3 Financial Solutions for Hard Working Adults

By  //  April 18, 2023

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What can people do to get major financial relief? For some, the main challenge is improving their credit scores so they can purchase a home or refinance college loans.

Alternate solutions include investing in life insurance in a commonsense way, preparing to buy property, or dealing with education-related debt. While there are hundreds of financial dilemmas and challenges in life, there are three that are quite common in modern life. Consider the following points about how to resolve substantial money-related problems.

Student Loan Refinancing

One of the unsung heroes of the personal budgeting universe is student loan refinancing. Every year, many working adults discover the advantages of trading their old loan agreements for new ones. Why do they do it? They make the move because, along with access to lower rates and better overall terms, they can reduce monthly expenses significantly with lower payments. In the long run, borrowers can save massive amounts on interest payments as well.

There’s another side to the process, though. Unfortunately, a few applicants are not able to qualify for refinancing agreements because they don’t have a high enough credit score needed to refinance student loans without additional help. Adults with poor or iffy credit can’t always refinance their college loans without resorting to other methods. Keep in mind that lending institutions check credit scores before approving refi’s, and not everyone gets approved.

On the bright side, there are various federal programs that can help those who have poor credit. Borrowers can up their chances of success when they have a cosigner on the application. For some, that’s the simplest and most convenient way to bring their college debt down to a reasonable level and restructure it by refinancing. The wisest way to get started is to arm yourself with the facts by viewing a commonsense guide that walks through the relevant points about how refinancing relates to credit scores.

Credit Repair & Improvement

More than two-thirds of working adults want to save and pay off debt simultaneously as well as boost their credit scores but have no idea how to get the ball rolling. Even those with negative events in their history, like bankruptcies, can find a way to ramp up their scores. However, it’s imperative to be patient and persistent with the efforts to bolster ratings. Note that the three reporting agencies collect real-time data on every citizen’s transaction, debts, and other activities.

Repair involves ferreting out mistakes on reports. By law, everyone gets one free report from each agency annually. Take your chance to contact Experian, TransUnion, and Equifax for the reports. Then, read through each document and double-check that all information is completely accurate. Mistakes are common, but when you discover them, it’s necessary to contact the agency by mail and give all the pertinent facts to substantiate your side of the story. Within about six months, they will fix the error in most cases.

Improvement is about taking action to increase the current scores on your reports. It’s not fast or easy, but it can be done if you stick to the process. First, begin paying all recurring bills on time or early. Pay close attention to credit cards and loans. Next, try to pay card balances down below 30% of their respective limits. Finally, wait for at least three months before checking your scores again. You might have to pay for the additional report, but the small fee is worth it to find out whether your efforts have been effective.

Investing in Life Insurance the Right Way

The most efficient way to invest in life insurance begins with getting the best information. To do so, contact an independent agent. That is someone not contractually tied to any carrier. Ask about your options based on age, income, family situation, and the amount of coverage you want. Find out about the advantages of whole life as opposed to term policies, or those that expire after a fixed number of years.

Whole insurance comes in endless varieties, some of which include savings and investment features. Be sure to ask the agent to explain how it’s possible to borrow against the built-up cash value of a policy, how the investment feature works, and why life insurance policies can deliver long-term financial security to people of all income levels and lifestyles.

Keep in mind that buying a policy is not a permanent commitment.

Those who own insurance can and do sell their policies to third parties for cash in certain situations. Ask the agent what your alternatives are should you decide to sell or change some of the conditions of the insurance contract.