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Student Loan Payment Options


There are a few options available for those repaying their student loans who need a lower monthly payment.

The first one is income-based. They actually will consider your income and determine how much you can pay per month. This can be nice when you are still looking for after-college employment and enter repayment on your loan.

The second option is the graduated payment. With this option, you start off just paying the interest on your loan. This leads to a lower monthly payment. Then, after a certain timeframe, your monthly payment is increased. It will keep increasing (graduating) to a higher monthly payment until the loan is paid in full.

For our student loans, I decided to have both of them under a graduated payment for the time being. As soon as the credit cards are paid off, then I will probably change the status of our school loans to a normal payment plan and even send additional payments.

There is a downfall to the graduated payment plan. I will end up paying more in interest and the total amount that I will have paid to my lender is quite substantial. But, at the time it is the best option.

The important thing is to choose the option that is best for you.

Technorati Tags: student+loan+debt, debt, payment+plan, credit+cards

A Personal Loan to Play Credit Card Balance Transfer Game


A few months ago, Credit Card #1 decided to raise the interest rate on me again. I was so flustered that I soon was on a mission to get that debt off of that card.

I actually went into two banks and discussed the possiblity of getting a personal loan to pay the credit card so then I can turn around and transfer the loan balance right back to the credit card (to take advantage of their 0% interest balance transfer offer).

I had all of my papers with me, including the offer from the credit card stating the end date to accept the balance transfer offer.

It didn’t take long for them to say “No.”

I briefly then considered finding a loan shark, but decided against that choice. I guess I will get rid of Credit Card #1 the old fashioned way.

Technorati Tags: balance+transfer, personal+loan, interest+rate

A Warning About Pay Day Loans


You have probably seen advertisements where you can get a cash advance until pay day. These are typically called “Pay Day Loans.” You bring in prior paystubs and let them know how much you want to borrow. You get the money right there, and you have to pay it back when you get your paycheck.

Make sure you read the fine print.

The rates on these short-term loans are astronomical. Is it really necessary that you have the money right now? Is it possible to get an interest-free cash advance from your employer? Even if it is difficult to ask your employer, it is worth a shot.

Another thing to be careful of with these loans is getting in a viscious cycle where you are continually using the services because your normal cycle of pay day spending has been altered. Every time you get one of these loans you are paying a lot in interest.

Pay day loans can be great for times where you absolutely need the funds and you cannot get them any other way. Just be careful.

Technorati Tags: pay+day+loans, cash+advance

Consolidating Student Loan Debt


You see advertisements all over the place where you can get really low student loan consolidation rates. Just be careful and do your research!!

My student loans have been consolidated together. At the time, the interest rate wasn’t that low, but what it did was lump the debt together and I only had to make one loan payment a month. I really enjoyed that feature. My husband’s loans are also consolidated.

Now, why did we consolidate our loans together to have just one huge loan?? There are a few big reasons why we haven’t done that. Please note that this might not hold true for all consolidation vendors, but it did for the company our loans are through. The minute we put those two loans together, they cannot ever be separated. Now, I hope to be married for life, but things can happen. It’s not too hard to divide the checking account balance. It would be very difficult to try to split up student loan payments. So that is one reason. Another big reason is that both of our names would be tied to the large consolidated amount. If something happened to one of us, the other would be responsible for the full amount. As I understand it right now, if something happened to me tomorrow, my loan would be forgiven and my husband would not have to pay it back. That would not be the case if we combined our loans together.

Don’t take my word for everything here, because this has just been my experience. Things could be different for a company that you are consolidating your student loan debt through. Just be cautious and read the fine print.

Technorati Tags: debt, student+loan+consolidation, student+loan, consolidate+debt

Smarter Auto Loan Debt


When you are thinking about buying your next vehicle, think twice before purchasing a brand new car. The minute you drive that car off the lot the value of the car declines by thousands of dollars. Unless you are putting down a good amount of money for a down payment – your car loan will quickly surpass your car’s value.

To prevent this, try to find a nice gently used vehicle. The price is often more affordable and you will not suffer the huge loss in value that you encounter with a new vehicle. In a nutshell, you will get more car for your buck, financially speaking.

Unfortunately, mechanically speaking, that is a whole different story. Any car you purchase is worth trying to negotiate a warrenty.

Technorati Tags: auto+loan, car+loan, down+payment, car+value

My Mortgage Debt


After looking at my debt, you may be wondering why I have such a low mortgage debt.

It may be hard to believe, but my home only cost $35,500. This value reflects the general real estate trend of the area. Most homes are very affordable where I live compared to big cities. If I was living somewhere else with my income, I would not have been able to purchase a house.

When I applied for mortgages, even obtaining one for $35,500 was a challenge due to my debt. But I was working with a wonderful woman who tried her hardest to get my family into a home. And she was able to do it.

Technorati Tags: mortgage, mortgage+debt, real+estate

My Student Loan Debt


I have a decent-sized student loan debt. Not quite $10,000 but close. My husband, on the other hand, has almost $30,000 in school loan debt.

At the time, it seemed like a good idea. Take out a loan to help pay for books and such in addition to your schooling. You don’t really think about what you are going to have to pay once you get out of school. What’s another grand in debt, right? That was my attitude.

I often wonder what it would have been like if I was able to graduate from college debt-free. There is actually someone I know who is trying his hardest to make sure his daughter graduates from college without debt. He is practically putting himself in debt to try to make a nice transition for his daughter into the real world.

You know how I feel about debt, and I will say often that I wonder what it would be like if I didn’t ever have it. But deep down, I think having that mountain of debt when I ventured into the real world has helped me grow up ALOT. While others were partying, I was working trying to pay all the bills. I think I turned into a responsible adult as an indirect result of my debt. But, enough of that. I still don’t like debt 🙂

Technorati Tags: debt, student+loans, college+debt