late-bill

Most of our financial advice on Man Vs. Debt comes from the point of view of people who have enough to get by – but who are tired of just getting by. Our stories are not of people overcoming abject poverty, but rather about people who make the money they already have do more for them by kicking debt to the curb and getting rid of crap.

That said, what do you do when you are in a hole that goes beyond debt?

And that’s, many times, a different issue. There are two pieces to the “behind on your bills” issue. First, there are people who (later) find that the money they have is enough – but they’re not using it in a way that allows it to be. Second, there are people who simply, at this time, don’t have enough money to pay even the minimums due on various accounts, including non-debt accounts like their electric bills.

Either way, nothing will change unless you’re willing to take action. 

[Here’s how I suggest you start…]

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Payday loans are a handy solution for anyone looking to manage short-term debts. Online lenders and other financial institutions provide these loans to borrowers who must pay back the full amount, including interest and fees, once they’ve resolved their cash flow issues. While some lenders require borrowers to pay off their loans once they receive their salary, a few lenders, including My Canada Pay, allow more flexibility. Editor note: Please note that pay day loans can yield high interest rates that make paying back the debt challenging. Please consider reading the pros and cons of payday loans to make the most informed decision.

If you are wondering if payday loans have implications on credit scores, read on!

Who Is Eligible for Payday Loans?

Anyone above 18 years can apply for payday loans. However, approval for these loans depends on your credit history, the lending company criteria, and other specific financial information. Individuals with a poor credit history are less likely to qualify for these loans. However, some online lenders have specific payday loan provisions for individuals with bad credit.

Do Payday Loans Affect Credit Scores?

Payday loans don’t affect the credit score if you make payments in full on time. Most lenders promise not to submit your credit information to major credit bureaus if you pay back the loans according to the agreed terms. Your credit score won’t be affected if you adhere to the agreements.

However, if you default on the payments and other details in the contract, the lender can freely forward your credit accounts to collections agencies and report your delinquency to credit bureaus. If such happens, your credit score will automatically drop. While banks and credit card companies are required by law to report on-time payments for consumers with a line of credit, payday loan lenders aren’t obligated.

You can use payday loans to build your credit rating by making payments on time. Managing your loans properly and sticking to loan terms proves to lenders that you are a reliable customer.

How to Maintain Credit Score with Payday Loans

Payday loans can help borrowers build their credit ratings positively in many ways. Below are a few tips for maintaining and improving your credit score with payday loans:

  • Pay back the loans in full and on time –This includes the interest charged and processing fees. Be sure to notify your lender in advance if you can’t repay the loan on time. Most lenders offer flexible extensions.

  •  Don’t take out multiple payday loans – Lenders cannot trust borrowers with multiple payday loans. Taking out multiple payday loans also makes repayment challenging.

  • Don’t make multiple applications at once – Your credit score takes a hit every time a lender makes an inquiry into your credit report. While it may not appear immediately, lenders are cautious before lending to someone who has applied for payday loans from several lenders simultaneously.

Endnote

Like student loans and other types of loans, payday loans often appear on the borrower’s credit report. You should consider taking out payday loans only if you are certain about making full repayments on time. Lenders also limit individuals who take payday loans regularly or from multiple lenders simultaneously. Making timely payments and improving your credit score can help you secure payday loans at favorable terms.

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This article is not investing advice and should be used for informational purposes.

It’s no secret that higher education is expensive. But it’s also true that students are extremely busy. As a student, you are probably busy with classes, studying, and internships. You may not have time to monitor the stock market and invest in individual stocks or funds. However, there are many passive investment options available that can fit into your schedule. Not only can this help pay down your student debt, but you can also carry these passive investments into future financial freedom.

What Makes a Good Passive Investment?

“Passive” is the key word here. The best passive investments are “set it and forget it” type investments where you can set up the investment once and then not have to worry about it again until it’s time to collect. The goal is to find an investment that will grow over time without much effort on your part. Mutual funds, CDs, and high-yield savings accounts are classic examples.

Monetizing something you’re already doing, such as getting sponsorships for an existing YouTube channel, isn’t quite “passive,” but it follows the most important rule of passive investing: you’re not going far out of your way to generate the income stream.

This is different than getting a job to pay your way through school. Side hustles like freelancing and consulting don’t count as passive, since as soon as you stop actively working, you stop earning money.

Take a Look at REITs

Many investors swear by real estate for a number of reasons. First, it is a tangible asset that can be used as collateral for loans and other lines of credit. Second, it is a relatively stable asset, meaning that its value is not likely to fluctuate dramatically in the short term. Third, real estate is a non-renewable resource, which means that its supply is limited and its value is likely to increase over time. (As you may have heard—”Buy land, they’re not making it anymore.”) Finally, real estate can generate rental income, which can provide a steady source of income for investors. For all these reasons, real estate is an attractive option for those looking to invest their money.

However, being a landlord is time-consuming. Being a landlord sounds like a great way to make some extra money, but is it really a viable path for a busy student? You’ll need to be available to your tenants 24/7 in case there’s an emergency. This is, of course, assuming you have tenants already—you’ll need to spend considerable time and effort marketing your property and vetting potential tenants to keep vacancies down.

Additionally, being a landlord means that you’re running a business, which means even more time and energy spent on recordkeeping, taxes, and more. You’ll also be responsible for buying the property in the first place (keep in mind that mortgage lenders tend to want higher down payments for homes that aren’t your primary residence) as well as repairs and upkeep, which might be a bit of a stretch for your school budget.

The answer? Real estate investment trusts, or REITs. You basically get all the benefits of investing in real estate, such as asset appreciation, regular dividend payments, and general stability, but without a high monetary barrier to entry, without having to manage things yourself, and without the risks of direct ownership, such as finding yourself unable to sell a physical asset. You basically buy shares in a real-estate-specific mutual fund.

Sell Digital Products

These can take on a massive variety of forms, but the important thing to note with digital products is that there is no inventory, there are no storage costs, and you only have to create it once to sell it infinitely. Here are a few types of digital products to give you an idea of how versatile this option can be:

Online Courses

Are you an expert in a particular subject? Do you have a skill that others would like to learn? Whether it’s using your experience in class to explain how to survive law school cold calls or leveraging your hobbies by demonstrating how to best paint DnD miniatures, the internet is big enough that if you make it, your audience will come.

This can include written materials, audio recordings, video lectures, and anything else that will help your students learn. Once you’ve created your course and found a platform to sell it, such as Udemy, Thinkific, and Skillshare, you’re ready to start selling. With a little effort in marketing your course, you can reach a global audience and start generating income from your knowledge.

Stock Photography and Digital Art

If you have an art-related hobby, you can combine your stress relief and your desire to minimize your school debt.

Selling stock photography is a great way for photographers to earn additional income. Stock image sites allow photographers to list their images for sale, and earn royalties each time someone downloads one of their photos. This can be a great stream of passive income, as once the photos are uploaded, there is no further work required. With how advanced smartphone cameras can be, you might not even have to invest in a separate camera.

Sites like Redbubble use user-submitted artwork for print-on-demand services, including products like prints, t-shirts, stickers, and more. All you have to do is upload one of your pieces, and the print-on-demand service takes care of printing and shipping. Some sites take care of marketing for you through their own online marketplace, while others allow you to create a brand through your own eCommerce website.

Monetizing Your Social Media

Do you have a blog that gets decent traffic? Consider advertising sponsored posts or becoming an affiliate. Affiliate marketing is a type of online advertising in which a company pays commissions to affiliates for promoting their products or services. For a blog, you’d include links to products or services in the content and earn a commission on every purchase made through these links.

Do you have a YouTube channel? You probably already know about sponsored videos and ad revenue. However, if you have a hobby conducive to creating a channel, consider starting one. The key here is to have a topic that you can create videos for on a consistent schedule for a long period of time so that you can grow your audience. This might be video gaming, cat videos, or, going back to online courses, informational videos. As long as there’s an audience, their views can earn you money. If you start a Patreon, you can offer members perks that are low-cost to you, such as early access to videos, in exchange for their subscription.

Instagram lets you get in on the action too. If you can consistently post quality content on a focused niche, you can attract sponsors who will pay you to publish sponsored content.

Make Money By Lending Money

Peer-to-peer (P2P) lending is a type of lending where individuals can borrow and lend money without going through a traditional financial institution. P2P lending platforms match borrowers with investors who are willing to fund their loans. These platforms allow investors to choose which loans they want to invest in and set the interest rate they’re willing to receive. Borrowers typically pay an origination fee to the platform, as well as interest and principal payments to the investors that funded their loan.

P2P lending can be a good option for passive investors looking for higher returns than they would earn from traditional investments like savings accounts or government bonds. While there is some risk involved, P2P lending platforms typically perform extensive credit checks on borrowers and provide investors with information about each loan so they can make informed investment decisions. By selecting loans with low risks, investors can earn solid returns while helping others achieve their financial goals. Riskier investments, however, can land higher yields, so it’s up to you to determine your ideal risk vs. reward.

Currently, peer-to-peer lending is a niche market, with major players like Lending Club pivoting to more traditional lending, but there are still plenty of platforms that support peer-to-peer lending

Earn Money While Focusing On Your Studies

When it comes to making money while in school, there are a variety of options to choose from. Passive investments such as real estate investment trusts (REITs) allow you to invest your money and let the returns grow over time. If you have some skills in content creation, selling online content can be a great way to make things once and sell them repeatedly for passive income. Finally, peer-to-peer lending can offer high returns but also carries some risk, so be sure to do your due diligence and invest wisely.

With a little bit of research and careful consideration, you can invest your money wisely and make money while focusing on your studies.

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Let’s be honest in that job hunting can be very stressful at times. If there’s not too many jobs to choose from, they simply don’t offer enough for the work that’s being asked for. So, what do you do when the current options aren’t cutting it? You look for something out of the norm. Whenever people bring up job searching, they typically bring up careers in the business, medical or retail sectors. However, there are far more jobs out there to choose from that deviate from the norm. In this article, we’ll be listing four odd jobs that have a pretty good pay.

Casino Manager

Who said that casino goers are the only ones who can score a jackpot? You can basically guarantee yours by becoming the manager of it. Casino managers can earn good money by ensuring everyone is following the rules, checking to see if they’re complying with the federal regulations, and overseeing the payouts. You might not have ever considered a job like this but it’s perfectly fine to change your career course and pivot towards an industry you never thought of previously. 

Freight Manager

You know how some people become truck drivers and others become fleet managers? What if we told you there’s a third option in this line of work? This extra option is becoming a freight manager. A freight manager isn’t like a fleet manager where they oversee the fleet as a whole. Their job is to oversee what’s in the freight of a truck or another vehicle and ensure it gets to its intended destination safely. However, that’s only scratching the surface of what they can do. Here’s a brief list of other responsibilities you can expect to do as a freight manager:

  • Assessing the client’s shipment needs and coming with the proper strategies
  • Negotiating with carriers and signing contracts
  • Thoroughly reading the shipping documentation to make sure the company is complying with regulations
  • Keeping a tight record on all inbound and outbound shipments
  • Starting and broadening the relationships with vendors

A freight manager makes a pretty good salary for all the hard work you’ll be doing. The median annual salary for freight managers is about $67,000 a year.

Freight Dispatchers

More on the subject of freights, another way to get a job in this field is to become a freight dispatcher. A freight dispatcher is an individual who represents the company they’re negotiating for. They’re also in charge with delegating tasks and creating comprehensive schedules for the freight drivers. Compared to a manager, dispatchers don’t make as much as they do on average. However, they have the potential to make over $200,000 a year. The average salary of a freight dispatchers is $39,000 to $46,000 a year.

Computer Hacking

If you thought the other options were strange, just wait until you get a load of this job. Hacking is something that’s often associated with infiltrating someone else’s devices to acquire their personal information. However, what if we told you that not every hacker is a total crook and they can make a lot of money doing what they do best? 

A computer hacker is needed by a large number of companies to test their security programs. Hackers are very creative and can find new ways to infiltrate just about anything if they put their minds to it. So, it stands to reason to defend yourself against hackers is to hire them. If you’re someone who knows the literal ins and outs of computers, their systems and security programs, becoming a white-hat hacker for a company is your best option. It’s also the highest paying career on this list as the national average salary is about $94,000 a year.

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I’m honored to be hosting the Carnival of Twenty Something’s Finances today.  For those of you who might be unfamiliar with a blog carnival, this is a great opportunity for you find some great new financial blogs written by people in their twenties.  On the other hand, if you are new to Man Vs. Debt I hope you will take the time to subscribe to daily updates through RSS or by e-mail.  I’m glad to have you here and you can get to know my family and our upcoming adventure a little better on the About Us page.

In less than 4 weeks, my wife and I will be fitting our possessions into two backpacks and setting off to Australia.  Researching and planning this has been on my mind so much that I’ve decided it would make a great theme for today’s carnival.  Be sure to check out all the great articles from your favorite categories.  When you are done feel free to let me know your favorite posts and any backpacking experiences (positive and negative) you’ve had in your life!

Here we go…

Editor’s Picks!

  • The Dough Roller posted a very thorough article entitled Is Budgeting Keeping You Poor? He does a fantastic job of outlining the 7 areas which most often derail budgeting efforts.  I really appreciated that he took the time to add a “the fix” section after each common pitfall.  This is an essential resource for anyone struggling with budgeting!
  • Wren Caulfield presents How to Commute By Bike posted at True Adventures in Money Hacking.  This article is absolutely chocked full of information.  It contains 30+ links to specific items, bikes, theories, and other resources.  This is a topic that is near and dear, as Courtney and I will be testing this out in less than a month.  If you’ve ever considered biking even for a second, I strongly suggest you read this!

Basic Rules Of The Road!

Getting Started

Before you pack up your things and hit the road, it’s best to get some basic information.  Backpacker’s need to plan where they are going to start their adventure, what tools they are going to take with them, and have a least some idea how to survive while on the road.

In personal finance, it’s also important we get our bearings straight before setting off.  We need to learn to manage credit, gain awareness on topics like real estate, and become informed on different product options we have available.

Furthermore, backpackers must equip themselves with the proper financial knowledge to prepare for the worst and the best. For instance, you can be eligible for a tax refund if you visited Australia between 2017 to 2020 as a holidaymaker, according to a working holiday tax return advice. Just imagine the amount of money you can save from this information, enough to cover your expenses for your next backpacking trip.

As backpackers, personal finance matters. While we enjoy the backpacking experience, we must also ensure that our finances are doing okay to avoid dealing with dire consequences after the exciting and fun part. We must strike a perfect balance between work and play.

Here are some helpful, information-packed posts:

Managing Credit

Real Estate

Misc. Information

Reviews

Managing Money With A Pack On Your Back!

Managing Money

Some people believe that the backpacking lifestyle would be perfect to avoid to headaches of having to manage money.  This simply isn’t true.  In fact, backpackers in general need to be much more aware of how the manage their money in order to maintain the lifestyle.  Setting a budget, practicing frugality, and finding flexible income solutions all enable you to see and do that much more.  Here are some articles that’ll help you do just that:

Budgeting!

Making Your Money Stretch!

All About The Income!

Investing!

Life Experiences

In investing, the majority have the ultimate goal to build wealth.  They trade stocks, bonds, and other investments in order to maximize their return.  They sacrifice as much as they can in the short-term in order to be able to retire comfortably in the future.

Although investing is important to backpackers, they often times use a different currency.  Most backpackers trade stories back and forth in order to build a wealth of life experiences.  They too make many sacrifices in order to achieve their goals, but most would agree that it was well worth it in the end.  Here are some articles for the investor in all of us:

Relaxing From The Hustle & Bustle Of Travel

Relaxing

Lastly, it’s important to take a step back from the hustle and bustle of a mobile lifestyle.  Backpackers often have the best experiences when they take a break and simply enjoy where they are.  What’s the point of traveling the world if you can’t enjoy the process?

Many backpackers with modern work setups, like remote and hybrid work, tend to forget the true meaning of relaxing. From time to time, they would check their emails and phones for work-related matters. If you’re one of them, separating work and relaxation is crucial. Otherwise, you’ll feel burnout and can’t appreciate the beautiful things around you.

Enjoy your backpacking experience. Travel far and experience the different places’ food, culture, and traditions. Take photos of the magnificent landmarks you pass by on your backpacking journey. Breathe and live life to the fullest, leaving your worries behind.

This is a hard thing for us to do in everyday life, as well.  We get so caught up in the minor details of our financial lives, sometimes we forget to simply enjoy the process today!  Here are some articles that will help inspire you to pause and consider the big picture:

Which were your favorite articles?  Have you ever considered the backpacking lifestyle?  Be sure to leave your opinions below!

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Calculator surrounded by US dollars

Source: Pexels

Auto insurance is a necessary evil in the process of car ownership. Most states require some level of insurance, but if you are financing your car or want the assurance of coverage in case of an accident, you need to invest in full coverage. Once you have insurance set up, you have a couple of options for paying for that coverage.

Ask any driver, and they’ll likely have different opinions on whether it’s better to pay for car insurance monthly or all at once for the year. You find almost as many differing views on how to best pay your insurance as those who disagree between paying for liability vs. full coverage.

Comparing the Pros and Cons

Each option has pros and cons, so weighing your choices before making a decision is crucial. For many, monetary expenses are only one of the critical parts in deciding how to best pay for your car insurance. Keep reading to learn more about monthly and annual car insurance payments.

Monthly Payments

With monthly payments, your insurance premium for the year or the six-month term of the policy is divided over the number of months of your policy. A small percentage is added to cover administration fees and interest. Typically, the additional amount is equal to or close to one month worth of your typical payments.

Pros

Many people pay their insurance premiums monthly, as it can be more convenient than making one lump-sum payment each year. This can be helpful if you are tight on cash flow, as it allows you to spread the cost of your premium over 12 months.

It can also make it easier to budget for other expenses. In addition, if you need to cancel your policy mid-term, you will only be responsible for the payments you have already made rather than the entire premium. For these reasons, monthly payments can be a convenient option for many people.

Cons

Making monthly payments on your car insurance can be a great way to budget for your expenses, but there are a few things you should be aware of before you commit to this type of payment plan. For one, monthly payments typically cost more in the long run because insurance companies charge interest on the outstanding balance.

This means that if you have a car insurance policy with a $100 monthly premium, you could pay $120 or more over a year. Another thing to consider is that you could cancel your policy if you miss a payment or are late. This could leave you without coverage when you need it most, so it’s essential to ensure you can always keep up with your payments.

Annual Payments

Once your insurance premium is calculated, you can pay the total all at once and not incur the interest and administration fees.

Pros

One advantage of paying your car insurance premium all at once is that you’ll save money in the long run because there’s no interest charged on an annual policy. Another advantage is that you won’t have to worry about making a payment every month.

Cons

However, coming up with the total premium can be difficult for some people. It doesn’t make sense to do this if you have to borrow money from family or friends to pay your annual premium. In addition, if you cancel your policy early, you could lose a lot of money since there’s no refund for unused time on an annual policy.

A Personal Choice

Whether to pay monthly or annually for car insurance depends on what makes the most sense. If you can afford to pay all at once, it’s generally cheaper, in the long run, to go with an annual policy.

However, if paying monthly works better with your budget, there are ways to keep your costs down (like setting up autopayments from your checking account, so you’re never late on a payment).

Ask About Discounts to Counter the Interest

There are several ways to save money on your monthly car insurance payments. Ask your insurance company about discounts for which you may be eligible.

  • Many companies offer discounts for good drivers, students, and seniors.
  • You can also save money by bundling your car insurance with other policies, like homeowners’ or renters’ insurance.
  • Another way to lower your monthly premiums is by increasing your deductible. This means you will have to pay more out-of-pocket if you need to make a claim, but it can save you a lot of money in the long run.
  • Consider shopping around for a new policy every few years. Insurance rates vary from company to company, so it’s always worth comparing rates before renewing your policy.

Whichever way you pay, ensure you’re getting the best rate by shopping around and comparing quotes from different insurers!

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