Dos and Don’ts of Printing Checks In-House

Inhouse checks

Even with multiple alternative payment methods available, there are many reasons why people still choose to use checks for payments. Businesses set up check printing systems to make the check payment process simpler. However, before you start setting up your printing system, you need to keep a few dos and don’ts in mind.

Dos

Buy Checks Online

Many online vendors offer check printing services. From blank checks to QuickBooks compatible checks, the online check printing service can satisfy every check variety need.

Compare Prices of Check Vendors

Since multiple vendors offer similar services online, the price offered for their services are highly competitive. Compare the prices of online check printing service before ordering your check. Look for websites that claim to offer “lowest price.”

Buy Blank Check Paper

You can save money on checks by choosing to buy blank checks instead of printed checks. Online check printing service costs extra, so it is cheaper to buy blank checks and magnetic ink to reduce the printing cost.

Use Software

The process of printing a check is made simpler by using software like QuickBooks. QuickBooks keeps track of all the payments and allows you to print checks in a few easy steps.

Have an Endorsement Stamp

Checks are just pieces of paper if they are not endorsed. To make the process of endorsing a check faster endorsement stamps can be used. You can buy endorsement stamps from check printing vendors.

Set Up the Right Printer

Online check printing service can supply you with checks that need to have the payee details printed onto them. With blank check papers, you will need to print your bank details along with the payee details. To print checks, you do not need to have a special printer, any inkjet printer can serve the purpose.

Buy Magnetic Ink

If you avail online check printing service to purchase printed checks, then you will get checks with MICR code printed on. However, to print the MICR code onto a blank check paper, you will need to have magnetic ink.

Don’ts

Order Checks from Banks

Banks offer extra check sheets at a hiked price. Banks avail the services of check printing vendors but charge much higher rates. So, cut out the middleman by avoiding banks and opting for online check printing service.

Hand Over Checks Without Reviewing

Once you have printed your check, you should review it before endorsing it. The endorsed stamp can be cashed, so always double check the information printed before endorsing and handing over the paper.

Use Improper Paper and Ink

Without magnetic ink, MICR code will not be printed onto the check. With the MICR code cannot be read the check remains invalid. Having the MICR code and bank information on any piece of paper is enough for the paper to be accepted as a check. However, your payee may not accept the check if the check is not printed on check paper.

Use a Common Printer

Using a common printer for all office work makes the check printing process long drawn. By having a dedicated printer for check printing, you can leave your check paper inserted and print the checks at your leisure.

Give Access to All Your Employees

Check to print in your office can be a way of having forged checks cashed. To keep your checks safe from being forged keep the check papers, printer and endorsement stamp out of reach of unauthorized employees.

You can easily set up and in-house check printing system with these dos and don’ts in mind.


How to Prepare for a Freelancing Career in 2019

freelancer

You’ve probably noticed that the world of work is changing. These days, you don’t necessarily need to work a nine-to-five job to get a good income. Sometimes, you work according to your own schedule, and still, make enough money to pay all your bills.

Thanks to the internet, the gig economy and freelancing have become more popular than ever. As long as you have a stable internet connection and a talent that you can sell online, you can become either a full-time or part-time freelancer. Of course, just as with any career, it pays to have a strategy for success. If you’re thinking about joining the freelancer community in 2019, here are some tips to get you started.

1. Start Before You Give Up Your Day Job

While the idea of working two jobs might seem exhausting at first, it’s often a good idea to work on your freelancing opportunities before you give up your day job. By working as a freelancer part-time, you’ll be able to see if you really have what it takes to thrive in this environment. Freelancing is nothing like working in a regular job, and you’ll need a lot of commitment to make it work.

Additionally, if you freelance and work a traditional job at the same time, you can make sure that you have some income available when you’re in the process of gathering clients and customers. It can take time to find a regular roster of paying clients, so make sure that you’re not going to struggle with finances during that initial period.

2. Have a Plan

To be a successful freelancer, you need to have a skill that other people want to use. Some people freelance as virtual assistants, answering emails and scheduling appointments for business leaders. Other people decide to put their skills in graphic design and blogging to the test. Find out what you’re good at, and start building your talents.

There are plenty of online courses that you can take in your spare time to find out more about the profession that you’re going to be getting into. For instance, consider taking a writing course if you want to be a copywriter, and learn as much as you can about things like SEO and search engine algorithms.

3. Know How Much You Need to Spend

Unfortunately, preparing for a life as a freelancer isn’t just about predicting how much money you’re going to make offering your services. Though it’s important to know what kind of price you’re going to charge for your services, you also need to know how much you’re going to spend. Typically, the very least that you need to work as a freelancer is a good internet connection and a great computer.

If you need to buy any equipment, like a desk, a PC, a chair, printer and anything else you might need to serve your clients, it might be worth checking out your options for third party finance. You can get business loans that are tailored to freelancers, or you can look into personal loan options. Remember to compare your options to ensure you’re getting the lowest interest rate.

4. Build a Buffer

If you’re truly committed to making it as a freelancer, then you’re going to need to start planning long before you start putting your career into motion. Even if you continue to work at your job for a while when you’re freelancing, it pays to have a buffer in place in case things go wrong. The more you can save up before you’re relying exclusively on your freelance gigs for money, the better off you’ll be.

Remember, when you’re working as a freelancer, you’ll also need to save a portion of your income aside for the rainy days when you lose clients, or you’re struggling to find enough work to thrive. Freelancing does have its ups and downs.

5. Have a Plan B

Finally, it’s important to be positive when you start freelancing and remind yourself that everyone has their rough patches. However, if you lose work that you can’t win back, or you end up struggling to pay your bills for months at a time, then you might need to consider moving to plan B. For instance, is it possible to request your old job back if your freelancing strategy doesn’t work out? This would mean that you have to avoid burning any bridges when you leave your old career.

Additionally, think carefully in advance about when you should start applying for new jobs if your freelance strategy isn’t working. Don’t wait until you’re already struggling to get by.


Here’s What the Top Traders Wished They Knew When They Started Trading

Forex trading

Did you ever wish that you were able to “roll back the clock” in order to avoid making a past mistake?

At one time or another, we have all been known to utter the statement “I wish I knew then what I know now”.

Online trading is certainly no different. Errors can and will be made from time to time. However, there is an excellent way to avoid some of the most common pitfalls.

Let’s take a quick look at three ways to start from a strong foundation while steering clear of the profound delusions that have served to stymie other traders.

  1. The Unfortunate Trait of Loyalty

This first observation may sound a bit strange, but it is absolutely relevant when referring to online investing.

Many individuals become particularly attached to a specific asset or stock; believing that success is “just around the corner”. As a result, they possess a holding for entirely too long.

A perfect example can be seen in those who remained steadfast to AIG even when dark clouds were overhead. Always look at an investment from an objective perspective in order to avoid such unfortunate outcome.

  1. Excessively High Turnover Rates

Many online investors become involved due to the perceived liquidity of a certain market sector (such as the Forex industry).

Unfortunately, liquidity can often come at price. High turnover rates can quickly lead to mounting transaction fees. In turn, these will inevitably eat into profit margins. Such trades should be taken in stride and it is only advisable to embrace a short-term mentality after appreciating the underlying fundamentals.

The good news is that you can easily find a free resource online to learn Forex trading and accelerate your learning curve to becoming a successful trader. It is also wise to find a cutting-edge online investment platform such as CMC Markets. The fees and associated commissions are much lower when compared to other firms.

  1. A Lopsided Portfolio

Many novice investors become entirely too focused on one or two holdings.

As a result, their portfolios lack diversity.

For example, let us imagine that one individual has become addicted to the price of gold. While this might represent a relatively safe haven, it is still not able to provide the balance required in order to stave off potential volatility (such as if the Federal Reserve suddenly decides to modify its benchmark interest rates).

The end result is that the aggregate value of the portfolio will precipitously drop and the only real options are either to sell at a loss or to wait for a more bullish climate.

A diversified portfolio is able to absorb such losses while providing a greater degree of long-term stability.

While these three mistakes might appear to be somewhat straightforward observations, you would be surprised to learn how many traders fail to heed their warnings.

This is why it is a great idea to constantly re-evaluate your strategy so that you can catch any of the warning signs mentioned above well in advance.

There is nothing wrong with learning from the errors of others.


Understanding Asset Allocation and Diversification in Your Investment Portfolio

investing funds

Any good investor needs to understand the risks of putting “all their eggs in one basket” and not adequately allocating assets among various investment possibilities. When it comes to investing, a sure thing is rare or even non-existent. For this reason, it’s always important to diversify and make sure you’re not risking too much as an investor in one particular area.

Major reasons why diversification is necessary

There are quite a few reasons to consider when it comes to evaluating your plans for asset allocation and diversification. The better you understand the major purposes of having a diversified portfolio, the better able you’ll be to make plans to maximize your investment profits. If you are in a pinch, find a quick cash loan rather than cashing out your major accounts focused on long term savings, the penalties are not worth it.

The following are three of the biggest reasons to consider for properly allocating your assets and diversifying your portfolio:

Minimizing the risks of investing funds

While investors are obviously aware of the fact that they can make money from investors, they should also understand that investing involves putting your money on the line. An investment inevitably entails some amount of risk. The way savvy investors mitigate risks is by portfolio allocation that ensures a good amount of diversification.

Hedging the portfolio against low returns from certain sectors

One of the biggest advantages of diversifying a portfolio is that it can allow a portfolio to be successful even when individual sectors are failing. It never happens that all sectors progress and exhibit growth at the same time. Diversifying funds among various sectors means that one sector can see a dip while the growth seen in other sectors will make up for the resulting losses.

Preserving available capital to the greatest extent possible

One of the primary goals of any investor is to make sure that no capital is lost overall. In evaluating risk vs. reward, it’s imperative to consider that any loss in capital makes all the investments unsuccessful and all the time spent making investments lost time.

Being sure to preserve capital requires diversification. If only one or a few limited investments are made, capital is more at risk than it would be if adequate asset allocation is allowed for.
Problems with spreading your investments out too thinly

While diversifying is always important, it’s also important not to overdo it. You don’t want to spread investments out so thinly that you don’t see large profits from any particular area. You’re not going to be able to see significant profits from a good investment if you didn’t invest enough funds in the one sector that’s taking off.

Be reasonable about diversification. Don’t try to make every investment you can. Do enough research to pinpoint a few investments you can put a decent amount of funds into so that your individual investments could potentially see decent profits.

When you are making plans for your investments, it’s important that you sit back and think about how you’re going to manage diversification needs. Make sure you’re not focusing too much of your investment capital in one particular sector. If you do, you’re taking unnecessary risks and might end up losing your capital and shrinking your portfolio over time.


5 Common Mistakes with Business Loans

For most businesses, at some point in their growth they will need to take out a business loan. Whether you are a startup looking for cash to get your business off the ground, or a company who has been around for years, we could all use a helping hand in the form of money.

When deciding if a business loan is the best for your company, you need to think about every aspect of how it will work. This includes keeping in mind all of the things that could go wrong. Here is a list of the most common mistakes made with business loans and how you can avoid them.

Not Having a Successful Business Plan

When planning to take out a loan it is essential to understand what you will use your business loan for and then plan for how you will pay it back. Without a proper plan on how you will utilize these funds you could suffer from irresponsible or even accidental overspending.

Not only can the lack of a good plan send you into debt it can prevent you from getting approved for the loan in the first place. Lenders look well thought out plans that provide them peace of mind to hand over their money. Walking into a bank without a good plan will most likely lead to you walking back out with a frown and rejection in hand.Prevent drawing the loan approval process out by formulating a solid plan before reaching out to lenders.

Waiting for Emergency Expenses

Business loans are not just for covering urgent or emergency expenses, such as a seasonal shortfall, or covering building or vehicle repairs. The most successful businesses use business loans to make timely investment in new technology, new locations, new people, and more.

Waiting until you desperately need cash can lead to a rushed planning process. Planning for your business loan should take time as there are a multitude of factors you will need to consider. If you attempt to throw together a plan you risk the bank denying you. As stated before they need to feel comfortable giving you their capital.

Even if a lender does approve your loan on your rushed plan, you may have accidentally developed a plan that is set on course for disaster. Keeping an eye on your finances and doing yearly sales projections should help you see far in advance if you will need to apply for a loan. Begin your plan as soon as the idea of a loan comes up so you are sure you have enough time to create it, and so can be checked over.

Failing to Shop Around

Just as a bad credit score can cost you, taking the first loan offer that comes your way can make your loan unnecessarily more expensive. You can start with your bank or credit union, but then look at nearby competitors. Don’t forget to look at offers online, too. Shopping around can also give you a second chance if you are rejected on your first application.

Make sure to look at the fees associated with the loan, as well. Some lenders charge origination fees that can range from 1% to 6% of the loan. These fees are typically deducted from the loan amount, meaning you won’t actually receive $10,000 when you apply for a $10,000 loan. Each lender will have loans that range in interest rates as well.

Keep in mind your plan for your business loan pay back and see how the interest on each loan will affect it. Every lender and loan is different so be sure to inquire on the details of each one you can.

Not Thinking About How Much Money you Actually Need

Before you apply for a business loan, you should narrow down the amount of money you actually need and stick to it throughout the loan process. Business Loans can help in every facet of your business from inventory to payroll and even helping your business with its prior debt. When calculating how large of a loan you will need take into consideration every cost you need to cover.

Keep these costs in mind:

  • Business Expansion
  • Marketing
  • Paying Employees
  • Purchasing inventory
  • Purchasing equipment

Some less than ethical lenders will encourage you to borrow more money than you need because they are looking to make a bigger profit. When you borrow more money than you need, it can be more difficult to pay back, plus you’ll have “dead money” sitting in your bank account which isn’t being helped by inflation. Finding a balance between borrowing too much and borrowing just enough is a balancing act. Don’t be afraid to reach out for help.

Using Loans Irresponsibly

This mistake is one that comes not necessarily from poor planning, but from poor decision making. You may have made a great plan that broke down what you would use your business loan for, but if you veer from your plan it is imperative to readdress your plan. Life can throw changes at you and mistakes can happen but you need to be careful when using money that is borrowed.

Keep your loan plan handy and take notes with every purchase you spend your business loan on. Compare you initial plan with the money you have spent and adjust the rest of your plan accordingly. Just like with a personal budget, your need to stick with a business loan budget or you can risk running out o the money before you expected.

Conclusion

Fearful of falling into these business loan mistakes? With proper planning and a strict discipline you can avoid these issues and have a smooth business loan process. Companies like Get Out of Debt are here to help. With free blogs to help you understand your loans and plans to pay them off, They also have plenty of information on personal finances, should you need some assistance there.

If you have any experience with using business loans, leave a comment and share your most helpful advice in the section below.


Day Trading Basics: Choosing a Market and Deciding When to Trade

A day trader is someone who purchases and sells assets or financial instruments within the same 24-hour trading period. Some people even buy and sell multiple assets throughout the day to help them build as much potential wealth as possible. The whole purpose of day trading is to make fast decisions about stocks so that you can take advantage of a volatile market. Learning how to day trade is no simple feat. Most people who get into the day trading market can’t simply engage with their stocks on a part-time basis. That’s why there are so many people out there that end up giving up their jobs to day trade full time. However, before you hand in your notice to become a full-time day trader, it’s important to know exactly what you’re getting into. Here are some tips on choosing a market for day trading.

Choosing a Market for your Day Trading Strategy

Typically, day trading is associated with markets that have fixed closes. In most circumstances, a day trader will be able to trade in any asset, including commodities and stocks. However, choosing the market that you can get the highest return on investment on will depend on numerous factors, including what you feel comfortable trading, how much you can afford to spend, and how much time you have to put into your trades each day.

The stock market is a popular choice for many day traders as there are a lot of different shares to get involved with. It means that you have more variety to play with when you’re building your portfolio. If you get involved with the equity market, then you’ll need to close down your positions at the end of each day to make sure that you don’t face any gapping risks, when overnight news can suddenly change the nature of a stock.

Deciding When to Day Trade

When you’ve chosen the market that you want to day trade in, you’ll also need to figure out when you’re going to do most of your trading. Keep in mind that you don’t necessarily need to trade all day, but you should maintain a consistent pattern. For instance, if you decide to trade between 9 am and 10 am, then do that every day. This will help to give some structure to your strategy. The market you choose to trade in above will affect the times of day that are best for you to trade at. For instance, the stock and futures market are often best suited to trading early in the day, when you just wake up, or just before the markets close. Research the opening and closing times of your market before you begin trading to get the best results.

Alternatively, day trading forex is a different situation, as forex markets can run for 24 hours a day. The best way to simplify your process here is to simply focus on the specific hours of a currency pair. For instance, EUR and USD are the most volatile between the hours of 6 am and 5 pm GMT.


How to Actually Decide if Debt Consolidation is Right For You (and When It Isn’t)

Sometimes when you’re swimming in debt, taking control of your circumstances once and for all seems like an unbearable burden.

You have most likely considered a few different paths you could take to pay off your debt, but decision paralysis is a real thing, my friends. Just remember, you’re not alone.

Credit card debt is America is growing at near lightening speed. In fact, the average American household carries over $15,700 in credit card debt. With average interest rates being nearly 14%, American families are paying more than $2,000 of interest if they choose to only make the minimum monthly payment.

That’s crazy!

It probably won’t surprise you then that debt consolidation is a hot topic among those working to get out of debt and achieve financial freedom.

Not only can a debt consolidation loan help achieve this goal, but it already has for many thousands of Americans living with debt.

But that still doesn’t make it the right choice for everyone.

In case you’re unfamiliar or foggy brained on what it means, debt consolidation is essentially the process of gathering up all of your eligible debt, combining them into one lump sum, and taking out a new loan with new terms and conditions to create a single monthly payment. Once the process is in motion, you make a single monthly payment and the firm you are working with distributes the funds to the appropriate debtor until the debt is completely paid off.

So, what’s the catch?

This is where the “not right for everyone” advice comes in.

While combining debt into one payment may be a promising option, it’s good to understand what you’re getting yourself into before diving straight in.

To Consolidate or Not Consolidate, That is the Question

First, it’s critical to understand which debts can be combined and which cannot.

Debt generally falls into one of two categories: Unsecured debt and secured debt.

Unsecured debt is debt that has no underlying asset backing it up, like credit card debt, medical bills, utility bills, and other types of loans or credit you may have.

Secured debt is debt that is backed by an asset, meaning if you fail to make payments, your creditors have the legal ability to take away the asset. Examples of secured debt are things like auto loans and mortgages.

The vast majority of debt consolidation companies only work with clients who have unsecured debt, so if you are hoping to make this work with a car loan or mortgage payments, it’s time to go back to the drawing board.

Benefits Anyone Can Appreciate

When researching debt consolidation, it’s easy to find all the black and white reasons why you should or shouldn’t sign-up with a consolidation firm, but here are few areas where we can all meet middle ground about whether it’s good or not.

Payments become easier. Instead of worrying about meeting due dates on multiple credit cards and various other debts, you will only need to worry about making one payment, on time, each month.

Lower interest rates. If you’re able to secure a consolidation loan with a lower APR than you are currently paying against, the savings in interest could potentially take years off of your debt repayment, which is huge!

Improved credit score. Debt consolidation won’t do your credit score any favors in the short term, but once debts are paid off, many people see a significant improvement on their credit scores in a relatively short time. As you know, this is incredibly important when bouncing back from a serious amount of debt.

Still sound good?

Let’s move on to discussing the not so glamorous side of consolidation: The risks.

Risks to Consider

As you have probably guessed, there are risks involved when it comes to choosing and working with a firm for help with your debt. After all, debt is big business. But being aware of the risks involved is key to avoiding a bad situation.

Before signing up with a firm, consider how you got into your current situation in the first place. Was there a major life event that essentially forced you into a large amount of debt, or maybe you just aren’t sure how to create and stick to a budget. Whatever the reason is, try to identify it.

Second, once your debt is paid off and you can spend freely again, how confident are you that you won’t end up in the same situation later down the road. Many people swear they will never fall back into an overwhelming amount of debt, but without the knowledge and discipline to spend and save wisely, it can happen easier than you might realize.

The Bottom Line

Consolidation can be a great tool to systematically pull yourself out of debt, but as with most things in life, there are risks and rewards to consider. If you are ready to commit to the process and ask for assistance when you need it – both before and after debt – it may help you get out of debt sooner than you realize.

Author’s Bio:

christineChristine Yaged is a co-founding partner and Chief Product Officer of FinanceBuzz. Christine launches and scales brands. She is passionate about technology, digital marketing, and people.


Top Tips on Finding the Right Office Space for Your Business

office space

Business is a lot like real estate, it is all about location. Therefore, picking an office premises has strategic important to the success of your enterprise. The location of your office determines a variety of elements. Examples of these are how your clients can find you, proximity to your markets, access to your resources and brand image. Therefore, you should make sure to invest in the right office space for your business. Thankfully, there are various methods which you can utilize so as to get the correct office space for your business. Read on to discover more about them.

  • Identify the nature of your enterprise

Your office space should complement the type of business that you are running. It should first of all accommodate your employees and technical equipment. It should also contain the infrastructure required for the smooth operation of your enterprise. For example, if your enterprise is in the field of Information Technology (IT), you require an office space that has the necessary infrastructure for operating computers, manipulating the support equipment and also space for your employees to work alongside these devices. As such, begin by understanding the nature and requirements of your business. Having done so, you can proceed to pick an ideal office space. If your business is dynamic, you may even be interested in some virtual office services in the UK.

  • Perform research on pricing

The realtor who provides you with some office space has an objective of getting you to pay as much money as possible. As such, they are likely to quote a price that is much higher than the industry average. Paying this cost puts you at an economic disadvantage. Therefore, make sure that you perform all the necessary research before you pay for some office space. Have a look at the various buildings in the area where you hope to rent and identify how much they charge for the space. While doing so, examine the lease contracts so as to identify any charges that may be hidden in the fine print.

  • The size of the office

While picking an office space, it is always ideal for you to pick some premises that is larger than you currently require. This enables you to have some space that you can utilize whenever you need to scale up the enterprise. The objective of a business is to grow over time. Therefore, you need to have the space that will accommodate your growth. You can refer to research or consult a mentor in your field of business to guide you on the right size of office to pick.

The location that you pick is a very important element to consider as you search for some office space. It strategically affects the chances of success for your enterprise. This is because it determines the built infrastructure, accessibility by clients, overall security and amounts in utility and rent that you will pay. Therefore, make sure to follow the above guidelines as you pick some office space. They can help you to achieve success in your endeavor and pick a profitable, long-lasting office space.


What to Do If Your Prepaid Card is Stolen

Card security

One of the most important financial management resources that we use today is the debit card. Essentially plastic money, it allows us to buy goods and services online and offline as well. The debit card is also known as a prepaid card. This is because it allows us to spend money that is already loaded into the card through an account. One of its most beneficial functions is that it can only be used to spend what we already have. Furthermore, it provides security since we don’t have to carry cash around with us. Unfortunately, it is a light and portable item that can be stolen. Whoever takes your debit card can begin to use your money if they figure out your password or PIN number. Hence, it is very important to take measures upon discovering that your prepaid card has been stolen. Here is what you can do in this instance.

  • Contact your prepaid card provider immediately

The first activity that you need to do is to contact the provider of the card. It is important to ensure that you report the loss of your prepaid card as fast as possible. This is so as to get it flagged and blocked reducing the chances of the thief spending your money. Taking this step also gives you an opportunity to recover all or part of the money that could already have been spent. Some financial institutions offer a special fee reimbursement on specific cases of loss. For example, if the prepaid card is lost as a result of interacting with the institution’s infrastructure. Furthermore, there are some protective measures applied on your bank account upon reporting that your prepaid card is stolen.

  • Request for a new prepaid card

Thanks to its portability and versatile nature, the prepaid card is an important element of modern personal finance. Therefore, if you lose yours, you need to get a new one. Hence, request for one with the card provider of your old card. They will provide you with a new one containing a 16-digit card number. Some financial institutions will even offer to provide you with the new card more rapidly through an expedited delivery system. While ordering a new card, it is important to enquire about any courier charges that could apply. In addition to that, ensure to activate the new card as quickly as possible so as to resume your normal financial life.

  • Update your billers

To promote convenience, some of us have programmed our prepaid cards such that bills are deducted directly from the underlying accounts automatically. This link is performed using the account number. Seeing as the new prepaid card will have a new bank account number, it is important to update your billers about it. This is so as to prevent bounced bills and general disorder. While doing so, update your contact information as well. This will help them to get in touch with you as fast as required for any clarification.

A prepaid card is a very important part of modern financial living. Losing it can not only put your money at risk, it also creates inconvenience in your life. Should this unfortunate incident happen to you, the tips above can help you to get back on track as quickly as possible.


American students to collectively owe $2 trillion by 2021 – What is Trump planning?

Image source: businessinsider

As per a recent analysis, it has been seen that the student loan debt in the US is gradually moving towards a new milestone and it will witness a 30% rise in the approaching 36 months. The Federal Reserve Bank of New York says that as the debt climbs higher in order to reach a record high level, up from $1.55 trillion, the ROI for fresh college graduates is shrinking pretty fast. As the student loan debt costs is growing by $30 billion in every quarter and hence it is soon racing towards $2 trillion by 2021. As there were hosts of protests regarding the crossing of $1 trillion in 2012 and now it is even going to cross that level too.

What are the experts saying?

As the overall population of the nation grows and as college tuition costs keep rising, the US student loan debts will also continue to soar like never before. The CEO of an online lending platform has seen a noteworthy rise in the total number of student loans being taken out from community banks and credit unions.

Since the year 2010, there has been an increase in the number of federal loans that are being made available to the students. Students are also taking up second jobs in order to pursue passive income so that they could pay off the $20,000 in the form of student loans. Whenever you make free flow of credit with access to credit, this inflates the asset class. If you take a glance at the Great Recession, mortgages were made available and then you remember what had happened.

The constant rise in student loan debt

It was just in the last decade that student loan debt had surged by around 60% and if you take a look at the recent forecast, this will only speak about the financial pain. Millions are joining the latest cadre of 45 million American education loan borrowers and it is seen that an average undergrad in 2017 has owed $40,200. There are couple of people who owe $200,000 and this is a rather scary amount.

How is Donald Trump planning to solve this debt dilemma?

Donald Trump is also alarmed at the burgeoning student loan debt level. Here are few things to watch out for.

  • PSLF can be stopped for new borrowers

As the Congress passed a measure to boost the amount of funds available for PSF by $350 million, Donald Trump has chosen to stop this program. PSF is a federal program which forgives federal loans of the borrower who work in the public or non-profit sector.

  • Federal loan repayment options can be changed

Presently there are 8 different categories of loan repayment programs under the federal government loans. The Trump administration simplifies the choices of the borrowers by creating a repayment plan which is income-driven. Under the repayment plan, monthly payments will be capped at 12.5% of the discretionary income of the borrower.

  • Changes in discharging debt during bankruptcy

The Department of Education issued a request for comment on evaluating undue hardship claims, which is the standard used to check if a debt is discharged through bankruptcy.

Therefore, with the current state of student loan debt that is grasping the entire nation, it is vital to repay your student loan debt as soon as possible in order to avoid a bad impact on your credit score.


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