The Pros and Cons of Suburban Living

There are many pros and cons of living in the suburbs as opposed to the city. The decision that’s best for you will depend on your personal preferences and where you are in your life.

Living in the city offers the conveniences of being close to shopping, work, restaurants, reduced commutes, and lower energy bills. All of which seems like it would be ideal for a single professional.

On the other hand, if you are looking to raise a family, you may find the suburbs offer more the environment you want to raise your kids in. You aren’t going to be able to send your children to play outside in most cities. Instead, you’d have to commute to a park so they had some room to run around.

You’ll Spend Money No Matter Where You Are

When you move to the suburbs, costs may seem higher if you are used to living in the city, but consider the trade-offs. You have a bigger living space, a private bit of land, you can have pets with no issues and enjoy a quieter surrounding. With anything you do in life, you are going to have trade-offs that may cause you additional expenses.

Make sure that you aren’t living beyond your means though. You’ll need to have savings to pay for life’s emergencies. If you have kids, they might get sick and need medical attention resulting in unexpected medical expenses. Your pet may also require medical help. Like treatment for a cat UTI, an unexpected expense, but an expense nonetheless. With life comes responsibilities and financial obligations.

Convenience 

City dwellers appreciate that most everything they need is seemingly at their doorstep. Grocery shopping is a short walk away. It’s great because you can get your steps in for the day and buy household goods.

The downside to walking to your local grocery store is everything you purchase you’ll have to carry back to your home. Of course, you can count that as your toning exercises for the day. There is no filling the trunk and driving home, like you would do if you lived in the suburbs.

Suburban Life

Living in the suburbs has its perks as well. Yes, your home will be bigger so your utilities will cost you more. However, if you compare the cost of your living space by the square foot, chances are, living in the suburbs is actually more cost-effective; you get more home for your dollar.

You also have the opportunity to make your house your own. You can add your own decorative touches and not have to be concerned about losing your deposit for painting walls or doing something else that violates your rental agreement. Part of the excitement of owning your own home is being able to paint and decorate in a way that is a reflection of your personality and/or personal taste.

Living in the suburbs isn’t typically short term. How is this beneficial? You get to know other people in your neighborhood and become a part of a community. Living space in the city tends to have a higher turnover rate so creating lasting bonds is more unlikely.

Peace and Quiet

Living in the city, the amount of greenspace you have is limited to houseplants and city parks; there is no personal, private space for you to enjoy time outside. When you have a house in suburbia, not only do you have your own yard, but you don’t have to listen to the hustle and bustle of traffic. Besides noise pollution, without nearly as much green space, city life exposes you to a lot more vehicle and industrial pollution.

The city and the suburbs both have their appealing factors as well as their downfalls. It boils down to where you are in your life and which conveniences are most important to you.

Can You Have Two Car Loans At Once?

, can you have two car loans at once

When purchasing a car, the process is somewhat daunting. Although for the most part, it’s fairly simple. That is, as long as you have decent credit. First, you find a vehicle that suits you and your monthly budget. Then, after settling on a price and putting some money down and/or trading in another vehicle, you’ll sign off on a loan. This will likely be at the dealer’s. Then you’ll drive your new-to-you car right off the lot.  But, what if you’re buying two cars at once? How about if you’re buying another care before your other vehicle loan is paid off? Can you have two car loans at once?

Can You Have Two Car Loans at Once?

You may find yourself in a situation, particularly with your husband or wife, where you may need to have two car loans out at the same time. Whatever the circumstances, the answer is typical of most finance questions: it depends.

As with any loan, what will determine your approval comes down to a number of factors; mainly, your credit. Let’s break them down.

Getting Approved for Two Car Loans

There are a few key factors that will be considered for multiple loans. They are as follows:

Credit History

Not surprisingly, one of the first things a banker or lender will look at will be your credit history. They will obtain and review your information, which will include your credit score, repayment history, other loans on file, and so on.

This will be one of the main elements in determining your approval for another car loan. Even though the bank approved the first loan does not mean this second will go just as smoothly.

Proof of Income

In addition to credit history, those loaning you the money will want to see a proof of income, for obvious reasons. This shows them not only that you have money coming in regularly, but it provides an idea of how capable you are of repaying such debt.

Other Factors

Other factors that banks look at when you apply for a second car loan may also include your debt to income ratio. If your debt ratio is 50% or more, you may have trouble getting approved for a loan. This is true even if you have a decent salary. Writer and real estate investor Michael Bluejay notes on his website that each bank differs. But in generous cases, your bank may permit you to have a 42% debt ratio. You can find out how to calculate your income to debt ratio here.

Keep In Mind

Be aware of the “straw” purchase. A “straw” purchase is basically when you buy a car for someone else, but put the loan under your name. This is considered bank fraud, and thus, it’s illegal. One reason is because a car is collateral. If you are trying to purchase a vehicle for a loved one, you should sign as a co-signer or give them cash to put toward their purchase. They are not able to own the car if the loan is under your name. However, if the individual is your dependent, then it is a different case.

Think about why you need the car. Reconsider the loan to save on interest if you are able to pay straight cash. If you plan to only use the additional vehicle as shuttle only or for limited driving, it may not be worth taking out a loan.

The Effects of Having Two Car Loans

Taking on two car loans at the same time is a huge financial responsibility. Not only will you have the additional payment each month, but it will also affect your credit. Chances are that your credit score will take a hit and temporarily lower after you take out the loans. Furthermore, you will also have a higher debt-to-income ratio. This will make it more difficult to obtain good rates from future lenders. It will also make it difficult to improve your credit score with such a heavy financial responsibility.

There is some good news for those with good credit, limited debt, or a strong income. While a second loan may not impact your situation much, it is still wise to think through all your options before signing anything.

Conclusion

So, can you have two car loans at once? Yes, but not without requirements. Cases and circumstances do vary. You might want to make sure you would even qualify for a second loan by speaking with a few lenders before picking out that next car. You’ll also want to review what new interest rates you could have as they might be higher depending on your current loan status.

Have you ever had to take out more than one car loan at the same time? Share your experience in the comments below!

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What is the Costco Jewelry Return Policy?

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