I’m A Twenty Something, What are My Loan And Credit Options?
As a young twenty-something, it’s easy to find yourself lured into a culture of debt. There are adverts everywhere for credit cards, and your bank offers you a loan once a month. Times are tough, particularly for young people just stepping onto the career ladder. We’re still emerging from a ravaging economic downturn. Jobs are difficult to find and often low-paying. Sometimes, a little help from a loan or credit can make the difference. If this resonates with you, keep reading for more advice.
Cut spending – Before you do anything, ask yourself if you really need that loan. As a twentysomething, the last thing you want to do is saddle your future with debt. It’s much better to try and stay afloat on a tight budget where possible. Take a long, hard look at your spending and try to make cuts first.
Credit cards – When used correctly, we think credit cards are a great part of our finances. You’ll often build up reward points, or air miles when using them. Payments can be tracked and protected too. However, it’s essential that you can pay back the credit in a month or two. Never live on the credit card alone. But, if you’re running low at the end of the month, a credit card can be a useful buffer.
Overdraft – Much like a credit card, your overdraft is an excellent safety net at the end of the month. Try to avoid borrowing additional money, and instead use your overdraft to cover the cost. Often they are interest-free for a short period, and you stay in control.
Bank or private loan – Sometimes, we’re looking for more than extra pocket-money at the end of the month. There comes a time when you need a larger amount. Perhaps it’s buying a car, or paying for an emergency. A bank or private loan will come in handy here. Direct Axis loans can unlock money for you quickly. Just be sure to arrange a sensible, affordable repayment scheme to avoid further debt.
Mortgage – It has become more and more difficult for young people to get on the property ladder. Mortgage rates are sky high, and house prices are running away. However, if you can get together a 5% or 10% deposit, you could find a mortgage for your first home. It will help you start the journey to property investment, or just free yourself from the rental market. Speak to your current bank about your needs here.
Borrowing from parents. – Many twentysomethings hate the idea of asking for money from their parents. But, trust us, it’s much better than struggling through and accumulating debt. They’ll often be happy to help, and you can pay them back in a low-pressure way.
Make future plans – Finally, begin to make a reliable plan for the future. It will help you square off the debt and take steps to a more secure life.
Keeping track of your money as a twentysomething isn’t the simplest job! Wages are low, and everything else is expensive. If you need a loan, follow the advice here, and always live within your means. Take care!