How to keep the fleeing women on?

Companies need women in their crew, and if the female employees keep resigning from posts, it can be a sign that firm’s direction should be changed for more woman-friendly. Businesses need to create such conditions which attract female workers and discourage them from leaving for competitors or self-employment.

It is worthwhile, especially now when the UK closes the borders for immigration and, thus, a lot of talented candidates. What action should be taken in order to make everyone satisfied in this game?

Fair gratitude

The matter of payment is crucial in the problem. Financial discrimination is a frequent bone of contention in the discussion about fair work-conditions for hired women. Being paid less than a man for the same work is a justified source of women’s disagreement and resignation. The only way to avoid this problem is to ensure that all your workers are paid even-handedly, regardless of their sex.

Fair evaluation

This is the next issue you must consider and take care of. If you observe differences between male and female workers’ performance or promotion, find out if the evaluation process concerning women’s performance is carried out properly.

Support progress

Putting women on top positions do not solve the real problem in the long run – it is the equal number of female and male workers progressing throughout the organization which brings help for the “roots”.

Support diversity

The example should be given from the top. Gender diversity in the organization need to be advocated by the leaders in the first place. It is their obligation to ensure that women and men are treated equally, irrespective of sex and stereotypes.

Promote flexible working

This can be a great encouragement for women with families. In fact, also for men. Flexible working should be regarded as beneficial and assented. And again, the example needs to come from the top so as to make it work. Sometimes, finish job earlier and go to see a school match – the rest should know this kind of work flexibility is not unwelcome.

Give international opportunities

International work experience is necessary for good career development. Excluding a female worker from such chances because of the fact she has children, is a mistake. Surely, this might be a trouble for mothers to leave country and work abroad. Yet, you can offer some modified options like short term/split-base assignments or those with international remit.

Health and wealth needs

When women exceed the age of 45 the issue of health problems, of both their own and their family, becomes significant. The needed support provided by employers can help them overcome the difficulties easier, and with less damage to their career.

Mothers coming back

So as to avoid losing female employees who have recently become mothers, companies must develop a certain strategy to make them eager to return. One of the most obvious ways to achieve this is creating the beneficial conditions of maternity leave and encouraging women to “be in the swim” also when they are away. After that, providing some training can help go back to the work reality more smoothly.

What is the current position of women in finance?

Analysing the statistics that show the number of women occupying senior positions in finance, we can draw such a conclusion: from the previous patriarchal society we have gone to patriarchal world of finance. What is more, data shows that men dominate the senior positions in general, not only in financial companies. Many of us probably have this subjective feeling of female absence among the seniors, since it is not difficult to observe. And the situation looks the same from a formal point of view. Catalyst inform that there are as few as 20 female chief executives in the whole Standard & Poor’s group of 500.

According to Harvard Business School, the number of women employed in private- equity, real estate and venture-capital firms is set between 17 and 23 percent, and this does not concern the higher positions only, but employment in general. In the world of finance there is definitely no equal division of sexes. The sad truth is that women directors, managers or any other seniors constitute much less than a half of finance related workers.

Eternally alive stereotypes

An important question arises: why women seem to keep off finances? Or maybe it is the labour market which is continuously shunning female candidates? We can suppose that it is a normal consequence of the former society order in which men dominated this area of market (and not only this one).

Maybe subconsciously, men are still considered as better candidates for finance governing positions, since they are perceived as more authoritative and adamant. Stereotypes aside, after years of women’s successful struggle for equality, as it turns out, there is still place for improvements. Actually, this is probably women’s awareness that needs some refreshment.

Choose better quality – choose women

Interestingly, Credit Suisse Research Institute have studied the problem and their results point out that women on senior positions influence the company’s work positively and contribute to the better financial performance.

It has been shown that women managers in many cases are better than men on the same position and the presence of a woman on management board brings various benefits, like higher average growth or returns on equity. Whereas men tend to incur more risk (and consequently losses) to business with their more impulsive and fiery temperament, women are just “safer”.

Growing trend

The situation has improved – after 10 years the percentage of female senior workers on boards of the biggest companies grew from 15 to 20. Observing this trend, we can suppose that it is going to continue changing for better.

2020 Women on Boards is a nonprofit organization created by 2 women who aim at increasing the number of female members of corporate boards to 20% by the year 2020. They believe that the diversity of thought is the key to successful management and such diversity cannot be realized without female representatives in the governing group.

The creators of the website girlswhoinvest.org go further and their goal is 30% by 2030. All the action which attempt to mobilize women to take action in governing finances bring some optimistic prognosis for the future.

How Student Loans Impact Your Credit?

Finishing college is a great experience but it does come with a burden. Simply put, the idea here is that you do need to try all you can in order to repay the student loans as fast as possible.

You can either have a positive or negative impact from the student loans, it all comes down to the approach that you have.

Paying back the loan

After you leave school you have up to 9 months that are seen as a grace period.

Afterwards you will need to start the repayment process and obviously it can be a very demanding process.

Just because you don’t get pressured into repaying the loan, it’s safe to say that the loan is always there.

You don’t have to acquire the money and repay it at the deadline, but most people do.

How does the student loan affect your credibility and credit?

The best way you can figure that out is simply by accessing a copy of the credit report.

Usually, there are 3 major agencies that will deliver this info such as Trans Union, Equifax and Experian.

Try to get a copy for each one.

These include all the information you need such as the current status, disbursement, balance due and so on.

Not all of these might have the same information, which is why you should try and get a report from each of them.

If you repay the loans on time then you don’t have to deal with any issue.

On the contrary, you will see that you will actually have the opportunity to establish a good credit history. That will offer you a great way to acquire new loans.

On the other hand, if you default your loan you will see that the credit will get affected.

What’s your current credit score?

Included in your credit report you can find a whole lot of info about the credit cards, student loans, car loans and other similar financial products.

This information can be used by the credit bureau in order to generate the credit score and this will show what type of credibility and repayment speed you have when compared to other customers.

Obviously, the lower credit scores show that you are not reliable whereas the higher scores will show that you are not a risky investment.

This means that high credit scores will offer you faster access to loans as well as a lower interest rate.

There are many factors that can lower or increase the credit score depending on the situations. Some of these factors are more important than others, while others not so much.

  • New credit and how you manage it will obviously impact the credit score, not to mention the number of applications and inquiries you did will also affect the score as well
  • The credit history, such as the length of time you had credit for, for how long the accounts were open and how often you used the accounts
  • The debt you have, the account types you have and how many you have will also increase or lower the score. If the balances are close to the account limits the situation can be very bad.
  • Payment history, such as how fast you repay the debts and if you have any non payment situations might also affect your score quite a bit.

Student loans and the credit score

It’s important to always repay the student loans as fast as you can. If you don’t do that then the credit score will be affected.

In case the credit bureaus we mentioned aren’t reporting your credit information, make sure that you talk with the lender so he can make the necessary revisions.

Another thing to keep in mind is the debt to income ratio. If you have a very large student loan then it will be really hard to receive new credits especially if you have to start with a low paying job.

On the other hand, in case the principal balances won’t change much or they do get larger you will see that lenders won’t really feel you get enough progress when it comes to repaying the debt.

How to deal with the student loan and remove it from your life?

There are multiple methods you can use in order to eliminate this debt and get it off your back. We created a list of suggestions that will help you deal with this problem as fast as possible!

  • Try to repay the student loan as fast as you can. If you do that you will have a lower debt to income ratio. You will get access to better loans even if the income is not getting higher during the next few years or so.
  • If you find it hard to repay the student loan you can ask for forbearance or deferring your loan. This way you will be able to do only interest only payments and your balance will remain the same. It’s not the best option but it can be helpful
  • Try to talk with the lender and make him agree to a graduated repayment. This way you will have smaller payments in the first years and then these payments will gradually increase as you get access to better jobs. It’s a good idea to help you improve the debt to income ratio especially in the first few years.
  • In case you find it hard to repay the student loan, try to check out the income sensitive options. This might extend the term of your loan but you will have less of a burden to deal with. You just have to take your time and figure out the right approach here, in the end it can be very helpful.
  • Sometimes you have multiple student loans and if that’s the case you can try to consolidate them via a dedicated student loan consolidation program. It will make the total interest higher but then you do get to lower the debt to income ratio.
  • Don’t ignore the student loans and never try to default them. They need to be dealt with as fast as possible because they won’t go away even if you are in bankruptcy. Talk with the lender and figure out if you can access loan rehabilitation programs as this will help you deal with the problem!

What is a FICO score?

FICO score – what is it?

If you are not familiar with this term yet, this article is for you. Even if you do not need a loan right now, it would be useful to know how to deal with your finances in the long term and of what you should take care beforehand. A good FICO score is the result of a whole range of your actions.

Thus, you should know in advance how to make good decisions concerning your finances because it is the FICO score which will influence your bank’s decision about giving you a loan and on what interest.

What is it then?

FICO is mostly known as a credit score that ranges between 300-850.  In fact, this word stands for the name of a company- The Fair Isaac Corp. –which analyzes a possible risk of your financial trouble in the future. Therefore, they can predict whether you will be able to pay off you debts on time.

Not without reason, anyone who is going to do some business with you (either a bank, a landlord or an insurance company) will make use of such information first.

To put it in short, you are in the best position when your score is above 760 and 650, or lower, means that you need to do some changes in your personal finance management because you do not seem a very reliable business partner. When you are in between, the decision whether you receive the loan or not will vary depending on the lenders’ individual rules.

Is FICO the only source of such information?

Of course there are other analytic companies like FICO (for example Vantage Score), but still it is FICO which is strongly established in its trade and comes to our mind as a first when we think about scoring. Most of the companies’ grade range is the same – from 300-850 – so your score would be similar in the other credit score versions.

How can I improve my score?

If your credit report – on which the score is based – does not include much positive information, you need to make some necessary changes.

In general, the score comes from the analysis of five categories concerning your credit history.

We listed them from the most to the least important factor:

  • payment history (be punctual in your payments),
  • amounts owed,
  • length of credit history (the longer, the better),
  • new credit (avoid opening many new accounts in a short amount of time),
  • types of credit in use (a mixture of various types of credit in your history can increase the score).

One thing is certain, improving your score must take some time. In one case it can be achieved sooner, in another case, later. Learn more and start building your better score!