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Debt

5 Reasons Why You Should Check Your Credit Report

Do you know what your credit score is? If you answered no, don’t feel bad. Most people couldn’t tell you with any kind of accuracy the number on their credit report, even though it has the potential to impact their lives in a major way. Suppose, for example, that you’ve finally managed to set aside a decent amount of money towards a down payment on a home. However, when you go to a bank seeking approval for a loan, you could discover that ancient black marks on your credit report related to massive credit card debt and a spotty payment history will set you back significantly. Even if you cleared up these issues a long time ago, a failure to check your credit report could mean that they’re still dragging down your rating, leaving you with fewer (and less appealing) options when it comes to taking a major loan. In short, there are plenty of reasons why you should check your credit report on an annual basis. Here are a few that should get you going.

Awareness. If you don’t know what your credit report says you can hardly expect to improve it. And if you want to make any major purchases in the future (a car, a home, a business, etc.) you need to have a top-tier score in order to get the stellar interest rates and other terms that you’re seeking. Your credit score can not only make or break your chances at loan approval, but also your ability to attain rates that you can actually afford to repay. So before you even think about looking for a loan, you should check out your credit report to see if you’ll even qualify.

February 19, 2013

Debt

5 Tips For Graduating From College Without Debt

Most of us would agree with the fact that it is a smart decision to go to college and earn a degree; especially being that there are many studies to support the fact that the average college graduate earns about $20,000 per year more than someone in the workforce who only has a high school diploma.

That’s not to say that college is not a huge financial investment. So much in fact, that an overwhelming majority of college graduates leave college with as much as $23,000 worth of student loan debt that must be paid back. It doesn’t have to be that way for everyone, though. Below, we’ve enclosed five tips on how you can graduate from college without owing a single dime.

Take some college courses in high school. When you go to college, you are paying for each class that you take. The good news is that a large majority of high schools offer advanced placement classes that are available to juniors and seniors. By taking a few of these qualifying classes, high school students can easily shave off a semester or two of college once they enroll. (Also check with your guidance counselor to see if there are actually college courses offered at your school as well.)

February 18, 2013

Debt

5 Ways For College Students To Build Credit

College is an exciting time for students like you all over the world. As you take your first major steps into the adult world, one thing that you’ll need to consider is how to start building financial independence. Building good credit now will be a great benefit to you in the years to come. Your college years are great times to start building credit, but you’ll need to be careful and responsible in order to reap the rewards.

Start By Piggybacking
It will be difficult for many students to obtain their first credit cards without a cosigner. One great way to get a head start on the credit game is to become authorized on a parent’s credit account. This is known as piggybacking, and it allows you to start building good credit by using your parent’s account. This will also allow your parents to monitor your spending and make sure that you’re not being too reckless in your habits.

February 18, 2013

Debt

How You Can Prevent Carrying Debt Into Retirement

When you’re busy with a career and are trying to provide for your family at the very same time, things can definitely start to seem like they’re getting a little bit overwhelming. There are a lot of constant financial responsibilities that we all have to deal with during our lives, and it can get pretty easy to let certain things slip through the cracks. Especially given the behavior of the economy over the course of the last few years, a lot of us have gotten used to living in debt, at least to one degree or another. Perhaps you might not be absolutely drowning in debt, but many of us owe some money to at least one or two creditors these days. It’s tough to live completely debt free, but there are definitely few of us that would think it a good idea to carry any of that debt over into retirement. Of course, when you’re trying to take care of everything else in your very busy life, it can be tough to remember that you’re supposed to consistently be putting away money for your retirement on a regular basis.

If you’re in debt, you’re probably looking for a way to make sure you are completely free and clear by the time you retire. Nobody wants to deal with debt past the point at which they’ve stopped bringing in an income, so if you’re looking to pay everything off before you finish working; you’re definitely on the right track. We’ll talk about a few strategies that will help you settle your debts before it’s time for you to retire.

For one thing, you should be budgeting yourself, and you should be doing so very vigilantly. Sit down and figure out exactly how much you have to spend each month, and where you have to be spending it. Calculate all of your expenses, and then figure out how much money you have left over each month once you’ve met each of your responsibilities. Now you’ll be able to figure out how much money you’re able to contribute to paying off your debts. If you don’t have very much left over, you might want to think about cutting some of your more frivolous or nonessential monthly expenses so that you can retire debt-free.

January 30, 2013

Debt

5 Things You Should Know About Student Loans

Although everyone deserves the opportunity to better themselves and improve their job prospects by earning a college degree, the sad truth is that few can afford the expense entailed. And while there are certainly ways to mitigate costs, scholarships and grants are both limited and difficult to obtain thanks to stiff competition from other students. The long and short of it is that many college-bound kids find themselves facing a mountain of bills for tuition, books, and living expenses, and their only real option in most cases is to take out student loans to cover these costs. Even with some family help and a part-time job, the majority of students will have to turn to financial aid or possibly private lenders in order to drum up the scratch that will fund their ongoing education. The hope is that all of this will lead to a high-paying job that allows for repayment of the loans. But before you take the money and run, there are a few things you should know about taking out student loans.

The upside of government loans. In the interest of providing for a more educated populace, the government has seen fit to offer student loans by way of federal financial aid. In fact, this comprises the vast majority of all student loans (somewhere between 90 and 95%, it is estimated). And the benefits for students include no onus to repay until school is completed, as well as lower interest rates than those offered by other lenders. It’s a great way for students to cover expenses in college without the worry of an immediate repayment schedule to contend with.

January 23, 2013

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