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Is There A Credit Gender Gap?

In the US, Moms are 3.6 times more likely than dads to give their kid a credit card, according to a new WalletHub survey released today. Parents can make their child an authorized user on their account and give them their own card tied to the parents’ credit line.

Making a child an authorized user can be good way to teach them responsibility and help them build a credit history before they are old enough to have a credit card account in their own name. However, not all parents decide to give their kids a card. Below are a few key stats from WalletHub’s survey:

Is There A Credit Gender Gap? - teens and credit card image

Key Stats

  • 2.4X more daughters have credit cards than sons.
  • Kids in private school are almost twice as likely to have a credit card.
  • Dads are 3.4 times more likely than moms to monitor their kids’ credit card spending.

Q&A with Odysseas Papadimitriou, CEO of WalletHub:

What is an appropriate age to give one’s child a credit card?

“It’s a good idea to give your child a credit card for emergencies when they are in high school,” said WalletHub CEO Odysseas Papadimitriou. “That’s when young people start to exercise their independence more and more, making access to funds for emergencies increasingly important. Plus, adding your child to your credit card account as an authorized user can help them build some credit history, making it easier for them to get their own account after they turn 18. When they’re eligible to get their own account, set your child up with a secured credit card, and have them fund the security deposit themselves. This will give them good practice without too much risk. But it will be their own money at stake, which is important.”

What explains 2.4X more daughters having credit cards than sons?

“My guess is that parents tend to see their daughters as being responsible enough to handle a credit card at an earlier age than their sons,” said Odysseas. “However, the need for financial literacy is gender-agnostic. And the kids who are least responsible may actually need the most hands-on training.”

Should parents closely monitor their kids’ spending?

“Parents should monitor their kids’ spending, both to keep them safe and because it can provide some valuable learning opportunities. But they shouldn’t try to be sneaky about it,” said WalletHub CEO Odysseas Papadimitriou. “Rather, parents should discuss spending decisions with their children in order to help calibrate how they think about money and improve their financial literacy. Credit cards make this whole process a lot easier than cash.”

A copy of the full report can be found at https://wallethub.com/credit-cards#survey.

When You’re out of Options: 5 Myths and Facts About Declaring Bankruptcy

When debts grow out of control and you simply cannot make ends meet, bankruptcy is sometimes the only option. While bankruptcy is not an easy way out, it can help you legally overcome your debt and improve your financial outlook. Unfortunately, there are many bankruptcy myths that are perpetuated. Understanding these myths will help you to fully understand the truth regarding declaring bankruptcy.

When You're out of Options: 5 Myths and Facts About Declaring Bankruptcy - struggling with debt image

Types of Bankruptcy

There are multiple types of bankruptcy that can be filed, though there are two that are more common than others. Chapter 13 is often referred to as the “wage earner’s bankruptcy” because you are required to pay monthly payments. When people file for bankruptcy, they sometimes hire a lawyer to help.

Chapter 7 is best for those who have mostly unsecured debts. The process can typically be finished in six months or less, though you may be required to submit non-essential assets for liquidation to pay off the debts you owe.

5 Myths About Declaring Bankruptcy

As with most things, there are always those who spread falsities regarding bankruptcy. Unfortunately, bankruptcy is still considered a somewhat taboo subject, even though millions have filed. The following are some of the biggest misconceptions regarding declaring bankruptcy.

1. One of the biggest myths regarding bankruptcy is the individual will lose everything. Many people mistakenly believe filing for bankruptcy means they will have to give up their house, car, and all assets. For most people, Chapter 7 is a non-asset bankruptcy, so you do not give up anything.

2. Many people also believe the myth that all their debts will be wiped out by declaring bankruptcy. There are some types of debt that are not forgiven in bankruptcy, including student loans. Debts you are personally responsible for are generally not forgiven.

3. The belief that filing for bankruptcy means you are a big failure is truly erroneous. Many people believe they are admitting failure if they file bankruptcy. Most people end up filing bankruptcy because of a loss of wages rather than poor financial management.

4. A common myth that never seems to die down is the belief that your financial future will be ruined by bankruptcy. Although you will certainly have limited access to credit for about ten years, your credit score will likely begin to see improvements shortly after your bankruptcy is declared. Filing for bankruptcy is not the end of your future.

5. Some people mistakenly believe it would be better to pay off their debts than file for bankruptcy. If your debts are greater than 50% of your income, it would be wise to at least consider declaring bankruptcy because paying off the debts will be difficult.

Benefits of Declaring Bankruptcy

· Takes away a great deal of stress

· Can prevent foreclosure

· Allows for a fresh start

Although it is not right for every circumstance, there are many benefits to declaring bankruptcy. Most people find it easier to consult with a bankruptcy lawyer before they make a final decision.

Conclusion

Declaring bankruptcy does not mean you have failed and it certainly will not ruin your financial future. Taking the time to learn about your bankruptcy options will help you to make the best decisions for your needs. Bankruptcy will help you to overcome the vast majority of your debts and give you peace of mind in knowing there is less financial stress.

Should You Consider Getting a Car on Finance?

If you are thinking about getting a new car, there are a lot of different things for you to consider.

As well as having to decide on the specific make and model of car that you want, you also need to think about how you are going to pay for it.

A car isn’t something that you can go ahead and rush into buying. Buying a car is expensive, but car finance is there to help.

Should You Consider Getting a Car on Finance? - buying a car image

Here are a few upsides of getting a car on finance:

The Cost is Easier to Manage

Regardless of how much money you have, nobody likes to pay out a lot of money in one go. This is avoided with car finance, as payments are split into smaller installments that are usually paid monthly.

You can pay a smaller amount each month, without worrying about breaking the bank or going over budget.

You Can Get a Newer, Nicer Car

When you have to buy a car using your savings, you are limited by how much money you have. Plus, you then have the worry of not having any savings left if a financial emergency where to arise.

If you don’t have enough, you could be left buying a car that you are not completely happy with.

With car finance, this is never a problem. As there’s no need to save up ahead of time, car finance can help you to get a newer and nicer car.

You Can Change Cars With Ease

If at any point you are not happy with your car and you want to trade it in for something different, car finance makes everything a lot easier.

Rather than having to sell one car and then buy another, you can simply swap it. There’s no need to worry about the hassle of selling a car, shopping for a new one and then buying it.

There is no denying that there are a number of benefits that come with getting a car on finance, which is why it’s something that a lot of people do.

Rather than buying a car using one large payment, many people split the cost in a way that is easier to manage.

Get Your Money and Life Back: How to Stop Your Gambling Addiction

About 10 million adults are addicted to problem gambling in the U.S.

What starts out as harmless fun, takes a quick wrong turn and becomes a destructive obsession.The worst thing about gambling addiction is that it may put you in a worse financial position than you were before. Once you’re hooked, your social life and psychological health may be crippled.

Trying to stop gambling addiction can be overwhelming. You’re always sure you’ll win in the next bet, only to lose again. Although you want to quit, you can’t do it yet – at least not before you make your long-awaited win!

However, saving yourself from this unhealthy addiction is a progressive routine. You’ve got to start from a certain point until you gradually become an ex-gambler.

Here’s how to deal with a gambling addiction.

Get Your Money and Life Back: How to Stop Your Gambling Addiction - stop gambling image

1. Get to the Root Cause

Identifying the source of the urge to gamble is the first step towards recovering from the addiction. Once you know what triggers the urge, you can then try and abstain from those causative agents.

Some people start gambling due to boredom, loneliness, or even stress. And since gambling activates the rewarding system of the brain, people use it to cope with unpleasant feelings.

2. Change Your Thinking About Gambling

Most problem gamblers have a strong belief that they can control the outcome. Even after losing consecutively, they’re still convinced that they’ll somehow get lucky.

To counter these thoughts, you’ve to accept that gambling involves random events that are beyond your control.

Cultivating hate towards gambling can also help you change your thinking. Simply reflect on how much you’ve lost, every time you feel the urge to gamble.

3. Avoid Tempting Situations

One of the best ways to stop gambling is to avoid situations that prompt you to gamble in the first place.

If having too much money at your disposal fuels the urge to gamble, try limiting the amount of money you access. You can put it in a locked savings account or try investing in something substantial.

Sometimes, it can be a simple visit to a Vegas casino that prompts your gambling urge. So you may want to avoid such joints. Instead, you can try out some top Las Vegas marijuana strains recommended by this website.

4. Be Easy on Yourself

When trying to stop your gambling addiction, it’s likely that you’ll gamble a couple of times despite your efforts of stopping.

It’s important to understand that you can’t quit gambling in just a single day. So, be patient with yourself.

To help you with this, try keeping a diary and record the number of days you’ve successfully abstained from gambling. This way, you can track your progress and even aim at achieving more gamble-free days.

Kick-Start Your Gambling Addiction Treatment Today

Gambling addiction can be likened to substance addiction. It’s easy to quit, but only if you’re willing to put in the effort. Use the above treatment tips to help you counter your addiction to gambling. Looking for ways to put your money into good use? Check out these money plans

Loans and Your Credit Score – The Do’s and Dont’s

Millions of people in the UK have a personal loan for one reason or another. A loan can provide financial help when an emergency or unexpected bill arises, or when financing for a big-ticket item is needed. They offer fixed repayment schedules and known costs in most cases, making repayment easier than a flexible credit card or another revolving credit account. Over the last few years, countless lenders have joined the ranks of personal loan providers, making it equally beneficial and confusing for consumers searching for a loan.

Loans and Your Credit Score – The Do’s and Dont’s - persona loan image

Having too many options for personal loans could lead to adverse effects on one’s credit score, without a borrower even realising their credit has been impacted. Here are several considerations when it comes to loans and your credit score, including what you should avoid and the steps you can take to get a loan in the right way.

What to Avoid

Your ability to get access to credit when you need it is one of the foundational aspects of a healthy financial life. If you are in need of a loan, it is beneficial to know how obtaining one will impact your credit score both now and in the future.

Applying for multiple loans at once – with a high number of lenders offering loans, it may be tempting to apply for several at one time to ensure the best repayment term and interest rate is obtained. However, responsible lenders complete a hard check of credit when a loan application is received. This credit check is visible on your credit report, and it can adversely impact your credit score. Having multiple hard checks on credit indicates you may be borrowing too much at one time, meaning your access to credit in the future could be negatively impacted.

Missing monthly payments – part of your credit score calculation is based on your track record of on-time payments. Taking out a loan can be helpful in covering urgent financial needs, but without a plan to repay the loan on-time until the loan term ends, your credit can be negatively impacted. Lenders and other credit providers want to know that you are a responsible borrower, and missing payments on a loan shows the opposite.

Using high-cost loans – loans come in many different forms, including short-term loans. While these may be easier to qualify for and have a fast turnaround time for receiving funds, the cost for short-term loans can be excessive. It may make more financial sense to review your options for longer-term loans as well as short-term loans, comparing both the cost you will pay for borrowing and the term you have to repay what you owe.

What to Do When Taking Out a Loan

Understanding what can negatively impact your credit score when taking out a loan is the first step. However, it is just as necessary to recognise what steps you should take to complete the process the right way.

Compare loan providers – according to a finance expert with Money Pug, a site used to compare payday loans online, a borrower should always take the time to review several different lenders before applying for a loan. Comparison sites make this task simple, providing quick and easy information about what lenders are currently offering, including interest rates, loan amounts, and repayment term options. This step helps you minimise the negative impact on your credit score by only applying for a loan that makes the most sense for you.

Read the fine print – lenders are required to provide specific details of the loan you are approved for before finalising funding. Be sure to take a close look at the loan terms, including the total cost of borrowing and the rate you receive, your repayment obligations, and any penalties that may be involved in paying the loan off before its term ends.

Understand what you can afford – as with any new credit account, borrowers need to first understand what their budget allows for repayment. As mentioned, missing payments will have a drastic impact on credit scores, and this negative information stays on a credit report for several years. Evaluate income and other expenses to determine what is affordable for monthly loan payments moving forward before signing on the dotted line.

Taking out a loan can be a helpful tool in getting through a financial emergency or financing a large expense. However, doing so has an impact on your credit in several different ways. Following these do’s and don’ts will save you from credit score headaches both now and in the future.