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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