Why More and More Loans Are Taken Out

Written by Best Financial Magzine. Posted in Apply for a checking account, Banks in connecticut, Mobile internet banking

From mobile banking to choosing a bank, there are a lot of considerations to make when deciding where you will keep (and hopefully grow) your money. For instance, community banks are hugely popular banking options and often offer mobile banking options as well. Community banks around the country typically have nearly five trillion dollars in assets alone and greater than three trillion dollars based just in loans, which the typical community bank will give to individual customers, industries such as the agricultural industry, and small business owners. Community banks often offer the only physical alternative to mobile banking. Though mobile banking services can be ideal for a number of circumstances, mobile banking is not always the best option when you have a problem with your bank account or need a loan. In these circumstances, community banks provide that in person alternative (or addition to) mobile banking, as they are often the only physical bank presence in most typical communities in the United States.

Though mobile banking can be hugely beneficial for many purposes, people, particularly young people just starting out in the world, are very much in need of loans, which are most easily obtained by going to a brick and mortar community bank location. There are a number of reasons that people seek to obtain a loan, and the amount of the loan or whether or not a loan is granted at all will be based on a number of different equally considered factors. The fact of the matter is, millennials have found themselves in a greater depth of debt than any other generation today, and that means that they often must take out loans to finance their lives. This is only compounded by the fact that the average salary is as much as twenty percent lower than it was just a few decades ago – the cost of living increases as the ability to afford it decreases.

Prospective home ownership is one reason that many adults all across the United States seek out loans from community banks in their neighborhoods. In fact, the majority of young prospective home buyers would need to finance their homes in order to be able to afford one in the first place, with more than ninety five percent of all young adult prospective home owners under the age of thirty six financing their home purchase to some extent. Home financing is still high among older adults, at almost seventy percent for the age group of ages from sixty two to seventy.

Many young adults, particularly those of a college age, are needing to take out more and more in loans in order to fully afford going to school, be it a four year University, a Master’s program, or even a community college program (though getting an Associate’s degree is often considerably less expensive). This is because, as the cost of going to college rises every single year, less and less people are able to afford the cost out of pocket. Many students are reliant upon scholarships to be able to attend college, but oftentimes even a full ride scholarship will leave additional expenses that the student must cover (take, for instance, the exorbitant price of textbooks when they are bought through the college campus store. Typically they can be found for cheaper online, but the price is often still too high to comfortably afford). In fact, by 2012 students in the United States had a total debt of greater than one trillion dollars, and this number has only continued to climb in the years since. A typical student will have as much as twenty thousand dollars in debt by the time that they graduate – and many owe even more.

Mobile banking is important, but for those in need of loans to finance everything from a house to a college education, it is often advisable to speak to an employee of your nearest brick and mortar bank directly. In this modern age, more and more people require loans to survive than ever before, making brick and mortar banks far from obsolete, even as technology advances.

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