Steer clear of bad debt and enjoy your student life

Most students are confused between what exactly a good debt is and what a bad debt is and it’s this confusion that ultimately leads students to rack up a whole lot of bad debt. Basically, the first thing you’ve got to understand is the fact that student loan happens to be a “good debt”. This is one of those debts that’ll be deducted from your paycheck in future once you start earning. Of course, the more you earn, faster would you be able to pay off debts.

5 Ways by which you could use to stay out of bad debt

Now, as for other kinds of debt like say credit card debt, then they’re definitely bad. Here are 5 ways which you could adopt to stay out of bad debt for good.

  1. Stick to a budget: Don’t be under the impression that just because you’re a student, hence you don’t need to follow any budget. It’s a wrong notion for a budget is essential to keep you from overspending and getting into unnecessary debt.
  2. Stay away from credit cards: This is extremely important. Being reckless with credit card usage can literally bury you in the debt grave permanently. Credit card is definitely bad, bad debt! Use your credit cards for such purchases only if you’re sure that you’ll be able to pay off that money immediately. Losing control over your credit card payments is sure to end in disaster.
  3. Go for a student loan: Since you’re a student and you’d need funds for your education, hence you can go for student loans instead of trying any other means. Even better would be if you could get federal scholarships, for then there’s no question of paying them back once you qualify.
  4. Debit directly from your loan: If you feel that you’re terrible with your finances and can’t handle transactions properly, then you can remove the temptation to spend. This would be quite easy by not holding all your money in 1 account. Set up a separate account where you can deposit a specific amount each week and set up a direct debit from it. In this way, you curb overspending.
  5. Look for a part time job: It’s always good to earn extra and that too for more reasons than one. As a student you’re sure to find a plethora of part time jobs which you could take up.

Stick to the 5 ways discussed above and you could easily stay out of bad debt as a student all the way.

Take help to remove your high interest debts – Opt for debt consolidation

Are you someone who has been trying his best to get out of high interest revolving debt? If answered yes, you need not worry as there are ways in which you can get professional help and assistance in staying out of the debt burden. As there are different debt relief options that you can take resort to, you might get confused as to which one would be best for you. While you can take steps to get out of debt on your own, you can also take help of the professionals. Read on to know the different debt relief options that you can take help of.

  • Credit counseling options: You can take help of the credit counseling options when you’ve incurred debt but you’re still not in the red. The credit counselor is an expert who will first check your present financial condition and then give you budgeting and personal financial advice through which you can keep your debts under control. The credit counselor will formulate a budget for you and then ask you to follow it throughout the month so that it is possible to rein in your finances.
  • Debt consolidation: When you’re trying to consolidate your debts, you can sign up with a debt consolidation program where the debt consultant will discuss your situation and alter the terms and conditions of your debt accounts. The interest rates of the accounts will be lowered and the monthly payments too. Instead of making multiple payments to different creditors, you can now make a single monthly payment to the debt consolidation company. This option doesn’t reduce your entire principal amount but relieves the stress in the form of altered monthly payments.
  • Debt settlement: When you feel that you can’t get out of debt without a principal amount reduction, you may opt for debt settlement. The debt consultant will check your present economic state and will then negotiate with your creditors in order to convince them about a principal amount reduction. As soon as they waive off a certain portion from your debt account, you will require repaying an amount that is much less than what you owe.

Therefore, when you wish to get out of debt with the help of a professional, you might take resort to any of the above mentioned options. Know the pros and cons of each option before taking the plunge.

What is Home Equity Loan Modification?

Home equity loan modification is a change in which you have an option to modify your mortgage if you are behind and having difficulty in your payments. This is the loan type wherein the one who borrowed will use the equity in their homes as collateral. This will be sometimes a useful element to facilitate major repairs in the home, college education or medically related bills.This type of loan generates a lien or a security interest against the house of the borrower and the actual home equity will be reduced. This is usually referred to as mortgages because the value of the property is secured against it; just the same as a traditional mortgage. Also, it can be possible to deduct one’s income tax from the home equity loan.The government is giving you options to avoid possible foreclosure in your costs; this is the home equity loan modification. First is to have your payment at your mortgage that is 31% more than your gross income which greatly includes your taxes, your insurances or homeowner dues that you might be paying. This will just show that you are really struggling with your payments. Second is when you use loan modification, this will make your mortgage be in much better shape than you can ever imagine.It will provide you with payments than you can afford and will make sure that you will never lead into foreclosure which in turn, will get back your credits and save your home. And the last thing you would do is to go online and start consulting. You will just fill out some forms about yourself and your status. It includes information about your home equity loan modification and later on, they will call you and give details to help you in saving your home.

Increase in Permanent Home Modifications in October Report of Bank of America

October Bank of America home loan modification report shows increase in permanent home modifications and the report is as authentic as much as it is true. The important fact to highlight here is that on many previous occasion, homeowners have become critical of B o A and other servicers as they are in doubt whether they qualify for the program or not. Until recently many homeowners who are looking for in house or any other home loan assistance as the remedy to the modification efforts made from servicers like BOA. But with the October report of B of A Loan Modification, the story told is completely different. The report shows the increase in the permanent mortgage modifications. If we consider the September report of B O A, there were around 78,905 applications, but the latest October 31 report shows that there were 79,339 applications under the active permanent home loan modification. Many of the homeowners are struggling really hard to pay their mortgage payments on the BOA home loan, and this is also true with many other mortgage services as well. Many other banks acting as servicers are trying their level best to address the concerns of struggling homeowners to pay their monthly mortgages.Read through the October report of B O A and make your understanding on the Obama’s mortgage program. The program is devised for the homeowners who are not able to pay back their mortgage finance on time. If you are in the better condition to pay back the finance, you will certainly be having an upper edge than those homeowners who are least aware or half informed about the program. Bank of America has taken the lead to provide millions of desired homeowners with the mortgage modification process as it filed their loan applications. The bank has also played crucial role in alternative home loan assistance. Make sure that you discuss with the servicer the loan modification terms and conditions before you take the next step. Discussing about the mortgage modification with servicer will give you a fair idea on how good or bad you can go ahead with the auto loan.As the B of A loan Modification requirements go, there are many points which have to be considered by the homeowner before they apply. Moreover servicers, like Bank of America are doing very little to assist the desirous homeowners to understand the loan terms and conditions.

Credit Card Debt Consolidation Loan – Get Control Of Your Finances

Credit card debt consolidation loan has now emerged as an effective financial tool that can help you manage and pay off the nasty piles of huge credit card debts. That is the reason why a massive number of plastic money users who are facing poor credit score and are caught in a strong debt-trap are looking for an effective debt consolidation program. If you are among those who are drowned in the deep ocean of debts, Credit card debt consolidation loan can be a great help for you. It will help you renovate your finances in a better way.Get Rid of The Rising DebtsMany people have a misconception that if they already have a huge burden of debts, no other financial institution will offer them loan or any such program to pay off their existing debts while regaining control of their finances. Well, as I said, this is just a misconception. You will be happy to know that now Credit card debt consolidation loan is easily available in the financial market to help you get rid of the heavy piles of credit card debts. Various credit card debt reduction programs have specifically been designed for those who find themselves unable to get out of the credit card debt trap. This loan and program comes in handy for those who have a bad credit rating.The credit card debt consolidation companies only help you in managing your debts, but they make sure to put you in a position where you can comfortably pay off all your debts. Besides offering a Credit card debt consolidation loan, some debt consolidation companies also offer credit-counseling services. These credit counseling services work in a way to educate you regarding how to manage your finances along with paying off all your debts. They also educate you how to avoid getting into debts in future. An important aspect of counseling is to help reduce your dependence on credit cards.Overall, if you have caught yourself in a huge burden of debts, then a Credit card debt consolidation loan is an ideal answer for you. It can help you get out of the deep ocean of debts. Do a thorough research in order to find out a reliable credit card debt management company. Do not forget to ask for a free debt consolidation quote before you proceed with their services. Once you find that the debt consolidation quote and the program offered suits best your debt and financial requirements, you can go ahead, entrust your case to them, take a sigh of relief, and get ready to become debt free.

What is Student Loan Consolidation?

What does it mean to consolidate your student loans?To consolidate your student loans means to take all of your various loans and give them to one company. One benefit of this is that, often, you can get a lower monthly rate.Benefits:
Consolidating your student loans has other benefits. Listed below are a couple more of them:
-Only one payment: Consolidating simplifies your finances by allowing you to write only one check instead of several checks.
-Spend less: Find a lender that will charge you a lower monthly interest rate and let them consolidate your loans.
-Helps build credit: At the time you consolidate, your new lender will repay your previous loans and merge them to make 1 new one. Because your former loans were fully repaid, your history looks better which, consequently, improves your credit rating.
-Lock in interest rate: When you consolidate your interest rate is locked in. This protects you from future interest rate increases.Consolidation loans are great because they are easy to get. You don’t need to be employed or have collateral or a cosigner to consolidate your loans. You don’t even need good credit!The Problem With Consolidation:
There are usually disadvantages to every decision. Check out all the pros and cons of consolidation before you do it. Here are a couple disadvantages you may want to consider:
-Interest rates fall every now and then. If you have consolidated, you are stuck with one rate.
-Once you consolidate you cannot “unconsolidate”.
-The consolidated loan will have new terms and conditions that your other loans didn’t.
-If you choose to extend the life of the loan you will wind up spending more (in interest) than you would have.Since we have reviewed the benefits and disadvantages of consolidating your student loans, you should find out if you are eligible for one. To be eligible for federal student loan consolidation, you must meet a couple requirements. You have to have at least ten thousand dollars. You must be graduated as well. Finally, you must repair any defaulted federal loans before you will be allowed to consolidate.

Why is FAFSA So Important to College Students Looking For Student Loans?

FAFSA is Your Ticket to student loans?FAFSA is your only entry into the world of federal student loans. You can also find yourself the recipient of a federal grant and work study programs to boot. Without a Student Aid Report (SAR), your chances of getting the best student loans are almost nil.FAFSA, stands for Free Application for Federal Student Aid. The feds are your best place to get a college loan because they have the money to lend at a decent interest rate and the government will actually make your interest payment on some of the loans.The application usually is completed online (spanish version as well) but we recommend downloading a copy and printing it out. It will take you time to research and find the answers to their questions.First you need to create an account with FAFSA. This pin number will allow you to proceed with filling out the application. You will then continue to use that pin number as long as you are applying for federal student loans. Basically it is a virtual account system.CRITICAL NEWSFLASH
Many institutions use the report to help them determine what type of student loan you are eligible for. It is not strictly used for federal purposes.
Money or loans are awarded on a first come first served basis.
January is the start date that you can apply through FAFSA to get student loans for the following fall quarters.
Last year we completed our FAFSA in February and still received our student loans for 2 family members.
Seek help from your high school counselor or a college admissions advisor like we did.
When you receive your SAR, you will find a lot of information but the two most important aspects you need to be concerned with are:
EFC
Eligible Loans
EFC stands for Expected Family Contributions. In your report they will tell you how much they expect you and your family to contribute to your college education. The remainder of the monies needed for college will come from your student loans.Eligible loans are basically that. You’ll receive a list of federal unsubsidized and subsidized student loans that you qualify for. These loans will usually be a Stafford, Perkins Loans or Pell Grants.Keep a couple of things in mind:1. The colleges you chose on your report will also receive your SAR report and if you receive federal monies, they will take money out of the loan for tuition and then send you the rest of the money to use on school related expense.2. You can choose to accept the total loan, partial loan or no loan at all. And you can choose which loan institutions you want to go through.The first time you fill out the FAFSA you will probably say to yourself: “this is the last time I’m doing this”, but trust me, it is easier the second time around. Just don’t forget to fill it out early in the calendar year so there will be money for you.

Home Equity Loan Versus Business Loan

Money is essential for all businesses to start up, operate and expand. The Small Business Administration (SBA) states that while poor management is cited most frequently as the reason businesses fail, inadequate or ill-timed financing is a close second. They go on to say that when looking for money, you must consider your company’s debt-to-equity ratio–the relation between dollars you’ve borrowed and dollars you’ve invested in your business. The more money owners have invested in their business, the easier it is to attract financing.Ideally, it’s best to start your business on money you have in savings or otherwise liquid. But, like most people, you probably don’t have that much money available and you’ll need a loan. About the only way a startup business can get a bank loan is through one of the loan programs offered by the SBA, a federal agency that doesn’t actually loan money directly, but rather guarantees the payback of a certain percentage to banks. Thus, you must prove your creditworthiness with the bank, which requires excellent credit. And, you must meet the complex SBA eligibility criteria.Home equity loans (second mortgages) are cost-effective ways of getting startup capital because they generally offer lower interest rates, the choice of a fixed mortgage rate or an adjustable rate mortgage (ARM) and shorter repayment terms and lower payments than other business loans. Unlike business loans, it is easy to qualify for a home equity loan, even if your credit is not perfect. Even if you already have a second mortgage, you may want to cash out on equity through mortgage refinancing because many times, the attractive rates and flexibility of second mortgages make more sense than to refinance your first mortgage, especially if your first mortgage rates are good.

Refinance Your Home With Low Mortgage Rates

Mortgage rates are one of the most important factors when considering how much different mortgage options will cost. In most situations, the lower the APR on a mortgage, the less it will cost. This means that consumers should strive to get the lowest possible mortgage rates when applying for home loans. Here are some steps you can take to qualify for low mortgage rates.First, make sure your credit score is high. Get a copy of your credit score and report before applying for your loan, and make sure that the information it contains is accurate. Fix any errors that you find. If you find that your credit score is below 650, take the time to improve it. You can do this by lowering any credit card balances that are over 35% of the credit limit, making payments on time for a few months, and avoiding any situations where you would be applying for new credit.Besides your credit rating, mortgage lenders will also consider your debt-to-income ratio when determining your mortgage rates. If you can, take the time to lower your total debt before applying. This will help you qualify for lower interest rates on your mortgage. Also, if you can co-sign with someone who has a job, this can effectively lower your debt-to-income ratio by increasing your total income.Another way you can lower the mortgage rates on your loan is to put a large down payment on the property. You need at least 20% to avoid a fee known as private mortgage insurance. This additional fee will increase the APR on your loan.Remember, every percentage point that you add or subtract from your mortgage rate represents thousands of dollars over the life of your mortgage. There are things you can do right now to lower your mortgage rates. Take the time to do your homework, and soon you will be able to find an affordable loan option for your needs.

Tips On Getting Debt Consolidation For Payday Loan

To meet financial emergencies, payday loan provides quick cash. This is a short term loan given for amounts ranging from $100 to $1000, which has to be repaid on your next salary day. Almost all salaried citizen of the US get easily approved for this loan. The cash advances can be secured through online lenders too; this makes the loan approval and disbursement fast.When Does The Problem AriseIf you have taken a salary cash advance and you are making the repayment on time, then there is no problem at all. All you are paying extra is the flat fee which is $20-$30 for every $100, or you will be paying the interest rate as decided by the lender. But if you are unable to repay it on time, you will end up accumulating more debt. You will have to pay extra charges for extending the due date, you will be charged for the loan roll-over fees. You might even need to think of taking another payday loan to repay this one.All this will lead to a total financial disaster and you will fall into a debt trap. To avoid this, contact a company which can do payday loan debt consolidation for you. These companies can be easily found. They will negotiate the new consolidated loan terms with your lender. You won’t be contacting the lending company directly. The new loan will be with lower interest rate, better repayment terms and flexible payment options.Select A Good CompanyThere are such companies in abundance, but to get maximum benefit, follow some tips in choosing what is right for you. If a debt consolidation company is asking a fee for providing you quotes, don’t go for it. They are supposed to provide this service for free.
Do not accept any consolidated loan blindly. Calculate if it’s actually reducing the debt. Many companies offer solutions where you’re monthly outflow is lower, but tenure is increased. This way you will pay much more in totality. Beware of such things.
The company is also expected to offer debt management advice to you. If they are not talking about offering services of credit counselor, remind them for it.
If the solution is not giving desirable results in a certain period of time, approach your management company again. Ask them to provide you with a better debt consolidation loan.If you take little care in selecting the right service provider for debt management of your payday loan, you will be greatly benefited. Once you get a plan where the terms and repayment amount suit you, remember to be more careful in future. Keep your expenditure in check and try to match it with your earnings. With the help of consolidation for payday loan and proper credit counseling, you will out of your financial mess in no time. Now what you need is a restrained approach to spending, careful financial planning and building a good credit rating.