Debt

The burgeoning student loan crisis in America – Staggering changes to student loans in 2016

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Gradually it’s getting tougher and tougher to graduate from college without taking resort to student loans. About 75% of the recipients of bachelor’s degree leave their school not only with a degree but also with huge amounts of debt. Research reveals that the humongous amount of $1.2 trillion in student loan debt is playing a role in preventing the Americans from making any type of big purchases which drive the growth of the economy. Not many are being able to buy new homes to rent an apartment only because they have huge amounts to pay back on their student loans.

The student debt crisis has in fact become so huge that it has even gained attention of the presidential candidates who are watching out for different ways in which they can make college affordable by reducing college and tuition costs. Approximately, around 40 million Americans with student loan debt are desperately looking for ways to manage debt.

Student loans – A sneak peak at the recent changes that can help them pay off debt

After reading such gloomy student loan debt statistics, you must be looking for something positive. Well, students are lucky enough that there are so many new programs which are being brought into effect in an effort to relieve the borrowers from debt. Here are some developments to take note of.

? The REPAYE Program: This program was introduced in 2016 as along with the income-based repayment programs. The REPAYE or the Revised Pay As You Earn programs provides assistance for repayment to a supplementary of 5 million borrowers each year. Borrowers can easily cap the student loan installment in a month to around 10% of their discretionary income. Those seeking help of this program can have their remaining balances waived off or forgiven after they have been making timely payments for 20 years. However, the amount forgiven is taxable.

? Loan repayment assistance is now a workplace benefit: As per a study from the SHRM or Society for Human Resources Management, around 3% of the US employers have started offering loan repayment options as a part of employee benefit. This number will most likely grow as more and more employers start understanding the importance of this benefit. Almost more than half of the respondents of a survey said that student loan assistance was better than 401(k) contribution match.

? Refinancing options sponsored by state: As federal benefits are done away with and eligibility criteria tightened for the large number of graduates, more states now started offering student loan refinancing options for the borrowers in debt. Through their new SELF Refi program, residents in Minnesota with debt could be able to refinance at rates which are as low as 3%. By offer state help, students might just waver from seeking help of private loan options.

? Get On Your Feet Loan Forgiveness Program: This is yet another one-of-a-kind loan assistance program offered on the state level. The Get On Your Feet Loan Forgiveness Program has started in New York and the program provides up to 24 months of debt relief to college graduates who live in the state and meet few eligibility requirements.

? A hope for a new President: It has been unanimously acknowledged that President Obama made a number of changes to the landscape of student loans during his terms. With the 2016 presidential elections, people can again expect a new President and along with him a set of new policies for the students. Though it is unsure about who is going to serve the nation, yet all the Presidential candidates have shared their student loan reform plan. Federal student loan refinancing, reducing loan rates are some changes that would definitely be included.

We have to leave it on time to know whether or not the above mentioned changes will remain or disappear but for now the students have definitely been given easier ways to pay off their student loan debt and live a debt free life.


A Simple Way to Clear Student Debts

Studies get hampered to a great extent when debt takes a permanent place in the life of a student. The problem arises when the debt burden becomes unmanageable due to additional expenses to meet the basic needs. The features of providing loans to students are included in the debt consolidation loan facility to meet the urgent need of money to students. This kind of loan facility differs from regular payment schemes and reduces the debt burden that the borrower has to pay every month. Everything related to the payment of the loan amount is consolidated and streamlined into a single payment every month.

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Any student with a loan amount exceeding $7,500 can apply for student loan debt consolidation but the prevalent criteria vary to a certain extent for private and federal loans. So, it is better to check the terms and conditions of the lending company to avoid any ambiguous situation arising in future. Once the applicant has been considered for such consolidation facility the concerned company will get in touch with the present lenders personally to start making the repayment process. The best part is that this facility keeps the interest rate fixed while waiving the penalty in case of early repayment.

The best time to apply

The recent global scenario has made loan debt consolidation for students a necessity rather than just an option, to handle the overall financial burden in an orderly manner and for timely arrangement of debts. Not only this, the personal credit rating is also affected to a great extent with the incurring of debts which can only be improved by consolidating student loan. This in turn will allow for improvement in life through the acquisition of car and personal property.

Most of the loans taken by students are required to be repaid after the student completes his/her course while certain federal loans for students provide a time period of up to three months post completion of course after which the loan amount needs to be repaid as per stated installments. Some of the loans provided to students cannot be consolidated until the end of his/her study career. This is why it is better to initiate the enquiry process for loan consolidation prior to completing studies so that as soon as the applicant becomes eligible to apply for such loan the process can begin.

Applying for a loan online

In this tech-savvy environment everything is just a click away making even the most strenuous and burdensome tasks look easy and quick. The student loan debt consolidation can even be acquired through the online mode. All the hard works like research and scrutiny are performed by the internet to make the search process easier and convenient for students. Everything related to the terms and conditions of different loan consolidation companies including the latest news and information can be acquired from the World Wide Web. This provides an opportunity to students to compare among different available options and select the best one that gives the maximum benefits.


Secured and Unsecured Loans – How to distinguish between them

A personal loan is always there to improve your financial situation whenever you find yourself amidst financial challenges. Even under circumstances when you need some money for purchasing something, such loans could be of great help. Your loan amount may vary depending on the terms of repayment, rates of interest and principal amounts. Secured and unsecured loans are the two types of personal loans that you come across in the market. You must understand the differences between these two categories in order to avoid trouble in the future.

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What is a secured loan?

A loan that needs collateral is termed as a secured loan. You must put up something worthy of meeting the lender’s losses in the event of your failure to repay the loan amount. It will enable the lender to recoup much of the loan amount by selling the object that you put up as collateral. Besides using jewelry, you may use your land, vehicles and properties for putting your collateral. This type of loan is described as “secured” due to its nature. Loans of this type turn the lenders more flexible and let them provide bigger amounts as principal, longer periods of repayment and better charges and rates for the borrower.

What is an unsecured loan?

A loan that doesn’t need collateral is termed as an unsecured loan. This option proves a lot safer from the perspective of a borrower. It protects the borrower from losing something important or valuable like that of his home. It tends to be riskier from the perspective of a lender. That’s one reason why the lenders run credit checks and issue loans worth smaller amounts. An unsecured loan helps you to reimburse amounts that you spend towards small purchases, home repairs, using cars or going out on vacations. Till you posses a good credit score and earn handsomely, you can’t expect a loan more than $10,000.

Qualifying for an unsecured loan

When it comes to an unsecured loan, you’ll need to qualify as per a few basic criteria. In the event you don’t meet these norms, you won’t qualify for the loan regardless of how many credit cards and loans you possess.

Loans can’t be issued to minors; you must be at least 18 years of age at the time of application. In order to prove your capacity to reimburse under usual circumstances, you must show a regular monthly income worth $750.

In case you’re applying for loan with a big lender or bank, they will run a credit check to determine your financial stability. Your loan application may be rejected, if your credit history shows any black mark or in case you’re a payment defaulter.

With loans, you’ll need to repay the principal and an additional amount as interest. The interest that you pay is calculated as per the APR (Annual Percentage Rate). This is a portion of the principal that’s calculated every year.

The lender’s wish to create a repayment plan for you seems natural when you can’t make your loan repayments. In case this repayment process fails then they may take any civil action against you or start collecting the proceedings. It could be taken in the event any collateral is placed by you, otherwise you might need to pay the interest back over a longer period of time.


When debts are Good….

When debts are Good….

Debts are bad..but not always. We can give you not one but more reasons to show why even debts can be good- why it is only prudent on the part of businesses to be financed by debts. There are several opportunities to be seized.

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Why are business debts not that bad?

The tax deductions might as well end up acting as one of the major reasons why businesses would want to have debts. Corporate tax rebates can be described as a potent means by the help of which government goes on to encourage businesses to have debts. Don’t you think it’s more than enticing to have substantial rebates on corporate taxes tipped at 35%? Thanks to these deductions, a company’s cost of debt might as well end up being below 5% after the tax break along with the rate of interest is considered.

Business debts encourage faster growth as well. Let us consider the example of two businesses in a situation where both these businesses make profits worth $20,000. Now both of them can add to their profits by investing in equipment worth $2, 20, 000.the first business waits for a year to make the required savings – assuming that they can make the best use of the opportunity in the year ahead without incurring debts.

The second company, on the other hand, decides to leverage its existing profits, secures a debt, purchases the required equipment and chalks out a solid scheme to use the additional earnings from the equipment to repay the debts. Needless to say, the growth process of the second company starts way before that of the first company. The second company gets a whole extra year to work on its growth plans.

Business Debts are far better options than Equity

Another reason why businesses turn to debts is because they (i.e. debts) are much cheaper than equity. Debts are way less risky than equity. Typically, a company has no legal obligation to pay off dividends to the stakeholders. Additionally, shareholders are the first people to lose their money when a business goes bankrupt. There is no such risk associated with debts- owing to the very simple fact that companies are legally obligated to pay off debts. When it comes to returns on equities, much of them are associated with stock appreciation. An investor goes on to charge at least 10% of the returns. Debts are definitely cheaper.


Why Debt Consolidation and Credit Counseling ARE For You

Why Debt Consolidation and Credit Counseling ARE For You

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Usually when you see something recommended on the internet, the place recommending the thing doesn’t push too hard. “Such and such MIGHT be for you,” the phrase always goes. But when it comes to debt consolidation and/or credit counseling, there really are no Ifs, Ands, or Buts about it. Learning about credit, while killing off your debt – there’s simply nothing better you can do for you financial future. If you are not already debt free or the expert in your friend group on credit, you’ll do well to start changing matters immediately.

Vantage Acceptance is the company that can help. Vantage helps people with credit and debt problems. For the former, they have credit counseling services which can help you understand the inner workings of your credit score. They’ll also show you how different levels of credit health will influence every aspect of your financial future. By the end of your learning process, you should be equipped with knowledge that can make your credit score shoot up fast. For people with debt problems, Vantage takes an entirely different approach, one that has them acting more as a financial entity than educational resource.

This method is called Debt Consolidation. Largely unknown in the rest of the world, debt consolidation is a loan meant to cover all of a consumer’s debt all at once. To make this a little more clear, let’s look at a made up example:

Let’s say you’re Pete. Pete has 7 credit cards, all carrying various levels of debt and with different rates of interest and fees. They all have different monthly payment-due dates, and each of these monthly minimums is a different dollars amount. It’s a lot to keep up with an it’s incredibly expensive; Pete’s most expensive credit card costs him 25.9% of the balance each year, just to pay for the privilege of having borrowed that money (as well as to cover the risk carried by the lender that Pete might just NEVER pay the money back).

Pete approaches Vantage and asks for help with debt consolidation. They look at the $42,394 in debt spread out across his seven credit cards, and issue him a loan that lets him pay it ALL back at one time. Pete is ecstatic. He doesn’t have credit card reps calling him at weird hours, threatening to sue him if he doesn’t make his payment. Now all he has to worry about is paying one monthly payment to one company (Vantage). The best part is that the yearly interest and fees are MUCH cheaper. Vantage customers often pay less than 10% annually, allowing them to kill off their debt faster, without accruing much more in the meantime.

Surely, you are in one situation or the other. You either need to understand credit better (credit counseling) or you need someone to help you climb out of the debt hole you have fallen into. Vantage is a one-stop-shop for all such credit needs, and they can get you back on the right track faster than you thought possible, if you even thought it WAS possible.


Solved: The Biggest Financial Problems Students Will Face

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When we look back on university, we often remember the challenge to get good grades. We completely forget about the challenges of handling money effectively or the issue of paying for everything we need. In some cases, this will be because our parents paid for most of what we needed. Or, because we were lucky enough to get a scholarship for our chosen course. However, the cases of this are fewer than most people realise. For many, college is not just an academic challenge. It is a continuous financial struggle. That’s why you need to know how to deal with the greatest expenses during college and after you graduate.

Living Expenses

If hall accommodation is included in your college fee, you might want just to stick with that. However, if you need to find your own accommodation after your first year, you may want to think of options that will reduce the cost considerably. First, you can think about moving back home, if it’s not a commute that’s unmanageable. Most college students will hate the idea of living at home when they complete their college degree. We understand it’s a complete turn-off. You want your freedom when you’re at college and your independence. However, you have to decide whether that’s worth the financial debt you’ll face after you finish. Another option to consider is having a few roommates. Living with five or six people is financially easier, as you can share costs.

Recreational Expenses

College isn’t just about learning, and you would be wise not to forget this fact. There are parents out there who would love if their kids focused on classes and avoided going out at college, completely. However, if you do this, you are probably going to burn out pretty fast. Unfortunately going out and other recreational activities are expensive. So what’s the solution here? Well, budgeting is key, and you should watch how much you’re spending each month. Have a fixed amount that you can spend and don’t go over it. You might also want to look into getting an interest-free credit card. This is going to make those costs a lot easier to manage. They can build up on the card, and you won’t need to pay them off for a year or two.

Handling The Loan

Of course, one of the greatest financial hurdles is working out how to pay off the loan at the end of your college life. We recommend you look into a nonprofit service loan forgiveness. With this type of service, part of your loan will be forgiven, and you should find it easier to pay. Remember, there are plenty of repayment plans to consider when managing your student loan. It’s a burden; there’s no doubt about that. But it doesn’t have to be one that’s long lasting.

Low Income

Lastly, many grads will find themselves on lower incomes than they expected once they finish college. Unfortunately, this is just a fact of life. If you get great grades, you might win your dream position. But you’ll probably still need to climb the ranks. Living on a low income is difficult but possible, without going into debt. Again, budgeting is key, and you need to make sure you’re not spending over your level of income.


Do You Have Bad Credit? Here’s How To Fix It

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A few simple mistakes and your life can take a big hit. At least, that is how it feels when you have bad credit. Just whispering the words makes banks run and hide. And, if you are in need of a cash injection, you need them out in the open. Of course, there are ways around bad credit. But, the best option is to repair your score. Then, you won’t have to worry about securing a loan ever again. Here are a few tips that will help you achieve your goal. Source Credit

Pay Off Your Debts

‘Of course – why didn’t I think of that solution?’ Okay, it might sound like an obvious plan, but that is before you knew about bad credit loans. Yes, there are firms out there that will give you a loan regardless of your credit score. Obviously, you have to be careful because there are firms that will look to profit from your situation. But, if you find a good deal, you can use the loan to pay off your loans. The loan will help you consolidate your debt into one payment. And, one payment is better than four or five. All you need are sites like ReallyBadCreditOffers.com to help you find a good deal.

Eliminate Your Card Balances

Spreading your debt out over a few credit cards is a good idea, right? Wrong, because lenders take card balances into account when they calculate your score. As a result, a lot of small, outstanding balances can pollute your credit rating. The trick is to eliminate the small balances and use one or two trusty cards to pay for everything else. Then, you won’t have as many balances left on your report, which is great. Plus, it helps you consolidate your debt even further.

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Leave Old Debt On Your Report

Lots of people think that all debt is bad debt. As http://www.investopedia.com shows, that simply isn’t true because there is good debt. And, you want that left on your report. You might, for example, have paid off your car or your home mortgage. Anyone that has should leave that on their report to show that they can stick to a long-term repayment strategy. Lenders want evidence that you will be able to pay their money back. The more evidence you give them, the less risk they assume. Not all debt is bad, and the good debt will come in handy when you need a loan.

Pay On Time

The final and most important tip is to start paying all of your debts on time. Not being punctual is what got you into this mess in the first place, so it is time to make a change. Write down all of the dates and make sure you keep them in your mind’s eye. Then, set up payment strategies to ensure that you don’t miss a single payment. A direct debit, for example, comes out of your account every month on the same date. If you don’t pay on time, you won’t be able to recover your score.

Bad credit isn’t the end of the world because you can improve your score.

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Wonderful Ways You Can Work Towards Reducing Your Personal Debt

Reducing your personal debt as much as you can is crucial these days. You need to try to get debt-free as best you can. This is going to benefit you with so many things in your life, as well as reducing stress and anxiety. Use these wicked hacks to help you work toward getting out of the red and into the black.

Stop Spending

It sounds easy to say in theory, but you really do need to try to stop spending money. There are so many expenses in life these days, but a lot of them are unnecessary. So, you need to figure out where you can stop spending. This allows you to free up more cash to put toward debt reduction. You may need to gradually ease yourself out of your spending habit until you get to where you want to be.

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Debt Consolidation

Debt consolidation is one of the best ways of clearing and reducing your debt more quickly. The idea behind it being that you condense your debts into one lump sum and pay this off gradually. It makes everything much more manageable, and you remove the stress of having to remember all the debts you owe. You may even decide you want to bring in a consolidation company to help you do this. Tell them ‘I want to reduce my debt now and ask them about consolidation. This is a great way of making inroads into the debts you owe.

Monthly Payment Plan

Most of the time the debts you have outstanding will be amounts you are unable to pay all at once. You need to factor in the costs of living and any other debts you may have. You’re probably not in a position where you can fork out $800 upfront for a debt. But, at the same time, you do want to start taking steps to reduce your debt. This is where a monthly payment plan becomes so important. You need to contact your debtors and see if they will agree to a monthly repayment plan. Most of them will be more than happy to do this, and you will be able to gradually work on repaying your debts.

Bankruptcy

If you are so far into the red that you can’t see a way out you have the option of filing for bankruptcy. This is where you all your assets will be used to pay off your debts, and the remainder is written off. You will essentially have to start your life again from scratch. This is an extreme option and not one you should undertake lightly. Make sure you get as much advice as you can to help you make this decision. There are so many important points to consider before choosing to file for bankruptcy. This will help you get rid of your debts, but it’s quite an extreme course of action to take.

Personal debt can often be crippling for so many people these days. That’s why it’s essential to come up with ways you can reduce this personal debt. It’s not going to be easy, but it is entirely possible to do it. A lot of people let debt ruin their lives and define who they are, but you don’t have to. As long as you approach it meticulously, you can effectively work towards reducing your debt.

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Are low rate home loans a good option for home buyers?

homeloans2Identifying loans with a lower rate of interest doesn’t create any problem for you today. You may find it a bit difficult to compare home loans over the internet due to the competitive nature of the financial market. You must know if the lowest interest rate is in your best interest. If that is in your interest, you must learn how to make the most of it.

The Introductory Rate

In an attempt to attract fresh customers, it’s natural for the loan issuing companies to provide a honeymoon or introductory rate to the applicants. These loans will eventually prove to be more expensive although their interest rates may seem much lower compared to other loans. It’s very important for the borrowers to understand certain facts while applying for home loans. Such facts may include introductory period rate, whether it’s necessary for you to pay earlier rate before the honeymoon period comes to an end and the exceptions. The fact that it will help a borrower save dollars worth thousands in the long run makes it all the more lucrative for you to sign up for such loans.
Variable or fixed rate

A borrower needs to study the market conditions more carefully prior to applying for a loan as it helps him choose between a fixed or variable rate of interest. This is one of the most vital steps of loan searching. Going for a fixed rate loan seems worthwhile when such rates are not more than one percent over variable mortgages. Again, your decision is bound to be influenced by more than one variable.
Are these loans worth great value?

Introductory home loan offers may seem more appealing to home buyers, although the long-term worth of the loan is always the key to a successful decision. The road may seem uneven when you apply for an introductory low rate as you must consider situations when the rate pushes up to a much higher figure than what it’s worth under normal conditions. You mustn’t fall prey to a flashy initial rate.

Introductory home loans are now raising questions in the minds of home buyers as they offer a discounted rate during the short run, which is often termed as the honeymoon period. Such a honeymoon offer will usually last for about six months beyond which it will revert back to a much higher rate. This higher variable rate may initially prove beneficial for the loan applicant depending on his financial situation, but it may not prove worthwhile as it often demands more than the market average.

In comparison to a home loan worth a good value rate, the loans offering honeymoon rates don’t prove right from the very beginning. The borrowers end up paying thousands of dollars by the end of the loan term. When a certain portion of your loan is fixed, it actually protects your finances from sudden market fluctuations. A variable rate changes with the market condition; that’s one reason why a loan with a good value rate for a certain period of time is considered more beneficial. You must take factors like your current annual fees, discharge fees and establishment fees into account while determining whether the loan is actually good for you. Make sure you read through the offer document carefully prior to signing up.


Track Your Credit Score Effortlessly So You Can You Can Borrow Money!

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Too many people are unaware of their own Credit Score and misunderstand fully why we have them. Your credit score can have both vast rewards and exponential pitfalls, which effect an adult in almost every aspect of their lives. Taking an interest in what your Credit Score looks like and what effects it, will make it more likely that you can live the life you want and not just what others say you can!

Your own personal Credit Score, which you can get for free & well as tons of free information about improving your credit score, is produced by a system that calculates how reliable one is with their money and determiners how likely a person is to repay money to a Lender. The reliable likenesses is determines by many factors like your overall debt, types of, and how many, bank accounts you have, number of late payments and how old the current information is from when you are asking to barrow money from a lender. All significant financial history is recorded on a Credit Report and determines your overall Credit Score from 300-about 800. (The higher the number, the better the Credit Score.) Lenders can be individuals or companies that are allowing you to take out a line of credit in either cash or check form. This could be bank, a school, a private or commercial renter of apartments or/and houses. Which can result in all sorts of influences of your lifestyle?

credit-scoreOne in ten Americans are denied a job because of their Credit Score.  There is a source that can help people get cash even with bad credit, online payday loans no credit check, however this doesn’t work for all. Many people with poor credit are unable to get a car, cell phones, or cannot barrow the money required to buy or put a down payment on, a house! Even the amount of interest on the borrowed money that the lender demands you to pay back is a direct result of your credit score!  All of these factors, and so much more, can drastically effect the chances of being able to improve a credit score. Furthermore if you do not even know what your Credit Score is, how do you know if you need to improve it? If you have not looked at what is on your Credit Report you are under informed on how curtail everyday financial decisions are and which decision effect your future finances.

By using online sites and applications to track your Credit Report and Credit Score using free tools, like https://www.creditkarma.com/, https://www.creditsesame.com/free-credit-score/, and https://www.credit.com/free-credit-score/ not only will you know exactly what effects your score, you can also access your real time Credit Score! Not only do these sites track your credit score & give you free bureau reports, but they also offer top rated advice & additional tools to help you make your credit better.  Many advantages like these are accessible online,  and are reliable tools that need to be used to ensure healthy credit.  Learning about your credit, and the best ways to improve it is also imperative to keeping your credit healthy!  Useful alerts from these major credit report companies are able to notify you of any unauthorized information that has been recorded as an added defense to keeping your credit healthy!  With all these major tools at your disposal, not only tracking your credit, but keeping it health is much easier than ever before!


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