Is your credit report everywhere you want to be?
These days, as more and more people have found themselves dealing with creditors on unfavorable terms and fighting to pay household bills with mounting credit card balances, consumers are inundated with calls to keep an eye on their credit report.
Receiving a credit report from each of the three reporting agencies once a year is free, and it’s also a key step in detecting fraud and preventing identity theft.
Ready to leave home after graduation? Not so fast!
Is he thinking ahead to years of debt?
Last time on UWSA we described the basic categories of college financial aid and how each one relates to a student’s financial future.
Now, we’ll zoom ahead a few years to discuss what happens after graduation, when both federal and private student loans fall due.
In today’s job market, a salary that can pay substantial student debts along with living costs within a short time of graduation simply isn’t guaranteed.
Are you getting “hung out to dry” on student loans?
One of the central facts of financial life for millions of young Americans is student debt.
Indebtedness related to tuition at university is one of the major sources of long-term debt burden in the United States, ranking alongside costly medical bills as a potential source of monetary heartache for years to come; even high credit card balances don’t pose the same systemic risk.
For many students whose families lack financial resources to pay full cost of attendance, loans covering some expenses are nearly inevitable. But, with forethought and diligence, long-term debts can be minimized.
Debt settlement and debt consolidation are becoming popular options for hard-working people who are suffering from a debt burden they cannot shoulder.
Debt settlement involves negotiating with creditors for favorable terms in a good faith effort to pay down debts, leading (ideally) to reduced payment and principal amounts.
Unfortunately, hundreds or even thousands of scammers have hung a shingle claiming “debt settlement” services on the internet. These unscrupulous types not only give legitimate financial professionals a bad name, but provide none of the benefits they promise, leaving customers worse off than when they started.
Should I Pool My Finances?
Don't let your expired debts "rise from the grave!"
In a previous post, we focused on debt collectors and unfair collection practices.
Today, we’ll discuss “zombie debt”: debt that continues to linger “in collection” long after it is paid.
This is a recent phenomenon, owing to the huge proliferation of third-party debt collectors and debt buyers touched on earlier.
Because of low levels of communication between these middlemen, not to mention the possibility of unscrupulous practices, different companies may attempt to collect on the same debt multiple times as it passes from hand to hand.
Every day, thousands of Americans get calls from debt collectors.
If you’re in the middle of settlement, debt consolidation, or even in the early stages of seeking debt relief, you don’t deserve unwanted and harassing calls; and you don’t have to let them disrupt your life.
In today’s tight consumer credit market, it’s harder than ever for someone starting out on the road to financial responsibility to establish strong credit; and even with new legislation intended to protect credit-holders, the stakes may very well be higher now than they were twenty, ten, or even five years ago. A few key credit facts can go a long way toward helping teens and young adults establish a positive credit history that works in their favor when it’s time to start making big decisions.
Looking through some of our older articles on UWSA I found some on the subject of Debt Stacking. A few people have asked me whether this is a good idea, and whether it does what it says for people. I’ve never used debt stacking myself, though it is really just a high tech way to follow through on making sure you’re not paying a bunch of extra fees and interest to maintain multiple credit lines. That is a pretty common sense part of maintaining your credit rating. Here’s a little on making debt stacking work, and seeing if it’s right for you.
Firstly a little on what debt stacking is. The basic concept is that once you pay off a debt with a monthly payment you continue to apply the money previously allocated to the monthly payment to the payments for other debts. If you’re trying to get out of debt it’s pretty obvious that is a good idea. What is not obvious is which debts to apply the freed up money to.
Mathematically if you want to get out of debt faster there is a relationship between both the amount of a monthly payment, the balance, and the interest rate. No I don’t know the formula off the top of my head, but there are a lot of computer programs that do, and will allow you to input basic information about your debts and spit out the order in which to pay them off or ’stack’ them.
Tip number one would be not paying a lot for a program; if the goal is spending less repaying your debt and getting out of debt faster burning a bunch of money on a program doesn’t make sense. There are free tools out there to figure this information out, and sometimes professionals will offer that information free of charge or at a reduced fee as well.
One thing debt stacking does do is to avoid what is called ‘the shotgun approach’ to repaying debt. This is where one month you put a little extra on one bill, and next month you do another. Using that approach is a great way to maximize how long you stay in debt.
Tip number two, which is true of any debt repayment strategy, is stick to the plan. The benefits of debt stacking can be great, and include very reduced interest on one’s debts. These benefits drop fast though for every month you don’t make the payments in the manner suggested. If you cannot do this by yourself debt consolidation with a credit councilor or debt consolidation service might make more sense.
Debt stacking can be really helpful in repaying debt, and save you a ton of money. It is also usually free and because generally you are not modifying your repayment plan significantly it can help build your credit rating as well. The key is keeping to the plan, and knowing your limits. As always though the plan only works if it works for your.