2020 Personal Finance Tips You Wish You Learned In School

2020 Personal Finance Tips You Wish You Learned In School

2020 has been a year of challenges. A lot of people have struggled financially due to the pandemic and the sudden shutdown of businesses. It is time to rise up and improve your financial standing with these personal finance tips and assistance from Access Loans’ employee loan program.

1. Build An Emergency Fund

This year, the unemployment rate rose to 14.7% during the peak of the pandemic in April, but 6.9% remain unemployed in October according to Statista. An emergency fund is meant to help you pay for unforeseen medical expenses, home repairs, or unemployment. Ideally, it covers 6 to 9 months’ worth of expenses. Starting an emergency fund is the first step toward financial stability.

2. Refinance Student Loans

Student loans often come with higher interest rates, making you pay upward of $300 monthly for the better part of your life. Refinancing your student loans will give you the opportunity to find a loan with better, lower interest rates. It will enable you to save on your monthly payments and potentially pay off your loans earlier.

3. Find Simple Ways To Improve Your Credit Score

Your credit score has a huge impact on your finances. For many, however, credit scores are difficult to grasp, which is why numerous individuals end up with bad credit. 

If you have a low credit score, the best way to improve it is by decreasing your debt-to-income ratio. Your income should be higher than your debt. Making on-time payments to your loans, credit cards, and bills helps a lot, too. 

4. Pay Off Your Debt With Tax Refund

Where does your tax refund go? If you are not investing it, you should be using it to pay off debt, especially if you have a credit card, student loan, or any type of personal loan. Your tax refund will surely make a substantial dent on your debt. Just make sure that your loan provider applies your lump-sum payment to the principal balance.

5. A Side Hustle Goes A Long Way

This is one of the most effective ways to bolster your income. The side hustle money you earn can help you pay off your debt, improve your credit score, or establish an emergency fund. Alternatively, you can use your additional income to increase your contribution to the Thrift Savings Plan for federal employees. 

6 – Do Not Let Your Credit Card Debt Fester

The average credit card rate in the US is 15.97%, which is a lot more than the interest rate for a student loan. If you have accumulated substantial credit card debt over the years, consider paying the full amount with a personal loan. The affordable employee loan program from us is the best avenue to pay off your credit card debt!

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* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).