Student Loan Debt Consolidation

There’s no way around it. If you took out student loans to pay for college, you have to pay them back. That can be hard to do, whether you’re still in school, trying to start your life outside it, or even 10 years down the line. You borrowed the money, you used it, and you have to pay it back.

What happens when that means you have to choose between paying all your bills or just those? What happens when those outstanding debts get in the way of putting money together for a house, or a car, or a family? It just doesn’t make sense to walk through life incurring the debts of living while you’re still dragging around the ones from school.

Fortunately, there’s a solution. You still have to pay back what you borrowed, but with a student loan debt consolidation make monthly payments to just one lender.

Think of it as refinancing. The money you borrow from one lender pays off the money you owe to all those other lenders. No more juggling what’s due to whom and when. Not only that, the interest rate on the student loan debt consolidation is the weighted average of those other loans, making it lower overall and bringing your monthly payment down accordingly. Some student loan debt consolidations are settled at a fixed rate, so you don’t have to worry when July 1 rolls around each year that your payment will go up.

Among the student loan debt consolidation available, there are actually four different student repayment plans to research and one is bound to be just what you’re looking for.

If the idea of a fixed rate really appeals to you, consider either the Standard Repayment Plan or the Extended Repayment Plan. The Standard Repayment Plan gives you a maximum of 10 years to repay, but payments are divided within that time limit at a fixed interest rate.

Extended Repayment Plans relieve the burden of monthly payment amounts still further by stretching the time to pay off the loan to between 12 and 30 years (depending on the total amount borrowed). Again, the interest rate is fixed for that time period, and the payments are lower. Be aware that over time, you will end up paying a larger amount, but the monthly payments will be easier to bear.

The Graduated Repayment Plan also allows you to spread your monthly student load debt consolidation payments over a period of between 12 and 30 years, but in this case, the amount of your monthly payment will increase every two years.

The fourth plan appeals to a number of people because it takes into account what’s going on in your life. In the Income Contingent Repayment Plan, a reasonable monthly payment amount is determined based on your annual gross income, family size, and total direct student loan debt. Another advantage of this student loan debt consolidation repayment plan spreads the payments over 25 years.

If you’re close to the end of your student loans, consider carefully whether taking on a new loan is worth the time and effort. However, if you still have a long time to go and many payments ahead of you – and you’ve already exhausted the deferment and forbearance options on your existing loans – making a fresh start with a student loan debt consolidation may actually be to your benefit.

Technorati Tags: debt consolidation, student loans, debt, debt reduction

Canceling your credit cards

If your credit cards are ever stolen you are advised to cancel them immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.

Be safe and write these numbers down and keep them in a secure location. A safe would be a good start.

Technorati Tags: credit cards, personal finance, security

Consolidating credit card debt

Consolidating credit card debt

Is consolidating credit card debt a good option?



The answer will more often be yes than no. Consolidating credit card debt is often regarded as the first step towards credit card debt elimination. However, even before you move to take first step towards consolidating credit card debt, you must understand that consolidating credit card debt (or balance transfer) is an action that you are taking to eliminate credit card debt. Consolidating credit card debt is not a means of deferring the problem for later.



Consolidating credit card debt is indeed a good option in more than one sense. Not only do you get relief from the rapid increase in your credit card debt, but also get other benefits too. Offers for consolidating credit card debt are in abundance and are very attractive indeed. Almost all the offers for consolidating credit card debt have an initial low APR period during which the APR is generally 0% (or some low figure). In fact, this is one of the main things which make consolidating credit card debt a very attractive option. Besides this low APR, the offers for consolidating credit card debt also include things like no interest rate on the purchases made during first 5 months (or some other initial period) of balance transfer. This is another thing that lowers the speed at which your credit card debt gallops. So these are the two most important benefits that credit card suppliers deploy to attract people into consolidating credit card debt with them. Then there are other benefits which include things like additional reward points on the member’s reward program of the credit card you are consolidating credit card debt to. These reward points can be redeemed for other attractive goods/rebates/rewards etc. Sometimes, the new credit card (i.e. the one you are consolidating credit card debt to) might be a credit card that caters more to your current spending needs both in terms of the credit limits and the way you spend your money. For example, the new credit card might be a co-branded one offered by an airline that you have started traveling with very frequently in the recent times and consolidating credit card debt on such a card may open up much more benefits as compared to your current credit card which was based on your needs at the time of you applying for your current credit card. The credit card you are consolidating credit card debt to might open up discount offers to you.





Technorati Tags: debt, debt consolidation, debt reduction, consolidation, finance

Use Debit Cards Instead

Use a Visa or Mastercard Debit card rather than a credit card. By using a debit card there is no loan as there is with a credit card. Therefore, since you are not borrowing money there is no over the limit fee or late fee as there is no monthly payment required.

If this is a Visa or Mastercard Debit card attached to your bank account make sure that you deduct any purchases from your balance so that you do not have a check bounce. Another way to get a Visa or Mastercard Debit card is to purchase a prepaid one from a store such as Walgreens.

Technorati Tags: debt, debit+cards

Financial Security Tips

Part of staying out of debt is to protect your finances from theft from strangers and other people who could get ahold of sensitive information.

In using credit cards or debit cards for that matter it has been advised as follows: Do not sign the back of your credit cards or debit cards. Instead, put "PHOTO ID REQUIRED."

This information could save you thousands if your credit card is stolen. Remember be financially secure.

Earn extra money to pay off debt

One of the first things that you can do in order to reduce debt is to earn extra money in order to pay off that debt faster. The Internet offers many opportunities for you to earn extra money. Some of these opportunities are actual jobs. But be aware. You should never pay extra money in order to work for a company. (This does not hold true with network marketing, but that is having your own business, not a job).

There are databases and tools available in order to find and work at these jobs. One of the few that I would recommend has a small fee of $15 in order to get set up with them. This is not a fee to work for them. What it entitles you too is their database of jobs from various employers as well as many tools for you to be able to work from home or rather telecommute. The name of the website is Telecommuting Jobs. I urge you to check it out today if you are either looking to work from home with an actual job or to earn extra money this way.

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