7 Common Money Issues People Face
It isn’t at all unusual to face a few money issues as you go through life.
You might run into trouble when you’re just starting out and have to pay off college loans or you’re trying to buy your first home. Here are some of the most common money issues people face, and some ideas for how to manage them.
1. High Credit Card Debt
Credit cards can be a useful tool for disciplined consumers who are trying to build good credit. And there are several perks to paying with a card instead of cash, including convenience, purchase protections, and rewards programs.
2. A Low Credit Score
Carrying too much debt or failing to make credit card or loan payments on time may result in a lower credit score. A low credit score can make it harder to get a loan, such as a mortgage or a credit card. And even if an application is approved, the interest rate the lender offers may be higher than what’s available to borrowers with better scores.
3. Not Having an Emergency Fund
Setting money aside in an emergency fund may seem like a luxury for those who are struggling to meet everyday expenses. But a solid savings buffer can actually be even more important if you’re living on a tight budget.
4. Spending More Than You Earn
Picking up a morning latte and grabbing lunch out may not seem like it could make or break your bottom line. But just $25 per week spent eating out will cost you $1,300 per year–money that could go toward an extra loan payment or a few extra car payments.
5. Facing Foreclosure
People can end up in foreclosure for any number of reasons, including financial mismanagement (buying too much house or choosing a loan payment they can’t afford), or uncontrollable events (such as a job loss or expensive medical condition).
6. Student Debt
While getting a college degree can improve your earning potential, the cost of getting that degree continues to skyrocket. And so has student loan debt.
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