Student Loans Affect Credit In Many Ways

As the cost of higher education continues to increase, many graduating seniors have been leaving college with a lot of student debt. This debt can have an impact on your credit in many ways.

Understanding the ways a student loan affects your credit can help you avoid having to dip into your emergency fund to cover high credit payments if your score is damaged.

Pay Student Loans On Time – Making your student loan payments on time is extremely important, as missing a payment will hurt your credit score. You shouldn’t treat your federal loans any different than your private ones. Missing payments on both of them will negatively affect your score in the same way.

Student Loans Are Reported As Installment Loans – In most cases, student loans are reported to credit agencies as installment loans. This means that repayment is made in fixed monthly amounts. For this reason, missing a payment on student debt typically hurts your score less than if you were to forget to pay your credit card. This means that if you are faced between paying one or the other, it may be more beneficial for your score to make the credit card payment.

Deferred Loans Still Affect Your Credit – Although your student loans have been deferred, they are still reported to credit agencies. The status of these loans are not viewed as negative or positive, but the balance will still be reported. This will increase the balance of debt you have on your report, which could hurt your ability to take out other loans in the future.

Never Default – Defaulting on your student loans should be avoided at all costs. This can hurt your credit score for up to seven years after your loan is paid in full. If you default, you may be hounded for payments and could face legal action. Your lender may also take money from your wages and tax refunds to cover the repayment of the loan. Even if you can’t cover the full monthly payment, you should call your lender and see if you can switch to a new payment plan that can reduce the amount you owe.…

Certain Items Push Thanksgiving Costs Higher

Thanksgiving is just days away and countless Americans a preheating their ovens and basting turkeys for their feasts.

The average cost of a Thanksgiving meal increased significantly during recent years. This year, the average household is expected to spend close to $50. While this may not seem like a considerable amount of money, it was an increase from 2022’s average cost of $49.20 and 2019’s $42.91, according to the American Farm Bureau Federation.

However, some consumers face much higher costs than others. Households in the following areas should ensure to take care with their budgets this Thanksgiving, and avoid the need to dip into their emergency funds once the festivities pass.

New York City Faces Highest Costs
Residents of the Big Apple are saddled with the most expensive Thanksgiving feasts this year, at roughly $80 per household. This is nearly 60 percent more expensive than the national average.

A lack of grocery stores, especially in boroughs such as Manhattan, is believed to be a major factor driving this trend. In addition, the cost of everyday goods in New York City are an average 230 percent more expensive than the national average, and it appears stores make little expectation on Thanksgiving.

Texas Residents See Most Affordable Prices
Residents of the Lone Star State – specifically, residents of Harlingen, Texas – can expect to pay the least for Thanksgiving this year. The average household there will spend an estimated $33 dollars, which is 33 percent below the national average, according to the AFBF.

Key Products Driving Prices Higher
A severe drought which impacted key agricultural areas during the course of 2022 is believed to be a driving force behind the rising cost of Thanksgiving feasts. Specifically, this had a notable impact on the price of turkey.

While turkey were not directly affected by the lack of rain this year, the cost of the food, such as grain and corn, was.

Between 2021 and 2022, the average cost of a 16-pound turkey appreciated to $22.23, making a 66-cent increase. Although this may not seem like a significant change, households buying larger birds could face more expensive costs.

Additionally, the price of bread, which is another Thanksgiving staple, experienced a notable increase from 2021 which could also contribute to more expensive grocery bills.…