Saturday, 28 November 2009

Few Debt Management Plans

Following are few important debt management plans:

Debt consolidation loans

The most conventional method of dealing with debts is debt consolidation loans. Debt consolidation loan is essentially meant to arrange easy finance for clearing the mound of debts. A single loan is drawn after consolidating the various debts. One aspect that distinguishes debt consolidation loan from other loans is that the borrower gets help and guidance from the debt consolidation loan provider in the settlement of debts. Expert negotiation skills and a proficiency in debt settlement recommend the services of the debt consolidation loan provider in this regard.

Debt consolidation mortgage

Debt consolidation mortgage constitutes a major part of the debt management plans. A debt consolidation mortgage is basically a second mortgage. In this method, the borrower requests the mortgagee who holds the first mortgage to the home to repay his debts. In exchange, the borrower includes the debts while making the monthly repayments. The advantage of the debt management plan is that finance is available for debt consolidation at rates equivalent to a mortgage, i.e. at cheap rate of interest.

Debt consolidation through remortgage

While debt consolidation mortgage entails dealing with the same mortgage lender, debt consolidation through remortgage involves shifting to a mortgage lender who offers a better rate of interest. In this debt management plan, the borrower or the mortgagor requests the new mortgage lender to include several debts along with the unpaid amount on the original mortgage for disbursement. Again, this will help the borrower get cheaper finance for debt consolidation at the rates of a mortgage.

Friday, 27 November 2009

Ways to Pay Your Student loan easily

The negotiation with your debtors can be the next step. You can contact them directly to avail any adjustments in the repayment schedule or can switch on to a more convenient repayment plan. The repayment period has to be selected according to your capability to spare for the monthly installments. The lenders benefits and offers can be another helping hand to pay off the student loans. Now most of the lenders have put forwarded certain benefits and incentives for the loan repayments. The utilization of the relaxations in the interest rates and total debt is certainly advantageous to pay off the student debts.

If you have multiple debts, the best strategy is to consolidate the different loans to a single consolidation loan. Now, Federal consolidation loan is available, which will help to consolidate all federal loans, with certain pronounced advantages in the rates and terms of the loans. However, it will not consolidate the private loans. You have to seek any of the private consolidation loans to manage the private loans. If the multiple debts cannot be consolidated, then you have to pay off the loan with the higher interest rate. The regular follow up of such a strategy will certainly help to pay off the student loan easily.

In case of defaults in the repayment of the student loan, the rehabilitation programs of the lenders can be utilized as the way, which help to pay the student loan. In brief student loans can be compared to the common saying “slow and steady wins the race”. If you are able to start the repayment during the study using money from the vacation jobs or part time jobs, it will certainly help to pay the student loan early. Also, keep in mind that the extended repayment schedule is not advised in all cases as it will levy more money as interest. Hence a planned and intelligent strategy will be the best way to pay the student loan easily.

Thursday, 26 November 2009

Avoiding Student loan Dept

A student loan is a lifetime obligation until paid, and, just like any other debt, non-payment is reported to the credit agencies. For many students this type of financial arrangement enables them to complete their education and is a necessity. Students must remember that the more people that default on these loans the less there is for others that need it. Don't let it get to the stage where you will have to default, stay in touch with your loan provider. A student loan will not be discharged, even in bankruptcy, except in a case of extreme hardship, but extreme hardship is considered as having no money except for the bare necessities to live. So, before your finances get out of control, consider student loan consolidation now and lower your monthly payments with a guaranteed low interest rate.

The moment that you land yourself the most coveted first job, do not change a thing about how you live. That is quite simply the best and most foolproof way of staying clear of a student loan debt. If you live simply and follow a frugal lifestyle you can very well keep your expenses at a minimum. It is really only for a few more years to come and you can apply all your additional savings towards your loan. Not only will you save a bundle of cash but you would also be safely rid of any loan repayment worries and burdens.

Wednesday, 25 November 2009

Student Loan - The Basic Facts

Students who opt for higher studies often find that they lack the required capital to fund their anticipated study program stretching perhaps to several years. Fortunately, there are many institutions that a student can turn to for assistance for financing his education program. Except in the case of grants and scholarships, all other loans taken have to be re-paid; and unfortunately this fact does not strike the borrower forcefully enough at the time of obtaining loans. The obvious reason for same is since many repayments start only on graduation; and due to a feeling of satisfaction for the time being at finding the funds to cover more and more of the direct education costs and other education related expenses.

Qualification requirements for student loans are typically based either on your income if you are an adult learner or that of your parents if you are still dependent upon them. Student loans are available to pay for university tuition and fees as well as cost of living expenses. Depending on the amount of your annual income you may be requested to make a contribution towards the cost of your university tuition and fees. The amount requested is based on income; however unless your income exceeds a certain amount it is quite possible the amount you are required to contribute will only be a fraction of the actual cost. Even if you are required to make a contribution toward the cost of your tuition and fees, that is still better than having to fund the entire cost by yourself or else forget furthering your education at all.

Monday, 23 November 2009

How to Avoid Student Credit Card Debt

Credit card companies typically employ a very sly tactic in getting college students to register new credit cards. They usually give a very low interest rate for the first year. After the first year, the interest rate will begin to increase. Fortunately, since college students are still very young, their credit cards' limits are a lot lower than their adult counterparts who are in the corporate world.

Here are few tips on avoiding credit card trap

Look for a card with the lowest fixed percentage rate and a low or no annual fee. Read the fine print carefully - many low or 0% introductory rate offers expire in 6-12 months.

Never use your credit card for a cash advance. The fees and repayment structure associated with a cash advance are outrageous.

Have a budget! Your credit card is not free money. Budget your money so that you can pay off your balance at the end of each month. If you can’t pay off the balance, always make more than just the minimum payment.

Pay your bills on time, otherwise you’ll pay a late fee between $25-40 every time your late with a payment. Late payments will also increase your chances of having your percentage rate raised on all your credit accounts.

Request a low credit limit somewhere between $700 - $1,500. The object is to have credit available to meet some of your expenses and in case of an emergency.

Saturday, 21 November 2009

Student Debt Consolidation

The value of student debt consolidation loans depends on the amount and type of student debt you hold. Since student debt consolidation loans tend to reduce student debt by lowering the interest rate charged on the principal, their functionality depends on the average interest rate you’re being charged for your outstanding debt.
If your student debt consists on mainly federal student loans, you’ll hardly find a debt consolidation loan featuring lower interest rates. Federal student loans are provided by the US department of Education and thus are granted with no profitable terms. The interest rate charged is destined to cover administrative costs only.
Even if part of your student debt are federal student loans, you should leave them aside when consolidating, otherwise you’ll end up paying more interests on the principal and debt consolidation won’t be worthwhile. You can try some federal programs to consolidate government loans or at least reprogram your repayment schedule to make it be gentler on your budget.
So weigh the options well before going in for student debt consolidation to strike the correct balance between your monthly outgo and the pros and cons of your student debt consolidation program in terms of bonus as well as penalties.

Friday, 20 November 2009

Measures to Avoiding Debt

The recent economic slowdown has changed the life of many people and today they have realized the importance of saving. Now they won’t mind saving penny-wise as you never know when these savings will be helpful to get out of debt or pay your mortgage payments.

Its not that you will have to sacrifices many luxuries. You just need to follow a spending plan. It’s easy to create this spending plan. It can be a simple hand written graph listing your expenses or it can be as complex as a fancy computerized program tracking every dollar you spend through PDA and laptops.

When you follow your spending plan and keep it to the minimum necessary, you will be generating a surplus amount of money each month. You can use this surplus money to pay your debts until you are debt free.

Many of us have the bad habit of using credit cards even for ordinary purchases. The appeal of credit cards is the ability to pay later for items that you buy now. But using credit instead of cash is a bad habit, more so when you don't pay your credit card bills in full each month. Hence for your everyday purchases like groceries, gas, clothes, and entertainment, you should use cash instead of credit cards.

When you use one credit card to pay off your other cards and loan payments, you're not paying off anything actually. It’s like using debt to pay off debt because when you use debt to pay off debt, you end up in heavier debt than you were in the beginning.

Living below your means is the real secret to personal financial success. You can also use the surplus savings to build an Emergency Fund, which you can use for your children's college education or for your retirement plan.

Thursday, 19 November 2009

Saving Money

The impact of economic recession is yet to fade away and most of us today are extra cautious about every penny we spend. Saving money is more than a necessity these days. While planning your saving scheme, it’s important to plan for long term basis. The saving includes making some adjustments or compromises. But basically it depends how much you can take. For instance, you can choose to drive somewhere when it is very hot and you have to use your air conditioner or you could choose to go later when it is cooler outside. There are numerous instances like this which will help you save significantly if you make wiser choices.

Saving money doesn’t mean you won’t ever buy anything even if it’s a necessity for you. But of course the rule applies to things of excess. Try to look for e-coupons or free coupons on the internet. You will find options to save a buck or two here and there in this way.

It’s wise to turn your liabilities into assets. Hence, you should look for options which can make you earn extra bucks. If you have a hobby of gardening, you can use it to take care of your vegetable and seasonal fruits needs. And if you plan to think big, your kitchen garden can make you earn some extra money.

You can’t avoid daily expenses. But you need to keep a track of what you spend every month to see how much you have improved from your last month’s expenses.

Wednesday, 18 November 2009

Student Loan Consolidation

If you’ve had previous or new student loans then you’ll most likely been receiving a fair share of mail about how you can consolidate your student loans. At first the loan application process will seem difficult particularly if you’ve had more than one loan with a few different lenders. However it’s a simple process and here’s a few tips on what to expect when you decide to consolidate your student loans.

Consolidate Student Loans Step 1

Select a good lender with a well established financial institute. You can tell if they are well established because the have a verity of student loans plans and discount schemes. If you consolidate your student loans with a good lender they will be less likely to sell your loan to another lender in the future.

You should not have to pay a fee or any charges when you consolidate your student loans and there is no need for a credit check because “Federal Student Loans” are guaranteed by the American government.

Step 2

You’ll need to fill out your application form and make sure you have all necessary information about any of your student loans. The application form requires a personal reference so make sure you have one. Last but not leat you’ll have to sign the form but before you do read the fine print (terms & conditions) and ask about the incentives and discounts that come with the loan. Most lenders who consolidate student loans will have a calculator so you know what your repayments will be.

Step 3

Once you’ve sign and posted your consolidate student loan application your new lender will send all your previous lenders a “Loan Verification Certificate” to verify the total amount of your previous student loan. It should take around 30 days to return the loan verification certificates. Interest rates will be finalised along with the disclosure statements.

Tuesday, 17 November 2009

How to Save Money on Gas?

Get a gas membership card. Look for membership benefits. In addition, department and grocery stores give discounts at the fuel pump when you use their store membership cards.

Give your car a good tune up. While giving your car a tune up won’t actually save you money at the pump, it will save you in gas. Using less gas saves you money over all. Have the oil changed, and have a certified mechanic give your engine a twice over.

Buy a hybrid car. Not only do hybrid cars give you immediate savings at the pump, the government and your local state offer tax breaks for people that use gas saving cars. Federal deductions for using gas saving cars can be as high as $2000. If you can’t afford the growing number of hybrid cars out there, consider getting a regular car with good MPG (miles per gallon).

Turn off the AC. Running the car’s air conditioning puts extra strain on your car’s engine. This translates into your car eating up more gas per mile. Use less gas, save money. Depending on the car you drive, at highway speeds, the AC might put less drag on your car than if all the windows are open. Therefore, you might want to keep it cool on the highway.

Friday, 13 November 2009

Simple ways to save money

Here are few simple measures to save money from your day to day basic expenses.


Check phone bills a few times a year, reviewing calls and costs from at least three months before. Take note of the rate of local, long distance and international calls, and compare them to new packages and offers from other providers.

Credit Cards

Switch to a card with a low annual percentage rate (APR) and get rid of excess cards, keeping the two you use most, or pay with cheque, cash or debit card at the till. Reduce fees by avoiding late payments , staying within your credit limit and save hundreds of pounds a year by paying a credit card balance by its monthly due date.

New Cars

Save hundreds on new car purchases by selecting one with low maintenance, petrol and repair costs, and researching low financing and insurance rates for that car. Checking quotes with at least four dealers, letting them know you're contacting other sellers, will give you a clear idea of the actual cost.

Car Rental

Shopping around is a great tool to compare the prices each car rental agency offers, and can save you quite a lot on basic rates. Always ask the agent about any additional charges before booking, and be sure to inquire about special offers the company might be running.


Compare the prices of petrol at many stations. Keeping a well tuned engine and properly inflated tires at the proper pressure could snag you an extra £20 at the end of the year.

Airline Fares

Flexibility is key to saving a bundle on air travel; buying in advance, using low fare carriers and taking trips with Saturday evening stay-overs can bring the cost of your flight down by as much as two- thirds!

Thursday, 12 November 2009

Saving Money for Future

Many people have never been taught to save and as children, immediately spent the money they received without any forethought. You often hear people say, “Life is short, if you want something buy it now”, but thankfully for most of us life is not really so short and along the way we will have to deal with both opportunities and challenges. Having some money saved will help you make the most of the opportunities and ride the challenges.

If you could save 20 percent of your salary each month, imagine what that would mean in real financial terms. For example, if you earn 2000 pounds per month and you saved 20 percent or 400 pounds out of every pay cheque, after 12 months you will have saved 4800 pounds! Regularly saving this amount of money would give you the financial freedom to take advantage of more of life’s opportunities. You could plan the special holiday you have always wanted to go on, buy the car that you have been dreaming about for years, or help put a child through college.

As we have already seen, knowing exactly where your money is going is the starting point. Next, start thinking about the big things you could achieve with some money in the bank. Some people compensate themselves for not having what they really want, by making many frequent small purchases and getting a temporary “feel good” sensation afterwards. Rather than satisfying yourself with small purchases, such as new clothes and CDs every week or always buying the latest mobile phone, think about how much more satisfying it would be to save up and buy or do something special, which you previously thought was out of your reachScience Articles, but is achievable with a little effort.

Wednesday, 11 November 2009

Tips on How to Save Money When Buying College Books

College students are often surprised by the amount they have to pay for collage books each semester. If you add it up over the course of the year it can prove to be a very expensive part of your collage education. But there are ways to save money when you buy your college books, and here are a few tips on how you can do that.

First of all, recognize that the most expensive option that you will have for buying your college books is to buy them at the school bookstore. Traditionally, university and college bookstores mark up the prices on their college books by quite a bit more than you will find almost anywhere else.

There are advantages to buying from a university bookstore however, including the convenience and time saving factors. All you have to do is just visit your campus, go to the bookstore, get your books and pay your money.

A second option for buying your college books is to get them from an off campus bookstore instead. The advantages in using this kind of bookstore is that you can usually save money on the price of new college books, and they usually have a better selection of used books as well.

However, the best way to save lots of money on college books is to buy them online at the Amazon or Ebay websites. Here is where you can get your best deals on both new and used college books anywhere. Many students that have taken the course that you will be taking, will be putting their college textbook up online for sale at a greatly reduced price.

Tuesday, 10 November 2009

Student debt and the role of Credit Card

As a student, your most common types of debt are student loans and consumer accounts, better known as credit card debt. These debts are handled differently when it comes to getting debt help. Credit card debt must be repaid in full for it not to have a serious negative effect on your credit.

Students should be aware of the fact that credit cards geared towards students often come with high interest rates and many unfavorable terms. This is largely due to high default rates among students than among other age groups. Another reason for the high rates is that students usually have limited credit histories. A point to note for the students is that the credit card should not be considered as a source of income. Even though students have good intentions of paying off their bills in a timely manner after they enter the workforce, such intentions are never realized. Most often, students lack money managing skills which hit them hard when they use their cards to the maximum limit. Some of the credit cards issuers do not require parental approval for issuing credit cards to students. This leads to further mismanagement of money by the students as they are given access to a credit card with pretty high credit limits, which they assume to be their money and spend on various things. Debit cards are good alternatives for college students

Monday, 9 November 2009

Save Money by shopping online

Following are the some of the benefits of shopping online.

Price range: The price is normally low due to the heavy competition that prevails in the online industry. Cheap online shopping is very much possible which attracts millions of people to sit in front of the system to purchase the products. The fact is that you are doing away with intermediary dealers that will reduce the cost a bit.

Research capabilities. The Internet allows you to easily compare products and prices, so you can be sure that the item you purchase is the exact item you want. Online merchants can publish much more information about their product on a website than they could affordably publish in a print catalog. And online stores give you the ability to share information and reviews with other shoppers who have firsthand experience with a product or retailer. As Internet connection speeds continue to increase for larger segments of the population, these types of interactive features will become even more important., a leading shoe retailer, for example, allows you to view most shoes from as many as eight different angles, including a close up.

Increased selection. Warehousing logistics can be much simpler for an online retailer, and many of the online superstores have a staggering inventory to choose from. Plus, as a consumer, you can avoid the inconvenience of physically traveling among online stores to comparison shop. A simple online search can lead you to the right product at the right price, fast.

Time saving: Online shopping is quite convenient and time saving. The fact that everything and anything that you might need is available online, it makes the entire experience of online shopping desirable and time saving.

Friday, 6 November 2009

How to Save Money on your grocery bill

Saving money and being more frugal is neither a science nor an art; rather it is somewhere in between and requires your commitment and hard work. Saving money takes time to develop, needs to be learnt, and brings benefits that will endure for the rest of your life.

What you save falls between two activities and their difference, how much you make and how much you spend. Since you have more control over how much you spend, it's wise to take a critical look at your expenses. Write down everything you spend your money on for a couple weeks or a month. Be as detailed as possible, and try not to leave out small purchases. Assign each purchase or expenditure a category such as: Rent, Car insurance, Car payments, Phone Bill, Cable Bill, Utilities, Gas, Food, Entertainment, etc.

Eat seasonal fruits and vegetables as they are low in cost and taste better than cold storage out-of-season food items. They also provide variety in your meals throughout the year. During season, when items are available in bulk, you can even freeze items, such as peas and carrots slices, and use them later. Seasonal fruits and vegetables can also be used to make juices, soups, jams, ice creams, and chutneys.

Storing grocery, vegetables and fruits properly will keep them fresh longer. Coriander, mint celery, lettuce and other greens can be wrapped in newspaper or brown paper and stored in your fridge for a longer time. If you remove the stems of green chilies, they stay fresh for a longer time. Food items, such as dry fruits last longer if stored in the refrigerator.

Thursday, 5 November 2009

Some Key Facts to Know About College Student Loans

The basis of funds for a college loan does not modify the potential of the student who is awarded that loan. Every lender of a college student loan has certain obligations.

A person who is awarded one of these student loans should also be provided with information about the balance owing on the loan and the payment options.

Rights of Students Awarded One of the College Student Loans

A student who struggles to make payments on a student loan has a right to defer payments for a defined period.

A student who feels unable to fully repay a loan might qualify for forbearance on that loan. College student loans give qualified students the right to request such forbearance.

Obligations of Students receiving one of the College Student Loans

While any student can request deferment on a loan, or forbearance on a loan, the student making that request cannot assume that it is granted.

The student must continue making payments on his or her college loan. Moreover, the student must keep the lender informed of any changes to his or her vital information.

A student can maintain a decent credit score if he/she fulfills all the above-mentioned obligations. Such a student has clearly shown a willingness to act "in good faith" towards the lender of the loan money.

Wednesday, 4 November 2009

Cannot pay Your Student loan? – Some Helpful Tips

The first thing that you can do is apply for deference if you don't think you can make a payment. You can defer payments for a variety of reasons, but the most common is the grace period after college, or deferring payments while in college. You can also defer payments due to lack of a job, or a sudden change in available income. You still have the interest accruing, but you don't have to make any payments during the time you are deferring your bills.

Deferment can be classified into four categories

(a) In school deferment

(b)Unemployed deferment

(c)Unemployed deferment

(d)Economic Hardship Deferment:

Forbearance Student Loan

This is an excellent option that you should strongly consider. Nearly all lenders will offer this option as they don't want you to default on the loan.

The terms allow a variety of ways to help you ease the burden of paying off your loan. The options include; a temporary stop on your repayments, a pay interest only agreement, or a payment amount that is less than the normal repayment amount. A Forbearance loan is not as good as a deferment loan as you will still need to pay the interest amount back unlike a Stafford loan where the government pays the interest for you.

You can also request that you have an income based payment. This is a payment that allows you to only pay a certain amount of your income on your student loans. This is usually somewhere around 10-15 percent of your income depending on how much you make. This is available on all federal loans that might be taken out.

Tuesday, 3 November 2009

Debt Counseling to Avoid Debt

Many people are not aware of the actual operation of their credit card. The unawareness results in many people accumulating debts that are far more than what they can afford to pay. Surveys show that almost 75% of credit card holders are not aware of their balances, not even the amount they are paying off monthly. The point here is that paying the minimum balance on your credit card will not get you any farther. It may lessen your actual balance but may only aggravate the situation because of the time it will take you to finish everything off.

Debt counselors can provide you completes details on money management. Here, they teach you how to manage your expenses and your credit card bills. Debt counseling programs will teach you how to be aware of your credit card billing statements every month. In this way, you get to be conscious of your expenses and on your available credit limit. The key is not to exceed your credit limit so as not to accumulate debts.

The problem with most consumers who are heavily in debt is that they are not aware of their monthly expenditures, thus, tending to cross over the specified credit limit.

Debt counseling will teach you not to use you credit cards when paying for your basic necessities like gasoline and groceries. These items are so basic that you should have included them in your monthly budget. Acquiring such items on credit will probably entice you to get more than what your budget allows.

Monday, 2 November 2009

How to save money when shopping for groceries

Here are few ideas on saving money while shopping for groceries

Don't be brand loyal use different brands. You don't have to buy generic either. We almost exclusively buy brand names. Buying a particular brand on one or two items is fine. To save the most, get the best deal on the majority of the items bought.

Check expiration dates. Some sale items have dates soon to expire. It isn't a good deal if the date goes out before it can be used.

Don't buy something you don't normally use just because you have a coupon. Using coupons wisely saves money. If you can't or won't use the item, it's not a deal no matter what the price. Some coupons are for new food items. You won't know the "normal or sale" price on these items because they are new.

Match your weekly menu to reflect what's in season and what's in your pantry. If you have to go back to the grocery to get one more item, you'll more likely to buy at a higher price. If it's out of season it will cost more.

Don't buy convenience foods unnecessarily. Convenience costs more. I would never suggest forgoing use of convenience foods. However buying fewer or buying only on sale will save a lot of money. Consider learning how to create your own convenience foods. Many sites have recipes for such food items.