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Secretary DeVos Thinks 2020 Might Be the Perfect Time to Step Down

Written by adminMay 10, 2019

During the Education Writers Association conference, Education Secretary Betsy DeVos was asked a simple question about her future. The question was, if President Trump wins a second term, will she commit to serving another four years? That is a promise she wasn’t ready to make. It’s almost sounded as if she’s had enough.

DeVos is currently one of the longest-serving cabinet members to President Trump. While most others have disappointed the president in some capacity, she has remained in her spot. But it appears as if remaining loyal to this president comes with a lot of exhausting bagging. That includes keeping up with the constant negative press.

“I’m not sure my husband would be okay with that,” DeVos said during the Q&A portion of the Education Writers Association conference in Baltimore. “I never imagined I’d be a focus of your coverage. I don’t enjoy the publicity that comes with my position. I don’t love being up on stage or on any kind of platform. I’m an introvert.”

DeVos and Trump

One of the main reasons why DeVos has remained unscathed has to do with President Trump’s main focus. Education hasn’t been a large priority for him. That also means Trump hasn’t taken many steps to help push through DeVos’ “school of choice” platform. Her other ideas include offering tax credits for scholarships.

Neither Democrats nor Republicans have supported any of her ideas so far. That may be a large factor in her wanting to leave the position. If no one cares about education, why bothering continuing to try? Right now, both parties seem more interested in fighting over immigration and the economy. Even the border wall and infrastructure is getting more play than education.

DeVos is also frustrated with reporters and how they mischaracterize her ideas. During her speech at the association on Monday, she claimed her name was being used as “clickbait”. “As much as many in the media use my name as clickbait or try to make it all about me, it’s not,” she said. “Education is not about Betsy DeVos nor any other individual.”

Improving Teachers Pay

Another buzzworthy moment during DeVos’ speech included her shot at the current head of the American Federation of Teachers. She doesn’t think teachers are being paid nearly enough, forcing them to walk out of classrooms. If more teachers are leaving and protesting, then that hurts the students more than anything.

“We think, I think, teaching as a profession should be a highly honored and respected profession and I think it’s been de-professionalized in many ways,” she said. “And I think great teachers … perhaps should be making at least half as much as what Randi Weingarten does at half a million dollars a year.”

Whether DeVos leaves most likely depends on her relationship with President Trump. He may decide to coax her to stay by putting more emphasis on education during his potential second term. We’re still over a year away before the 2020 election, so anything can happen at this point.

Written by adminMay 10, 2019

Life Style

If you’ve ever spent any time online trying to figure out how to make a few extra bucks, it can seem like a lost cause. You never know if something is legitimate or just another scammer trying to feed off your desperation. And while there are plenty of frauds out there, there are many other legitimate sites/apps out there right now for the picking if you know where to look.

Much to the dismay of a lot of treasure hunters seeking out a quick buck, there is no ‘get rich quick’ scheme out there. You’re not going to find a formula and start reeling in thousands of dollars tomorrow. But if you truly dream of making a few extra bucks from home, it’s possible!

Let’s take a look at 5 of them.

1) Gigwalk

As smartphones, the internet, and modern technology continue to connect us in ways we’ve never dreamed possible, more and more people are looking for ways to make money using these advancements. Gigwalk is another innovation that is beginning to turn heads. Imagine having a massive smartphone army who is available to meet your needs 24/7?

That’s essentially what Gigwalk is. Business owners have a ton of smaller tasks they need done. Why hire someone hourly to accomplish them when you can throw a quick gig up on the Gigwalk app and get someone to do it for you? If you’re looking for a bit of extra play money, then this app is for you.

These little field jobs can be anything from asking you to become a mystery shopper, check out a competitor’s prices, interview various customers to see what they thought of their experience, take pictures, and so much more.

2) EasyShift

EasyShift is another smartphone app revolutionizing the way we do business online. You can earn money quickly by doing little jobs like sharing your opinion about a given subject, taking photos, or just getting a confirmation of a price at a store. These tasks are so easy, it’s designed for you to grab a few extra bucks while you’re out at the store, walking the dog, or going to see a movie with the family.

The cool thing about EasyShift is, the more ‘shifts’ you do the right way with great reviews, the more money you’ll make as higher-earning jobs and opportunities will become available to you. It’s almost like a game where you unlock the higher levels as you go along. Let’s take a look at this quick money maker.

3) GymPact

If you’re one of millions of people who look for proper motivation to work out, GymPact might be the app for you. What this innovative app does is it pays you to work out. Every time you check in the do your squats, you’ll get paid a small sum of money (usually about $.40), but it really adds up if you exercise more than once a day or try to get it done as often as you can.

If getting paid to exercise isn’t motivation enough, there’s a catch to this app. If you don’t exercise, it will take your money. It’s a predetermined set number they’ll have, so if you don’t exercise and reach your goals, then the amount will be deducted from your account. They take that money and it goes to the people who did get their workout done for the day.

4) Receipt Hog

Another great shopping app is Receipt Hog. You can get the app on both iPhone and Android phones. With Receipt Hog, your purchases actually help companies do market research on what the average consumer buys. They do this by having you take a quick snapshot of your receipt and fill out a survey about your shopping/buying experience.

When you shop at any store, including convenience stores, health and beauty, drug stores, the big club stores, supercenters, pet supply store, dollar store, or grocery chains, you will send in basic information that is summarized and turned into a nice report for market analysts. As compensation, you’ll accumulate virtual coins, which can be turned in for money or even an Amazon gift card.

5) Swagbucks

Swagbucks is a little different from the other money maker ideas we’ve shared so far. With this one, you don’t get direct cash, but you can redeem your accumulated SB points for awesome gift cards to your favorite stores, like Amazon, Walmart, Starbucks, and more. If you get to save money by using these gift cards, then that’s like putting money in your pocket anyway, right? You can also get coupons and various entries into huge sweepstakes, in which they give away awesome stuff.

One of the top 1,000 websites in all the internet, Swagbucks was once voted as the world’s fastest growing companies in 2013. It boasts over one million downloads and over $77 million dollars paid out to its users since its opening. On top of their sweepstakes and giveaways, Swagbucks does an hourly drawing to give away 1,000 free points.

So, how do you earn SB points? By doing a specific number of tasks, like taking surveys, using their toolbar for online surfing, watching videos, and so on. If you have friends you can refer the app to, you’ll get more SB points, plus a $5 bonus simply for signing up. Also, for every friend you get to sign up for Swagbucks, you get 10% of their earnings. How cool is that?!

Written by adminMay 10, 2019

Car Insurance , Credit & Debt

Back in 2008, Americans hit what has become the worst economic disaster in our country’s history. It was worse than the Great Depression of the 30s. For nearly an entire decade, it threw Americans into panic. It fueled the $1.53 trillion student loan debt crisis. What started the Great Recession was known as a ‘housing bubble’.

Just before the recession hit, property values were going through the roof. As the value of something expands, it creates what experts call a bubble. It’s called a bubble, because eventually, it pops. When the value of a home became three times what people were even making, suddenly they had a difficult time paying their bills.

Debt starts increasing and it nearly chokes an entire market. That throws the entire economy for a loop and drastic measures have to be taken. Right now, there are signs that the same thing is happening in the auto industry. Back in 2018, nearly 7 million people were extremely late on their auto loan payments.

That number is significant. It’s a record for auto loans. Even during the recession when money was scarcer, the number only approached one million. These are people who are more than three months late with their payments. This is at a time when the economy is smoking hot. That’s a 75% increase in the last decade.

What’s Causing People to Not Pay their Auto Loans?

More people than ever before are defaulting on their auto loans. What is the real cause of this? Right now, a lot of it has to do with the lenders themselves. They’re more open to giving auto loans to people who have riskier subprime credit. That means their score is under 670. Cars are a necessity to many, so they’re willing to pay whatever the asking price is.

The lender won’t say no, so they often fleece the customer. They even know a lot of these people won’t be able to repay their loan. And now that these subprime borrowers can’t pay back their loans, many millions are now in default. That hurts their credit score and is leading us towards a new recession.

In fact, the way the auto bubble is growing looks very similar to the housing bubble that started the Great Recession. Of course, predicting when recessions hit is just as steady as knowing what the weather will be like a few months out. Sometimes, you know a storm is brewing in the distance, but knowing when and where it will hit is unknown.

The Brewing Recession

The massive housing market crashed when it grew too large and people were defaulting on their loans. The same is happening with auto loans. They’re growing so large and it’s forcing many Americans to default. Eventually, the auto loan market will crash. Will it take the whole economy with it? Three-fourths of Americans believe that buying a new vehicle is unaffordable.

The average U.S. household can only afford half of their car’s value. This scenario is scaring plenty of experts. They do see dark recession clouds forming in the horizon. Experts like Howard Dvorkin, the chairman of Debt.com.

“This tells me the auto bubble will become a problem if it isn’t already one,” Dvorkin says. “After all, if the average American can afford just over half of the average new vehicle, the logical conclusion is that auto loans are going to continue to skyrocket.

“While many experts might see an auto loan crisis as remote; I’m reminded that very few of us predicted the housing bubble. Those who saw it coming (as I did) didn’t realize just how deep it would go.”

Why Are People Taking on More Auto Loans?

The first thing to look at is why people are taking on more auto loans than they can afford. Then you’ll start to see why the value is increasing. Infinity Research did the job looking at this and came to a startling conclusion:

“Cars are no longer seen just as a means of transport; rather they are now a status symbol. This explains how frequently the cars are being bought and sold. Five years back, the ownership cycle of a car was around 7 years. Today the ownership cycle has come down to 4 years, and market analysts believe that by 2021 the period might come down to 3 years.”

That’s right, it’s impatience and pride. Owning a car for more than a few years is seen as becoming taboo. People see the latest and greatest thing on the market. That leads them to give on the vehicle they’re currently paying off to take out yet another mortgage for something even newer. They do this without even making enough money to do it.

People who are in major debt and don’t even have a decent credit score are trading up. But there’s more to the story. There’s a number of great used vehicles out there right now. You can get a much better value looking at used than brand new. Yet, that’s not the path people are taking. They still want new and it’s throwing them into major debt.

The Infiniti Research study suggests, “Decreasing ownership cycle also means that quality of used cars is rather good, and buying it is a total value for money.”

How to Protect Yourself from an Impending Bubble?

You need to be ready for when the bubble hits and threatens to burst. In order to do that, you have to lower your overall debts. If you’re one of the people helping to cause this problem, consider stopping. Realize you don’t need a new vehicle every few years. Get something you can pay off in a few years and then get out of the debt cycle!

By having a car you already paid off, it will keep you from constantly spending. Imagine having those payments in your pocket because you no longer have to make expensive payments? That allows you to save money, which is what you really need to survive a recession. Those who are able to save are more apt to get through any phase of the economy.

Finally, don’t get caught up paying on something you can’t afford. You might think you need that brand-new car, but if your credit isn’t perfect, you will be paying through the nose for it. You simply can’t afford it, and the interest that will accumulate over that time. Build yourself a safety net and the rest should be fine.

Written by adminMay 10, 2019

Saving

This Sunday is Mother’s Day! We hope you didn’t forget this wonderful, special person in your life. Even if you’re broke and can’t afford much, there are plenty of simple, inexpensive, and fiscally smart gift ideas! Most of these gifts are considered classics and they’ll help you keep your budget under control.

As we say this, we don’t equate money with love. Just because something is a good financial choice doesn’t mean it’s a bad gift. We know moms want something from the heart. The more creative, the better! It’s the thought that always counts the most. So, let’s look at five classic Mother’s Day gift ideas:

1) Mother’s Day Flowers

Many people consider flowers cliché and boring. Nothing could be further from the truth. You also don’t have to spend a lot of money at the flower shop. You can buy a vase and flowers rather inexpensively and create your own arrangement. Many grocery stores have inexpensive flowers and plants you can use.

It is spring, so most supermarkets and hardware stores have plenty of plants and flowers to choose from. Make it as colorful as you desire and you’ll master Mother’s Day this year. And the fact that you put together the arrangement yourself, it’ll be like the first time she put your drawing on the refrigerator.

2) Handmade Gifts

Handmade gifts will make your mother’s heart explode with joy. These are worth more than probably anything money can buy. Just by reliving some precious memories you shared, a favorite family photo with a custom frame, and so much more can be the perfect gift. It is Mother’s Day, so reliving the joyful moments would be the perfect spirit of the holiday.

3) What Are Her Hobbies?

Everyone has hobbies and they can get expensive over time. If your mom loves to garden or is a big-time knitter, give her a hand. Buy her some yarn. Spend time with her in the garden. Help invest in her hobbies with both time and money. It should still be relatively inexpensive for you helping out in this way.

4) Get the Family Together

In a lot of families, rallying around the matriarch who has always taken care of everyone is important. Why not get the family together for a large BBQ? If you’re the organizer, ask others to bring food and help with the decorations. This can be fairly cheap if others are chipping in. The fact that everyone is coming together to celebrate her on Mother’s Day will warm her heart.

5) Gift Cards

We hate to go this option because gift cards can seem impersonal. It’s always the last resort for someone who doesn’t know what to get. But at the same time, it can be a good, inexpensive option. It’s your way of buying dinner or a nice massage. You can get her whatever she wants and she will absolutely love it.

Mother’s Day doesn’t have to be a difficult shopping day. It doesn’t matter what you choose, as long as it’s from the heart. She will love it either way. And if you’re a mom who is reading this, Happy Mother’s Day to you from Financial Helpers!

Written by adminMay 9, 2019

Politics

For the first time in 40 years, the federal government is changing the rules for debt collectors. On Tuesday, the Trump administration proposed changes to the long-held rules. These rules haven’t left anyone particularly happy. Both the consumer groups and debt collectors are unhappy with these changes.

These changes allow debt collectors to send an unlimited amount of emails and texts to get the attention of borrowers who are past-due. At the same time, it also lowers the number of phone calls they can make each week. Now you can see why neither side is happy about these rule changes.

These new regulations update the former Fair Debt Collection Practices Act, which was signed back in 1977. It was created to help prevent citizens from being unduly harassed just because they owe on a debt. For example, one of the rules prevents debt collectors from calling during certain times of the day or continuously throughout the day.

This new law would allow debt collectors to only call a certain amount of times each week. That limits their ability to have direct contact with the debtor. But the new law also allows for an unlimited number of texts and emails. Most consumers would probably find this law a little better for them. Emails and texts are easier to ignore than phone calls.

Modernizing the Law for Debt Collectors

As digital technology grows, it’s creating a lot of legal gray area. Debt collectors actually asked the federal government to give a greater consent on what’s legal and what’s not. They may not appreciate the lower number of phone calls, but now have a better understanding of the law. Yet, this new attempt was meant to update a law from the 1970s.

Kathleen Kraninger, the director of the CFPB, said in a statement that the new rules aim to “modernize the legal regime for debt collection.”

“The Bureau is taking the next step in the rulemaking process to ensure we have clear rules of the road where consumers know their rights and debt collectors know their limitations,” Kraninger said. Debt collectors can now only call consumers no more than seven times per week. If they manage to reach the consumer during that time, they have to wait another seven days before calling again.

A New Age of Collection

As stated before, debt collectors wanted a better understanding of how they can contact consumers. These new rules will update the existing law and give consumers a bit of a break. If you have an outstanding debt, this must be a relief. It even allows consumers to ‘opt-out’ to prevent harassment.

The new rules don’t just impact calls, texts, and emails. It also took a look at social media. The new rules bar debt collectors from using any public platform to collect debts. That’s a good thing, because the last thing anyone wants are the collectors announcing your debt to the world.

“The Bureau believes that communications or attempts to communicate by social media platforms that are viewable by a person other than a person with whom a debt collector may communicate … risk exposing a consumer’s affairs to the public,” the proposal states, adding that such conduct could “have the natural consequence of harassing, oppressing, or abusing the consumer.”

Mixed Feelings

These new rules are a bit of a compromise for both sides of the conversation. The response, as stated, has been a bit mixed. They like the clarification of rules, but not necessarily the lack of available phone calls they can make. Phone calls have dominated the way debt collectors have done business for decades. Now they’re open to extend it to emails and texts.

“We’re very happy to see that email, text messages and voicemail are addressed, with clear guidance about how to use them lawfully. That’s a major step forward,” Jan Stieger of the Receivables Management Association International, a trade association which represents debt collectors, told The New York Times.

Leah Dempsey of industry lobbying group ACA International took issue, however, with the cap on the number of calls debt collectors can make per week, calling the figure “arbitrary.” “The cap would unnecessarily impede communications with consumers,” Dempsey said.

Written by adminMay 9, 2019

Life Style

It’s been a year since Amazon launched its first ‘Go’ store. It allows shoppers to simply take the items they want and leave. The cost of the items are automatically deducted using the Amazon app and high-tech cameras. It’s a beacon of the future, of course, and its applications show how shopping will transition.

Amazon also understands that while they want to change the game, they also have to keep things modern. Our society isn’t cashless let, even if we’re leaning in that direction. That’s why the Amazon Go that just opened in New York will be the first to accept cash for items. In doing so, it will still not hire a cashier to take care of business.

Amazon took a lot of heat for using cashless stores. Critics were saying they discriminated against poorer residents who rely on cash and coins to make purchases. They say it’s not right to expect the poor to have bank accounts and debit cards. To keep critics happy, Amazon will start accepting cash at their stores, but not in the way you think.

Amazon and a Cashless Society

Amazon is known for its innovations. The company truly wants to change the way people shop, adding in loads of convenience. More stores are trying to increase customer satisfaction will appeasing every base. Rather than using a cash register, they’re currently working out a new way to check out cash customers.

Not too many details on that have been released yet, but a solution is in the works. They will still have an employee who uses the Amazon app to check out the items. How the cash will be collected is yet unknown. But they maintain no cash registers will be involved. They want to keep the process as high-tech as possible.

“This is how we’re starting,” he says. “We’re going to learn from customers on what works and what doesn’t work and then iterate and improve it over time.” Still, some politicians and activists see this as a means of discrimination. They are working on creating laws that prevent cashless establishments from taking root.

In fact, Philadelphia was the first city to do so. Not long after Philly, New Jersey put up their own cashless store ban. San Francisco and New York City are on the list of places considering the same. That really puts a thorn in the side of high-tech companies. The future of shopping is unknown. Many stores already have self-checkouts.

Written by adminMay 7, 2019

Life Style

It’s like “Who Wants to Be a Millionaire”, except the questions are asked on your phone and the prize is getting rid of student debt. Givling is a new trivia app that has been designed to help people struggling with their student loan debt. So far, 400,000 people have registered and downloaded this new app onto their phone.

Questions relating to pop-culture, math, chemistry, and other college subjects are asked. Users who have this app are randomly given questions they must answer. There are different rounds of questions of varying difficulty. Prizes for answering the questions are paid out weekly. Seth Beard is the Chief Marketing Director of Givling.

Beard says over $5 million has been given out in the past few years so far. Over 5,000 people have won prizes that are designed to help people overcome their debt. Whether it’s a high mortgage or student loans, people are drowning. Apps like Givling help give back to those who are struggling the most.

“Nearly 45 million Americans are in debt from their education. The average student now graduates $30,000 in the hole, compared with $10,000 in the early 1990s. The average borrower takes between 16 years and 18 years to pay off their debt,” said Mark Kantrowitz, an expert on student debt.

Student Loan Desperation

Cynthia Thomas Reher was told about Givling by her boss, who knew she had racked up quite a bit in student debt. Between her and her husband, they owed over $400,000 worth of debt. They went to the Ross University School of Veterinary Medicine. Thomas Reher, says she loves her job, but was blindsided by so much debt after she graduated.

“I enjoy what I do,” Thomas Reher, 42, said. “But I had no clue what I was getting into. How can you when you’re young, have never worked a day in your life and have no idea what the cost of living is?” So, they gave Givling a chance and started playing back in 2015. “I figured there was nothing to lose,” she said.

The company makes money two different ways. The first is through advertisements. As you go through the quizzes and trivia, you will have to watch an ad at times. The second way is by pricing beyond two rounds. You get the first two for free each day, but afterward it’s $.50 per round. It resets at the end of the day and the next day you get two more free rounds.

Not thinking she had anything to lose, Thomas Reher logged on and played every single day. After four years, she and her husband are making enough money to pay $3,000 towards their student debt every month. “Making ends meet was hard,” she said. “Student loans have kept us driving 15-year-old cars, delayed us getting into a house,” she said.

This is what many young adults feel today. They’re putting off major life decisions until they’ve properly paid off their student loans. Maybe apps like Givling will help more people, even if it seems as if the government will not.

Written by adminMay 7, 2019

Life Style

So, you’re looking for a job. In today’s economic climate, that shouldn’t be very difficult to do. The number of available jobs far outnumber the amount of people currently looking. That’s good news! The bad news is, if you make mistakes on your resume, potential employers will quickly overlook you. It shows a lack of attention to detail.

If you’re really eager to land the job, then make sure your resume is perfect. Pour through every detail. You might get an interview, but if you want that all-important call-back, then you should avoid these common resume mistakes.

“If crafted well, your resume is one of the most valuable marketing tools you have,” says CareerBuilder chief human resources officer Rosemary Haefner. “In a matter of seconds, it can make or break your chances of moving along the hiring journey with a company. That’s why it’s important to be proactive with your resume and avoid embellishments or mistakes.”

1) Mucking It Up

Forbes says the number one thing potential employers look at is skill and experience. Yet, people choose to muck up their resumes to try and add too much personal detail. For example, they’ll list all the exotic places they’ve been or a list of their favorite movies. Employers don’t really care about what places you’ve visited or the movies you watch.

Instead, prove why you’re an asset to their company. Let your work ethic, experience, skills, and personality shine through. Don’t waste their time with frivolous stuff they don’t care about. Be straight and to the point.

2) Don’t Lie

A CareerBuilder survey once found that 75% of hiring managers caught someone lying on their resume. If you want to know what the biggest mistake you can make is, this would be it. You have about 30 seconds to make an impression with your resume. Making up stories and adding fake skills never pays off. Your potential employer will check and call your bluff.

3) Grammar and Spelling Errors

Time magazine says a hiring manager only takes a few second to glance over your resume. They know what they’re looking for right away. If you want them to take a longer look, make sure your resume is free of spelling and grammatical errors. If they see any, especially in the first few lines, that’s a straight line to the reject pile.

Again, your resume is the greatest marketing tool you have. Take the time to proofread it. Have a family member or a friend proofread it. Carefully look over every word. While those types of errors are common to make, overlooking them shows you don’t back up your work. That will turn off any potential employer in a heartbeat.

4) Not Keeping Your Resume to One Page

You might think it’s a good idea to list all the work experience you’ve had or every skill you possess. In the long run, that might be a bad idea. Some people create resumes that are more than a page long and that’s a serious mistake. Hiring managers won’t look at that second page, so it’s not worth the effort adding it.

If you have a lot of work experience, you don’t have to put down every single job. The more jobs you add, the hiring manager will start wondering why you can’t keep a job. And adding every single skill you think you know might lead them to believe you’re embellishing. Only add relevant skills to the job you’re applying for. Keep it simple!

5) Listing Education as a First Item

Remember, hiring managers only take a few second to glance over the resume before deciding if it’s worth a read. You may be proud of your education and want to list it first. That’s great, but to a hiring manager, having a degree isn’t as important as experience. The reason why is simple. Just about every applicant who applies probably has the same degree.

In that case, the employers want to see your experience first. They want to hire the candidate who has the most experience in the job. If they find that candidate, then they might overlook whether they have a degree or not. Your GPA, electives in college, or details like that don’t matter to them, so save space and leave it out.

6) Listing References Without Asking their Permission

Your references might be an important part of the hiring process. In most cases, before a hire is finalized, the manager will call one or all of your references. And if the reference listed isn’t prepared, they could say the wrong things. Even saying something like, “Oh, I didn’t know I was listed as a reference” can turn a manager off.

Asking people is more than a common courtesy. It allows them the opportunity to think of what they’re going to say and how it relates to the job. Also, it’s important to list relevant references. Adding your mom down won’t work. Everyone knows mom won’t have anything bad to say about their precious child.

The best thing to do is list other professionals. Professors, previous employers if you left on good terms, advisors, and so on. Whoever you choose, take the time to notify them and tell them the type of job you’re applying for. This will go a long way in securing the job you’re looking for.

At the end of the day, you are in charge of how you look to an employer. There are multiple facets to the hiring process. So, if you desperately want that interview, take your time on the resume. Don’t rush through it. Make sure it’s absolutely perfect and lists all relevant experience, skills, and employment history.

Don’t leave it to chance. Check multiple times and have someone else look over it. The person best qualified and with the most experience will get the job. Keep that in the back of your mind when filling out the application and creating your resume. You should even consider several resumes and not a one-size-fits-all approach to cover your bases.

Written by adminMay 7, 2019

Credit & Debt , Credit & Debt Settlement

When you think of student loan debt, the image that comes to mind is someone 25-30. They have their whole life ahead of them. We sort of shrug off the student loan debt problem until we see the consequences of it firsthand. Yet, it’s not just a problem for younger generations. It’s also plaguing senior citizens in their 60s and 70s.

Of the 44 million Americans struggling to pay back student loans, about 3 million of them are 60 and older. They still hold as much as $86 billion towards the $1.53 trillion that’s owed. This data was made public by the Consumer Financial Protection Bureau. Just two years ago, that number was significantly smaller (but still large) at $66.7 billion.

That goes to show that the population ages, there will be many people who hit retirement age still unable to pay off their debt. They carry it with them throughout their lives and it’s a devastating burden. Because they have no choice but to pay it off, many seniors are using their Social Security payments to keep up. That should never happen in this country!

Older Americans Going to College

A lot of the student loan debt isn’t so new. It’s not unheard of for someone in their 40s and 50s to decide to get a degree. They don’t realize the burden they’re putting themselves under by doing so. The debt problem wasn’t as pronounced back when they were younger and probably expected to be able to take care of it. They thought wrong.

One such person is Seraphina Galante. She’s a 76-year-old woman who still owes $40,000 in student loans. She decided nearly twenty years ago that she would go back to school to get her master’s degree. She didn’t think she’d have any problem, with a master’s, paying back any of the student loan debt. She was wrong.

“I was very confident that … I would pay it back, you know, in due time,” Galante said. “We grow older and then we get more senior. That’s reality of life. I don’t see the justice or even the logic. It’s not gonna reduce, ever. And the emotional part of it that it’s there. That it’s always gonna be there,” Galante said.

Just a few years from 80, Galante is forced to work. She helps out as a caregiver consultant, only able to work part-time. She has no choice but to make the $176 per month payment she doesn’t believe will ever get paid off. That’s because the government will definitely seize Social Security benefits to pay off student loan debt. It’s driving older Americans into poverty.

Student Loan Debt a Campaign Issue

Student loan debt is becoming such a major problem that it’s on the radar for many 2020 Democratic candidates. One clear example is Elizabeth Warren who wants to cancel up to $50,000 worth of debt for millions of Americans. She knows this will help them get on track with their lives and not live in fear of missing a payment.

“We got into this crisis because state governments and the federal government decided that … they’d rather cut taxes for billionaires and giant corporations and offload the cost of higher education onto students and their families,” Warren wrote in a blog post last month, adding, “It’s time to end that experiment.”

77% of likely Democrat voters said they were in support of Warren’s plan. 57% of all Americans do as well, according to a poll from INSIDER. 21% are in opposition to it, as that cancelation would mean the government is out that money, wasting over a trillion dollars’ worth of taxpayer funds.

Written by adminMay 7, 2019

Credit & Debt , Credit & Debt Settlement

These days, there are way too many people who graduate high school and college who have never sat down and learned how to balance a checkbook. Most schools use home economics as an elective, which is easily passed up by the guys especially.

The problem with this is, once those students become adults, they find their finances are way too complicated. It’s nothing but a big ball of stress, which leads to procrastination, then late fees. And don’t get me started on the burden that is tax time! (thank goodness for H&R Block, right?)

Many of these same people often spending hundreds or even thousands of dollars per year on overdraft fees or battle their paychecks week-to-week because they can’t get a grasp on what they’re doing financially. It becomes a vicious cycle that’s easily fixable by taking the time to learn how to budget.

By taking a few simple steps, not only can you reduce the stress forces you to procrastinate in getting your budget in order, but it can save you A LOT of money in the long run.

Here are several tips to making the process easier:

1) Get Realistic about Your Budget

Only you know the state of your finances, so you should sit down and make realistic goals about changes you need to get things in order. It’s not going to be an easy process at first, but once you get there, you won’t regret it!

Write out a plan of action. Gather all your financial paperwork. Have folders for each bill with receipts. This will make life so much easier for tax time. Plan out your expenses. Once you have a plan of action, the rest will fall into place.

2) Too Many Accounts?

If you’re like a lot of Americans, you have more than one account opened. Perhaps you have several investments, more than one bank account, or even retirement accounts from jobs you no longer work at. Of course, these accounts were opened for a good reason at the time, but what about now? How many accounts do you have open that you don’t need anymore?

A good step in simplifying your financial lifestyle is consolidating accounts and closing the ones you don’t need anymore. Each one you leave open is just more paperwork to keep track of and fees you’re paying flying out the window. There are aspects to this you should be watchful of.

For example, if you bank with the same place who holds your mortgage, you should have a free checking account with them. If you were recently married and the both of you have separate accounts, consider the benefits of merging into one bank account to save on fees and making budgeting easier.

3) Don’t Get Complacent with Your Insurance

One big mistake people make is choosing an insurance company and sticking with them. If they consistently offer the lowest rates and highest level of customer service, it’s completely understandable. But a lot of people don’t even bother to look around for cheaper rates after a year or more.

The truth is, a lot of people are paying a premium price for crappy insurance. As time goes on, it’s simpler to renew coverage with the same company rather than researching for better deals. Your expectations will change, and so should your insurance. If you rent, then it’s a smart idea to get renters insurance.

Rather than buying renters insurance with a different company, you can save money by bundling with your car insurance. After you have a decent record of paying your bills on time, you remain accident free, and even improve your credit score, the rate you have to pay may fall. But don’t leave it to your current insurer to lower your payments though.

If you want to save money and get the best rates, take the time to reevaluate your needs and shop around for the best coverage. It’s not an easy process, as you’ll have to get quotes from a variety of different insurance companies, but it can save you hundreds of dollars per month.

4) Take a Good Look at Your Credit Cards

Just like most people have multiple accounts open, they also have more than one credit card. Maybe you fell victim to the credit card booth when you were in college (the promise of free credit too hard to pass up), but you didn’t do that much research on what you were getting into. This can destroy your credit in the long run.

In fact, I know people today who got bit in college and are STILL paying back those debts now that they’re in their 40s. That’s why you need to pay special attention to your credit cards. Study each other, their reward programs, and determine their value in your life.

Getting a Best Buy credit card for the ‘extra points’ isn’t worth the extra interest. It really offers no value to you. A lot of cards have fancy names, but are either duds or are a drain to the consumer if they don’t know how to use the card correctly. Before you know it, you’ve racked up thousands in debt.

That’s why it’s important to know exactly what you need and cut out the rest. Yeah, maybe you like the idea of having 3 or more credit cards, but what’s the real advantage?

The idea is to simplify your life. There came a time when I sat down to budget everything out that I realized I wasted $100/month on subscriptions I barely use. Why pay for Hulu when I only use it once or twice? Write everything you spend down, create a budget, consolidate accounts, and check your insurance rates regularly.

It won’t be easy, but once you figure it out the first time and can better manage things, you’ll save time and money in the long run.

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