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Looking for a Great Deal on a Vehicle? Check the Used Lot

Written by adminMay 23, 2018

Right now, you might be thinking it’s a precarious time to buy a vehicle, but it’s time for an upgrade. What should you do?

With auto loan rates rising, it can scare a lot of people from shopping as they sit back and wait for things to settle a bit.

That doesn’t mean you still can’t get a great deal on a car or truck that both fits your needs and is at a price you can afford. To do that though, you should do your shopping in the used car lot.

“If you really had to have a certain make and model, look at a used car. It can help with affordability, and you get a lot of the same benefits,” says Joe Pendergast, VP of lending at Navy Federal Credit Union.

It’s all about supply and demand. Over the past few years, people choosing to lease vehicles has reached an all-time high. That means when the leases are up, there’s always a flood of ‘gently used’ cars that make their way to the dealership. That bodes well for anyone hoping to get a good deal.

Vehicle prices have already seen a drop. According to the U.S. Labor Department, the cost has already started to drop, falling nearly 2% in April. Analysts expect that number will only go down as we enter the summer months.

Of course, most people want something brand new, as it offers the best of everything, from top-notch warranties to the latest technology to hit the market. Used vehicles aren’t that far off from buying brand new, but at a steep discount.

Most used vehicles are only a few years older, low mileage, and with the same great technology you’ll find in a new model. In short: you’re pretty much buying the same vehicle at a huge discount.

Trucks and SUVs often top the list as the most popular vehicles in the country to buy right now. Experts don’t believe that higher gas prices this summer will dent SUV sales too much. Navy Federal Credit Union says that the F-150 is the most popular vehicle their members get.

These types of vehicles are often higher in price, making it not uncommon to see buyers taking out 6-year loans. It’s always suggested that buyers stay on top of what they can afford and know their credit score before investing.

“Whether you’re buying new or used, don’t take the first deal you see. Be able to know that you can afford your car payment, as well as gas and maintenance,” said Pendergrast.

Written by adminMay 23, 2018

Saving

Americans are fascinated by the British royal family. To us, they are superstars and we follow them and their lives as closely as any other famous person.

On November 27th, 2017, it was announced that Prince Harry and Meghan Markle were engaged, and Americans couldn’t be happier. That meant another royal wedding was going to happen soon!

And now, that time has come! This weekend, the prince and his beautiful bride will tie the knot. Because this is a financial blog, we can’t help but ask the question: how much does a royal wedding cost?

The average American wedding can shoot upwards of $34,000! To us, that’s a lot of money, but it pales in comparison to the amount the royal family will shell out. Back in 2011, Prince William married Kate Middleton at an astounding cost of $34 million!

Let’s look at this year’s epic ceremony and breakdown what the royal family is expected to spend this time around.

1) Reception

This part of the celebration isn’t as expensive as it could be. Being the royal family has some perks, meaning they own a lot of gorgeous, historic castles and buildings. They also own fleets of cars, too. That means holding the reception at George’s Great Hall and using Queen Elizabeth’s fleet of Bentleys and Rolls-Royces for transportation won’t cost a dime.

Not every part of the reception will be free, though. According to sources, the cost of luxurious portable toilets will cost more than the average American wedding at $50,000! It’ll cost them $500,000 alone for the marquee. So, while they’re ‘saving money’ by not having to rent a place, the added costs are unfathomable!

2) Food and Catering

Could you imagine spending $70,000 on a wedding cake? That’s what the royal family just did, hiring the talents of famed pastry chef Clair Ptak from California. The catering for this event is estimated to hit nearly 700,000! That seems like a lot of money, but when you consider the bottles of Bollinger champagne, costing $115 EACH, then you start to see why it’s so expensive.

3) Entertainment

What’s a wedding with entertainment? And when you’re filthy rich as the royal family, you can virtually afford whoever you want. They’re expected to spend around $510,000 for various entertainment surprises. $129,000 of this is for the silver-plated trumpets, personalized for each guest.

They also expect to have choirs, photo booths, entertainment for the kids, a DJ, a band, and even a fireworks display worthy of royalty. For that much money spent on entertainment, let’s hope the band is good! (Rumors say Elton John is scheduled to perform)

4) Wedding Dress

We all know that the dress is one of the most important parts of the wedding. It’s also one of the most expensive. It can take a future bride several months to find the right dress for her. It’s unknown what the future princess paid for her dress, but estimates are up near the $500,000 mark.

5) Decorations and Favors

Another $700,000 was spent on the rest of the wedding, including the decorations, floral displays, invitations, seating, dance floor, security, party favors, lighting, photographers, and so on. I’m sure you can imagine a gorgeous Windsor Castle converted into a wedding palace fit for a fairytale.

The invitations alone were over $200,000 and printed in gold ink. Now that’s money!

Wedding Controversy

While the U.S. is anticipating this major event, a lot of U.K residents aren’t happy. A petition has been going around, stating that the royal wedding is nothing more than what should be a private event dressed up like a national occasion to justify spending tax dollars to cover the event.

While the royal family gets millions from the government, most of the wedding won’t be paid for by taxpayers. They will have to pay for the massive security to keep guests safe during a high-profile event, costing them $10 million.

The cost is also measured in economic output. During the 2011 royal wedding, there was a 1.6% drop in production, which amounted to $3.1 billion lost. We can expect the same to happen this time around, which makes a lot of people in the U.K. wonder why they still have a monarchy to this day.

Written by adminMay 23, 2018

Saving

Early last week, the United Way released a staggering report about the condition of the average American family. In it, it was revealed that 51 million households in the United States, about 43%, still can’t afford to take care of their basic needs.

These basic needs include food, health insurance, rent, transportation, and a cell phone.

The same study declares that 16.1 million households in the U.S. are living below the poverty line and 34.7 million who are considered limited income families, making less than what is required to pay the bills.

Several states have it worse than others. California, Hawaii, and New Mexico, for example, have half of their populations struggling to make ends meet. It’s difficult to imagine.

66% of workers make less than $20/hour, which means the large majority of people have very little, if anything, in their savings. If something bad were to happen, most Americans don’t even have access to $400 if they needed it.

If we break it down to the country level, then we start to see the discrepancy. Many counties in the U.S. are simply too expensive to live in. Not too long ago, a map of the country came out showing how much you had to make in each state just to cover the basics. A lot of the states were between $50,000-$80,000!

To make it in Seattle’s King County, you’d have to make over $40/hour to live there. If you weren’t bringing home $85,000 per year, you were living in poverty.

The homeless problem is so bad in Seattle, the city council just implemented a controversial tax on companies like Amazon to help get the homeless off the streets. Life is so expensive in San Francisco that the homeless line the streets for miles. There are literally apps that show you were to avoid human feces on the sidewalk due to the homeless situation in their city.

The economy is getting better and jobless numbers are going down, but it’s not enough. It doesn’t matter much if someone has a job if they aren’t making the money they need to even feed themselves.

There’s a reason why debt has reached all-time highs. People are borrowing more than ever just to catch up, but can’t afford to pay it back.

Written by adminMay 23, 2018

Saving

We’ve extensively covered all the news going down between China and the U.S. A trade war between the two economic superpowers is not a good idea for anyone. China knows that, as does the United States.

President Trump, once again, seemed to apply just enough pressure to get the outcome he desired. His first victory came over North Korea, who agreed to end the Korean War and step across the DMZ at the behest of Trump’s critics who warned his tactics would lead to a nuclear war.

Now, China also appears to be bowing to pressure from President Trump, agreeing not only to end threats of a trade war, but also to purchase “massive amounts” of agricultural products from U.S. farms.

China also agreed to sit down and create a new deal promising to address the massive trade deficit between them and the U.S., a problem President Trump has railed against since his campaign.

According to U.S. Treasury Secretary Steve Mnuchin, this increase in agricultural products should total an additional 40%, which is amazing news for farmers who were worried a trade war would severely hurt their income.

Stocks and Oil Prices

When news first broke that China and the U.S. were soon to be embroiled in a fight, it frightened a lot of investors. Stocks fell sharply after months of historic growth. Now that news of the trade war being behind them and new deals are in place, stocks rose early Monday morning, as did the price of oil.

For the first time since 2014, the price of oil hit the $80 per barrel mark.

OPEC and Russia agreed to cut supply, as well as promised economic sanctions on major oil producer Iran that has many experts believing we’ll see oil prices cross the $100 mark this summer, but now that the trade war talk is cooling, moods are shifting. Some of the pressure on the market is now going away.

“Both sides plan to work on implementing agriculture and energy purchases and to continue to negotiate on manufacturing and service trade, bilateral investment and intellectual property protection in coming months,” said U.S. bank Morgan Stanley.

Now that the U.S. and China are on the same page economically, it can only mean good things for both countries. Trump certainly has a way with getting things done, even if his methods make everyone else nervous.

Written by adminMay 23, 2018

Saving

Money can be a touchy subject with millennials. This is the generation that is getting hit the hardest with disabling student debt, low wages, and the recession, which hit right as they were graduating college.

It wasn’t an uncommon sight to see someone in the mid-20s and lower-30s, with a college degree, living at home with their parents. Those who are making it, are barely doing so. High rent prices and the cost of living constantly outpacing their ability to get raises has made life difficult for most of our younger generations.

When the website MarketWatch wrote a piece about how much money 35-year-olds should have saved up (about twice their salary to be safe), the fury was intense. There were many responses of varying degrees, from righteous indignation to jokes to cut the tension.

The message was clear. Millennials SHOULD be saving their money, but they simply can’t afford to. We recently wrote an article talking about how Americans still can’t afford their basic needs. This is a growing problem as debt keeps piling on and wages remain stagnant. Many families still have to make tough decisions and what they can afford and what has to wait.

If you can barely afford to feed yourself, you’re not going to have enough to save, especially if you’re paying insane interest rates on loans just to keep your head above water.

The sad reality is, we can’t talk about retirement enough. This is a subject no one should pass up just because it’s a difficult conversation. No matter what we’re dealing with right now, we need to keep it a part of our thinking and budget planning. In fact, it should be a priority.

There’s no one-size-fits all approach to saving for retirement. What you’re going to need and when you’re going to need it will vary per person, but if you haven’t even begun to address the issue in your 30s, you’re in danger to fall well short by retirement age.

Social Security is dwindling and no one knows how much longer it will last. Many experts aren’t even sure what the future of the program will look in the next 30 years. It’s not a program today’s millennials can take for granted or expect to still exist. They will have no choice but to invest their own dollars into their retirement plan.

That starts now.

There are two things people can do to ensure they’re in a good spot.

The first is to save as much as you can. Ideally, you should be putting away 15% of your monthly salary. If that’s impossible, trying to cut back as much as you can. Even 5% saved is better than nothing. As the economy improves and your situation is better under control, you can up the amount you save.

The second way to better prepare yourself for retirement is to take care of your debt. Don’t keep adding more to it just because you want that shiny new car. If you know things are tough and you can barely afford to save, paying a large debt that’s mostly interest isn’t a good idea.

As of this writing, the government has put in place several programs designed to help people pay back their student loans. Most people who qualify for these programs can have what they owe significantly reduced, as well as the time it takes to pay back these loans.

The sooner you pay down your loans, the more money you’re able to save. Nothing is more important than your future and the future of your family. Paying off debts and having extra money to put away is only the first step into gaining financial freedom.

Written by adminMay 23, 2018

Saving

After the brutally cold and snow winter, the days are finally getting longer and the warm weather is making its gradual return. As Memorial Day creeps up on us, so does the first day of summer.

Prom season is upon us and graduation is around the corner. This time of year is a busy, but exciting time all around. Families mostly look forward to summer for the numerous recreation opportunities that abound.

The problem is, a lot of families still won’t be able to afford a vacation. According to a new survey, 1-in-4 Americans can’t afford to go on a vacation, even if they have paid vacation days. The situation is so frustrating, that only 36% of people said they don’t even plan on using all their days this year. 13% said they won’t use any days at all.

It’s not all about being unable to afford a trip, either. In a lot of cases, the economy is booming and businesses are experiencing a labor shortage. If there’s not enough help, then workers may decide to take advantage of the need and work through their vacation time to earn more money. Some strongly feel falling behind at work will cost them in the end.

But not taking a vacation is as good as leaving money on the table. While a lot of Americans seem reluctant to take vacations, they’re very important for a variety of reasons. If you get paid to take days off, then you should do it!

Vacations, even long weekends, are great for your health, will prevent burnout, and can increase your productivity. The problem is, these benefits only work if you actually take a break from your work.

61% of people claimed to do work while they were on vacation and reported all sorts of ill effects, such as higher levels of exhaustion and burnout, compared to people who took a real break they considered “highly recuperative”, even to the point of feeling more satisfied with their lives.

Whiling taking a vacation is highly suggested, if you’re the 1-in-4 who simply can’t afford a vacation, here are a few ways you can save throughout the year to ensure you get some necessary time off:

1) Don’t Choose Heavily Populated Areas

Sometimes, the best places to get away to are off the beaten path. Going on a long weekend camping trip up the road might be best. It gets you out of the office and communing with nature while allowing for family time.

You might consider theme parks or areas where a lot of other people go, but those types of places tend to be expensive to visit. Choosing the right location can save your bundle and have the same desired effect.

2) Plan Your Vacation Well Ahead of Time

Don’t be that person who waits until it’s almost summer to start planning that vacation. If you can plan well ahead of time, it gives you a better chance to save more money knowing what to expect. Also, you can book tickets cheaper the further out you go.

3) Use Cash

It might be tempting to put everyone on credit, but that will make the vacation much more expensive than you might realize. Not only will you have to pay the interest, a lot of credit cards have extra fees for using your card away from home. This is especially true if you leave the country. Cash is best so you can budget exactly what you need and not break the bank.

4) It’s Great for Your Health

Again, a lot of people fear taking vacations for a variety of reasons, but usually at a cost of lost production and increased burnout. Scientists discuss the benefits of getting that much needed break and they include better heart health, higher production when you return, better quality of life, and an overall reduction of stress.

Taking a vacation is one of the best things you can do for yourself. Most people who end up skipping it, even if they don’t think they can afford it, often regret it. Even if you can’t afford to leave on a trip, do yourself a favor and find time to relax. You won’t be sorry.

Written by adminMay 21, 2018

Taxes

Hi, my name is Sharon and I want to tell you about my experience with the IRS. It was so scary and disheartening that I don’t want anyone else to have to go through what I did.

We all know that life comes at us fast. One day, we’re on top of the world. My husband was doing great at work, my kids make me proud every single day. We owned a nice house in the country. You start to feel safe and comfortable, as if nothing can touch you.

Then one day, it all changed. Storm clouds started to build over our sunny lives. We went from living the American Dream to surviving a brutal nightmare that never seemed to end.

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My husband got into a car accident and couldn’t work. He severely injured his back and while he was recovering, they held his job for some time, but eventually had no choice but to replace him.

Medical bills started piling up and our savings began to dwindle. It wasn’t long before my meager income could no longer support us. Our friends and family helped as much as they could, but it wasn’t enough. I had to take out a loan to help us get through this time.

The doctors said my husband should make a full recovery, but they weren’t sure when. He was going to physical therapy and I had to take time off work to take care of him and the kids.

Then, out of left field came another blow: tax time.

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800-295-6026

We always know tax season is coming, but in the chaos of these unexpected events, it had totally slipped our mind. We owed the IRS thousands, but we couldn’t afford to pay a cent.

Do you think the IRS cared about our situation? At first, maybe a little. We filed an extension and they said they understood, but when the deadline came and went and we still couldn’t pay, they didn’t hesitate to treat us like we were nothing more than criminal scum.

It started with relentless phone calls. Debt collectors can be ruthless and cold-hearted. I tried to explain my situation, but they felt as if I should pay my debt before putting food in my children’s mouths or clothes on their backs. There was no decency in the way they came after my family.

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When the calls didn’t work, they actually showed up at the house. One day, they came to my work and tried to harass me in front of my co-workers. By the following week, they were garnishing my wages. What little bit I was able to earn on the days I could come in was being siphoned off.

The situation only got worse from there.

On my way home from work, I stopped by the grocery store to grab a few items for the rest of the week. When I got to the register, my card was declined! I knew I had money in there, so I went back to my car and called the bank.

The IRS shut down my account! The teller told me the IRS put a levy on my account and there was nothing they could do. At this point, I was furious! Now they were preventing me from being able to get the essentials we all need to survive, all because they wanted their money.

I couldn’t take it anymore. I had to find a way to fight back.

After a quick Google search, I found Alleviate Tax. They said they would fight the IRS on my behalf. At first, I was skeptical. People make all sorts of claims online all the time. I mean, who can win against the government? They had all the power and held all the cards.

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In the end, I had nothing to lose. I gave Alleviate Tax a call and they immediately went to work!

The first thing they gave me was peace of mind. They told me that my story isn’t all that unique. In fact, it’s a lot more common than people realize. Life gets tough for everyone at some point. It doesn’t matter how much money you make or what your class status is, life catches up to us all.

Knowing that I wasn’t alone and that they’ve helped thousands of people like me find relief, I was able to take a deep breath. I could focus on taking better care of my family while they fought off the wolves. My tax debt was no longer going to be another burden on my shoulders.

Within a few days, Alleviate Tax contacted me. It was good news! They were able to get the IRS to stop my wage garnishment, take the lien off my bank account, and negotiate a much more manageable settlement considering my hardship.

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Words can’t describe how happy I was. Finally, after months of pain and despair, there was a break in the clouds.

I’m telling this story because this can happen to any one of us. Next time, it can be you in my shoes, desperate for help but struggling to keep your head above water. But you don’t have to fight alone.

Alleviate Tax is there for you. I’m so thankful I called.

My husband is feeling better and looking forward to getting back to work. His old job said they’d love to have him back when he’s able, so we know we’re going to be okay. If it wasn’t for Alleviate Tax, I don’t know where we’d be.

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Written by adminMay 15, 2018

Saving

It’s spring! When spring hits, it tends to bring about a renewed interest in pet ownership. New kittens and puppies are being born, and who doesn’t like baby animals? Raising a pet can be a great experience, but not everything about it is snuggles and warm fuzzies.

There’s a lot of responsibility and money that goes into owning a pet, which a lot of people don’t realize when they adopt their new furry friend. That’s why thousands of critters get taken back to shelters each year, often at the cost of their lives. Most of these pets rarely make it out the shelter alive.

Not to mention, bringing home a pet only to take it back home because it was tougher than you thought isn’t fair to the animal. That’s why it’s super important to do your research before deciding on pet ownership and not just reacting on impulse.

Yes, that puppy is cute, but if you’re struggle to keep your own head above the water, then you’re not going to be ready for the financial burden that having a pet can place on you.

Let’s take a quick look at some of the expected costs, some of which you might not realize are there until it’s too late.

Adoption Fees:

Unless you have a friend who is looking to get rid of a litter of kittens, you’re going to have to pay an adoption fee. Shelters and pet stores definitely want to make a profit and don’t give away pets for free. The adoption fee can vary, depending on the animal you want to adopt.

Kittens don’t usually get more expensive than $100, but dogs are a different story altogether. If you go with a breeder, it can set you back thousands. According to The Dog Digest, the most expensive breed of dogs is called “Löwchens” and can cost as much as $10,000!

These prices are only the beginning of your pet owning journey!

Spay/Neuter Costs

If you do decide to with the free options and take a pet from a litter that was birthed under your friend’s porch, then you’ll have to spay and neuter them (or risk more litters of critters being born under your porch). If you go with a shelter, then the odds are likely they’ve already taken care of this for you (and it can often reflect in the price).

Vaccinations are also a part of this process. All of this can cost you between $150-$200. Dogs can cost more at around $300. Sometimes, various cities and towns have opportunities for pet owners to bring their furry friends in for free to take care of this issue in an effort to keep the stray population as low as possible. Bob Barker would be proud!

General Upkeep

Outside of one-time costs, you’ll have to pay for general upkeep. A lot of these will be recurring, like feeding your pet. That can be a weekly, bi-weekly, or monthly expense, depending on the animal. That’s $20-$40 right there.

Grooming supplies, flea care and prevention, litter, and toys are all recurring costs and it can vary from month to month. You’ll need water and food bowls, leashes, new collars about every year, and a crate. If you add in regular vet visits, these can all total to hundreds of dollars per year.

Other Hidden Costs

In the back of your mind, you often think pet ownership will be easy. All you have to do is water, feed, and pet your animal. How hard can that be! But the financial toll of having a pet can be a lot more than people realize.

For example, if you live in an apartment, they’ll want a pet deposit, somewhere around $250. If your pet wrecks your place, there will be the cost of repairs. Kittens and puppies especially do not know their place and will chew and claw up whatever they can get their hands on.

Some cities require a yearly tax or license fee if you own a dog.

Do you plan on training your animals? That can set you back hundreds.

What if you want to go on vacation? Do you have someone who owes you a favor and can cat-sit/dog-sit for you? If not, a kennel is expensive. Dog walking services cost daily.

Then, there’s the health of your pet to consider. Do you have a few hundred dollars saved if your pet needs an emergency trip to the vet? What if it turns out they have food allergies and can’t eat the regular, bargain pet foods that exist?

Pet ownership is not something you should take lightly. These costs are just basic necessities for cats and dogs. Things tend to get much more expensive the more exotic your pet gets. Parents often love to get rabbits for their kids around Easter time, but most end up dead within a year because a cute idea turns into major work and expenses they weren’t prepared for.

It’s important to take your time, crunch your numbers, and do good research before buying a pet.

Written by adminMay 14, 2018

Saving

We all know how fickle gas prices are. I used to joke every time they rose that someone must’ve hiccupped in the Middle East.

When Trump decided this past Tuesday that it was time to end the Iran nuclear deal, we as Americans either supported or opposed it based upon our knowledge of the situation and political affiliations, but we didn’t think about the other ramifications this might play out – and one that could severely hit our pocketbooks.

Now, the important thing to know is this: this U.S. gets no direct gas import from Iran, but many of our allies do. These are the same allies who have blasted Trump in the past several days for his decision to cut the nuclear deal, probably more out of personal interest.

One country who holds a lot of cards in this situation is China. 1/3 of all of Iran’s gas output is guzzled by China, and where China falls in this whole situation will play a major role in future fuel prices.

In fact, if you haven’t noticed yet, the prices have already surged up merely on rumor of Trump’s well-guessed decision to cut ties with Iran. While it doesn’t directly tie in with where America gets its fuel, any drop in the global supply will ultimately ratchet up the prices.

With China being Iran’s number one customer, this doesn’t bode well for the relationship of the two countries who are already deadlocked in an impending trade war. The situation will become grave indeed if the Trump administration decides to impose sanctions on countries who continue to help Iran.

Our European allies, who also seem quite frustrated with Trump’s decision, also seem less likely to play along. But even if they do, undoubtedly to keep Trump happy, sanctions on Iran won’t be as impactful if the U.S. can’t get China on board.

The last time Iran was under sanctions before the nuclear deal was created by the Obama administration, Iran just churned out more oil to beat any economic hit they might’ve taken.

China went from buying 420,000 barrels per day to around 481,000 barrels. Just before the nuke deal was about to expire, they dramatically increased their imports to around 700,000 barrels per day earlier this year in expectation of the deal to fall through.

Recently, OPEC and Russia made a deal to cut oil supply, along with Venezuela and Saudi Arabia. The uptick in the U.S. economy means the demand for oil is back on, and now increased volatility in the Middle East may just create the perfect storm for another hot summer with higher gas prices.

Bank of America, along with other experts, are already predicting a return to $100 barrels of oil this summer, which will do nothing but put increased pressure on nearly every industry that is still recovering from the decade-long recession.

Written by adminMay 10, 2018

Saving

Owning a home is part of the big American dream. It’s why we care about going to college and getting the best education money can buy. When it’s time to settle down and start a family, part of the process involves securing a mortgage.

Right now, millennials fall within this age group. They’re graduating college, but find that life outside the campus isn’t as easy as they first thought, forcing them to live at home.

The first issue is the current housing economy. Millennials are starting their families, yet they find that housing isn’t so easy to find anymore. When they do find something, the prices are through the roof. That’s because the high demand coupled with low inventory sends cost nearly to unattainable levels on its own.

The cost of rent is much higher. 23% of millennials say they felt forced to buy a home because rent was way too high. Rent has gone up in 85 of the top 100 cities, according to a survey from the Department of Housing and Urban Development.

This isn’t the only thing stopping millennials from buying a home. The other issue is their debt.

Currently, 62% of millennials have student loan debt, which exacerbates the cost of home ownership. 45 million Americans owe $1.5 trillion in student debt, as it was recently reported. It’s a new record that doesn’t seem to be going away anytime soon.

Almost 1/5 of those with student debt owe $100,000 or more. That’s a lot of money and it works against them when it’s time to buy a home.

A large amount of student will not only take a large portion of your income (if you’re paying back regularly), but also put a huge dent in your credit. If you’re credit isn’t in tip-top shape and you already have a large amount of debt, banks will be less likely to give you a loan.

Even if they do feel confident enough to do so, you can bet the interest rate will be enormous.

That’s why 80% of millennials blame their lack of home ownership on their student debt. Regardless of their need to escape high rent costs and/or they’ve started a family and need a bigger place, their student loans made their dream impossible.

Debt-to-Income Ratio

According to the National Association of Realtors, nearly 1/5 of those who can’t get mortgage approval are denied because of student loans. That’s because their debt-to-income ratio is way too high. Banks look it as unsecured debt, which is applied negatively towards the borrower.

If a large chunk of your income is going towards student loans, that means you probably don’t have much of an opportunity save money. If you can’t save, then you can’t afford a down payment.

85% of those with student loans say they delayed buying a home because they didn’t have the money for a down payment. Most former students pay between $350-$500 each month for their loans. That makes it extremely challenging to be able to throw down $40,000 for a down payment.

For this very reason, a lot of millennials turn toward their parents as a co-signer or for the loan.

The best thing for anyone to do after graduating college is to focus on their career and paying off debts. If your debt is getting the best of you and preventing you from having milestone moments, then you should get help in taking care of your loans.

The federal government has created several programs designed to help people pay off their debts faster.

For more information about these programs and to see if you qualify, call us today at: (855) 221-9282. Getting your student debt under control should always been your first goal, or else it will keep you from living the life you deserve.

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