonly called a physician loan. This type of mortgage is aimed at those who may not be earning a large amount of money when they apply, so lenders usually require a fairly small down payment or even no down payment at all. They also often do not require

Auto Title Loans 101

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If your credit is too poor to get a conventional loan to tide you over in tough economic times, where do you go for help? Payday loans cater to those with poor credit, but interest rates are notoriously high, and the whole payday loan industry is under increased regulatory scrutiny. Some states have banned them outright.

Auto title loans provide an alternative for the credit-challenged. Credit scores are not an issue because the lender holds the title to your automobile as collateral, allowing you to keep driving your car in the interim. If you fall behind on payments and are unable to pay back the loan plus the required interest and any accumulated fees, the title loan company can repossess your car.

Title loans are popular because they are convenient, quick, and don’t require credit checks. The main requirement is that you have a clean title in your name as the borrower with no oth…