Paying for education, buying a car or a house are costly investments. Some people are sure they can’t go without a loan to finance these purchases. But there are some ways to avoid borrowing, and here they are.
Getting a university degree may cost a fortune. That’s why students and their parents worry whether to apply for a university loan or not. Although the debt may be enormous, expenses should eventually pay off: statistically, university graduates earn about twice as much then people with no degree. However, time has to pass until the investment brings dividends. The good news is that the loan doesn’t have to be that large and overwhelming and here’s why.
Scholarships and grants. Thousands of them are available for application. Unlike student college loans, scholarship and grant holders don’t have to pay the aid back. Grants are usually given to people whose income is on the lower side. Scholarships are awarded to people with exceptional academic performance regardless of their financial conditions. The trick here is to start looking and applying for programmes as early as possible and get as many as you can.
Education Repayment. Some employers agree to repay part of a student’s university loan. The amount of reimbursement varies from company to company, as well as the requirements for eligibility. Some employers offer compensation straight away; some may ask a graduate to work for a certain period to enjoy the benefit. An employer may also check whether you make regular payments yourself. In any case, look for a company that provides such an opportunity.
Renting a place to live in may be costly, but buying one can drain your purse. Obviously, purchasing with cash will cost you less, as you have no debt obligations. Also, if you pay in cash, sellers find you more attractive, as they don’t have to wait long. However, saving a large enough amount for buying or renting outright will take time. At some point, loans may seem quite attractive regardless of their commitment nature. So, is it possible to avoid borrowing?
Renting. Landlords usually require that their tenants should prove that they are financially responsible. They run credit checks on their potential renters. But what if you have never had a credit history or any debt obligations? Try looking for a landlord that doesn’t require one. You can usually find such house-owners in the areas near a college or university. They are used to credit-free students seeking accommodation.
Buying. It’s quite difficult to buy a house without taking a loan. This is too big an investment to be made outright and all in cash. It is possible, however, if you choose to buy a house in the suburbs. Real estate located outside big cities may cost up to ten times less than those within the city boundaries.