Credit scores can be the source of so much stress. Many people avoid them until they need them—and at that point it’s too late to make any changes.
Category: Pay Off Debt
Understanding how to take control of your student debt can reduce stress and may even save you money in the long run. Don’t let a mountain of student loans overwhelm you. Follow these tips to create a plan you can live with.
Managing federal student loan debt is complicated enough. But as many people have learned the hard way, navigating the world of private student loan debt can be quite a bit worse. Particularly if we’re talking about Sallie Mae private student loans.
The good news is I’ve had multiple clients successfully lower their monthly payments, as well as their interest rates, for their Sallie Mae private student loans. The process is definitely not easy, but it does seem to work for those who persevere. If you’re one of the unlucky college graduates dealing with Sallie Mae’s nonsense, there may be some degree of hope. Here’s a step-by-step plan for regaining control of your Sallie Mae private student loans. (more…)
Income Based Repayment (IBR for short) is one of the most underutilized tools available to recent grads overwhelmed with student loan payments. Navigating the confusing world of repayment options coupled with unhelpful customer service reps often prevents borrowers from choosing the plan that is right for them.
No matter how overwhelming the process may be, it’s worth taking the time to find out if IBR is right for you. Depending on your situation, you might be able to save yourself thousands of dollars (or at least reduce your current financial stress).
When it comes to taking out student loans for college, a common rule of thumb is not to borrow more than your starting salary will be after graduation. Of course, many students are not aware of this, and even for those that stay within this guideline, paying off student loans can be quite a headache. While experts often consider student loans to be good debt, owing money is stressful for many borrowers. An amount that seems reasonable to an 18 year-old college freshman doesn’t seem quite so reasonable when that person is 25, or 35, and still making a monthly payment.
Few things cause more anxiety than a bill coming when you don’t have the cash to pay it. No matter what kind of debt you have—student loan debt, credit card debt—if it has left you feeling like a hamster on a wheel, you are certainly not alone. Most people would sooner discuss politics or religion than honestly share their financial struggles, which makes it easy to feel like your situation is uniquely challenging. But the new initiatives announced by President Obama to help homeowners and student loan borrowers get out of debt show that many Americans are treading water with no clear sense of how to get ahead.
If you’re carrying a balance on your credit card, a zero percent interest rate balance transfer card probably sounds like a no-brainer. And in some cases, that is absolutely true. But not all credit card debt is created equal, and it’s possible that transferring your balance may actually do more damage than good. Prevent yourself a lot of financial heartache by asking these two key questions before diving head first into a balance transfer. (more…)