Most people contribute the word debt to something negative. If you’re in debt, it’s usually because you’re bad at managing your money and you’ve somehow ended up in the negative. You probably had to resort to loans to pay for something important, and that set you on a slippery slope that has plunged you into debt.

At least, that’s the stigma against people who take out loans and say they’re in debt.

Fortunately, it’s not as bleak as it sounds. There is such a thing as good debt despite what many people say. Before you start borrowing money, it’s a good idea to understand the concepts of good and bad debt because it could change your entire opinion on loans. In fact, you could go as far to say that being in debt is actually a positive thing if used correctly. But before you go apply for a personal loan and get yourself in trouble for misunderstanding this idea, here is some advice.

What is Good Debt?

Good debts can be characterised by good and productive uses of the money. For instance, if your car breaks down and you need to fix it so you can ferry your kids to school, then it can be considered a long-term investment for your future. Another example is taking out a loan in order to start a business. These are positive uses for your money because they serve as investments, which is the general idea that your borrowing should follow.

Thanks to sources like cashloans.co, it’s possible to look up all the different types of loans you can take out so you can fit the interest rates and terms to your needs. As long as you’re able to pay it back in a reasonable amount of time (or even make earlier repayments) there’s almost no reason not to take out a loan as long as it’s put towards something useful that can help you. Other good examples of good debt are student loans, mortgages and paying for child services.

What is Bad Debt?

Bad debt covers anything that is used to pay for your personal enjoyment and luxury. A week-long holiday to China paid with a personal loan? Bad debt. Purchasing a luxury new television that you didn’t really need? Yet another example of bad debt. Borrowing money to pay back other loans? That’s probably the worst thing you could do.

Bad debt is characterised by bad decisions. If you struggle to pay all of your bills at the end of the month, then you might be living a lifestyle that you really can’t afford. Perhaps you’re subscribed to too many entertainment services or maybe you eat out far too much. Good financial management will eliminate all sources of bad debt, but you need to be self-aware that you’re overspending.

If you’re still unsure if your reasons for getting a loan is good or bad, then this article from nasdaq.com has a couple of examples that you could follow. In short, make sure you take out a loan for a good reason, not a personal one for your own enjoyment.

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Despite all their partying and endless nights of fun, college kids actually have it rough – financially speaking, anyway. It’s a tough period as students have a lot to pay for, and not a lot of money to pay for these things.

As such, if you’re a student, here’s some of the best financial advice you’ll ever read:

Make As Much Money As You Can

The grind never stops – or at least it shouldn’t stop – during your college years. Any opportunity you have to make money, take it! You will need money now more than any other time in your life. If you’re earning while in college, you can start paying off some of your student loan debt while you study. This lowers your interest rates and means you have less to pay when you graduate. It’s also mentioned on businessinsider.com that the earlier you start to pay, the faster you can pay your debt off. Plus, it’s always handy to have some disposable income for college essentials.

Find a part-time job in the town near where you’re attending college, or look for jobs around campus. Some final year students will often pay other students to take part in research projects or to be test subjects for them. The way I see it, this is basically free money for a student, so you should do it!

Raise Your Credit Score

College is usually a good indicator that life is getting serious and it’s time to do some adult stuff. One of those things is raising your credit score. Do this during college, and you can leave with a very good score that opens your world to many possibilities.

You can raise your score in various ways, but there are two main ways a college student can do this. The first is to use a credit card responsibly to build up your creditworthiness. It’s mentioned on studentcredit.cards that some companies offer credit cards with low-interest rates specially for students. The second thing you can do is avoid going into your overdraft and taking ages to get out of it. This doesn’t make you seem very creditworthy, and your score won’t grow.

Learn How To Budget

I’m going to go out on a limb here and guess that most people haven’t budgeted before they go to college. You don’t really have any need to before then, your parents tend to take care of everything. Now, you’re on your own, and you have expenses to pay, and you want a social life too.

So, you have to learn to budget your money. Do the math, work out how much you have, how much you need to spend, and how much you’ve got left over. The money you need to spend is essential payments you know you have to make, such as your tuition fees and accommodation costs. What you have left over will be split up into food money, toiletry money, and so on. Stick to your budget, and you will make it through college without much financial trouble.

Don’t become one of the many college students that manage their money badly. Work on improving your financial life while you study, as well as setting yourself up for a less stressful financial life after college.

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If you’re thinking about getting your first ever credit card, then it may just seem like another way of spending money and making purchases. But in reality, and something that is often forgotten about, it can be much, much more. If you use a credit card wisely, it can help to give your credit score a boost. If you weren’t aware of that, though, then it could damage your credit score without you even realizing it. Experian.com explains that a credit score can be an influence when it comes to things like mortgages, loans, and even a new cell phone contract, you want to make sure that your score is a positive one.

So, what are the other things you should know before getting yourself a credit card? Here are some things to be thinking about or finding out the answer to before you commit to a credit card.

You Should Know What a Credit Card Is

It might silly, but you’d be surprised at just how many people think that a credit card is like a debit card. In the ways you physically use it, they are basically the same. But in terms of money, they couldn’t be more different. A credit card is like a small loan essentially, that you have been approved for. But you have to pay it off each month. Otherwise, it costs you more than it would have been if you’d used your debit card.

You Should Know Why You Want a Credit Card

If you’re looking to get a credit card, simply because you find yourself in your overdraft each month, then that is not the wisest of reasons to get one. If you’re looking to get it to help build a credit score and to practice discipline with money, then that will stand you in much greater stead.

You Should Know How To Budget

Again, in order to make your credit card work for you, then it is a good idea that you know how to budget. A credit card can be helpful when you don’t have money right now, but you have some coming in. You need to know your finances well, as well as being able to budget, to really make your card work for you. If not, it can spiral out of control, and the next thing you know, you could be looking at a site like consolidate.loan in order to help you to consolidate your credit card debt. So budget, know your finances and pay off your card as soon as you have the money to do so.

You Should Know About Interest Rates

If you are getting a credit card, then you need to know all about interest rates. What interest rate does the card you have, or are looking at, have? If you don’t pay off your card in full each month, then what will it mean for your finances? How much will it end up costing? A credit card only works for you, if you don’t have to pay any interest.

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At one point or another, most people have found themselves out of work. Whether it’s because the company that you work for has folded, you’ve lost your job or are on sick leave, being out of work can have a huge impact on your financial health. Whatever the reason that you are out of work, having a small amount of money to live on and no guaranteed monthly income is a daunting and stressful prospect. Luckily for you, we are here to help make the process of living without an income as easy and free of stress as possible. Below are a few handy hacks that should make navigating the financial struggles that come with being out of work easier.

Set a strict budget (and stick to it)

The first, and most important, rule of living when you are out of work is setting a strict budget and sticking to it. The fact is that it’s possible to live on a tiny amount each month, it’s just a case of learning how to be savvy with your funds and not overspend, which is a habit that many of us have got stuck in – spending money when we don’t need to. There are various budgeting apps that can help you to set a budget and ensure it’s stuck to by linking up your bank account to your budgeting list. These apps really are invaluable when it comes to living within your means.

Find alternative solutions for cash flow

Budgeting will help to make living on a small amount easier, but it won’t solve the problem altogether. The fact is that you can’t get by without a livable income, so if you aren’t earning from work, you need to find a way to supplement your income so that you have an alternative cash flow coming in. This could be by doing some freelance work, it could be by taking out a loan from Snappypaydayloans.com, or it could mean selling a few of your old and unwanted items. The fact is that when times are tight, it’s important to ensure that you have an income stream so that you are able to keep on top of your rent/mortgage payments, your bills, and afford food. That is why finding an alternative cash flow solution is so important.

Research what you’re entitled to

Another option, when it comes to making life easier when times are tight, is to research what help you are entitled to. There is always help available from local authorities; it’s just a case of determining what help you are entitled to. If you are on sick leave, you may also be entitled to pay from your place of work, depending on your role, the time you have been there, and what your contract says. Don’t struggle on without looking at the help that is available, take the time to research what you are entitled to and apply for it. There is no shame in taking help when you are struggling, so it’s worth taking the time to research what you are entitled to.

It’s not easy navigating the financial struggles that come with being out of work, but if you take note of the tips above, you can make the process a little easier and a little less stressful for yourself.

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So, you’ve just graduated from college and have moved into your very first apartment. Now what?

Well, now it’s time you wised up to your financial situation and got into an adult mindset when you start thinking about your money situation. This can help you put in place some good financial foundations that can help you set up a secure future for yourself. So, ready to grow up and get adult about your financial situation? Here are some things you need to start to do.

Start Saving

Now that you are out of college and into full-time work, it is important that you try and save as much as you possibly can from your monthly paycheck. It doesn’t matter if you are only able to save a small amount; after all, every little will help and it will certainly add up after a few years! It is important that you have some savings behind you as they can provide you with a security blanket should you ever run into any financial difficulties. If you take a look at https://thesimpledollar.com/best-savings-account/, you can see which accounts are the best ones for your money.

Ditch The Debt

As well as saving up some cash, you also need to try and pay off all of your student loans. If you are struggling to manage all your debt right now, you might want to take a look at the tips on https://studentloansconsolidation.co to see how you can consolidate your debt to make one easier monthly payment. It’s also worth setting up a direct payment from your monthly paycheck. That way, you can never forget about paying back your loan.

Budget Well

Now that you are an adult in the big wide world, you will have a lot more responsibilities than what you did at college. Make sure you don’t forget about looking after your finances, though, or else they won’t look after you! The best way to do this is to budget. You just need to enter all of your monthly incomings and outgoings into an Excel spreadsheet to see how much money you have left over at the end of each month. This can help your finances stay extremely organized, and you are a lot less likely to be overdrawn one month!

Plan For Retirement

Have you figured out how you will be financially stable during retirement yet? If not, why not?! You don’t have any excuse of not thinking about retirement, even if you are still only very young. In fact, there is more reason for you to think about saving for retirement now as you will have longer to save and make a bigger nest egg. Firstly, you should take out a pension so you have some savings that are specifically for retirement. If possible, set up a separate savings account as well.

Once you adapt to this adult mindset, you will find that your finances get a much needed boost. Good luck with your financial future!

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