Why is it important to pay off credit card debt when you are applying for a mortgage?

When you are applying for a mortgage, you should make payment to your credit card debts first. There are certain reasons for this logic.

If you are carrying a large amount of credit card debts then there may be less chance of your home loan getting approved. Because before approving a home loan the lender will check your DTI or Debt To Income Ratio. The maximum the debt amount will be to the ratio of your income the less chance for you to get your home loan approved.

But the Debt To Income ratio is not the only important factor you should be concerned about before applying for a mortgage loan. There are other factors also.

You can have a detailed look at all the important factors you should know before applying for a mortgage. 

First, take a look at the Debt-to-Income ratio

As we have discussed in the introductory paragraph, the lender can assume the risk factor from the DTI ratio before providing a home loan to a borrower. Because, if the debt amount of the borrower is too high then chances are the borrower can default on the loan amount.

Usually, the lenders follow a rule that the borrower can have a home loan if the DTI ratio is a maximum of 43% of the particular borrower.

So, a borrower who needs a home loan should repay some debt amount first, it will help the borrower to reduce the DTI (Debt To Income) Ratio.

Thus the borrower can qualify for a home loan with a favorable interest rate.

Secondly, you should be aware of the credit utilization ratio

Before approving a home loan, the lenders check the credit score. The credit score largely depends on the credit utilization ratio. The credit utilization ratio means you have utilized upto what percent of your credit limit.

Your credit score will be low if you borrow closer to your credit limit. Thus the chances of your getting approval for a home loan with a favorable interest rate will be less.

The strategy you have to adopt is to pay off at least a portion of your credit card debt. It will help you to make your credit utilization ratio low and you can get approval for a mortgage with a favorable interest rate.  

Thirdly, paying off credit card debt will make the burden less on your monthly income

You have to remember one thing that your income is limited. You are managing your spending, your credit card debt payment within this income.

With the monthly mortgage loan payment, a new debt burden will be included in your income. Thus if you pay off the credit card debts, you will have less debt payment on your shoulder.

You can pay off the monthly home loan payment in a tension-free manner. 

Why it is important to pay off your credit card debts before applying for a mortgage

When you are going to apply for a home loan, the lender will, first of all, check your credit score and the DTI ratio.

The interest rate of your home loan will depend on your credit score and the DTI ratio. Be it a secured loan or an unsecured loan, the most important factor is the interest rate.

The lower, the lender, will offer you an interest rate the quicker you can pay off the principal balance.

That is why it is important to pay off your credit card debt quickly when you are thinking about taking out a home loan. It will help you to improve your credit score and subsequently, you will get approval for the home loan with a favorable interest rate.

Not only your credit card debt, if you have any other loan burden you should try to pay it off also. You can search the internet regarding the right way to pay off debt. Thus you will be free from any unsecured debt burden.

Final words,

You may have already understood that the lenders will check your affordability first before approving a home loan to you. Whether or not you can afford a home loan payment, your lender will come to know about it when they will check your credit score and DTI ratio.

So, when you can show an impressive credit score and DTI ratio to your lender, chances are you can get the home loan with a favorable interest rate. Thus it is important to pay off your credit card debt before applying for the mortgage.

Author Bio: Phil Bradford is a financial content writer and an enthusiast. He has expert knowledge about personal finance issues and he is a regular contributor of IAPDA. His passion for helping people who are stuck in financial problems has earned him recognition and honor in the industry. Besides writing, he loves to travel and read books.

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Why Taking Responsibility Could Be An Important Start To Addressing Your Debt

A majority of Americans are carrying some form of debt; approximately 77 percent of them according to Northwestern Mutual’s 2018 Planning & Progress study.The average debt per person has surpassed $37,000 in the last year and more people are finding it difficult to face their increasing debt. While having there are a host of debt management tools and apps available to help you on your journey, the key to resolving it begins with taking responsibility both for your past spending habits, and your future. If one is to become debt free, it takes a good amount of sacrifices, cost-cutting, and self-reflection. The sooner you accept responsibility, the earlier you can begin to make progress in your debt journey. Here are a few ways you can face your debt problems; and why it works.

Change The Narrative

The first step in conquering your outstanding bills is to change the way you view it. Debt can impact much more than your financial health; debt can affect your mental well being as well. Therefore, changing the way you approach it is important for many more reasons than simply being free of repayments or rebuilding a credit score. While it is a financial obligation and can be a source of financial stress, focusing on the end result can be much more motivating than looking at the current problems it presents. So instead of focusing on how little disposable income you currently have thanks to debt repayments, try considering what you would like to do with the cash once it is no longer pledged to repaying debt. Changing your view also means embracing responsibilities for repaying your debt.Being accountable allows you to better yourself and the decisions you make when it comes to your finances; allowing you to truly move forward and become debt free (and remain that way).

Get Comfortable With Your Means

Often, the reason that many of us end up in debt is that we purchase or spend on items that are not within our current means or income bracket. As a result, we end up using credit cards or other financing options and having high-interest charges compounds it further. Instead, get comfortable with your income without any reliance on savings, credit cards or other financing sources. Can you afford your current lifestyle on your monthly income? If not, this is a sign to examine the different aspects of your spending and get to budgeting. It can also pinpoint the problematic areas for you when it comes to debt. Knowing your triggers is a vital part of the battle against debt.

Take The Emotion Out Of It When Dealing With Money

Money worries are the number one trigger when it comes to stress in America. Being emotionally invested when making financial decisions can cloud or influence our judgment. As a result, you may end up choosing not the best option financially. One good example is cutting costs to put extra money towards repaying your debt. Often we may be hesitant to reduce money spent on items or activities simply because it has a meaning to us but it is not necessarily a need in our daily lives. Taking the emotion out of it means being objective and a great way to do this is writing everything down on paper. Focus on the numbers and your debt plan; this will help you stick to your resolve.

Chrissy Helders

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How can you manage your credit score once you retire?

Are you on the verge of retirement?

If yes, you might be planning to relax once you hit your golden years. That’s why you might have paid off a mortgage or any other debt obligations so that you won’t have to worry about making debt payments after retirement.

In short, you have been managing your finances in a good manner. And thereby, it might have helped you to build a decent credit score. But as you are going to retire, you may let your credit score droop, thinking that it won’t be required after retirement.

Well, you are not alone. Many retirees have a preconceived notion that credit score is of no use after leaving the workforce. But it’s not true. A credit score is equally important after your retirement too. Your credit score may be checked for various reasons like:

  • After retirement, if you are stuck with mortgage payments, you can refinance it to a lower rate.
  • You may feel like applying for a part-time job after retirement and the employer can check your credit score.
  • In most states, auto insurers check your credit score to decide your premium amount. So, a lower credit score can help you to fetch lower premium amounts for auto insurance.
  • You want to opt for a business loan to open a small business after your retirement. The lenders might deny your credit application if you don’t have an adequate credit score.
  • You want to help your children or grandchildren to take out loans by cosigning for their loans.
  • If you need to take out a personal loan for covering emergency expenses, lenders will check your credit score to determine your creditworthiness.

So, precisely, the credit score plays an important role after your retirement. But how will you manage your credit score once you retire? Let’s find out. 

Always make timely payments

FICO is going to implement a new scoring model (FICO 10 system) by this year. And if you have a history of making late payments, you may notice a decline in your credit score.

According to a FICO report, depending on your credit history and the severity of the late payment, a recent late payment can slash your credit score by up to 180 points.

So, if you have debts to pay off, it’s important to make payments on time. Remember, payment history accounts for 35% of your credit score. Eventually, making timely payments can help you to maintain a good credit score after retirement. 

Get rid of revolving debt before retirement

Usually, retirees have a fixed income, and making hefty debt payments can affect your safe withdrawal rate. And thereby, it can drain your retirement savings. So, it’s better to get rid of revolving debt like credit cards before you retire.

If you pay off your credit card debts, it will lower your credit utilization ratio (the ratio of the amount you owe on your revolving accounts to your credit limit), which accounts for 30% of your credit score. Eventually, you might notice an improvement in your credit score within some time.

However, don’t expect an instant rise in your credit score after paying off your debts. It can take about 30 to 45 days from the day you make payment to notice the update in your credit report.

If you are having problems with paying off revolving debts, you can approach a reputable debt relief company. They can provide help paying off debt and you can lead a debt-free and worry-free life after retirement.

Don’t close your old credit accounts

Let’s say, you have paid off credit cards to enter into a debt-free retirement. And you have decided to close those credit accounts. But that can be a bad move as closing your old credit accounts can hurt your credit score.

The reason being, closing old accounts can lower your credit history which accounts for 15% of your credit score.

So, after paying off debts, it would be better not to close your old credit accounts as it can affect your credit score adversely. But at the same time, make sure to use credit cards wisely after retirement, so that you don’t fall prey to the debt trap.

I would suggest you charge your credit cards for small amounts and pay off your outstanding balance amount in full within the due date to maintain a decent credit score during your golden years. 

Keep a tab on your credit report

According to a report by the Federal Bureau of Investigation (FBI), older adults are vulnerable to falling prey to identity theft. The reason being, they usually have a decent amount of retirement savings along with a fair credit score that allures the scammers. And they become the soft targets of the scammers because of their politeness and trusting people easily.

So, you need to keep a tab on your credit report to find out any fraudulent activities or errors. You can get a free copy of your credit report once a year from each of the three credit bureaus by visiting AnnualCreditReport.com.

If you come across any errors in your credit report, dispute it as soon as possible. Because errors can result in a drop in your credit score.

Besides, if you notice any fraudulent activities, inform it to your bank or credit union at the earliest. Identity thieves can take out new credit cards by using your personal information. And they won’t be repaying any amount and they can max out your credit cards as well. Eventually, it will hurt your payment history and credit utilization ratio, and thereby, your credit score can get reduced by considerable points.

So, you can request your creditors to freeze your accounts so that no new accounts can’t be opened in your name. And thereby, you can protect your score too.

So, the bottom line is, the credit score is equally important after your retirement too. And I hope that the above 4 ways can help you to manage your credit score once you retire. So, don’t worry and be aware. And plan your retirement in a well manner so that you can enjoy your golden years.

Author Bio: Phil Bradford is a financial content writer and an enthusiast. He has expert knowledge about personal finance issues. His passion for helping people who are stuck in financial problems has earned him recognition and honor in the industry. Besides writing, he loves to travel and read books. 


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What to look for while hiring a debt settlement company?

Are you up to your neck in unsecured debt?
If yes, you might be looking for a way out to get rid of your unsecured debt like a credit card, payday loan, etc. at the earliest. Due to its easy availability and faster cash disbursement, payday loans are lucrative options for the people in need of urgent cash. But you have to pay a hefty price for this convenience as payday loans have incessantly high-interest rates.

In this situation, what if I tell you that you can get out of debt by paying off a much lower amount than what you owe?

Seems impossible? Well, it’s not. Once you hire a debt settlement company, the financial experts will analyze your financial situation. And based on that, they will chalk out an affordable monthly payment plan. You will have to deposit the money in an escrow account, created by the settlement company, until you have accumulated enough to offer a lump sum amount to your creditors.

The debt relief experts of the settlement company will try to negotiate with your creditors to reduce the total outstanding balance amount by offering the lump sum. A Center for Responsible Lending report has revealed that the average debts are settled at 48% of the outstanding balance amount.

So, if you are looking to settle your debts, you need to hire a genuine debt settlement company. Otherwise, you might end up getting trapped with more debts.

Here are some of the important factors that you need to consider while hiring a debt settlement company.

 Does the company have IAPDA-Certified debt consultants?

Negotiating with creditors to settle your debts is not an easy task. Why would anyone agree to take less than the amount you owe? A good debt settlement company usually has a team of debt specialists, preferably with IAPDA Certification. Being IAPDA-Certified means they are well-trained in debt settlement and have met a minimum standard of excellence to earn the certification.

So, they will be able to negotiate with your creditors in a much professional way. And your debts might get settled in a much lower amount than you expected.

That’s why while hiring a debt settlement company, check whether or not the company has IAPDA-Certified debt consultants. If yes, I would advise you to talk to them about your debt problems instead of talking to any salesperson; because salespeople are usually more concerned with making a sale than helping you with your debts.

 Do you need to pay upfront fees?

It’s quite obvious that when you are opting for professional services, you have to pay a charge for it. But a reputed debt settlement company won’t charge you any fees until they settle your debts.

According to a 2010 Federal Trade Commission (FTC) rule, no for-profit debt settlement companies are allowed to charge fees until they settle a customer’s unsecured debts.

So, you need to ask about the fees that you need to pay to the settlement company. If they mention paying any upfront fees for settlement, I would suggest you not to look forward to that company.

A reputable debt settlement company will charge you a fee only when the negotiation is successful. Usually, they charge about 10% to 25% of the debt amount you owed when you hired them.

If you have any questions about their fees, feel free to call their customer helpline. Usually, they have a team of customer service representatives who are always eager to help you with any questions about debt settlement, its related fees, etc. So, make sure to clear all your doubts before you hire a debt settlement company.

 How is the feedback of the settlement company?

Before you hire a debt settlement company, you need to do thorough research about it. First, check with your state Attorney General and local consumer protection agency that whether or not there are any consumer complaints against the company. You can verify with the Attorney General that if the company has a valid license to run its business in your state.

Besides, you can ask your friends or colleagues who have opted for debt settlement. Try to know about their experience and get feedback from them about the settlement companies. Also, you can know what the customers are saying about the company by typing “complaints” after its name in any search engine.

However, complaints are normal because it’s quite impossible that everyone will be satisfied with their services. But the number of complaints should not exceed the number of good reviews.

So, a reputable debt settlement company may have a few negative reviews. But they won’t indulge in any unfair practices that are against FTC rules.

 How long has the company been in the debt settlement business?

A company’s experience matters when it comes to debt settlement. If the company has been conducting business for a long time, it implies its success and confidence in settling debts.

The Consumer Financial Protection Bureau (CFPB) has sued many settlement companies that have failed to settle debts by an appropriate amount. New companies are likely not to have much experience in debt settlement. If you hire one of them, your debt might get settled in a very nominal amount.

That’s why if a debt settlement company doesn’t have the requisite experience, it might not be a wise option to hire that company.

 Is the company a member of American Fair Credit Counseling (AFCC)?

AFCC is the “watchdog of the debt settlement industry”. It ensures a standard of practice and operational compliance for all its members to abide by the guidelines of the FTC. For example, AFCC members operate under a “No Advanced Fee Model”, meaning that they won’t charge any fee until a debt has been settled.

A debt settlement company can become a member of the AFCC only when they are in full compliance with the FTC rules and regulations.

So, before you hire a settlement company, check here whether or not it’s a member of the AFCC. If yes, you can expect a smooth settlement process to get rid of your debts.

 So, the bottom line is, while hiring a debt settlement company you need to consider some factors that separate the reputable companies from the rest.

Remember, you are making an important decision by settling payday loan debt or any other unsecured debt. The reason being, you are going to spend a good amount of money to get rid of debt by trusting the settlement company.

So, I hope that the above-mentioned parameters will help you to find a legitimate debt settlement company and decide accordingly.

Author Bio: Phil Bradford is a financial content writer and an enthusiast. He has expert knowledge about personal finance issues. His passion for helping people who are stuck in financial problems has earned him recognition and honor in the industry. Besides writing, he loves to travel and read books.

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Balances at a Historic Low: Time to Get Credit Card Debt Under Control

Credit cards are incredibly convenient – which is certainly one reason credit card debt has been a problem for so many, for so long. After all, as long as you have your card, you have the money you need to run errands, entertain the kids, or grab a quick bite to eat. But the coronavirus pandemic has changed everything, keeping us at home more, and significantly decreasing how much we’re spending on our credit cards.

In fact, a recent report from the Federal Reserve Bank of New York showed an $82 billion decline in credit card spending so far this year. If you’re one of the millions of Americans who have spent less over the last few months, this could be the perfect opportunity to get a handle on your credit card debt once and for all.

5 tips to get rid of credit card debt, starting now

1. Know your “why”

Before you start your credit card debt payoff journey, think about your life goals — the “why” behind getting out of credit card debt. Maybe you plan to pay for some or all of your child’s college education. Or perhaps you’d like to purchase a home closer to your extended family, or retire early.

Jot down your goals and hang them up on your fridge, bathroom mirror, or anywhere else where you’ll see them every day. Use these goals as motivation to pay down your debt. After all, the faster your credit card balances hit zero, the faster you’ll be able to meet your goals.

2. Make sacrifices

Nobody gets out of credit card debt without making sacrifices. But since you may have lower balances than you had a year or two ago, saying goodbye to a few conveniences and pleasures you’re used to could have a bigger impact than ever before. Here are a few examples of ways to cut back and reach your goals.

  • Skip the takeout: If you order takeout on the weekends, forgo this habit and cook at home on Saturdays and Sundays. Use this as a way to spend time doing something relaxing with the people closest to you. Then, put all the money you’d normally use on takeout toward your balances.
  • Put off big purchases: Maybe you’d like a new fridge, car, or another big-ticket item in the near future. Instead of buying it this fall, consider waiting until you’re out of credit card debt. Plus, if your credit score goes up after you pay down credit card debt, that big purchase may cost you less over time.
  • Get a side gig: It can be tough to pick up a side gig, especially if you have a demanding full-time job, children, and other responsibilities. However, delivering meals, mowing lawns, performing data entry, graphic design, editing, or many other kinds of work may help you get out of debt faster.

The good news is that sacrifices can be temporary. Once you’re free of debt, you’ll decide which treats and extras you could bring back without getting back into debt. And if you no longer have to pay off balances, fees, or interest, you’ll probably have some extra money to spend anyway.

3. Ask for lower interest rates

If you’re overwhelmed with your credit card debt, lowering the interest rates on your cards may make it easier for you to make some headway. You may be surprised to learn that it’s actually quite common to call a creditor and ask for an interest rate reduction.

If you have a track record of paying your bills on time, there’s a good chance they’ll agree. The worst thing that can happen is that they’ll say no. Ideally, however, you’ll score a lower interest rate and save hundreds or even thousands of dollars in interest payments over time.

4. Consider a balance transfer

balance transfer can allow you to move a credit card balance from your current credit card to a new one. Since most balance transfer cards offer low or 0% interest for a promotional time period, they can give you some time to repay your debt without incurring more interest, allowing you to use your hard-earned money to pay down your balance rather than make your interest payments. One significant challenge of balance transfer cards, however, is that most of them require you to have good credit.

5. Don’t use your credit cards

The key to getting rid of credit card debt quickly is to stop adding to it. If you’ve relied on credit cards to make purchases in the past, it’s time to change that. Since this is easier said than done, try these useful tips.

  • Unlink your cards: If your credit card details are already plugged into your Amazon account or favorite shopping sites, unlink them. This way you’ll be less tempted to make impulse purchases with your credit card online.
  • Try the envelope budgeting system: With the envelope budgeting system, you place cash in separate envelopes. Each envelope is for a different category such as groceries, gas or extras. Once you spend the cash in an envelope, you don’t have any more money to allocate toward that category until the next month rolls around.

Anna Baluch

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How to Equip Your Home Office with the Essentials

With coronavirus cases continuing to rise, at least some employees should expect to continue working remotely for the long haul. Maybe you’re one of them.

If you’d originally planned on working from home temporarily, you may need to reassess your situation now. A temporary home office setup may not cut it long-term. It’s a good idea to reappraise your situation and your needs, so you can make yourself comfortable and stay productive for the long haul. 

Here are some essentials to consider when creating a professional workspace from home:


If you lack space, you may need to invest a little time, money, and effort to create a viable home office. See if you can gain extra space by eliminating clutter. Do you have a fair-sized storage room? Think about clearing it out and converting it into an office. (If you can, add a window for fresh air and visual appeal.) 

As you declutter, separate what you want to keep from stuff you can give away or throw out. You can always rent a storage unit for the items you don’t regularly use but want to keep for the future.

If your home has a guest room, see whether it can double as your office. You can swap out a conventional bed for a sofa bed to make room for office furniture and equipment. Or does your home have a garage? How about converting part of it into an office? 

With a little ingenuity, you’re bound to find the quiet, private workspace you need for working remotely.

Furniture and Hardware

Next, you’ll need to furnish your workspace, starting with the right desk. If you’ll be using a desktop computer, you’ll probably want a conventional desk with room for your PC, monitor, keyboard, and other essential office components. You’ll also want an ergonomic chair so you can work comfortably for hours at a time.

You may prefer to work from a laptop stand, a table, or even a convertible standing desk. Any of these can give you greater stability and variety when working at home. 

Depending on your job, you might need a printer/scanner, paper shredder, or a compact filing cabinet to hold hard copies of reports or legal documents. To organize promotional items, consider installing shelves or bins.


If you’re going to work from home long-term, you also may want to invest in extra accessories that can make your job easier and more productive. 

Noise-canceling headphones can improve your concentration, especially if you’ve got kids in the home. An extra monitor enables you to chat with colleagues and work on your laptop at the same time. A power strip/surge protector not only protects your equipment but also gives you extra outlets to power your other gadgets. 

By doing a little research online, you can discover all kinds of peripherals that can enhance and simplify your job. Don’t forget to stock up on pens, pencils, paper, and other office supply basics you may need.  


Technology will be central to your remote work, so make sure you have the software you need. Video conferencing apps like Zoom and GoToMeeting facilitate virtual communications, enabling you to collaborate with co-workers on team projects. Dropbox and Google Drive allow you to share business files safely and securely.

Keep in mind, though, that working remotely puts your system at greater risk of security leaks and digital threats than when you worked from your company’s office. Installing a virtual private network (VPN) on your network can help keep your business communications private and secure. Cybersecurity software can protect you against viruses, malware, and data breaches.

If you’re unfamiliar with some of the latest technology, online classes and video tutorials can help you learn the skills you need to succeed in working from home.

Internet Connectivity

This technology will be of little use without stable, reliable internet access. If family members are sharing your internet service, it may not meet your needs when it comes to working remotely. Consider investing in a new router and upgrading to high-speed internet or Wi-Fi to enhance connectivity.    


When you work from home, problems with your home’s infrastructure can easily interfere with your job. A glitch in your air conditioning can make working conditions unbearable. Electrical problems can bring your work (and everything else) to a standstill. If even your fridge goes out, that creates a headache that takes time and energy to relieve.

By protecting your systems and appliances with a home warranty, you can prepare yourself for any household eventuality. If your home is prone to AC, electrical, or plumbing problems, a home warranty can be a smart investment to ease infrastructure hassles.   

Financial Security

If you’re stressed about finances, you’ll have a hard time focusing on your job. You’ll also find it difficult to purchase the equipment you need to equip and stock a home office.    

So shore up your finances with a budget that cuts back on nonessential spending. Put aside funds from every paycheck into an emergency fund. Pay off some credit card debt to give you a cushion for borrowing later. 

These steps can give you some sense of financial security for the future. By getting your finances in order, you’ll be better able to set up an effective remote-work environment and work in peace.

If you’re going to be spending a lot of time working from home, it just makes sense to spend some time planning how to do it right. Take your own needs into account, and the needs of your employer and your family, too. Shoot for performance, efficiency, and comfort. Think about what you have to work with, and make it work for you — so you can work most effectively for yourself and your company.

Ann Lloyd, Student Savings Guide

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How to Make the Move Back into the Workplace

Unless you’re an essential worker, your work life has probably changed drastically in recent months. Whether you’ve been laid off, fired, are on furlough, or are working at home, it’s likely that the way you earn your living has at least been altered, if not brought to a screeching halt. 

Now, with many cities either starting to reopen or planning to do so soon, you may be gearing up to return to the workplace. But because things have changed so much, you might be anxious or even reluctant to go back. 

If you’re facing the prospect of returning to the office and you’re not sure what to expect, here’s a list of ideas to help you make a seamless transition. 

Re-establish Relationships

One of the best things you can do to help ease your way back is to re-establish your relationships. If you’ve been removed from your normal work setting for an extended period, you may need to touch base with co-workers to find out what they’re up to. Chances are, they share your concerns about returning to work, and they may have helpful ideas for the weeks ahead.

Creating and maintaining positive work relationships a great way to make your workday more pleasant, and it also can ease your transition back into a traditional work setting. By inviting your co-workers to lunch, giving them a call, or making any other kind gesture, you’ll be able to rebuild these relationships quickly. 

You also may have lost touch with your clients. If you have, be sure to reach out via phone or email. You can even send them special discount codes, branded gifts, or other reminders that you and your company value them. 

Discuss Safety Precautions

To reduce anxiety about returning to work, take time out to discuss safety precautions with your co-workers and managers. 

First of all, find out how personal protective equipment (PPE) is being handled. Regardless of your line of business, your employer is responsible for providing safety supplies such as face masks, soap, and hand sanitizer. You may also consider asking how often the office is being cleaned, and how frequently the bathrooms are being sanitized. 

Your employer might want to consult guidelines established by the porta-potty industry for restroom-to-staff ratios and cleaning/sanitizing schedules. These companies know what they’re doing since their bread and butter depend on the distribution of restroom traffic and maximizing cleanliness for large crowds. Tapping into that knowledge could help your company keep everyone safe in the long run. 

Be Prepared for Unexpected Changes

If this pandemic has taught us anything, it’s that things can change drastically and instantaneously. So consider that your desk location, job duties, company rules, and other familiar aspects of your job may have been altered in your absence.

Some changes will have been made for safety reasons; others may have come in response to financial challenges your company is facing. The best thing you can do is become more flexible, and be prepared to face these changes head-on. 

Return to the workplace with a positive attitude and an understanding that things now may be weird or awkward, but you’ll get used to them in the long run. And who knows? Shifting job duties may open up a new career path you hadn’t considered.

Secure Your Home

As you move back into the workplace, you’ll want to protect your household and related finances. In the current environment, it’s easy to worry about money and unexpected expenses, and it makes sense to plan for the worst. 

Take some time to assess your mortgage or rental agreement, your homeowners’ or renters’ insurance, and your utility bills. Having a handle on these aspects of your financial life can help you devise a budget that fits your current situation.

Also consider looking into a home warranty (which differs from homeowners’ insurance). With this coverage, you can rest assured that major repairs, such as those to your HVAC or electrical system and major appliances, are covered. This can reduce your financial anxiety and make it easier to focus on work. 

Update Your Skill Set

Lastly, you definitely want to take the time to update your skill set. No matter what industry or sector you work in, you should always take every opportunity to polish up your skills as much as possible. Not only will this make you a more valued employee, but it can also put you in a better position to compete with others returning to a deeply competitive job market. 

Consider learning a new language, training to gain new technical skills, learning to drive heavy equipment like a stick-shift vehicle or forklift, or anything else that might make you a more valuable employee. As you acquire more skills, your confidence will grow, and so will your ability to climb the corporate ladder.

No matter how you feel about returning to the workplace, you should be prepared to deal with a work setting that’s much different than the one you remember. By heeding these tips, you’ll be well on your way to returning to your position, however it looks now, without anxiety and fear. 

By Jessica Larson, SolopreneurJournal.com

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Quick Guide to Payday Loans

In the wake of COVID-19 shutdowns, many Americans are struggling to make ends meet. Federal resources have done little to help families and individuals pay their rent and other expenses following skyrocketing unemployment. As a result, many people are turning to other sources for financial assistance.

If you’re looking for a short-term quick infusion of cash, a payday loan can sound appealing. However, experts warn, payday loans are rarely a good option. Payday lenders are often predatory; so much so that some states have banned payday loans altogether. Here’s what you need to know about payday loans before you get involved.

What is a payday loan?

Payday loans are high-cost, short-term loans for around $300 that are meant to be repaid with your next paycheck. They’re offered through payday lenders like MoneyKey, Check Into Cash, and Ace Cash Express that operate out of storefronts and online. To qualify, you need to have income and a bank account – that’s it. Because of these low requirements, payday loans are appealing to those with bad or nonexistent credit.

When you ask for a payday loan, the process takes as little as 15 minutes to complete. The lender will confirm your income and checking account information, and give you cash on the spot or an electronic transfer by the following morning. In exchange, you must give the lender a signed check or permission to withdraw money electronically from your bank account. These short-term payday loans are due immediately following your next payday: two weeks to a month from the day the loan is issued.

To repay the loan, the lender will schedule an appointment for you to come back to the storefront and repay when the loan is due. “If you don’t show up, the lender will run the check or withdrawal for the loan amount plus interest. Online lenders will initiate an electronic withdrawal,” describes NerdWallet.

The danger of payday loans

Payday loans may seem straightforward, but they rarely are. “Payday loans come with a finance charge, which is typically based on your loan amount. Because payday loans have such short repayment terms, these costs translate to a steep APR [annual percentage rate]. According to the Consumer Federation of America, payday loan APRs are usually 400% or more,” reports Experian.

High interest rates are a given with a payday loan. Pretend you need a loan of $100 for a two-week payday loan. The lender charges you a $15 fee for every $100 borrowed – a 15% interest rate. Since you have to repay the loan in two weeks, the 15% charge equates to an APR of almost 400%. On a two-week loan, the daily interest cost is $1.07. Project that expense out over the full year: borrowing $100 would cost you $391.

Furthermore, it’s common for people who take a payday loan to get locked into a vicious cycle. “The problem is that the borrower usually needs to take another payday loan to pay off the first one. The whole reason for taking the first payday loan was that they didn’t have the money for an emergency need. Since regular earnings will be consumed by regular expenses, they won’t be any better off in two weeks,” says one expert.

What to do if you already have a payday loan

Individuals stuck in a payday loan may start to feel desperate as the expenses pile up. Can you go to jail for not paying back a payday loan? Can payday loans sue you? Is there a way to get out of payday loans legally?

If you’re in a situation where you can’t repay the loan, a payday lender will continue to withdraw money from your account, sometimes taking smaller repayment amounts to increase the chance that the payment will go through. Lenders may also try to negotiate a settlement with you for the money owed. It’s also possible that a lender will outsource the loan to a debt collector – who is able to file a civil lawsuit.

“Failure to repay a loan is not a criminal offense. In fact, it’s illegal for a lender to threaten a borrower with arrest or jail. Nonetheless, some payday lenders have succeeded in using bad-check laws to file criminal complaints against borrowers, with judges erroneously rubber-stamping the complaints,” explained NerdWallet.

If you’re looking to get out of payday loans legally, there are a few options. Look into debt consolidation loans, peer-to-peer loans, or debt settlement. Speak to a lawyer or a financial expert to figure out what your options are – but above all, don’t sacrifice food on your table to pay for a payday loan.

This article is contributed by LiftRocket.

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Using Technology to Improve Finances and Decrease Debt

Financial difficulty is, unfortunately, a very prevalent part of everyday life for many people. For example, about 69% of Americans have less than $1000 in savings, which limits their access to funds needed to pay for emergency car repairs or an expensive visit to the emergency room. Due to the lack of financial stability within society, many individuals fear the future regarding their ability to provide for themselves and their loved ones if the need arises.

Debt is also another major influence on people’s financial situation. Researchers at Lending Tree found that the average credit card debt of American households stands at about $5,700. This can inevitably lead to lower credit scores and restrictions on people’s monthly budgets.

Fortunately, there’s no shortage of available means to improve the use of our money and time, allowing individuals to tackle their debt and properly prepare themselves for the future. With new technology being developed and improved every day, financial technology, also known as “FinTech”, is playing a major role in this as well, and giving more people than ever the means to become more financially savvy.

Here are some suggestions on what tech to include in your budget, as well as apps, extensions, and other tech tips to aid you in your goals to decrease debt and improve your finances.

Use Your Phone to Find Apps and Information

Smartphones today allow access to more information than any user could ever imagine. From the plethora of apps and industries to choose from, one person can access virtually anything. Via phone, you can download apps to help save you money and time, manage your budget, and even make money on-the-go.

You can also use your smartphone for its original purpose, which is to gain access to the internet’s library of information! From financial advice blogs to digital financial advisors, there’s no shortage of information you can find. Thanks to smartphones, you can now learn about debt, your credit score, money-saving habits, and more, all from the little device in your pocket.

Take Your Savings Digital

As new tech becomes more integrated into people’s daily lives, businesses are taking notice and using technology to improve user experience. This is especially true in the world of financial institutions, where banks are now able to operate almost entirely online while reducing or eliminating unnecessary fees. By doing so, they’re making way for customers to save more money for an easier budgeting experience, to properly create an emergency fund, and to pay off debt.

The second is that mobile banks provide apps that are more easily accessible to users, which

allows for enhanced perks and offers. Many traditional banks require credit score checks before signing up, putting limits on who can have access to banking. This can be difficult for people struggling with debt. However, online banking platforms are now paving the way for access to a checking account without a credit report. Taking advantage of this feature can be a great way for people with low credit scores to start putting money into a savings account.

Work a Side Hustle

Though it may seem like a lot to handle with other life tasks, a side hustle could not only provide an increase to your current income, but the right pick could transform into a valuable asset for your future. Side hustles that you can commit to from your smartphone range anywhere from ridesharing, to room sharing, grocery shopping, and even taking surveys.

These types of side hustles are what provide great supplemental income, and can be used for a variety of purposes, such as paying off larger amounts of your credit card debt or growing your savings account to prevent future debt. Other side jobs could eventually turn into long-term, and even full-time work: blogging, being an internet influencer, and digital freelance work, all have a great potential to grow into bigger sources of income in your future.

Make Use of Budgeting Apps

Because budgeting can become a complicated, tedious task, many apps have been released to aid the consumer in their venture. Consider budgeting apps that are free or require a low monthly subscription to get started. The fee-free apps will offer simpler options and make it easier to start your budget. Others to consider are shopping apps; most shopping apps were created with the sole purpose of finding deals, coupons, and other ways to save money both online and in-store. Taking advantage of them will also save you time and decrease stress, especially because you didn’t waste time searching for coupons yourself.

Rely on Chrome Extensions

Google Chrome is the most popular search engine today, which means there are a variety of resources to help you save money and accomplish other tasks. Utilizing extensions can save you the stress of having to seek out deals on your own, especially while shopping online. For example, one extension called Honey allows you to shop, and then at check out, automatically searches for promo codes that save you money. On top of this, there are plenty of other extensions available to choose from.

Though a few cents may seem like a marginal difference, over the course of a month, those few cents will turn into more cash that you may have missed otherwise. Reallocating this money towards your monthly budget gives your wallet some breathing room, and can give you the means to pay off those credit cards that have been weighing you down.

No matter your decision of which gadget, app, or software to use, remember that you are in charge of your future. You can make the choices necessary to manage your finances now so you’re more comfortable and well-off down the road. Because of all the information and opportunities presented to us today, there are limitless possibilities on how to save money, manage your finances, and decrease any debt that has taken over your life.

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How to Build a Rainy Day Budget






Many Americans know the importance of building an emergency fund, but few are able to do so successfully. Research from the AARP found that 53% of American households lacked an emergency savings account. 

Not only are Americans unprepared for emergency expenses, but most households would struggle with an unexpected $400 expense, according to the Federal Reserve. These findings indicate that few people have invested in either a rainy day budget or an emergency fund, relying instead on loans and credit card debt when unplanned expenses pop up. 

It doesn’t have to be painful to build a rainy day budget or an emergency fund. We’ll walk you through a few tips to illustrate how to save money, as well as provide a budget calendar to help you stay on track with your savings goals.

What is the purpose of a budget?

A rainy day fund is slightly different than an emergency fund, but the two often get conflated. A rainy day fund is something you can draw from to pay for smaller expenditures – if a major appliance in your house needs to be replaced, or if your child needs braces, for instance. A rainy day fund is important to have to avoid going into debt to cover small inconveniences that will pop up and disrupt your careful budgeting. 

An emergency fund, on the other hand, is your safety net in the event of a big financial emergency; loss of employment, illness, or a global recession, for instance. Most experts recommend building an emergency fund with at least six months’ take-home pay, e.g., your paycheck less taxes and other obligations for benefits and retirement. 

How much do you need in your rainy day and emergency funds? The numbers vary depending on your living expenses and income level. “To cushion against a simultaneous spike in expenses and dip in income, a middle-income family needs about $5,000 in a rainy-day fund but has just $2,000 — a gap of $3,000. Lower-income families need about $2,500 but have just $700,” reported the New York Times. The AARP recommends a slightly higher budget of $10,000 – $50,000 for your emergency fund.

Typically, a rainy day fund is smaller: between $500 and $2,500. There’s no amount too small to start with when you begin saving money. Start somewhere, and make saving a habit – here’s how.

How to save money

If you’re living on a shoestring budget, building both a rainy day budget and an emergency fund can feel daunting. Most experts suggest focusing on your existing expenses first. 

“Creating a rainy day savings strategy starts with getting a handle on any future expenses. For most people, monthly expenses such as house payments, utilities, insurance and groceries stay steady. Other costs are less frequent but not technically emergencies. Make a list of the expenses you’ll probably have to pay in coming years. In addition to car maintenance or house repairs, this could include kids’ braces or veterinary bills,” wrote Nerdwallet

A good way to track your expenses is to use a budget calendar. Use a budget calendar to log every bill due: from utilities to rent or mortgage to paycheck. Log each amount in your calendar to see what’s going out when. 

From there, you can start to estimate how much you need in your rainy day fund and in your emergency fund. For your emergency fund, The Balance recommends that you set a goal and then put aside a small amount each month. “Figure out how much money you’d like to have in your fund, then work backward from there. Divide the amount you’ll need to adequately fund your account by how much you can afford to put aside each month. Then, you’ll be left with the number of months it will take you to reach your goal.” 

When you first start out, you may need a little lift to help get your savings off the ground. Consider working with a community like LiftRocket.

This article is contributed by LiftRocket.

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