Loan

Credit News

Paying off a Debt Early Won – t Help Credit Scores, Experian, does paying off credit cards help credit score.

#Does #paying #off #credit #cards #help #credit #score


#

Paying off a Debt Early Won t Help Credit Scores

Dear JNS,

Your friend was correct that in order to establish a credit history she must first have a credit account opened in her name.

While paying the loan off early may save her some interest fees, it is better for her credit history to leave it open until she has been approved for other credit accounts. Open and active accounts are scored more highly than closed accounts because they demonstrate that you are managing credit well now and not just in the past.

However, it can still be a positive start to her credit history, even if closed. The important thing is that all payments were made on time. She also should review her contract carefully to ensure there is no early repayment penalty. Such a penalty will not affect her credit history, but could result in additional expense.

With an established credit history, she may be able to qualify for a credit card. If so, she should give serious consideration to getting one. A credit card will help her build a strong credit history and credit scores more quickly.

Unlike an installment loan that sets a specific payment amount each month, a credit card allows the holder to decide how much they want to charge and how much they want to pay each month.

Because the holder makes these decisions, credit card use provides much greater insight into how the individual will manage other accounts. As a result, credit cards play an important role in establishing strong credit scores.

Thanks for asking.

Review Your Free Experian Credit Report Today

Good credit begins with knowing where your credit is today. Get started with your free Experian Credit Report, updated every 30 days on sign in. No credit card required.

Related Articles

Do student loans affect your credit scores? If so how are they used in the calculation? LBC Dear LBC, Student loans affect your credit report and

I went car shopping one day and now there are lots of inquires that say they will be on my credit report. Is it right for all

I am an international student. It was very difficult for me to get a credit card application approved even after getting a job and getting a Social

If you make payments within the grace period, does that affect your credit report? TWB Dear TWB, A grace period is a set amount of time after the

How to Find Out Who Has Requested Your Credit Report


How to Pay Off a Big Student Loan #mortgage #loan


#fast student loans
#

This Millennial Paid Off $23,375 in Student Loans in Just 10 Months

“If you have a game plan, you can accomplish your goals,” says 22-year-old Jordan Arnold.

Like many millennials, Jordan Arnold graduated from college five figures deep in student debt. Unlike most of his peers, he paid off all of his loans less than a year after graduation.

Bluffton, Ind.

When he started paying it down: May 2013

When he became debt-free: March 2014

How I started building debt

I always knew I was going to go to college, though I figured I d go to community college for a year or two because it s cheap. But my parents started talking to me about this private Christian school, Indiana Wesleyan in Marion, Ind. I took a visit, and I really liked it. It s only like 3,000 students on campus, so it s a tight-knit community.

Tuition and room and board was about $31,000 a year. And the first year I hadn t applied for federal student aid, since I didn t commit to the college until about 10 days before classes started. I got some scholarships and a grant from my church, though. So, ultimately, I owed approximately $9,000 that first year.

Getting to $23,000

I could only borrow up to $5,500 in subsidized loans from the government each year, so I worked to cover the rest so that I didn t have to take out private loans. I also graduated in three years, which helped.

Still, altogether, I had to take out $15,150 in subsidized federal loans and $2,000 in unsubsidized federal loans. I borrowed another $6,000 from my parents.

My uh-oh moment

In the fall semester of my senior year, I remember being kind of nervous. I knew I had to start paying my debt within six months. It s stressful, when you don t have any money. And I heard all these stories about college students who get out of school, they have all this debt, and they can t find jobs.

Getting my debts paid off was important to me. I didn t want to get the point where I d have to be paying student loans for another 10 years. Right now, I m single. I don t have any dependents that rely on my income. But I didn t want to have these loans over my head when I m trying to feed a family and put a roof over their heads. It s not just about me, it s about my future family.

My first step out of the hole

Luckily, I got a job right out of college at an insurance agency (I had majored in finance). I was on salary, and it was pretty good: $36,000 plus bonuses.

I didn t have to pay my student loans for another four months, but over the summer I decided to go ahead and start making payments before interest began accruing.

I actually moved back in with my parents which is hard when you have been out on your own. But I didn t really have a reason to move out. And I was blessed that they actually preferred me to live there because I could help out around the farm they own, baling hay or feeding the horses. Living at my parents place for free was a lot better than having to pay $400 or $500 a month for rent.

Kicking it into gear

About four months into my new job, I picked up a second job, delivering for Pizza Hut, to help pay off my debt. I would start work at the insurance agency at 8:30 a.m. change in the bathroom at 4:50 p.m. get to Pizza Hut by 5, deliver pizzas until about 9:30, get home around 10, then shower, eat, and go to bed.

My monthly take-home pay from the insurance company was about $2,200, and I made about $1,000 at Pizza Hut. After gas, car insurance, tithing to my church, entertainment and food, I could put about $2,000 towards my debt every month.

At that rate, I was projected to pay off my debt in May 2014. But I got a $3,000 refund on my taxes, and paid off the rest of my debt with that.

How I celebrated being debt-free

I made my last payment the first of March, then I went to Florida with some friends two weeks later. It was pretty rewarding after a 10-month battle. I had probably worked 65 to 70 hours a week for seven or eight months. It was exhausting, but it was worth it.

What I d tell someone else in my place

If you have a game plan, you can accomplish your goals. I have an account on Mint.com, that s where I kept my budget. That s a big part of it just seeing your progress and knowing you re getting closer.

Also, have an emergency fund. While I was paying off that debt, I had a small car accident. I was delivering a pizza, and I hit something in someone s driveway. It cost me about $760 to fix the car. But I had a $1,000 emergency fund, which was kind of a buffer that I kept because life happens.

Finally, don t be afraid to move home if you have to. That was a big part of how I got out of debt.

My plan for the future

I quit my Pizza Hut job in April after paying off my debt, and now work at a bank analyzing commercial and agricultural loans, which is more in line with what I wanted to do.

I actually haven t moved out of my parents house yet. Instead I m saving up for a down payment on a house. I m putting away 50% of my take-home income for that, and I should have a down payment by mid-summer. I also started investing. I started a Roth IRA, and I plan to max it out this year.

Staying true to myself

Some people have made the argument, Maybe you shouldn t have paid off the debt so fast because the interest rate is cheaper than what it will be for you to borrow for a home.

That makes sense in my head, but in my heart, I didn t want this hanging over me. I want to be responsible with my money and build a strong foundation.

Check out Money 101 for more resources:

  • I am unable to pay my debts. What can I do?
  • How do I get rid of my credit card debt?
  • How can I improve my credit score?
  • How do I set a budget I can stick to?


5 Ways to Pay Off Your Student Loans Faster #pension #loan


#fast student loans
#

5 Ways to Pay Off Your Student Loans Faster

The first thing people say when they find out where I work: “Can you delete my student loans for me?”

If only I had that power. Just like many of you, I am a student loan borrower. Each month, my federal student loan servicer. withdraws my $381.35 student loan payment from my bank account and I still cringe every time. (Do you know how many pairs of shoes I could buy with that money?) Point is, I understand what you’re going through.

That said, there are manageable ways to pay off your student loans faster than you had planned and save yourself money by doing so!

Here are some ideas:

  1. Pay Right Away Even though you’re usually not required to. consider making student loan payments during your grace period or while you’re still in school. If you’re short on cash, consider at least paying enough each month to cover the amount of interest you’re accruing. That way your interest doesn’t capitalize and get added to your principal balance. Not doing this was one of the biggest mistakes I made with my student loans.
  2. Sign up for Automatic Debit If you sign up for automatic debit, your student loan servicer will automatically deduct your student loan payment from your bank account each month. Not only does this help ensure that you make payments on time, but you may also be able to get an interest rate deduction for enrolling. Contact your loan servicer to see if your loan is eligible for this benefit.
  3. Pay More than Your Minimum Payment Even if it’s $5 a month!  Paying a little extra each month can reduce the interest you pay and reduce your total cost of your loan over time. If you want to ensure that your loan is paid off faster, make sure you tell your loan servicer that the extra amount you’re paying is not intended to be put toward future payments. If given the option, ask your servicer if the additional payment amount can be allocated to your higher interest loans first.
  4. Use Your Tax Refund One easy way to pay off your loan faster is to dedicate your tax refund to paying off some of your student loan debt. Part of the reason you may have gotten a refund in the first place is because you get a tax deduction for paying student loan interest. Might as well be smart about the way you spend it.
  5. Seek Out Forgiveness and Repayment Options There are a number of situations under which you can have your federal student loan balance forgiven. There are forgiveness and repayment programs for teachers. public servants. members of the United States Armed Forces. and more. Most of these programs have very specific eligibility requirements, but if you think you might qualify, you should definitely do some research. Also, research whether your employer offers repayment assistance for employees with student loans. There are many who do!

Nicole Callahan is a Digital Engagement Strategist at The U.S. Department of Education’s office of Federal Student Aid. She is scheduled to finish repaying her student loans in 2021, but is hoping that by taking her own advice, she will finish much faster.



Improve Cash Flow By Paying Off Low Interest Debts – The Simple Dollar #commercial #loan #rates


#low interest loans
#

Improve Cash Flow By Paying Off Low Interest Debts

Quite often, when I write answers to reader mailbag questions, I encourage people to keep pushing hard against their debts no matter the interest rate. Almost everyone agrees that it makes sense to rapidly pay off the 15% debts, but I ll often get a lot of disagreement about the 3% debts. People will often ask why they should hurry to pay off a 3% debt. After all, they can get a better return in other investments.

The reason is simple. It s all about the cash flow .

What is Cash Flow?

Let s start off with the basics and explain what cash flow is. Cash flow refers to the amount of income you take in minus the required bills you have to pay. Ideally, you have money left over at the end of this process, and the more cash you have left over, the better. That cash can be saved for the future, invested, or applied to extra debt payments.

Let s say, for example, that you re bringing home $3,500 a month. You have a $1,000 mortgage at 6.75%, a $500 student loan payment at 3%, and another $1,000 in required bills (electricity, food, fuel, etc.). At this point, you must have $2,500 in monthly income to pay for your minimum required bills. At the end of the month, with a $3,500 income, you re left with $1,000 to do with what you please.

Now, let s look at your situation if the mortgage is paid off. You still has a $500 student loan payment and another $1,000 in required bills. You must have $1,500 in monthly income to pay for your minimum required bills. At the end of the month, with a $3,500 income, you re left with $2,000 to do with what you please.

Because your mortgage is paid off, your monthly cash flow is far better than before. This helps you in countless ways.

Let s say you lose your job and can only find one that gives you a 40% pay cut. At this point, you re bringing home only $2,300 a month. In the first scenario, you have $2,500 in required bills. You re going to have to make some major scary cuts in your life in order to make ends meet. In the second scenario, you have only $1,500 in required bills. You ll be just fine and still have a surplus.

There are countless other examples of life changes, planned or otherwise, that can significantly alter your income. The greater the amount of required bills each month, the more difficult it is to swallow those life changes.

This is why it s nearly always useful to improve your cash flow. Improving your cash flow improves your life options. It makes job transitions far less painful, for one. When you re fired or downsized, you can take a lower paying job without pain. On the other hand, you also have a lot more flexibility with your career choices as you re able to take a lower-paying but more career-building job. In fact, this is exactly what I did: I paid off a lot of debts, which reduced my monthly required payments and made it easier for me to live on less income, which enabled me to switch to writing The Simple Dollar full time because my cash flow was in much better shape.

The worse your cash flow situation is, the more you re tied to your current job. It gives your boss more power and you less power because the threat of losing your job is devastating. Your job becomes more stressful by default because the always-present threat of losing that job and the pain it would cause is always hanging over your head. Your career options are limited, too, because you can t deal with a reduction in pay.

In short, pinching your cash flow pinches your options.

Debt pinches your cash flow, of course. For example, getting a car loan pinches your cash flow because you re now responsible for those payments. On the other hand, living without a car loan for a while and saving up for your next car is a much better cash flow option, as it allows you to simply pay cash for the next car, keeping your cash flow as wide as possible.

Overspending pinches your cash flow, too. If you needlessly spend a lot of money, you ve pinched your cash flow for that month. You take money away from your savings. Thus, at a later point when you need that cash for a purchase, you re forced to rely on debt, which forcibly pinches your cash flow.

It s because of these things that I usually encourage people to just get rid of all of their debt. Eliminating all of your debt opens that cash flow up, making it easy to save for the future, change to a different job, or make other significant life changes that would be nearly impossible with a constant debt payment hanging around your neck.



How to Pay Off a Big Student Loan #calculate #auto #loan


#fast student loans
#

This Millennial Paid Off $23,375 in Student Loans in Just 10 Months

“If you have a game plan, you can accomplish your goals,” says 22-year-old Jordan Arnold.

Like many millennials, Jordan Arnold graduated from college five figures deep in student debt. Unlike most of his peers, he paid off all of his loans less than a year after graduation.

Bluffton, Ind.

When he started paying it down: May 2013

When he became debt-free: March 2014

How I started building debt

I always knew I was going to go to college, though I figured I d go to community college for a year or two because it s cheap. But my parents started talking to me about this private Christian school, Indiana Wesleyan in Marion, Ind. I took a visit, and I really liked it. It s only like 3,000 students on campus, so it s a tight-knit community.

Tuition and room and board was about $31,000 a year. And the first year I hadn t applied for federal student aid, since I didn t commit to the college until about 10 days before classes started. I got some scholarships and a grant from my church, though. So, ultimately, I owed approximately $9,000 that first year.

Getting to $23,000

I could only borrow up to $5,500 in subsidized loans from the government each year, so I worked to cover the rest so that I didn t have to take out private loans. I also graduated in three years, which helped.

Still, altogether, I had to take out $15,150 in subsidized federal loans and $2,000 in unsubsidized federal loans. I borrowed another $6,000 from my parents.

My uh-oh moment

In the fall semester of my senior year, I remember being kind of nervous. I knew I had to start paying my debt within six months. It s stressful, when you don t have any money. And I heard all these stories about college students who get out of school, they have all this debt, and they can t find jobs.

Getting my debts paid off was important to me. I didn t want to get the point where I d have to be paying student loans for another 10 years. Right now, I m single. I don t have any dependents that rely on my income. But I didn t want to have these loans over my head when I m trying to feed a family and put a roof over their heads. It s not just about me, it s about my future family.

My first step out of the hole

Luckily, I got a job right out of college at an insurance agency (I had majored in finance). I was on salary, and it was pretty good: $36,000 plus bonuses.

I didn t have to pay my student loans for another four months, but over the summer I decided to go ahead and start making payments before interest began accruing.

I actually moved back in with my parents which is hard when you have been out on your own. But I didn t really have a reason to move out. And I was blessed that they actually preferred me to live there because I could help out around the farm they own, baling hay or feeding the horses. Living at my parents place for free was a lot better than having to pay $400 or $500 a month for rent.

Kicking it into gear

About four months into my new job, I picked up a second job, delivering for Pizza Hut, to help pay off my debt. I would start work at the insurance agency at 8:30 a.m. change in the bathroom at 4:50 p.m. get to Pizza Hut by 5, deliver pizzas until about 9:30, get home around 10, then shower, eat, and go to bed.

My monthly take-home pay from the insurance company was about $2,200, and I made about $1,000 at Pizza Hut. After gas, car insurance, tithing to my church, entertainment and food, I could put about $2,000 towards my debt every month.

At that rate, I was projected to pay off my debt in May 2014. But I got a $3,000 refund on my taxes, and paid off the rest of my debt with that.

How I celebrated being debt-free

I made my last payment the first of March, then I went to Florida with some friends two weeks later. It was pretty rewarding after a 10-month battle. I had probably worked 65 to 70 hours a week for seven or eight months. It was exhausting, but it was worth it.

What I d tell someone else in my place

If you have a game plan, you can accomplish your goals. I have an account on Mint.com, that s where I kept my budget. That s a big part of it just seeing your progress and knowing you re getting closer.

Also, have an emergency fund. While I was paying off that debt, I had a small car accident. I was delivering a pizza, and I hit something in someone s driveway. It cost me about $760 to fix the car. But I had a $1,000 emergency fund, which was kind of a buffer that I kept because life happens.

Finally, don t be afraid to move home if you have to. That was a big part of how I got out of debt.

My plan for the future

I quit my Pizza Hut job in April after paying off my debt, and now work at a bank analyzing commercial and agricultural loans, which is more in line with what I wanted to do.

I actually haven t moved out of my parents house yet. Instead I m saving up for a down payment on a house. I m putting away 50% of my take-home income for that, and I should have a down payment by mid-summer. I also started investing. I started a Roth IRA, and I plan to max it out this year.

Staying true to myself

Some people have made the argument, Maybe you shouldn t have paid off the debt so fast because the interest rate is cheaper than what it will be for you to borrow for a home.

That makes sense in my head, but in my heart, I didn t want this hanging over me. I want to be responsible with my money and build a strong foundation.

Check out Money 101 for more resources:

  • I am unable to pay my debts. What can I do?
  • How do I get rid of my credit card debt?
  • How can I improve my credit score?
  • How do I set a budget I can stick to?


Counterintelligence Courses and Briefings – CI CENTRE #counterintelligence,counter-intelligence, #counterintel,counterespionage,spy, #espionage, #spies, #spying, #counterintelligence #training,ci, #ci #centre, #education, #training, #courses, #briefings, #awareness, #consulting, #database, #cases, #spy #cases, #espionage #cases, #security #cases, #leak #cases, #illegal #export #cases, #homegrown #jihadists #cases, #terrorism #cases, #defectors, #foreign #intelligence #officer #cases, #venona #spies, #encyclopedia,research, #analysis, #counterterrorism,counterterrorism #training,investigations #training, #opsec #training,interview #skills, #security,security,inspections,inspectors,interviewing #training,security #awareness,spydrive,intelligence,national #security,defense,fbi,cia,military #intelligence,counterintelligence #academy,gsa #schedule, #economic #espionage, #foreign #intelligence #services,law #enforcement,intelligence #speakers #bureau, #homeland #security,cross #cultural #awareness, #commercial #off #the #shelf #training, #cots, #history, #quotes, #calendar, #events, #videos, #podcasts, #membership, #community,cyber,cyberespionage,kgb,svr,insider #threats, #centre, #opsec, #cicentre, #ci #news, #ci #center,news,intelligence #history,


#

The CI Centre has over 50+ already-developed commercial off-the-shelf (COTS) training courses and briefings which can immediately be provided to your organization. They are conveniently on the GSA Schedule for quick, easy and immediate ordering at the best price already negotiated by the US Government.

Since 1997, we have provided this training to over 70,000 Intelligence Community, Military, Law Enforcement and Corporate clients—and have consistently received the best course feedback by these attendees.

We can provide the courses at your organization’s location or at a third-party facility.

Your employees will benefit by learning directly from our world-class team of experts who each have 25-40+ years of real-world experience and expert knowledge to share in the counterintelligence, counterterrorism, investigations and security fields.

As a manager, you will benefit from the rave course reviews, increased interest and buy-in to CI, CT and security, and a valuable workforce that is more aware of potential threats. Plus, the CI Centre is a turnkey company, meaning you can let us handle everything from registration to certificates.

Let’s talk about how your organization can receive immediate, needed training by scheduling one or more of our courses and briefings for your employees. Call us at 1-800-779-4007 or 703-642-7450 or use our Contact Us form.

Counterintelligence Strategy, Tactics and Skills

COTS Training Courses and Briefings

ADVANCED COUNTERINTELLIGENCE STRATEGY SKILLS

CI Centre’s Commercial Off-the-Shelf (COTS) training courses taught by our expert instructors offer significant savings in procurement and maintenance to federal/state/local government and corporate organizations and we offer easy and efficient ordering.

• Our COTS training courses have already been fully designed and developed. Your organization does not pay for the design and development costs because these are COTS courses.

• Our instructors are ready to deliver them to your organization—right now. You don’t use your own time, personnel and resources.

• Our COTS courses are proven, successful entities, many of which have been delivered since 1996. You are purchasing a vetted course whose feedback from attendees has been consistently positive.

• The information in COTS courses are kept up-to-date by the CI Centre. Your organization is not charged this maintenance.

• Courses can be delivered by our expert instructors at our facility in Falls Church, VA (outside Washington, DC, at a third-party facility, or we can come to your location (travel expenses extra).

• With set prices for the COTS courses, ordering is quick, easy and efficient. No need to write or issue Statements or Work, Request for Proposals or Bids, or conduct surveys—GSA has already negotiated the best price for the US Government. GSA Contract Number: GS-02F-0210R. Schedule 874 Mission Oriented Business Integrated Services (MOBIS) under name of parent company David G. Major Associates, Inc.

• Government credit cards are accepted as a form of payment for all purchases. We have the ability to meet your end-of-year money training requests.

With COTS courses ready-to-go, your organization can fulfill your training requirements right now.

For modified, tailored and customized courses (content, length) and training solutions, please give us a call.

To schedule one or more courses for your organization, use our Contact Form or call us at 1-800-779-4007 or 703-642-7450.

Training cannot be provided without your Contracting Officer’s official approval and signature on our training contract agreement. No other person/official, however senior, may approve of the funds released for the training except the Contracting Officer. (Note: the Contracting Officer is different from the COTR)



How can I pay off my credit card debt? 360 Degrees of Financial Literacy #personal #loan #pay #off #credit #card #debt


#

How can I pay off my credit card debt?

Certainly the best way to pay off your credit card debt is with a single payment. If you can find the money to pay off all your credit card debt, you’ll get back on solid financial ground quickly and without paying additional interest.

The next-best method is to pay off the card with the highest interest rate first. You’ll want to pay as much as you can to that account and then send the minimum payment due to each of the other accounts. When you’ve paid off one card, start paying on the card with the next highest interest rate. Focusing on one card at a time gives you clear financial goals, minimizes your interest expense, and creates a sense of satisfaction.

If available, you can use a home equity loan to pay off credit card debt. The interest on home equity loans is typically lower than credit card rates and is usually tax deductible. This can be an effective repayment method if you can handle it with discipline. However, these loans can be as easy to abuse as credit cards, particularly if you have a line of credit. Also, you run the risk of paying down the home equity loan at the same time you’re running up more debt on your newly cleared credit cards. Remember, your home equity loan, unlike credit cards, will be secured by a lien on your home. If you can’t make your payments, you’ll be in default, and the lender can foreclose on your home.

A less aggressive way to pay off your debt is to transfer your balances to lower-rate accounts. Known as credit card surfing, this method works until you run out of lower-interest opportunities. However, it does allow you to reduce interest fees and pay more against your existing balance.

It’s always best to control new spending and pay more than the required minimum payment whenever possible. Invariably, these cover little more than the finance charges. You continue to carry the bulk of your balance forward for many years without actually reducing that balance. Ideally, charging only what you can afford to pay off each month gives you the best benefits of a credit card and few of the drawbacks.



Getting Your Name Off A Cosigned Loan #unsecured #debt


#get a loan
#

Getting Your Name Off A Cosigned Loan

Loading the player.

When you cosign any form of loan or line of credit. you are liable for the amount of money borrowed. This may impact your ability to borrow money for yourself because a lender for a larger loan, such as vehicle and home loans, will include the amount of the loan you cosigned on as part of your debt load when calculating your debt-to-income ratio .

Plus, the payment history on the cosigned loan or line of credit is reported on both the borrower and cosigner’s credit reports. If you’ve agreed to cosign a loan for a friend or relative, but no longer want the responsibility of shared credit, how do you get your name off the loan? Fortunately, there are five key ways to do this.

1. Refinancing

With a loan with a larger balance, refinancing the loan under the person who is benefiting from the money is the best option. This rule applies to most loan types, such as personal loans, car loans, private student loans and mortgages.

Loans with larger balances are harder to pay off within a few months, so refinancing may allow the borrower to reduce the amount of his or her monthly payments. The person will also be borrowing a lower amount, assuming that a significant portion of the loan has been repaid, which can mean that he or she will be able to secure the loan without a cosigner.

You can also use a version of this strategy with credit cards by transferring balances to a new card under the person’s name for whom you cosigned. Let’s say the credit card that’s under both of your names has a $1,000 balance. If your friend or relative can get approved for a card for more than $1,000, the money can be transferred. Then, both of you can decide to close the current credit card. This strategy, however, works mainly for smaller amounts of money.

Improve the Credit Rating of the Person Using the Money

Options are pretty slim if the person you cosigned for has not-so-great or minimal credit history. Help the person improve their credit with these five steps.

  1. Pull Credit Reports

Annualcreditreport.com allows individuals to pull their credit with all three credit bureaus once a year for free. Your friend or relative can purchase either the FICO score from TransUnion or Equifax at myfico.com. This will tell you what their starting point is. Plus, there’s an explanation of what factors are causing a lower score. Once the person you cosigned for improves his or her score, they may be able to hold the loan on their own. (For more on the latest version of FICO scoring, checkout New Credit Scoring Forgives Small Debt .)

  • Evaluate What Problems are Impacting Your Friend’s or Relative’s Credit Rating
    Are there a lot of late pays on loans or credit cards? Are credit card balances above 50% of the available credit limit? Does the person have recent run-ins with collections? Are there accounts that should be reported in good standing that show a late pay or went into collections for non-payment? If yes, these need to be rectified in order to improve the score. (See How To Dispute Errors On Your Credit Report .)
  • Focus on One or Two Issues That Are Currently Hurting Their Score
    It could be to pay all bills on time for six months and dispute misreported information. If the person’s credit history is comprised only of the loan on which you cosigned – and it isn’t an outstanding credit card payment – then they need to open one credit card, keep the balance under 15% of the credit limit and pay on time. How revolving debt, such as credit cards is managed, is a large chunk of credit scoring. Therefore, the above strategy should improve the person’s ability to obtain credit.
  • Develop a Plan With a Time Frame
    If the only problem is misreported information, credit report disputes can be solved in two months. Other actions should be given six months in order to make a noticeable impact on credit rating.
  • Check FICO Score Again
  • Pay Off the Loan Faster

    Another option for getting out of a cosigned loan is to ask the person using the money to make extra payments to pay off the loan faster. You may want to chip in on the balance so you can end the credit burden on your account.

    Chipping in makes senses in two circumstances:

    • If the balance is a small amount that you can afford to pay, and a late payment or non-payment has been or is expected.
    • You are planning to buy a home or vehicle in the near future and cannot afford a ding on your credit score.

    Close Account

    With certain types of loans, the best way to remove the person is to close the account. This is best when you are a joint account holder on a credit card or line of credit. If there is a remaining balance, it will have to be paid off or transferred first. Apartment leases can also be closed and reopened at the end of the lease under the person occupying the apartment.

    If you or the other person is an authorized user instead of a joint account holder on a credit card or other line of credit, the authorized user can be removed at the primary account holder’s request.

    Conclusion



    Tip #1: Seven Smart Ways to Pay Off Student Loans Fast #cheapest #home #loan


    #fast student loans
    #

    Tip #1: Seven Smart Ways to Pay Off Student Loans Fast

    Last Updated 24th September, 2014

    Nearly two-thirds of graduates of four-year colleges and universities have college loans to repay. The national average of student loan debt for these graduates is more than $20,000, according to a survey by The Project on Student Debt.

    There are several different strategies and approaches student loan borrowers can take to get those loans paid off fast. During the next 7 days I will present Seven Smart Ways to Pay off Student Loans Fast, with a new tip each day. Here is Tip #1:

    Tip #1. Pick the shortest loan repayment program you can afford.

    If you have federal student loans, there are four different loan repayment plans you can select:

    • the standard loan repayment plan, where you pay a minimum of $50 a month and your payments last for as long as 10 years;
    • the extended repayment option, which also requires at least $50 monthly payments, but which lets you pay off your educational loans over 12 to 30 years;
    • the graduated repayment program, which lasts from 12 to 30 years and allows you to pay as little as $25 a month; and
    • the income-contingent repayment plan, which permits you to make payments as low as $5 a month and which lasts for 25 years.

    Bonus Tip: Don’t make the mistake of just picking the option that lets you pay the smallest monthly payment. That may help your cash flow in the short term, but in the long run you’ll pay thousands more in finance charges.

    The best strategy: Pay as much as you can possibly afford on your student loans. If you can’t swing the standard repayment plan (with a 10-year payoff), and you have to choose a longer repayment plan, then at least make extra payments on top of your normal monthly payment.

    Next Step: Even if you can only afford to throw an additional $25 or $50 a month on top of your regular payment, every little bit will help. Sending in “extra” payments is a short-term financial challenge, but if you go ahead and bite the bullet now, making sacrifices in the near-run, you’ll be much better off in the long haul. Next Tip



    Strategies For Paying Off Your Student Loan Debt Fast #instant #loans


    #fast student loans
    #

    Strategies For Paying Off Your Student Loan Debt Fast

    O n a recent Money Mastermind Show we had on an interesting guest, Zina Kumok of debtfreeafterthree.com .  Zina s claim to fame is paying off $28,000 worth of student loans within 3 years of graduating college.

    On the show we discussed quite a few topics surrounding student loan debt, including just how accepted it is these days to take on a mountain of student debt and how too many students go to school without a plan for their future career or how to pay off their student loans.

    Continues after Advertisement

    I think we all agreed on the show that how you pay off your student loans is a pretty personal decision based both off of math and psychology.  For Zina, she wanted to pay off her loans as fast as possible, to get rid of the near 7% interest loans she had taken out. Miranda Marquit. a regular on the show and a contributor to this site, was on the other end of the spectrum. Her loans were sub 2% in interest, and she plans on paying the minimums until it s paid off investing her extra money instead.

    Today I thought it might be interesting to take a look at some facts surrounding student debt, talk about the pros and cons of paying off your student loans as fast as you can, and then look at what some of the options that people have when it comes to their student debt.

    Student Loan Facts Figures

    Student debt has been growing over the years, faster than the  inflation rate. According to the economist, since 1983 college costs have risen at a pace almost five times the rate of inflation .

    ..the cost of university per student has risen by almost five times the rate of inflation since 1983, and graduate salaries have been flat for much of the past decade. Student debt has grown so large that it stops many young people from buying houses, starting businesses or having children.

    Not only has the cost of college risen, but more people are having a hard time keeping current on their student loans, in part because graduate salaries have been so stagnant.

    The Project on Student Debt, a non-profit, says that 15% of borrowers default within three years of entering repayment. At for-profit colleges the rate is 22%. (source )

    Here are a few more factoids about student loans and student debt.

    • Costs to attend college have more than doubled in the past decade.
    • Average debt of 2014 U.S. four-year grad $33,000.
    • Average debt of 2014 Canada four year grad. $26,000
    • According to the College Board, 4 years of tuition and fees at a private college will cost about $129,700. In 18 years it will be around $312,200.
    • Tuition and fees at a public university (in-state resident) currently costs about $38,300. In 18 years it will be closer to $92,200 (source ).
    • A Discover Loans study found that 47% of parents said that their kids should pay part of their own way. Some said their child should be solely responsible for  paying for school (15%), while other said their kids should foot most of the bill (32%) for their college education.

    College costs more than ever, and on top of that more parents are saying that their kids should have at least some part in paying for their own education. Since most students aren t independently wealthy, that means that many are having to pursue alternate methods of financing their education including scholarships, grants and (shudder) student loans.

    Should You Pay Off  Your Student Loans?

    When you talk about whether or not you should pay off your student loans, people usually come down in one of two camps. Yes, you should pay them off quickly or no you should take your time . Some things to consider when deciding whether or not to pay off your loans:

    • Interest rate. If your loan as an extremely high interest rate, you re likely better off doing your best to pay it of fast as quickly as you can.
    • Opportunity cost. What is the opportunity cost of not investing when you re younger?  Are you missing out on compound returns you might otherwise have had by investing earlier?
    • Personal debt tolerance. Are you allergic to debt like me? Or are you OK with carrying some low interest student loan debt?
    • Psychological boost given by paying it off. Many people will get a psychological

    Yes you should pay them off quickly

    Those in favor of paying off the loans argue that any debt is dragging you down and holding you back, even if the interest rate isn t that high. It s a constant weight on your shoulders and a psychological drain. You re better off paying it off as quickly as you can so that you can feel the freedom of not having that debt anymore.

    No, you should pay the loans off over time

    Those in favor of just paying the minimums on student loans often argue that it s the lowest interest debt you re likely to have, and you can probably make more in the stock market by investing.  Pay the minimums, and invest the rest.  If you have a higher tolerance for carrying debt than others, it might be something to consider.

    Get Your Finances In Order Before While You re In School

    For me, the idea of taking out a ton of student loans is abhorent, and I think most people would be best served by planning out their future at least to some degree before they go to school.

    Have a plan before you go to school

    Think about what you want to do for a career, and choose a school, major and cost that is suitable.  If you re getting a liberal arts degree like I did, you don t need to go to an ivy league school. Just go to an in state school with lower tuition.  If you re going to school for a STEM degree you may want to consider a better school, but still remember to do your research and find the best school for your money. The most expensive school is not always the best.

    Have a budget and don t overspend when you re in school

    Once you re in school, you d be best served by making sure you have your finances in order. Most students are not keeping a budget and tend to overspend when it comes to discretionary spending (40% of student income goes to discretionary items such as entertainment, apparel, services, travel, vacation).  The result is they take out too many loans and spend too much money that they ll have a hard time paying back once they graduate and find the job market is tougher than they thought.

    Here are some things you can do when you re in school.

    • Get a basic no-fee checking and savings account .
    • Figure out how to do a budget .
    • Track your income and expenses when you first start school. (YNAB4 budget software is free for students! )
    • Figure out how much you’ll need for the basics. Set aside a little for fun. Don t allow yourself to go overboard.
    • Don t overspend and do your best not spend extra loan money if you have it.

    Strategies For Getting Rid Of Student Loan Debt

    So what are some things you can do to get rid of your student loans as fast as you can?

    • Take extra money and put it towards debt payoff. If you get extra windfalls of unexpected money like a bonus or a tax refund.
    • Get a short term part time job to help pay it off. If you re extremely motivated to pay off a loan, you might consider getting a part time job on the weekends or evenings, and putting the money towards debt payoff. Or start a blog!
    • Make it a line item in your budget: Make debt payoff a line item in your budget, and budget for an amount that is larger than the minimum payment, even if only a little bit larger.
    • Make it a game. Turn paying off your student loans into a game, trying to figure out when you ll pay it off, finding ways to get extra money to put towards the debt and then having a reward once you finally do pay it off.
    • Consolidate loans. If you have multiple loans you might want to consider consolidating your loans, especially if you can get a lower rate on all of the loans.  Be wary of just wrapping all the loans up into one for convenience, however, if they don t all have a lower rate afterwards.
    • Loan forgiveness programs. If you meet the qualifications for certain programs you can have portions of your student loans forgiven .  For example, one program for teachers will forgive up to $17,500 in loans if they teach at certain schools for a full 5 years.

    Be creative and you ll find ways to make the loan payoff happen sooner!

    Have your own strategies for paying off student loans?  Tell us what they are in the comments.



    Should You Pay Off Student Loans when Refinancing Your Home? #i #need #a #loan #today


    #refinance student loans
    #

    Should You Pay Off Student Loans when Refinancing Your Home?

    Refinancing your home gives you the ability to do a lot of different things financially. Much of the time, you will be in better shape if you pay off other loans with your refinance money. One type of loan that is very common is student loans. Many people would love to get rid of these loans all together. However, paying them off with your refinance may not be to your advantage. Here are a few things to think about before you pay off your student loans with refinance money.

    Interest Rate

    Student loan interest rates are usually one of the lowest interest rates around. The interest rates that are given out on student loans will usually be lower than any other type of loan you could get. With a home refinance, your interest rate in most cases will be higher than the rate you were paying for you student loans. While you may like the thought of having all of your debt in one place, it can cost you a lot of money over the life of your loan if you pay a higher interest rate than you need to.

    Most of the time, your student loans are designed to be a shorter loan than your mortgage. When you lump your student loans into a mortgage, you are essentially going to be paying them off over the course of 30 years. Spreading out your loan, means that you will be paying for them much longer than you should have to. When you throw in the higher interest rate, you could end up paying much more for this education than you thought.

    No Tax Advantage

    Most of the time a refinance is a great time to take advantage of tax law. Your mortgage interest is tax-deductible which can save you a large amount of money each year. Therefore, it is common practice to throw in other types of loans into the mortgage to gain tax-deductible status. However, with a student loan, you are not gaining this advantage. Student loan interest is already tax-deductible according to current tax law. Therefore, you can already deduct the interest that you pay on your student loans. You are trading one tax-deductible form of interest for another.

    Flexibility

    With a student loan, you have a lot of flexibility. For example, with most student loans, you can get what is called a forbearance. If you come across hard economic times and cannot afford to pay your student loans, you can call the company and get a forbearance. This means that you can essentially put your payments on hold while you get back on your feet. The interest still accumulates, but the payments will be stopped. With a mortgage, you do not have this ability in most circumstances. If you miss your payments with a mortgage, your house will go into default and it may be foreclosed upon. Therefore, trading a flexible form of loan for a non-flexible one may not be in your best interest.



    J. C. Penney (NYSE: JCP) paying off $500 million loan – Dallas Business Journal #payday #lenders


    #e loans
    #

    J.C. Penney paying off $500 million loan

    Share via Facebook Share via Twitter Share via LinkedIn Share via Email

    Upping a revolving line of credit is allowing J.C. Penney Co. Inc. (NYSE: JCP) to pay off a $500 million loan.

    The company announced Monday that it received $500 million in incremental bank commitments, increasing its revolving line of credit under its senior secured asset-backed credit facility from $1.85 billion to $2.35 billion.

    With that money, Plano-based Penney is prepaying a $500 million term loan that would have matured in June 2019. Both the credit increase and loan repayment are expected to close in December.

    “We proactively pursued this transaction to reduce our long-term debt and ongoing interest expense and to further enhance our financial flexibility while maintaining our strong liquidity position as we continue to make progress on our goal of $1.2 billion in (earnings before interest, taxes, depreciation and amortization) by 2017,” J.C. Penney CEO Marvin Ellison said in a statement.

    The $2.35 billion credit facility, which also matures in June 2019, will remain open and be used for seasonal working capital and general corporate purposes, the company said.

    Paying off the loan is expected to reduce Penney’s interest expenses by $20 million annually beginning next year. In its third quarter 2015 earnings reported Friday, the company logged $102 million in net interest expense and nearly $5.15 billion in long-term debt.

    Co-leading the credit facility increase were Wells Fargo & Co. (NYSE: WFC), J.P. Morgan Chase (NYSE: JPM), Barclays, Bank of America Merrill Lynch, Citizens Bank, Regions Bank and HSBC.



    5 Ways to Pay Off Your Student Loans Faster #bank #loans #for #bad #credit


    #fast student loans
    #

    5 Ways to Pay Off Your Student Loans Faster

    The first thing people say when they find out where I work: “Can you delete my student loans for me?”

    If only I had that power. Just like many of you, I am a student loan borrower. Each month, my federal student loan servicer. withdraws my $381.35 student loan payment from my bank account and I still cringe every time. (Do you know how many pairs of shoes I could buy with that money?) Point is, I understand what you’re going through.

    That said, there are manageable ways to pay off your student loans faster than you had planned and save yourself money by doing so!

    Here are some ideas:

    1. Pay Right Away Even though you’re usually not required to. consider making student loan payments during your grace period or while you’re still in school. If you’re short on cash, consider at least paying enough each month to cover the amount of interest you’re accruing. That way your interest doesn’t capitalize and get added to your principal balance. Not doing this was one of the biggest mistakes I made with my student loans.
    2. Sign up for Automatic Debit If you sign up for automatic debit, your student loan servicer will automatically deduct your student loan payment from your bank account each month. Not only does this help ensure that you make payments on time, but you may also be able to get an interest rate deduction for enrolling. Contact your loan servicer to see if your loan is eligible for this benefit.
    3. Pay More than Your Minimum Payment Even if it’s $5 a month!  Paying a little extra each month can reduce the interest you pay and reduce your total cost of your loan over time. If you want to ensure that your loan is paid off faster, make sure you tell your loan servicer that the extra amount you’re paying is not intended to be put toward future payments. If given the option, ask your servicer if the additional payment amount can be allocated to your higher interest loans first.
    4. Use Your Tax Refund One easy way to pay off your loan faster is to dedicate your tax refund to paying off some of your student loan debt. Part of the reason you may have gotten a refund in the first place is because you get a tax deduction for paying student loan interest. Might as well be smart about the way you spend it.
    5. Seek Out Forgiveness and Repayment Options There are a number of situations under which you can have your federal student loan balance forgiven. There are forgiveness and repayment programs for teachers. public servants. members of the United States Armed Forces. and more. Most of these programs have very specific eligibility requirements, but if you think you might qualify, you should definitely do some research. Also, research whether your employer offers repayment assistance for employees with student loans. There are many who do!

    Nicole Callahan is a Digital Engagement Strategist at The U.S. Department of Education’s office of Federal Student Aid. She is scheduled to finish repaying her student loans in 2021, but is hoping that by taking her own advice, she will finish much faster.



    How to Pay Off Student Loans: Repayment Options – Programs #federal #loans


    #defaulted student loans
    #

    How to Pay Off Student Loan

    If you are among the 4 million Americans who have defaulted on student loans you might find the government deducting money from your paycheck and lenders placing negative marks on your credit report .

    Student loan default is a growing problem. The default rate for student loans within two years of the first payment was 9.1 percent, according to a 2012 report from the Department of Education. The default rate among those within three years of their first payment was 13.4 percent.

    When you default on a student loan, it also means you’re not eligible for loan modification, deferment, forbearance. repayment plans, forgiveness or consolidation until you rehabilitate your loan.

    Direct, FFEL, Perkins. Stafford. PLUS. Grad PLUS, Consolidation, SLS, HPSL and NSL – are eligible for rehabilitation.

    You can rehabilitate your loan by contacting your collection agency to attempt to freeze your garnishments and begin negotiations with your lenders. Once an agreement is reached between all parties, payment arrangements are set up directly with the lender.

    The traditional rehabilitation process is based on a nine-month plan; however, it can last as little as 4 months or as much as 12 months, depending on the lender.

    There is much to be gained once your student loans have been rehabilitated:

    • It puts your loan back in good standing.
    • It makes you eligible for deferment, forbearance, consolidation, forgiveness and alternative repayment plans.
    • You are eligible for additional loans and financial aid.
    • You are no longer subject to collections activity or legal issues over your loan.
    • It will stop wage garnishments.
    • Your credit report will reflect positive progress in loan repayment. Negative marks on your credit from the defaulted loans will be removed.

    It’s important to know that this is a one-time opportunity. If you fail to meet the program requirements, you do not get a second chance at rehabilitation.

    Student Loan Debt?

    You can consolidate your loans or get your loans forgiven.

    Step One: Start the Rehabilitation Process

    Student loans go into default when no payments have been made for nine consecutive months. Once the loan has reached the default stage, you must start the rehabilitation process before more damage is done.

    The monthly payment plan you negotiate for rehabilitation of your loan must be reasonable and affordable for you. It is generally calculated at around one percent of the outstanding balance, but could be lower, if you show financial hardship.

    If the lender turned your account over to a collection agency, you can try to negotiate with the collection agency. The negotiated rate also will include collection charges, which could be as much as 18.5 percent, added to the loan balance.

    Step Two: Make Timely Payments

    Loan rehabilitation is successful only if you stick to the negotiated plan. In other words, you cannot miss a single payment. If you have a Perkins Loan, you must make nine payments in nine months to rehab those loans.

    Payments are on-time when the loan agency (or collection agency) receives payment within 20 days of the due date. Perkins Loans payments are due 15 days from the due date. The monthly payment must equal the rate in the agreement. If it is a penny less, it can be considered a missed payment.

    Qualified military service members or civilians affected by family members in the military are allowed to miss a rehabilitation payment. People in this group must resume their payments when their service obligations are completed.

    Step Three: Trust, But Verify

    Your loan is considered rehabilitated when you complete the agreed-upon monthly payment plan. At that time, the default will be removed from your credit history.

    Loan rehabilitation is a valuable way out, but you must be prepared.

    Remember that rehabilitation this is a one-time option. There is no recourse if you default a second time. After your loans are rehabilitated, you will then be eligible for Student Loan Consolidation.

    Need more info? Call now!



    How to Borrow from Your 401(k) to Pay Off Your Debt – The Billfold #bad #credit #unsecured #loans


    #401k loans
    #

    How to Borrow from Your 401(k) to Pay Off Your Debt

    I ve read the snowball vs. avalanche method of paying off debt, and I figured I d tell you about my own personal method—or at least, the one that I ve used a couple of times over the last few years that has helped me tons. This method requires that you ve been saving for retirement via a 401(k).

    My stats: I m 28, working full-time with a good company, and graduated with about $22,000 in student debt. I m not rolling in the cash (I earn about $44,000 before taxes), and I don t have outside help, and never have. The rents cut me off at 18. It was an I did it, so you can do it sort of scenario.

    I managed to avoid all the economic downturn problems by keeping the full-time job I had during school after I graduated, which meant that I started my 401(k) fairly early for someone in our age group. Interestingly, that college job was as a 401(k) customer service rep, so I knew early on the importance of starting a retirement savings plan as early as possible. I knew that over time, the savings would pay huge dividends (pun intended). In my training for said job, we were taught that taking money out of a 401(k) early (pre-retirement age), for almost any reason, is bad. And in a lot of ways, I agree with this view, but having a 401(k) nest egg at an early age, while still supporting some debt, has provided me with an interesting alternative to the snow/avalanche equations.

    Recently, I paid off my largest school loan ($16,000) with a 401(k) loan. I don t know if most people are familiar with the option, but a 401(k) loan allows someone to borrow money out of a 401(k) (as opposed to against it), which means that there is no credit check or anything credit-related going on. Further, while there is interest that must be paid on a 401(k) loan, it is paid back to the borrowers own account .

    In explaining this to customers, at this point people usually ask Why should I pay interest on money I m borrowing from myself? Quite simply, because the IRS says so. They require that there be an interest component in a 401(k) loan simply so that you re not utterly crippling whatever retirement savings that you ve managed to scrape together. In reality, that interest rate is going to be much lower than what a well diversified portfolio is going to earn on the market, but it s a) better than nothing, and b) better than paying a bank what is probably a much higher rate. The student loan I just killed off had an interest rate of 7.5%, and my 401(k) loan is only 3.75%. Sweet!

    Further, the loan payments from a 401(k) loan comes directly out of the paycheck, as opposed to from a checking account, so by the time I get my paycheck, I don t have to think about the payment being on time or late or anything. No late payments, ever.

    I have used this method a couple of times. This most recent loan was definitely the largest so far, but previously, I have taken smaller, shorter term loans to pay off high interest credit cards, and to pay off my car. I m talking $1,500 over 12 months, or $1,200 over 9 month, that sort of thing. Each company has its own rules about how much can be borrowed and how you can structure the terms of the loan, but in my experience (and I ve seen a lot of plans) most plans are pretty flexible. Sometimes there is a fee for taking a loan out (smaller the company, generally the higher the fee) usually around $35 to $50, and it s usually taken out of the 401(k) account directly, so it s not hitting your paycheck.

    The biggest thing to watch out for, by far, is if you leave employment while you have a loan outstanding. It doesn t matter how you ve left your now former employer, whether voluntary or not, but when you do, you will have to either pay back that loan in full (most companies plans give you a 90 day window), or you have to pay taxes on that outstanding balance. Taxes means you will owe the IRS whatever your normal income tax is, based on your tax bracket (and remember, that loan balance will count as income in that tax year, so depending on your income and how big the loan is, getting bumped up into a new, higher tax bracket is very possible) plus a 10 percent early withdrawal penalty on that outstanding balance.

    So the 401(k) loan is not for everyone. Ideally you d be somewhat younger, and working a stable job where you ve started your 401(k). Me, I ve only ever contributed the minimum amount to get my full employer match, so it has just sort of worked out for me—the rest of my paycheck has been mostly going to rent, beer, and traveling. I m bad at diligently paying down debt.

    I would definitely NOT recommend using these for anything frivolous or unnecessary. I ve seen lot s of people use them to buy a nicer car, when they already drive a perfectly good beater, just because they did a quarterly check up on the 401(k), saw the bigger than expected number and thought I m rich! No, you re not. But if you leave it alone, then when you turn 59 1/2, you will be. So be disciplined! Don t buy things that you would otherwise not be able to afford! This can be an interesting way to get rid of some nasty bills. If you re killing debt, I think that s a pretty solid use.

    Cheers and happy savings!



    How to Pay Off a Big Student Loan #no #credit #car #loans


    #fast student loans
    #

    This Millennial Paid Off $23,375 in Student Loans in Just 10 Months

    “If you have a game plan, you can accomplish your goals,” says 22-year-old Jordan Arnold.

    Like many millennials, Jordan Arnold graduated from college five figures deep in student debt. Unlike most of his peers, he paid off all of his loans less than a year after graduation.

    Bluffton, Ind.

    When he started paying it down: May 2013

    When he became debt-free: March 2014

    How I started building debt

    I always knew I was going to go to college, though I figured I d go to community college for a year or two because it s cheap. But my parents started talking to me about this private Christian school, Indiana Wesleyan in Marion, Ind. I took a visit, and I really liked it. It s only like 3,000 students on campus, so it s a tight-knit community.

    Tuition and room and board was about $31,000 a year. And the first year I hadn t applied for federal student aid, since I didn t commit to the college until about 10 days before classes started. I got some scholarships and a grant from my church, though. So, ultimately, I owed approximately $9,000 that first year.

    Getting to $23,000

    I could only borrow up to $5,500 in subsidized loans from the government each year, so I worked to cover the rest so that I didn t have to take out private loans. I also graduated in three years, which helped.

    Still, altogether, I had to take out $15,150 in subsidized federal loans and $2,000 in unsubsidized federal loans. I borrowed another $6,000 from my parents.

    My uh-oh moment

    In the fall semester of my senior year, I remember being kind of nervous. I knew I had to start paying my debt within six months. It s stressful, when you don t have any money. And I heard all these stories about college students who get out of school, they have all this debt, and they can t find jobs.

    Getting my debts paid off was important to me. I didn t want to get the point where I d have to be paying student loans for another 10 years. Right now, I m single. I don t have any dependents that rely on my income. But I didn t want to have these loans over my head when I m trying to feed a family and put a roof over their heads. It s not just about me, it s about my future family.

    My first step out of the hole

    Luckily, I got a job right out of college at an insurance agency (I had majored in finance). I was on salary, and it was pretty good: $36,000 plus bonuses.

    I didn t have to pay my student loans for another four months, but over the summer I decided to go ahead and start making payments before interest began accruing.

    I actually moved back in with my parents which is hard when you have been out on your own. But I didn t really have a reason to move out. And I was blessed that they actually preferred me to live there because I could help out around the farm they own, baling hay or feeding the horses. Living at my parents place for free was a lot better than having to pay $400 or $500 a month for rent.

    Kicking it into gear

    About four months into my new job, I picked up a second job, delivering for Pizza Hut, to help pay off my debt. I would start work at the insurance agency at 8:30 a.m. change in the bathroom at 4:50 p.m. get to Pizza Hut by 5, deliver pizzas until about 9:30, get home around 10, then shower, eat, and go to bed.

    My monthly take-home pay from the insurance company was about $2,200, and I made about $1,000 at Pizza Hut. After gas, car insurance, tithing to my church, entertainment and food, I could put about $2,000 towards my debt every month.

    At that rate, I was projected to pay off my debt in May 2014. But I got a $3,000 refund on my taxes, and paid off the rest of my debt with that.

    How I celebrated being debt-free

    I made my last payment the first of March, then I went to Florida with some friends two weeks later. It was pretty rewarding after a 10-month battle. I had probably worked 65 to 70 hours a week for seven or eight months. It was exhausting, but it was worth it.

    What I d tell someone else in my place

    If you have a game plan, you can accomplish your goals. I have an account on Mint.com, that s where I kept my budget. That s a big part of it just seeing your progress and knowing you re getting closer.

    Also, have an emergency fund. While I was paying off that debt, I had a small car accident. I was delivering a pizza, and I hit something in someone s driveway. It cost me about $760 to fix the car. But I had a $1,000 emergency fund, which was kind of a buffer that I kept because life happens.

    Finally, don t be afraid to move home if you have to. That was a big part of how I got out of debt.

    My plan for the future

    I quit my Pizza Hut job in April after paying off my debt, and now work at a bank analyzing commercial and agricultural loans, which is more in line with what I wanted to do.

    I actually haven t moved out of my parents house yet. Instead I m saving up for a down payment on a house. I m putting away 50% of my take-home income for that, and I should have a down payment by mid-summer. I also started investing. I started a Roth IRA, and I plan to max it out this year.

    Staying true to myself

    Some people have made the argument, Maybe you shouldn t have paid off the debt so fast because the interest rate is cheaper than what it will be for you to borrow for a home.

    That makes sense in my head, but in my heart, I didn t want this hanging over me. I want to be responsible with my money and build a strong foundation.

    Check out Money 101 for more resources:

    • I am unable to pay my debts. What can I do?
    • How do I get rid of my credit card debt?
    • How can I improve my credit score?
    • How do I set a budget I can stick to?


    How to Pay Off a Big Student Loan #payday #loans #australia


    #fast student loans
    #

    This Millennial Paid Off $23,375 in Student Loans in Just 10 Months

    “If you have a game plan, you can accomplish your goals,” says 22-year-old Jordan Arnold.

    Like many millennials, Jordan Arnold graduated from college five figures deep in student debt. Unlike most of his peers, he paid off all of his loans less than a year after graduation.

    Bluffton, Ind.

    When he started paying it down: May 2013

    When he became debt-free: March 2014

    How I started building debt

    I always knew I was going to go to college, though I figured I d go to community college for a year or two because it s cheap. But my parents started talking to me about this private Christian school, Indiana Wesleyan in Marion, Ind. I took a visit, and I really liked it. It s only like 3,000 students on campus, so it s a tight-knit community.

    Tuition and room and board was about $31,000 a year. And the first year I hadn t applied for federal student aid, since I didn t commit to the college until about 10 days before classes started. I got some scholarships and a grant from my church, though. So, ultimately, I owed approximately $9,000 that first year.

    Getting to $23,000

    I could only borrow up to $5,500 in subsidized loans from the government each year, so I worked to cover the rest so that I didn t have to take out private loans. I also graduated in three years, which helped.

    Still, altogether, I had to take out $15,150 in subsidized federal loans and $2,000 in unsubsidized federal loans. I borrowed another $6,000 from my parents.

    My uh-oh moment

    In the fall semester of my senior year, I remember being kind of nervous. I knew I had to start paying my debt within six months. It s stressful, when you don t have any money. And I heard all these stories about college students who get out of school, they have all this debt, and they can t find jobs.

    Getting my debts paid off was important to me. I didn t want to get the point where I d have to be paying student loans for another 10 years. Right now, I m single. I don t have any dependents that rely on my income. But I didn t want to have these loans over my head when I m trying to feed a family and put a roof over their heads. It s not just about me, it s about my future family.

    My first step out of the hole

    Luckily, I got a job right out of college at an insurance agency (I had majored in finance). I was on salary, and it was pretty good: $36,000 plus bonuses.

    I didn t have to pay my student loans for another four months, but over the summer I decided to go ahead and start making payments before interest began accruing.

    I actually moved back in with my parents which is hard when you have been out on your own. But I didn t really have a reason to move out. And I was blessed that they actually preferred me to live there because I could help out around the farm they own, baling hay or feeding the horses. Living at my parents place for free was a lot better than having to pay $400 or $500 a month for rent.

    Kicking it into gear

    About four months into my new job, I picked up a second job, delivering for Pizza Hut, to help pay off my debt. I would start work at the insurance agency at 8:30 a.m. change in the bathroom at 4:50 p.m. get to Pizza Hut by 5, deliver pizzas until about 9:30, get home around 10, then shower, eat, and go to bed.

    My monthly take-home pay from the insurance company was about $2,200, and I made about $1,000 at Pizza Hut. After gas, car insurance, tithing to my church, entertainment and food, I could put about $2,000 towards my debt every month.

    At that rate, I was projected to pay off my debt in May 2014. But I got a $3,000 refund on my taxes, and paid off the rest of my debt with that.

    How I celebrated being debt-free

    I made my last payment the first of March, then I went to Florida with some friends two weeks later. It was pretty rewarding after a 10-month battle. I had probably worked 65 to 70 hours a week for seven or eight months. It was exhausting, but it was worth it.

    What I d tell someone else in my place

    If you have a game plan, you can accomplish your goals. I have an account on Mint.com, that s where I kept my budget. That s a big part of it just seeing your progress and knowing you re getting closer.

    Also, have an emergency fund. While I was paying off that debt, I had a small car accident. I was delivering a pizza, and I hit something in someone s driveway. It cost me about $760 to fix the car. But I had a $1,000 emergency fund, which was kind of a buffer that I kept because life happens.

    Finally, don t be afraid to move home if you have to. That was a big part of how I got out of debt.

    My plan for the future

    I quit my Pizza Hut job in April after paying off my debt, and now work at a bank analyzing commercial and agricultural loans, which is more in line with what I wanted to do.

    I actually haven t moved out of my parents house yet. Instead I m saving up for a down payment on a house. I m putting away 50% of my take-home income for that, and I should have a down payment by mid-summer. I also started investing. I started a Roth IRA, and I plan to max it out this year.

    Staying true to myself

    Some people have made the argument, Maybe you shouldn t have paid off the debt so fast because the interest rate is cheaper than what it will be for you to borrow for a home.

    That makes sense in my head, but in my heart, I didn t want this hanging over me. I want to be responsible with my money and build a strong foundation.

    Check out Money 101 for more resources:

    • I am unable to pay my debts. What can I do?
    • How do I get rid of my credit card debt?
    • How can I improve my credit score?
    • How do I set a budget I can stick to?


    Debt Consolidation: Get Tips on How to Pay Debt Off – CIBC #quick #personal #loans


    #consolidating debt
    #

    Learn How Debt Consolidation Works

    Even if you don’t have a stack of credit card bills with high interest rates, you may have school loans, car loans or high-interest loans. There are ways to manage your debt so you can pay less in interest, minimize monthly payments and eventually eliminate these loans altogether. Consider these three ways to reduce your debt.

    1. Look for lower interest rates

    A lower interest rate allows for a higher portion of your payments to go towards paying off the principal of the loan, so you can pay off the debt faster. Here are a few ways to get a lower rate:

    • Request a lowered interest rate from your credit card provider
    • Open a lower interest credit card, and make a balance transfer
    • Move balances off of cards with especially high interest rates, and onto cards that can minimize these charges

    2. Consolidate debt with loans or lines of credit.

    Not only will debt consolidation help you better organize your monthly payments, but it should also allow you to pay less in interest than all your previous rates combined. Here are just a few ways you can combine and manage your debt:

    • Apply for a debt consolidation loan, and then pay just the single monthly payment on your new loan
    • Open a line of credit rather than taking out another loan, then repay the line of credit as you use it

    3. Refine your debt paying strategy.

    Once you’ve consolidated your debts into as few loans or payments as possible, you may still have to prioritize the debts you can afford to pay first. There are two schools of thought on this.

    Pay off your highest interest loans first

    Some financial experts will advise you to tackle the highest-rate debt first because interest is accruing at a brisk pace. If the loan balances on your high-interest debts are within your reach to pay, this can be a good strategy. However, the debt with the highest interest rate may also be the largest loan or debt you have, meaning it will take longer to pay it off and make a dent in your overall debt load.

    Pay smaller loans first

    Eliminating several smaller loans and debts first may be a better solution. You’ll reduce your overall debt load, and get the satisfaction of having some initial success.

    CIBC has a borrowing solution for you.

    CIBC Personal Loans and Lines of Credit enable you to borrow with flexibility at competitive interest rates. Talk to a CIBC advisor today at 1-866-525-8622. You can get your questions answered and learn about CIBC’s lending products. Or, start your loan application online now.



    Getting Your Name Off A Cosigned Loan #guaranteed #payday #loan


    #get a loan
    #

    Getting Your Name Off A Cosigned Loan

    Loading the player.

    When you cosign any form of loan or line of credit. you are liable for the amount of money borrowed. This may impact your ability to borrow money for yourself because a lender for a larger loan, such as vehicle and home loans, will include the amount of the loan you cosigned on as part of your debt load when calculating your debt-to-income ratio .

    Plus, the payment history on the cosigned loan or line of credit is reported on both the borrower and cosigner’s credit reports. If you’ve agreed to cosign a loan for a friend or relative, but no longer want the responsibility of shared credit, how do you get your name off the loan? Fortunately, there are five key ways to do this.

    1. Refinancing

    With a loan with a larger balance, refinancing the loan under the person who is benefiting from the money is the best option. This rule applies to most loan types, such as personal loans, car loans, private student loans and mortgages.

    Loans with larger balances are harder to pay off within a few months, so refinancing may allow the borrower to reduce the amount of his or her monthly payments. The person will also be borrowing a lower amount, assuming that a significant portion of the loan has been repaid, which can mean that he or she will be able to secure the loan without a cosigner.

    You can also use a version of this strategy with credit cards by transferring balances to a new card under the person’s name for whom you cosigned. Let’s say the credit card that’s under both of your names has a $1,000 balance. If your friend or relative can get approved for a card for more than $1,000, the money can be transferred. Then, both of you can decide to close the current credit card. This strategy, however, works mainly for smaller amounts of money.

    Improve the Credit Rating of the Person Using the Money

    Options are pretty slim if the person you cosigned for has not-so-great or minimal credit history. Help the person improve their credit with these five steps.

    1. Pull Credit Reports

    Annualcreditreport.com allows individuals to pull their credit with all three credit bureaus once a year for free. Your friend or relative can purchase either the FICO score from TransUnion or Equifax at myfico.com. This will tell you what their starting point is. Plus, there’s an explanation of what factors are causing a lower score. Once the person you cosigned for improves his or her score, they may be able to hold the loan on their own. (For more on the latest version of FICO scoring, checkout New Credit Scoring Forgives Small Debt .)

  • Evaluate What Problems are Impacting Your Friend’s or Relative’s Credit Rating
    Are there a lot of late pays on loans or credit cards? Are credit card balances above 50% of the available credit limit? Does the person have recent run-ins with collections? Are there accounts that should be reported in good standing that show a late pay or went into collections for non-payment? If yes, these need to be rectified in order to improve the score. (See How To Dispute Errors On Your Credit Report .)
  • Focus on One or Two Issues That Are Currently Hurting Their Score
    It could be to pay all bills on time for six months and dispute misreported information. If the person’s credit history is comprised only of the loan on which you cosigned – and it isn’t an outstanding credit card payment – then they need to open one credit card, keep the balance under 15% of the credit limit and pay on time. How revolving debt, such as credit cards is managed, is a large chunk of credit scoring. Therefore, the above strategy should improve the person’s ability to obtain credit.
  • Develop a Plan With a Time Frame
    If the only problem is misreported information, credit report disputes can be solved in two months. Other actions should be given six months in order to make a noticeable impact on credit rating.
  • Check FICO Score Again
  • Pay Off the Loan Faster

    Another option for getting out of a cosigned loan is to ask the person using the money to make extra payments to pay off the loan faster. You may want to chip in on the balance so you can end the credit burden on your account.

    Chipping in makes senses in two circumstances:

    • If the balance is a small amount that you can afford to pay, and a late payment or non-payment has been or is expected.
    • You are planning to buy a home or vehicle in the near future and cannot afford a ding on your credit score.

    Close Account

    With certain types of loans, the best way to remove the person is to close the account. This is best when you are a joint account holder on a credit card or line of credit. If there is a remaining balance, it will have to be paid off or transferred first. Apartment leases can also be closed and reopened at the end of the lease under the person occupying the apartment.

    If you or the other person is an authorized user instead of a joint account holder on a credit card or other line of credit, the authorized user can be removed at the primary account holder’s request.

    Conclusion



    How to Borrow from Your 401(k) to Pay Off Your Debt – The Billfold #cash #loans #bad #credit


    #401k loans
    #

    How to Borrow from Your 401(k) to Pay Off Your Debt

    I ve read the snowball vs. avalanche method of paying off debt, and I figured I d tell you about my own personal method—or at least, the one that I ve used a couple of times over the last few years that has helped me tons. This method requires that you ve been saving for retirement via a 401(k).

    My stats: I m 28, working full-time with a good company, and graduated with about $22,000 in student debt. I m not rolling in the cash (I earn about $44,000 before taxes), and I don t have outside help, and never have. The rents cut me off at 18. It was an I did it, so you can do it sort of scenario.

    I managed to avoid all the economic downturn problems by keeping the full-time job I had during school after I graduated, which meant that I started my 401(k) fairly early for someone in our age group. Interestingly, that college job was as a 401(k) customer service rep, so I knew early on the importance of starting a retirement savings plan as early as possible. I knew that over time, the savings would pay huge dividends (pun intended). In my training for said job, we were taught that taking money out of a 401(k) early (pre-retirement age), for almost any reason, is bad. And in a lot of ways, I agree with this view, but having a 401(k) nest egg at an early age, while still supporting some debt, has provided me with an interesting alternative to the snow/avalanche equations.

    Recently, I paid off my largest school loan ($16,000) with a 401(k) loan. I don t know if most people are familiar with the option, but a 401(k) loan allows someone to borrow money out of a 401(k) (as opposed to against it), which means that there is no credit check or anything credit-related going on. Further, while there is interest that must be paid on a 401(k) loan, it is paid back to the borrowers own account .

    In explaining this to customers, at this point people usually ask Why should I pay interest on money I m borrowing from myself? Quite simply, because the IRS says so. They require that there be an interest component in a 401(k) loan simply so that you re not utterly crippling whatever retirement savings that you ve managed to scrape together. In reality, that interest rate is going to be much lower than what a well diversified portfolio is going to earn on the market, but it s a) better than nothing, and b) better than paying a bank what is probably a much higher rate. The student loan I just killed off had an interest rate of 7.5%, and my 401(k) loan is only 3.75%. Sweet!

    Further, the loan payments from a 401(k) loan comes directly out of the paycheck, as opposed to from a checking account, so by the time I get my paycheck, I don t have to think about the payment being on time or late or anything. No late payments, ever.

    I have used this method a couple of times. This most recent loan was definitely the largest so far, but previously, I have taken smaller, shorter term loans to pay off high interest credit cards, and to pay off my car. I m talking $1,500 over 12 months, or $1,200 over 9 month, that sort of thing. Each company has its own rules about how much can be borrowed and how you can structure the terms of the loan, but in my experience (and I ve seen a lot of plans) most plans are pretty flexible. Sometimes there is a fee for taking a loan out (smaller the company, generally the higher the fee) usually around $35 to $50, and it s usually taken out of the 401(k) account directly, so it s not hitting your paycheck.

    The biggest thing to watch out for, by far, is if you leave employment while you have a loan outstanding. It doesn t matter how you ve left your now former employer, whether voluntary or not, but when you do, you will have to either pay back that loan in full (most companies plans give you a 90 day window), or you have to pay taxes on that outstanding balance. Taxes means you will owe the IRS whatever your normal income tax is, based on your tax bracket (and remember, that loan balance will count as income in that tax year, so depending on your income and how big the loan is, getting bumped up into a new, higher tax bracket is very possible) plus a 10 percent early withdrawal penalty on that outstanding balance.

    So the 401(k) loan is not for everyone. Ideally you d be somewhat younger, and working a stable job where you ve started your 401(k). Me, I ve only ever contributed the minimum amount to get my full employer match, so it has just sort of worked out for me—the rest of my paycheck has been mostly going to rent, beer, and traveling. I m bad at diligently paying down debt.

    I would definitely NOT recommend using these for anything frivolous or unnecessary. I ve seen lot s of people use them to buy a nicer car, when they already drive a perfectly good beater, just because they did a quarterly check up on the 401(k), saw the bigger than expected number and thought I m rich! No, you re not. But if you leave it alone, then when you turn 59 1/2, you will be. So be disciplined! Don t buy things that you would otherwise not be able to afford! This can be an interesting way to get rid of some nasty bills. If you re killing debt, I think that s a pretty solid use.

    Cheers and happy savings!



    Strategies For Paying Off Your Student Loan Debt Fast #getting #a #loan


    #fast student loans
    #

    Strategies For Paying Off Your Student Loan Debt Fast

    O n a recent Money Mastermind Show we had on an interesting guest, Zina Kumok of debtfreeafterthree.com .  Zina s claim to fame is paying off $28,000 worth of student loans within 3 years of graduating college.

    On the show we discussed quite a few topics surrounding student loan debt, including just how accepted it is these days to take on a mountain of student debt and how too many students go to school without a plan for their future career or how to pay off their student loans.

    Continues after Advertisement

    I think we all agreed on the show that how you pay off your student loans is a pretty personal decision based both off of math and psychology.  For Zina, she wanted to pay off her loans as fast as possible, to get rid of the near 7% interest loans she had taken out. Miranda Marquit. a regular on the show and a contributor to this site, was on the other end of the spectrum. Her loans were sub 2% in interest, and she plans on paying the minimums until it s paid off investing her extra money instead.

    Today I thought it might be interesting to take a look at some facts surrounding student debt, talk about the pros and cons of paying off your student loans as fast as you can, and then look at what some of the options that people have when it comes to their student debt.

    Student Loan Facts Figures

    Student debt has been growing over the years, faster than the  inflation rate. According to the economist, since 1983 college costs have risen at a pace almost five times the rate of inflation .

    ..the cost of university per student has risen by almost five times the rate of inflation since 1983, and graduate salaries have been flat for much of the past decade. Student debt has grown so large that it stops many young people from buying houses, starting businesses or having children.

    Not only has the cost of college risen, but more people are having a hard time keeping current on their student loans, in part because graduate salaries have been so stagnant.

    The Project on Student Debt, a non-profit, says that 15% of borrowers default within three years of entering repayment. At for-profit colleges the rate is 22%. (source )

    Here are a few more factoids about student loans and student debt.

    • Costs to attend college have more than doubled in the past decade.
    • Average debt of 2014 U.S. four-year grad $33,000.
    • Average debt of 2014 Canada four year grad. $26,000
    • According to the College Board, 4 years of tuition and fees at a private college will cost about $129,700. In 18 years it will be around $312,200.
    • Tuition and fees at a public university (in-state resident) currently costs about $38,300. In 18 years it will be closer to $92,200 (source ).
    • A Discover Loans study found that 47% of parents said that their kids should pay part of their own way. Some said their child should be solely responsible for  paying for school (15%), while other said their kids should foot most of the bill (32%) for their college education.

    College costs more than ever, and on top of that more parents are saying that their kids should have at least some part in paying for their own education. Since most students aren t independently wealthy, that means that many are having to pursue alternate methods of financing their education including scholarships, grants and (shudder) student loans.

    Should You Pay Off  Your Student Loans?

    When you talk about whether or not you should pay off your student loans, people usually come down in one of two camps. Yes, you should pay them off quickly or no you should take your time . Some things to consider when deciding whether or not to pay off your loans:

    • Interest rate. If your loan as an extremely high interest rate, you re likely better off doing your best to pay it of fast as quickly as you can.
    • Opportunity cost. What is the opportunity cost of not investing when you re younger?  Are you missing out on compound returns you might otherwise have had by investing earlier?
    • Personal debt tolerance. Are you allergic to debt like me? Or are you OK with carrying some low interest student loan debt?
    • Psychological boost given by paying it off. Many people will get a psychological

    Yes you should pay them off quickly

    Those in favor of paying off the loans argue that any debt is dragging you down and holding you back, even if the interest rate isn t that high. It s a constant weight on your shoulders and a psychological drain. You re better off paying it off as quickly as you can so that you can feel the freedom of not having that debt anymore.

    No, you should pay the loans off over time

    Those in favor of just paying the minimums on student loans often argue that it s the lowest interest debt you re likely to have, and you can probably make more in the stock market by investing.  Pay the minimums, and invest the rest.  If you have a higher tolerance for carrying debt than others, it might be something to consider.

    Get Your Finances In Order Before While You re In School

    For me, the idea of taking out a ton of student loans is abhorent, and I think most people would be best served by planning out their future at least to some degree before they go to school.

    Have a plan before you go to school

    Think about what you want to do for a career, and choose a school, major and cost that is suitable.  If you re getting a liberal arts degree like I did, you don t need to go to an ivy league school. Just go to an in state school with lower tuition.  If you re going to school for a STEM degree you may want to consider a better school, but still remember to do your research and find the best school for your money. The most expensive school is not always the best.

    Have a budget and don t overspend when you re in school

    Once you re in school, you d be best served by making sure you have your finances in order. Most students are not keeping a budget and tend to overspend when it comes to discretionary spending (40% of student income goes to discretionary items such as entertainment, apparel, services, travel, vacation).  The result is they take out too many loans and spend too much money that they ll have a hard time paying back once they graduate and find the job market is tougher than they thought.

    Here are some things you can do when you re in school.

    • Get a basic no-fee checking and savings account .
    • Figure out how to do a budget .
    • Track your income and expenses when you first start school. (YNAB4 budget software is free for students! )
    • Figure out how much you’ll need for the basics. Set aside a little for fun. Don t allow yourself to go overboard.
    • Don t overspend and do your best not spend extra loan money if you have it.

    Strategies For Getting Rid Of Student Loan Debt

    So what are some things you can do to get rid of your student loans as fast as you can?

    • Take extra money and put it towards debt payoff. If you get extra windfalls of unexpected money like a bonus or a tax refund.
    • Get a short term part time job to help pay it off. If you re extremely motivated to pay off a loan, you might consider getting a part time job on the weekends or evenings, and putting the money towards debt payoff. Or start a blog!
    • Make it a line item in your budget: Make debt payoff a line item in your budget, and budget for an amount that is larger than the minimum payment, even if only a little bit larger.
    • Make it a game. Turn paying off your student loans into a game, trying to figure out when you ll pay it off, finding ways to get extra money to put towards the debt and then having a reward once you finally do pay it off.
    • Consolidate loans. If you have multiple loans you might want to consider consolidating your loans, especially if you can get a lower rate on all of the loans.  Be wary of just wrapping all the loans up into one for convenience, however, if they don t all have a lower rate afterwards.
    • Loan forgiveness programs. If you meet the qualifications for certain programs you can have portions of your student loans forgiven .  For example, one program for teachers will forgive up to $17,500 in loans if they teach at certain schools for a full 5 years.

    Be creative and you ll find ways to make the loan payoff happen sooner!

    Have your own strategies for paying off student loans?  Tell us what they are in the comments.



    How to Pay Off Your Student Loans With Low-Interest Credit Cards #fha #loan #rates


    #low interest loans
    #

    How to Pay Off Your Student Loans With Low-Interest Credit Cards

    By Joshua Caucutt

    In November 2011, CNN reported that students who graduated from college in the past year did so with a record level of student loan debt $25,250 per graduate.

    What is most worrisome is that this number is an average meaning that while some students debt stayed below this amount, many carry debt far in excess of $25,000 some up to or even exceeding $100,000 in student loans. What s worse is that many former students with significant student loan debt never even received their diploma.

    There is no easy way to pay down student loans, despite the ease with which this debt can accrue. However, there is a strategy for attacking school loans that you may not have considered and can make things a little easier: low-interest credit card balance transfers .

    Introductory APR balance transfer comes with risk, but if you keep good records, pay your bills on time, and have a good credit score. you might be able to pay down your student loans a great deal faster using credit cards. However, there are a number of variables to consider before determining if this is the right method for you.

    Low-Interest Credit Cards to Eliminate Student Loan Debt

    1. Are You a Good Candidate for Low-interest Balance Transfers?

    If you have a solid credit score, you may very well be a good candidate for low-interest balance transfers. To keep your credit score as high as possible, regularly access your free credit report and check it for inaccuracies. Also, establish lines of credit as soon as possible, but be careful that you only charge minimal amounts each month, and pay them off in full every billing cycle. The longer that you have used credit responsibly, the better your score.

    Practicing good fiscal habits over a long period of time is the single best way to improve your credit score. Good financial habits include paying bills on time, never going over 50% of your credit limit, and keeping your spending modest.

    2. Which Loans Should You Transfer to a Credit Card?

    Transferring loans is not necessarily as simple as it sounds. Though a lower interest rate is what you re ultimately going for, make sure you don t give up valuable perks by transferring certain student loans.

    Prioritize Loans With Higher Interest Rates

    When you choose which loans to transfer to a credit card, do not automatically pick the loans with the largest balances. The strategy works best when you target smaller loans that are subject to higher rates of interest. By using this strategy, you can accelerate your payoff because more of your money will go toward principle and less toward interest.

    Avoid Transferring Government Loans

    Generally, you do not want to use low-interest credit card balance transfers for government-subsidized student loans. Instead, save the balance transfer strategy for loans originating from private banks.

    Government loans come with all kinds of built-in ways to suspend, adjust, defer, or otherwise reduce payments. These are nice tricks to have at your disposal if needed. Once you transfer a government loan to a low-APR credit card. you lose those benefits. The ability to accelerate loan payoff by reducing interest might be increased, but your risk also increases.

    3. How Much Should You Transfer?

    Whatever you do, don t transfer more than you can pay off within the low-APR introductory period. It is in your best interest to start small.

    You will likely not receive enough offers to facilitate transferring the entire balance of student loan debt to credit cards with low-interest rates at once especially if you just graduated from college. Instead, pick a smaller high-interest loan to target first. Then concentrate all of your energy toward paying down that loan before the introductory rate expires.

    There are three reasons to utilize this method:

    1. This is the best way to make the most progress on any one loan.
    2. You will benefit from practice and experience before biting off a bigger chunk the next time you transfer a balance.
    3. It will provide time for your credit score to increase.

    Remember, if you can responsibly use a balance transfer  by paying on time, your credit score will increase and you will have even more low-interest offers with bigger credit limits in the future.

    4. How Do You Evaluate a Good Transfer Offer?

    A lower interest rate does not automatically mean that a balance transfer offer is good. You must also consider the impact of balance transfer fees and the length of the introductory APR. Remember, you need to plan on paying off the entire transferred loan balance within the introductory period; otherwise the interest rate on your loan could skyrocket beyond what you were paying before the transfer.

    Interest and Term

    How do you evaluate what is low interest ? Clearly, the lower the better, right? That is true; however, you also need to factor in the length of the term.

    For instance, a balance transfer offer of 2% APR for 12 months might be better than a 6-month, 0% APR offer. I recently saw an offer to lock in a balance transfer at 3% APR for five years. This could be a really good deal for someone who is paying student loans at 8% or 9% interest.

    Low interest can mean any rate that is lower than your current rate. However, I do not recommend this strategy unless you are lowering your rate by at least four points. Remember, if you cannot pay off or transfer your entire balance at the end of the introductory period, then this strategy will not help you at all. It might be better to keep your loans right where they are.

    Always remember to examine the fees. Nearly all balance transfer offers are accompanied by a fee based on a percentage of the loan, which needs to be figured into the cost of the loan.

    Treat the fee as if it were interest on the first 12 months of the balance transfer. For instance, a 12-month 0% APR transfer with a 3% fee means that, essentially, you will be paying a 3% APR a pretty good deal in most cases. However, this is why I do not recommend 6-month balance transfers, because the fees on a 6-month transfer are usually the same as the fees on a 12-month balance transfer. A 3% fee on a 6-month balance transfer means that you are actually paying an annual percentage rate of 6%, and that rate is probably not worth the hassle.

    5. Do Low-APR Balance Transfers Come With Risk?

    Low-APR balance transfers do indeed come with risk. It is extremely important to remember that while there are balance transfer offers which allow you to lock in a low-interest rate for the life of the loan, in most cases you are dealing with temporary rates. These are rates that expire after a short period of time.

    Be sure that you make plans to pay off the balance of the loan (or transfer it to another card) by the time the introductory APR expires. If you leave a balance on the card at the end of the rate period, you will trigger a much higher interest rate that could drive you deeper into debt and worsen your situation.

    Low-interest balance transfer offers come and go, so there is no guarantee that a new offer will be available to you at the end of the introductory period. Because of these risks, the strategy of using low-interest balance transfer offers to pay down school loans should be undertaken with care and caution.

    Final Word

    I have personally used this strategy to manage large debts, and I know others who have paid down large credit balances by using introductory balance transfer offers. Yet it is not always an easy plan to execute. Using introductory balance transfers to pay down school loans requires active participation on your part, good record keeping skills, and punctual payments. If you have higher-interest school loans and the skills to manage your money well, balance transfers could be one more weapon in your debt-reduction arsenal.

    Have you used low-interest credit card balance transfers to manage student loan debt, or to pay down other large credit balances?

    Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.



    How to Pay Off $30, 000 of Student Debt in 3 Years – US News #conventional #loan


    #student loans payment
    #

    How to Pay Off $30,000 of Student Debt in 3 Years

    Take this crash course to obliterate your debt.

    If you are tired of having student loans hanging over your head, welcome to the crash course for debt elimination. Our syllabus is simple, the course objective has been plainly stated and grading will be based on a pass/fail basis. Let’s begin.

    What’s the rush?

    You may be wondering why we have defined such a short period of time to pay off a substantial debt. After all, The Institute for College Access Success says the average student loan balance was $29,400, which is based on the latest data available for the class of 2012. With a supersized debt of that magnitude, you need a lot of time, right? Yes, but a lack of urgency can encourage complacency, and with time the debt will grow even larger.

    This may light a fire: Calculate the amount of interest you will pay by only making minimum payments on your student loans. If you can’t put your hands on the statements for your loans, check the National Student Loan Data System to retrieve your loan information.

    It’s quite likely you’ll be surprised by the big number you discover. You might even find you’ll be paying as much interest on your loans as the original principal amount.

    Putting a short fuse on the debt bomb will inspire a significant financial turnaround. Once you retire the student loans. imagine the boost to your cash flow. You might even feel affluent for a change. With those monthly payments gone, you can focus on buying a home, saving for retirement, paying for a wedding and all the other good things in life. No student loan debt means you can kiss Sallie Mae goodbye. You’ll feel like a different person, with less stress and real financial freedom.

    While the task may seem insurmountable, consider the Harvard University alum who paid off $90,000 in graduate school debt – in seven months. Joe Mihalic is a supply chain manager in Austin, Texas now, but three years ago he was deep in debt and desperate to get out.

    “I simply felt an overwhelming feeling of being trapped,” Mihalic, author of “Destroy Student Debt: A Combat Guide to Freedom,” wrote in an email. “I felt that the debt was severely limiting my options, and I realized I would never be truly free unless I became debt-free.”

    By committing to a frugal lifestyle and squeezing every bit out of his annual salary, which was less than the balance on the loans, Mihalic accomplished his goal of rapid debt reduction .

    “I didn’t start feeling weighed down by my debt until my self-esteem finally reached a level where I didn’t need to constantly spend money to feel good about myself,” he writes. “At that point, the negative feelings associated with my debt were greater than the positive feelings associated with consumption. Only then did I seek out a life of frugality and living below my means.”

    And consider Jackie Ritz, a Paleo diet aficionado from North Carolina who blogs at ThePaleoMama.com. She and her husband paid off $50,000 worth of debt in 10 months.

    “We sat down one night and wrote down all of our debt, including our student loan debt, which was the most baggage,” she wrote in an email. “My husband had carried his student loan debt the past 15 years, and we wondered how long we were going to let that debt keep following along with us. So in order to have financial freedom we knew we were going to have to be more aggressive in paying the student loans down and turn our minimum payments into the maximum amount we could manage in our budget.”

    There is a prerequisite to this course. It is Paying Off Your Credit Card Debt 101. As much as you would like to rid yourself of the burden of college debt once and for all, if you have substantial credit card balances, they must be attended to first. The interest rate you pay on credit card debt is likely to be twice as much – if not substantially more – than what you pay on student loans.

    When you do tackle the student loans, pay off those with the highest interest rates first. That will save you money and allow each payment to reduce more principal. And before sending in a substantial payment to a lender, call first. Ensure the payment will be applied to the loan’s principal – not to interest.



    Loan Repayment Tenure Calculator: How long before I pay off my loan? #loans #for #people #with #no #credit


    #loan repayment calculator
    #

    How long before I pay off my loans?

    BankBazaar is the first and only site that has developed an eligibility calculator where you can compare rates from multiple banks, choose the best loan for your profile and requirements and apply to bank – everything completely online. Check out Home Loan Eligibility Calculator. Personal Loan Eligibility Calculator. Car Loan Eligibility Calculator

    Loan Repayment Tenure Calculator FAQ:

    How BankBazaar.com helps you get the best deal on a home loan, personal loan & car loan

    1. Lowest rates: We have negotiated with HDFC, Axis Bank, ICICI Bank & others to get you the best loan rates.
  • Speed: Get loan quotes customized to your profile online in 2 minutes. The loan relationship manager from the bank will call you on the same day with next steps
  • Easy loan comparison: Compare loan offers on the basis of total cost & customer satisfaction.
  • Transparency: Aimed at helping you make the right choice, we provide objective and transparent information about your loan options.
  • Privacy: Get customized quotes without sharing any contact info. Your application is sent only to the lender you choose, and is never shared with anyone else.
  • Trust: BankBazaar is a completely neutral marketplace and will never promote one lender over another.
  • Free: BankBazaar.com does not charge you any fees to use our services.

    How to get a loan on BankBazaar.com

    1. Use the eligiblity calculator above to receive customized loan quotes in a few seconds
  • Compare the loan offers you receive and apply for the one you like
  • Your application will be sent electronically to the lender you chose. The lender will contact you within one day.
  • BankBazaar will update you on your loan application status via email & SMS alerts


  • Loan to pay off cash advances #student #loan #application


    #pay advance loans
    #

    loan to pay off cash advances

    Put your question here.

    Can I get a loan to pay off

    to be paid over a 12 to 18 month period and still be able to pay my other bills. House, car, phone, food, etc without going broke every month with the payment?

    Bonnie,

    You are not the first one to walk in these shoes, I have been there and feel your pain. You won’t find a loan here to help you, but you will find some advice from people who have been there, so to start you will need to give some more information.

    1. What state are you from? Each state has there own laws regarding payday loans so that will be the first thing you will need to know. If you post that we can find those laws for you.

    2. Are the companies that you have the loans with store front or internet loans?

    3. What are the names of the companies? How much did you intially borrow and how much have you paid back so far to each one of them. Please list all this individually.

    When I found myself to the point of no return, I found this place. I have to say that once I got a paid in full on the first two, I felt like a I had a little power back in my hands. I hope you will list all this information and that you will stick around long enough to hopefully get some help. I will look for your response.

    _________________

    Goodnatured,

    for all the ways I make $$ online



    Where Can I Apply for Free Money to Pay Off My Student Loans? #student #loan #application


    #money to loan
    #

    Where Can I Apply for Free Money to Pay Off My Student Loans? Michelle

    Michelle

    Dear Steve,

    I m trying to figure out where I can apply for free money to pay off my student loans. I know this is a question that has been asked of you before. I m just tired of thinking I ve found ther right site, and it ends up that I have to pay for the information. You re right, It s definitely a scam. I just want to pay back the money that I owe to schools. My husband and I just had our first baby almost two months ago. I don t want to still be paying back student loans when it s time for her to start school; I sure also don t want to be in complete debt when that times comes as well. Also, I am not working right now, and my husband works, but he does not make a lot of money. Please steer me in the right direction.

    Where can I go or who can I go to in order to receive help in paying back my student loans? I have no job right now, and I don t want to still be paying back money when myt 2 month old starts school!

    There is no free money to pay off student loans. There are some student loan forgiveness programs for teachers and doctors in disadvantaged areas but no money available for people not working in a specific field or area. Even then the requirements are onerous before some federal student loans will be forgiven .



    Strategies For Paying Off Your Student Loan Debt Fast #personal #loans #for #students


    #fast student loans
    #

    Strategies For Paying Off Your Student Loan Debt Fast

    O n a recent Money Mastermind Show we had on an interesting guest, Zina Kumok of debtfreeafterthree.com .  Zina s claim to fame is paying off $28,000 worth of student loans within 3 years of graduating college.

    On the show we discussed quite a few topics surrounding student loan debt, including just how accepted it is these days to take on a mountain of student debt and how too many students go to school without a plan for their future career or how to pay off their student loans.

    Continues after Advertisement

    I think we all agreed on the show that how you pay off your student loans is a pretty personal decision based both off of math and psychology.  For Zina, she wanted to pay off her loans as fast as possible, to get rid of the near 7% interest loans she had taken out. Miranda Marquit. a regular on the show and a contributor to this site, was on the other end of the spectrum. Her loans were sub 2% in interest, and she plans on paying the minimums until it s paid off investing her extra money instead.

    Today I thought it might be interesting to take a look at some facts surrounding student debt, talk about the pros and cons of paying off your student loans as fast as you can, and then look at what some of the options that people have when it comes to their student debt.

    Student Loan Facts Figures

    Student debt has been growing over the years, faster than the  inflation rate. According to the economist, since 1983 college costs have risen at a pace almost five times the rate of inflation .

    ..the cost of university per student has risen by almost five times the rate of inflation since 1983, and graduate salaries have been flat for much of the past decade. Student debt has grown so large that it stops many young people from buying houses, starting businesses or having children.

    Not only has the cost of college risen, but more people are having a hard time keeping current on their student loans, in part because graduate salaries have been so stagnant.

    The Project on Student Debt, a non-profit, says that 15% of borrowers default within three years of entering repayment. At for-profit colleges the rate is 22%. (source )

    Here are a few more factoids about student loans and student debt.

    • Costs to attend college have more than doubled in the past decade.
    • Average debt of 2014 U.S. four-year grad $33,000.
    • Average debt of 2014 Canada four year grad. $26,000
    • According to the College Board, 4 years of tuition and fees at a private college will cost about $129,700. In 18 years it will be around $312,200.
    • Tuition and fees at a public university (in-state resident) currently costs about $38,300. In 18 years it will be closer to $92,200 (source ).
    • A Discover Loans study found that 47% of parents said that their kids should pay part of their own way. Some said their child should be solely responsible for  paying for school (15%), while other said their kids should foot most of the bill (32%) for their college education.

    College costs more than ever, and on top of that more parents are saying that their kids should have at least some part in paying for their own education. Since most students aren t independently wealthy, that means that many are having to pursue alternate methods of financing their education including scholarships, grants and (shudder) student loans.

    Should You Pay Off  Your Student Loans?

    When you talk about whether or not you should pay off your student loans, people usually come down in one of two camps. Yes, you should pay them off quickly or no you should take your time . Some things to consider when deciding whether or not to pay off your loans:

    • Interest rate. If your loan as an extremely high interest rate, you re likely better off doing your best to pay it of fast as quickly as you can.
    • Opportunity cost. What is the opportunity cost of not investing when you re younger?  Are you missing out on compound returns you might otherwise have had by investing earlier?
    • Personal debt tolerance. Are you allergic to debt like me? Or are you OK with carrying some low interest student loan debt?
    • Psychological boost given by paying it off. Many people will get a psychological

    Yes you should pay them off quickly

    Those in favor of paying off the loans argue that any debt is dragging you down and holding you back, even if the interest rate isn t that high. It s a constant weight on your shoulders and a psychological drain. You re better off paying it off as quickly as you can so that you can feel the freedom of not having that debt anymore.

    No, you should pay the loans off over time

    Those in favor of just paying the minimums on student loans often argue that it s the lowest interest debt you re likely to have, and you can probably make more in the stock market by investing.  Pay the minimums, and invest the rest.  If you have a higher tolerance for carrying debt than others, it might be something to consider.

    Get Your Finances In Order Before While You re In School

    For me, the idea of taking out a ton of student loans is abhorent, and I think most people would be best served by planning out their future at least to some degree before they go to school.

    Have a plan before you go to school

    Think about what you want to do for a career, and choose a school, major and cost that is suitable.  If you re getting a liberal arts degree like I did, you don t need to go to an ivy league school. Just go to an in state school with lower tuition.  If you re going to school for a STEM degree you may want to consider a better school, but still remember to do your research and find the best school for your money. The most expensive school is not always the best.

    Have a budget and don t overspend when you re in school

    Once you re in school, you d be best served by making sure you have your finances in order. Most students are not keeping a budget and tend to overspend when it comes to discretionary spending (40% of student income goes to discretionary items such as entertainment, apparel, services, travel, vacation).  The result is they take out too many loans and spend too much money that they ll have a hard time paying back once they graduate and find the job market is tougher than they thought.

    Here are some things you can do when you re in school.

    • Get a basic no-fee checking and savings account .
    • Figure out how to do a budget .
    • Track your income and expenses when you first start school. (YNAB4 budget software is free for students! )
    • Figure out how much you’ll need for the basics. Set aside a little for fun. Don t allow yourself to go overboard.
    • Don t overspend and do your best not spend extra loan money if you have it.

    Strategies For Getting Rid Of Student Loan Debt

    So what are some things you can do to get rid of your student loans as fast as you can?

    • Take extra money and put it towards debt payoff. If you get extra windfalls of unexpected money like a bonus or a tax refund.
    • Get a short term part time job to help pay it off. If you re extremely motivated to pay off a loan, you might consider getting a part time job on the weekends or evenings, and putting the money towards debt payoff. Or start a blog!
    • Make it a line item in your budget: Make debt payoff a line item in your budget, and budget for an amount that is larger than the minimum payment, even if only a little bit larger.
    • Make it a game. Turn paying off your student loans into a game, trying to figure out when you ll pay it off, finding ways to get extra money to put towards the debt and then having a reward once you finally do pay it off.
    • Consolidate loans. If you have multiple loans you might want to consider consolidating your loans, especially if you can get a lower rate on all of the loans.  Be wary of just wrapping all the loans up into one for convenience, however, if they don t all have a lower rate afterwards.
    • Loan forgiveness programs. If you meet the qualifications for certain programs you can have portions of your student loans forgiven .  For example, one program for teachers will forgive up to $17,500 in loans if they teach at certain schools for a full 5 years.

    Be creative and you ll find ways to make the loan payoff happen sooner!

    Have your own strategies for paying off student loans?  Tell us what they are in the comments.



    Off Campus Housing Loans – College Confidential #sky #loans


    #housing loans
    #

    Off Campus Housing Loans

    Anyone familiar with the process of getting an off-campus housing loan? I’ve called a few private school loan companies and they both said they only cover what the school says in their budget..

    Do you guys recommend any loan companies I should look into? My apartment will cost about $950/month (includes water, sewer, trash, gas, and cable) electric is all I have to cover.

    Replies to: Off Campus Housing Loans

    My apartment will cost about $950/month

    If you have to borrow that much, then this school is unaffordable. That’s $12k per year. plus any student loans you have in your FA pkg that is covering tuition.

    Anyway. you’d need qualified co-signers to borrow that much.

    How are you paying for the $26k per year to attend this school? this school sounds unaffordable and is certainly not worth this level of debt.

    Do you realize how much debt you’ll have when you graduate? how will you pay it all pack? How much do you think you’ll be earning upon graduation?

    Is this for THIS current school year? Are you already enrolled?

    Are you instate or is this the WUE rate?



    Morrison signs off on sewer plant loan #where #to #get #student #loans


    #loan rates today
    #

    Other variables remain in rate hike determination

    MORRISON The city’s financing for the first phase of its nearly $20 million wastewater treatment plant has been finalized, and construction is expected to start before the end of the year.

    City Administrator Barry Dykhuizen said the city signed the loan agreement Monday with the Illinois Environmental Protection Agency. The 20-year loan is for $15,166,000, with an interest rate of 1.86 percent. Some of the engineering costs are not eligible for loan consideration.

    The second phase of the project, which will be bid out in March, is estimated at $4 million. The city was eager to start construction this year.

    “We have to get the plant started now, because we are living on borrowed time,” Mayor Everett Pannier said.

    The city can formally accept the project bid from Canton-based Leander Construction.

    “Processing some of the final paperwork and approvals might take 2 to 3 weeks, but we hope to see the contractor on site by mid-December,” Dykhuizen said.

    The city had decided to wait until Oct. 1 to apply for the loan in order to get a better interest rate. With the interest rate set, one variable has been removed for residents wondering how the new plant will impact their sewer rates.

    Three key factors remain all hinging on what happens with proposed lending policy changes at the EPA.

    The city is still holding out hope that EPA will offer a 30-year loan option. While refinancing would increase the total cost of the project, spreading it out over an additional 10 years could help keep sewer rate increases in check.

    The regulatory agency is also trying to set up a plan to forgive part of the principal on EPA loans for certain community projects. Dykhuizen said the proposed affordability criteria take into consideration a city’s population, median household income, and unemployment rate.

    “Based on those variables today, Morrison would qualify for 15 percent of loan principal forgiveness,” Dykhuizen said.

    The EPA is also considering dropping the interest rate on loans to 1.4 percent for communities with a population of less than 5,000.

    City officials are optimistic that the EPA will adopt the loan changes sometime in the spring.

    “We are following the outcome of these proposals carefully, because all of these variables make a significant difference on where we project our rates need to go,” Dykhuizen said.

    The first semiannual loan payment is scheduled for Aug. 9, 2017.

    Project budget

    Here is the projected cost breakdown for Morrison’s new wastewater treatment plant, and what portion is eligible for the low-interest loan from the EPA.

    Design engineering: $1,355,257.21 total, $897,400 loan-eligible

    Construction engineering: $1,064,000.00 total $1,064,000.00 loan-eligible

    Construction: $12,864,000.00 total $12,820,000.00 loan-eligible

    Contingency: $384,600.00 total $384,600.00 loan-eligible

    Total: $15,667,857.21 total $15,166,000.00 loan-eligible



    J. C. Penney (NYSE: JCP) paying off $500 million loan – Dallas Business Journal #micro #loan


    #e loans
    #

    J.C. Penney paying off $500 million loan

    Share via Facebook Share via Twitter Share via LinkedIn Share via Email

    Upping a revolving line of credit is allowing J.C. Penney Co. Inc. (NYSE: JCP) to pay off a $500 million loan.

    The company announced Monday that it received $500 million in incremental bank commitments, increasing its revolving line of credit under its senior secured asset-backed credit facility from $1.85 billion to $2.35 billion.

    With that money, Plano-based Penney is prepaying a $500 million term loan that would have matured in June 2019. Both the credit increase and loan repayment are expected to close in December.

    “We proactively pursued this transaction to reduce our long-term debt and ongoing interest expense and to further enhance our financial flexibility while maintaining our strong liquidity position as we continue to make progress on our goal of $1.2 billion in (earnings before interest, taxes, depreciation and amortization) by 2017,” J.C. Penney CEO Marvin Ellison said in a statement.

    The $2.35 billion credit facility, which also matures in June 2019, will remain open and be used for seasonal working capital and general corporate purposes, the company said.

    Paying off the loan is expected to reduce Penney’s interest expenses by $20 million annually beginning next year. In its third quarter 2015 earnings reported Friday, the company logged $102 million in net interest expense and nearly $5.15 billion in long-term debt.

    Co-leading the credit facility increase were Wells Fargo & Co. (NYSE: WFC), J.P. Morgan Chase (NYSE: JPM), Barclays, Bank of America Merrill Lynch, Citizens Bank, Regions Bank and HSBC.



    Improve Cash Flow By Paying Off Low Interest Debts – The Simple Dollar #fast #loans #online


    #low interest loans
    #

    Improve Cash Flow By Paying Off Low Interest Debts

    Quite often, when I write answers to reader mailbag questions, I encourage people to keep pushing hard against their debts no matter the interest rate. Almost everyone agrees that it makes sense to rapidly pay off the 15% debts, but I ll often get a lot of disagreement about the 3% debts. People will often ask why they should hurry to pay off a 3% debt. After all, they can get a better return in other investments.

    The reason is simple. It s all about the cash flow .

    What is Cash Flow?

    Let s start off with the basics and explain what cash flow is. Cash flow refers to the amount of income you take in minus the required bills you have to pay. Ideally, you have money left over at the end of this process, and the more cash you have left over, the better. That cash can be saved for the future, invested, or applied to extra debt payments.

    Let s say, for example, that you re bringing home $3,500 a month. You have a $1,000 mortgage at 6.75%, a $500 student loan payment at 3%, and another $1,000 in required bills (electricity, food, fuel, etc.). At this point, you must have $2,500 in monthly income to pay for your minimum required bills. At the end of the month, with a $3,500 income, you re left with $1,000 to do with what you please.

    Now, let s look at your situation if the mortgage is paid off. You still has a $500 student loan payment and another $1,000 in required bills. You must have $1,500 in monthly income to pay for your minimum required bills. At the end of the month, with a $3,500 income, you re left with $2,000 to do with what you please.

    Because your mortgage is paid off, your monthly cash flow is far better than before. This helps you in countless ways.

    Let s say you lose your job and can only find one that gives you a 40% pay cut. At this point, you re bringing home only $2,300 a month. In the first scenario, you have $2,500 in required bills. You re going to have to make some major scary cuts in your life in order to make ends meet. In the second scenario, you have only $1,500 in required bills. You ll be just fine and still have a surplus.

    There are countless other examples of life changes, planned or otherwise, that can significantly alter your income. The greater the amount of required bills each month, the more difficult it is to swallow those life changes.

    This is why it s nearly always useful to improve your cash flow. Improving your cash flow improves your life options. It makes job transitions far less painful, for one. When you re fired or downsized, you can take a lower paying job without pain. On the other hand, you also have a lot more flexibility with your career choices as you re able to take a lower-paying but more career-building job. In fact, this is exactly what I did: I paid off a lot of debts, which reduced my monthly required payments and made it easier for me to live on less income, which enabled me to switch to writing The Simple Dollar full time because my cash flow was in much better shape.

    The worse your cash flow situation is, the more you re tied to your current job. It gives your boss more power and you less power because the threat of losing your job is devastating. Your job becomes more stressful by default because the always-present threat of losing that job and the pain it would cause is always hanging over your head. Your career options are limited, too, because you can t deal with a reduction in pay.

    In short, pinching your cash flow pinches your options.

    Debt pinches your cash flow, of course. For example, getting a car loan pinches your cash flow because you re now responsible for those payments. On the other hand, living without a car loan for a while and saving up for your next car is a much better cash flow option, as it allows you to simply pay cash for the next car, keeping your cash flow as wide as possible.

    Overspending pinches your cash flow, too. If you needlessly spend a lot of money, you ve pinched your cash flow for that month. You take money away from your savings. Thus, at a later point when you need that cash for a purchase, you re forced to rely on debt, which forcibly pinches your cash flow.

    It s because of these things that I usually encourage people to just get rid of all of their debt. Eliminating all of your debt opens that cash flow up, making it easy to save for the future, change to a different job, or make other significant life changes that would be nearly impossible with a constant debt payment hanging around your neck.



    Why you should pay off your car loan ASAP #construction #loan


    #car loan payment
    #

    Why you should pay off your car loan ASAP

    You may not save a huge amount on interest, but you ll free up cash in your budget every month.



    Debt Consolidation: Get Tips on How to Pay Debt Off – CIBC #apply #for #a #loan #online


    #consolidating debt
    #

    Learn How Debt Consolidation Works

    Even if you don’t have a stack of credit card bills with high interest rates, you may have school loans, car loans or high-interest loans. There are ways to manage your debt so you can pay less in interest, minimize monthly payments and eventually eliminate these loans altogether. Consider these three ways to reduce your debt.

    1. Look for lower interest rates

    A lower interest rate allows for a higher portion of your payments to go towards paying off the principal of the loan, so you can pay off the debt faster. Here are a few ways to get a lower rate:

    • Request a lowered interest rate from your credit card provider
    • Open a lower interest credit card, and make a balance transfer
    • Move balances off of cards with especially high interest rates, and onto cards that can minimize these charges

    2. Consolidate debt with loans or lines of credit.

    Not only will debt consolidation help you better organize your monthly payments, but it should also allow you to pay less in interest than all your previous rates combined. Here are just a few ways you can combine and manage your debt:

    • Apply for a debt consolidation loan, and then pay just the single monthly payment on your new loan
    • Open a line of credit rather than taking out another loan, then repay the line of credit as you use it

    3. Refine your debt paying strategy.

    Once you’ve consolidated your debts into as few loans or payments as possible, you may still have to prioritize the debts you can afford to pay first. There are two schools of thought on this.

    Pay off your highest interest loans first

    Some financial experts will advise you to tackle the highest-rate debt first because interest is accruing at a brisk pace. If the loan balances on your high-interest debts are within your reach to pay, this can be a good strategy. However, the debt with the highest interest rate may also be the largest loan or debt you have, meaning it will take longer to pay it off and make a dent in your overall debt load.

    Pay smaller loans first

    Eliminating several smaller loans and debts first may be a better solution. You’ll reduce your overall debt load, and get the satisfaction of having some initial success.

    CIBC has a borrowing solution for you.

    CIBC Personal Loans and Lines of Credit enable you to borrow with flexibility at competitive interest rates. Talk to a CIBC advisor today at 1-866-525-8622. You can get your questions answered and learn about CIBC’s lending products. Or, start your loan application online now.



    Getting Your Name Off A Cosigned Loan #paydayloans


    #get a loan
    #

    Getting Your Name Off A Cosigned Loan

    Loading the player.

    When you cosign any form of loan or line of credit. you are liable for the amount of money borrowed. This may impact your ability to borrow money for yourself because a lender for a larger loan, such as vehicle and home loans, will include the amount of the loan you cosigned on as part of your debt load when calculating your debt-to-income ratio .

    Plus, the payment history on the cosigned loan or line of credit is reported on both the borrower and cosigner’s credit reports. If you’ve agreed to cosign a loan for a friend or relative, but no longer want the responsibility of shared credit, how do you get your name off the loan? Fortunately, there are five key ways to do this.

    1. Refinancing

    With a loan with a larger balance, refinancing the loan under the person who is benefiting from the money is the best option. This rule applies to most loan types, such as personal loans, car loans, private student loans and mortgages.

    Loans with larger balances are harder to pay off within a few months, so refinancing may allow the borrower to reduce the amount of his or her monthly payments. The person will also be borrowing a lower amount, assuming that a significant portion of the loan has been repaid, which can mean that he or she will be able to secure the loan without a cosigner.

    You can also use a version of this strategy with credit cards by transferring balances to a new card under the person’s name for whom you cosigned. Let’s say the credit card that’s under both of your names has a $1,000 balance. If your friend or relative can get approved for a card for more than $1,000, the money can be transferred. Then, both of you can decide to close the current credit card. This strategy, however, works mainly for smaller amounts of money.

    Improve the Credit Rating of the Person Using the Money

    Options are pretty slim if the person you cosigned for has not-so-great or minimal credit history. Help the person improve their credit with these five steps.

    1. Pull Credit Reports

    Annualcreditreport.com allows individuals to pull their credit with all three credit bureaus once a year for free. Your friend or relative can purchase either the FICO score from TransUnion or Equifax at myfico.com. This will tell you what their starting point is. Plus, there’s an explanation of what factors are causing a lower score. Once the person you cosigned for improves his or her score, they may be able to hold the loan on their own. (For more on the latest version of FICO scoring, checkout New Credit Scoring Forgives Small Debt .)

  • Evaluate What Problems are Impacting Your Friend’s or Relative’s Credit Rating
    Are there a lot of late pays on loans or credit cards? Are credit card balances above 50% of the available credit limit? Does the person have recent run-ins with collections? Are there accounts that should be reported in good standing that show a late pay or went into collections for non-payment? If yes, these need to be rectified in order to improve the score. (See How To Dispute Errors On Your Credit Report .)
  • Focus on One or Two Issues That Are Currently Hurting Their Score
    It could be to pay all bills on time for six months and dispute misreported information. If the person’s credit history is comprised only of the loan on which you cosigned – and it isn’t an outstanding credit card payment – then they need to open one credit card, keep the balance under 15% of the credit limit and pay on time. How revolving debt, such as credit cards is managed, is a large chunk of credit scoring. Therefore, the above strategy should improve the person’s ability to obtain credit.
  • Develop a Plan With a Time Frame
    If the only problem is misreported information, credit report disputes can be solved in two months. Other actions should be given six months in order to make a noticeable impact on credit rating.
  • Check FICO Score Again
  • Pay Off the Loan Faster

    Another option for getting out of a cosigned loan is to ask the person using the money to make extra payments to pay off the loan faster. You may want to chip in on the balance so you can end the credit burden on your account.

    Chipping in makes senses in two circumstances:

    • If the balance is a small amount that you can afford to pay, and a late payment or non-payment has been or is expected.
    • You are planning to buy a home or vehicle in the near future and cannot afford a ding on your credit score.

    Close Account

    With certain types of loans, the best way to remove the person is to close the account. This is best when you are a joint account holder on a credit card or line of credit. If there is a remaining balance, it will have to be paid off or transferred first. Apartment leases can also be closed and reopened at the end of the lease under the person occupying the apartment.

    If you or the other person is an authorized user instead of a joint account holder on a credit card or other line of credit, the authorized user can be removed at the primary account holder’s request.

    Conclusion



    How to Pay Off Student Loans: Repayment Options – Programs #same #day #loans #for #unemployed


    #defaulted student loans
    #

    How to Pay Off Student Loan

    If you are among the 4 million Americans who have defaulted on student loans you might find the government deducting money from your paycheck and lenders placing negative marks on your credit report .

    Student loan default is a growing problem. The default rate for student loans within two years of the first payment was 9.1 percent, according to a 2012 report from the Department of Education. The default rate among those within three years of their first payment was 13.4 percent.

    When you default on a student loan, it also means you’re not eligible for loan modification, deferment, forbearance. repayment plans, forgiveness or consolidation until you rehabilitate your loan.

    Direct, FFEL, Perkins. Stafford. PLUS. Grad PLUS, Consolidation, SLS, HPSL and NSL – are eligible for rehabilitation.

    You can rehabilitate your loan by contacting your collection agency to attempt to freeze your garnishments and begin negotiations with your lenders. Once an agreement is reached between all parties, payment arrangements are set up directly with the lender.

    The traditional rehabilitation process is based on a nine-month plan; however, it can last as little as 4 months or as much as 12 months, depending on the lender.

    There is much to be gained once your student loans have been rehabilitated:

    • It puts your loan back in good standing.
    • It makes you eligible for deferment, forbearance, consolidation, forgiveness and alternative repayment plans.
    • You are eligible for additional loans and financial aid.
    • You are no longer subject to collections activity or legal issues over your loan.
    • It will stop wage garnishments.
    • Your credit report will reflect positive progress in loan repayment. Negative marks on your credit from the defaulted loans will be removed.

    It’s important to know that this is a one-time opportunity. If you fail to meet the program requirements, you do not get a second chance at rehabilitation.

    Student Loan Debt?

    You can consolidate your loans or get your loans forgiven.

    Step One: Start the Rehabilitation Process

    Student loans go into default when no payments have been made for nine consecutive months. Once the loan has reached the default stage, you must start the rehabilitation process before more damage is done.

    The monthly payment plan you negotiate for rehabilitation of your loan must be reasonable and affordable for you. It is generally calculated at around one percent of the outstanding balance, but could be lower, if you show financial hardship.

    If the lender turned your account over to a collection agency, you can try to negotiate with the collection agency. The negotiated rate also will include collection charges, which could be as much as 18.5 percent, added to the loan balance.

    Step Two: Make Timely Payments

    Loan rehabilitation is successful only if you stick to the negotiated plan. In other words, you cannot miss a single payment. If you have a Perkins Loan, you must make nine payments in nine months to rehab those loans.

    Payments are on-time when the loan agency (or collection agency) receives payment within 20 days of the due date. Perkins Loans payments are due 15 days from the due date. The monthly payment must equal the rate in the agreement. If it is a penny less, it can be considered a missed payment.

    Qualified military service members or civilians affected by family members in the military are allowed to miss a rehabilitation payment. People in this group must resume their payments when their service obligations are completed.

    Step Three: Trust, But Verify

    Your loan is considered rehabilitated when you complete the agreed-upon monthly payment plan. At that time, the default will be removed from your credit history.

    Loan rehabilitation is a valuable way out, but you must be prepared.

    Remember that rehabilitation this is a one-time option. There is no recourse if you default a second time. After your loans are rehabilitated, you will then be eligible for Student Loan Consolidation.

    Need more info? Call now!



    The fast-forward way to pay off your student loans #cheapest #car #loan


    #quick student loans
    #

    The fast-forward way to pay off your student loans

    EMAIL

    When Tyler Williams graduated in 2009 with nearly $30,000 in student loan debt, he wanted to rid himself of the burden quickly.

    “That anxiety gave me this laser focus to pay off that debt,” he says. “I just found that fire and stuck with it.”

    The University of North Carolina at Chapel Hill alum found a full-time job in New York City, but an entry-level salary coupled with sky-high rent wasn’t making it easy to pay off his debt. So he set an aggressive budgeting strategy to combat his loans.

    “I would always pay double the minimum,” he says. “Doing that wasn’t always easy. It’s a lot of being thrifty—not buying a lot for myself, not going out for drinks or buying lunch with people … and taking meager vacations.”

    Williams freelanced on the side and used bonuses to increase his monthly payments.

    “As tempting as it was to play with that extra money, I threw all of it at my loans,” he says.

    Williams, now a public relations and social media manager at Alterna Professional Haircare, found himself debt-free three years later. It’s an enviable position.

    Seven in 10 college students today graduate with student loan debt, according to a new study from the Project on Student Debt.

    In the class of 2013, borrowers owed an average of $28,400, up 2% from the $27,850 average for the class of 2012, according to the study. While some state averages were as low as $18,650, in six states the average debt was more than $30,000.

    College graduates with standard 10-year repayment plans will end up paying thousands of dollars in interest that can prevent financial mobility for years to come. Here’s an example: If you had $30,000 in student loans at a fixed interest rate of 4.66% (the current fixed rate for a federal Stafford loan), you’d pay a total of $15,322 in interest over 10 years. If you paid the loans off in three years, your interest would total $2,175 — that s a savings of $13,147.

    The faster you pay off that debt, the less money you’ll end up spending in the long run.

      Create a realistic budget—and stick to it

    Paying back loans more quickly means creating a realistic budget. Take into account your total debt along with other monthly expenses, and then factor in your income sources.

    Creating a budget that includes a hefty payment toward your loans may mean living frugally and using any additional income sources toward loans. It also may mean not taking out any other loans or racking up credit card debt.

    Zina Kumok started a blog, debtfreeafterthree.com. after paying off $28,000 worth of student loans in three years on a $30,000 annual salary. She split living costs with roommates, avoiding any credit card debt and holding onto her 1999 Toyota Avalon instead of upgrading to a new car.

    She threw every cent she received toward her loans, including every raise at work.

    “If I got birthday money from my grandma, that went toward my loans. If I made extra income freelancing, that went toward my loans,” Kumok said. “I didn’t try to get a second job or hustle on the side, so when I did get an unexpected windfall, I put it toward my loans.”

    Pay more than the minimum

    Meeting only the monthly minimum on your loans ensures your payments will drag out for years, and you’ll pay more interest in the long run. Making larger and more frequent payments will lower the principal balance and reduce interest, says John Heath, directing attorney at San Francisco-based Lexington Law.

    Making higher monthly payments takes “great willpower” for Alex Birkett, an Austin-based content strategist for lawn-care provider LawnStarter, who graduated in spring 2014 from University of Wisconsin with $30,000 in debt. His strategy for getting debt-free: paying three times the minimum each month.

    “I tell myself I m saving thousands in interest in the future, and that makes it easier to contribute more than necessary.”

    Find the right loan repayment option for you

    Even if you want to pay off your loans quickly, it may not be the best option for you, depending on your financial goals.

    There are several types of student repayment plans for federal loans:

    Standard repayment —Set monthly amount every month for 10 years.

    Graduated repayment —Payments are set lower initially, but then increase until paid in full.

    Extended repayment —Set monthly amount to pay beyond the typical 10 years, usually for a period of up to 25 years.

    Income-based repayment —Reduces your monthly payment amount to a percentage of your income, typically for a period of 20 to 25 years, depending on the specific plan.

    Public service loan forgiveness —After 10 years of payments, those in public service careers can qualify for federal loan forgiveness.

    Loan consolidation —You can consolidate multiple loans into a single monthly payment. This option can lower your monthly amount and extend repayment up to 30 years.

    No matter what plan you choose—or how much time you take to pay off your loan—the worst mistake to make is ignoring the debt altogether, advises Erin Ellis, financial educator at Philadelphia Federal Credit Union.

    “Just because you re only confronted with it once a month when the bill arrives doesn t mean the debt isn t there the other 29 days of the month,” she says. “It s important to keep your student debt in front of you.”

    Anna Helhoski writes for NerdWallet, a website that helps consumers make smarter financial decisions. NerdWallet  is a USA TODAY content partner providing general news, commentary and coverage from around the Web. Its content is produced independently of  USA TODAY.



    Morrison signs off on sewer plant loan #easy #loan


    #loan rates today
    #

    Other variables remain in rate hike determination

    MORRISON The city’s financing for the first phase of its nearly $20 million wastewater treatment plant has been finalized, and construction is expected to start before the end of the year.

    City Administrator Barry Dykhuizen said the city signed the loan agreement Monday with the Illinois Environmental Protection Agency. The 20-year loan is for $15,166,000, with an interest rate of 1.86 percent. Some of the engineering costs are not eligible for loan consideration.

    The second phase of the project, which will be bid out in March, is estimated at $4 million. The city was eager to start construction this year.

    “We have to get the plant started now, because we are living on borrowed time,” Mayor Everett Pannier said.

    The city can formally accept the project bid from Canton-based Leander Construction.

    “Processing some of the final paperwork and approvals might take 2 to 3 weeks, but we hope to see the contractor on site by mid-December,” Dykhuizen said.

    The city had decided to wait until Oct. 1 to apply for the loan in order to get a better interest rate. With the interest rate set, one variable has been removed for residents wondering how the new plant will impact their sewer rates.

    Three key factors remain all hinging on what happens with proposed lending policy changes at the EPA.

    The city is still holding out hope that EPA will offer a 30-year loan option. While refinancing would increase the total cost of the project, spreading it out over an additional 10 years could help keep sewer rate increases in check.

    The regulatory agency is also trying to set up a plan to forgive part of the principal on EPA loans for certain community projects. Dykhuizen said the proposed affordability criteria take into consideration a city’s population, median household income, and unemployment rate.

    “Based on those variables today, Morrison would qualify for 15 percent of loan principal forgiveness,” Dykhuizen said.

    The EPA is also considering dropping the interest rate on loans to 1.4 percent for communities with a population of less than 5,000.

    City officials are optimistic that the EPA will adopt the loan changes sometime in the spring.

    “We are following the outcome of these proposals carefully, because all of these variables make a significant difference on where we project our rates need to go,” Dykhuizen said.

    The first semiannual loan payment is scheduled for Aug. 9, 2017.

    Project budget

    Here is the projected cost breakdown for Morrison’s new wastewater treatment plant, and what portion is eligible for the low-interest loan from the EPA.

    Design engineering: $1,355,257.21 total, $897,400 loan-eligible

    Construction engineering: $1,064,000.00 total $1,064,000.00 loan-eligible

    Construction: $12,864,000.00 total $12,820,000.00 loan-eligible

    Contingency: $384,600.00 total $384,600.00 loan-eligible

    Total: $15,667,857.21 total $15,166,000.00 loan-eligible



    Improve Cash Flow By Paying Off Low Interest Debts – The Simple Dollar #federal #education #loans


    #low interest loans
    #

    Improve Cash Flow By Paying Off Low Interest Debts

    Quite often, when I write answers to reader mailbag questions, I encourage people to keep pushing hard against their debts no matter the interest rate. Almost everyone agrees that it makes sense to rapidly pay off the 15% debts, but I ll often get a lot of disagreement about the 3% debts. People will often ask why they should hurry to pay off a 3% debt. After all, they can get a better return in other investments.

    The reason is simple. It s all about the cash flow .

    What is Cash Flow?

    Let s start off with the basics and explain what cash flow is. Cash flow refers to the amount of income you take in minus the required bills you have to pay. Ideally, you have money left over at the end of this process, and the more cash you have left over, the better. That cash can be saved for the future, invested, or applied to extra debt payments.

    Let s say, for example, that you re bringing home $3,500 a month. You have a $1,000 mortgage at 6.75%, a $500 student loan payment at 3%, and another $1,000 in required bills (electricity, food, fuel, etc.). At this point, you must have $2,500 in monthly income to pay for your minimum required bills. At the end of the month, with a $3,500 income, you re left with $1,000 to do with what you please.

    Now, let s look at your situation if the mortgage is paid off. You still has a $500 student loan payment and another $1,000 in required bills. You must have $1,500 in monthly income to pay for your minimum required bills. At the end of the month, with a $3,500 income, you re left with $2,000 to do with what you please.

    Because your mortgage is paid off, your monthly cash flow is far better than before. This helps you in countless ways.

    Let s say you lose your job and can only find one that gives you a 40% pay cut. At this point, you re bringing home only $2,300 a month. In the first scenario, you have $2,500 in required bills. You re going to have to make some major scary cuts in your life in order to make ends meet. In the second scenario, you have only $1,500 in required bills. You ll be just fine and still have a surplus.

    There are countless other examples of life changes, planned or otherwise, that can significantly alter your income. The greater the amount of required bills each month, the more difficult it is to swallow those life changes.

    This is why it s nearly always useful to improve your cash flow. Improving your cash flow improves your life options. It makes job transitions far less painful, for one. When you re fired or downsized, you can take a lower paying job without pain. On the other hand, you also have a lot more flexibility with your career choices as you re able to take a lower-paying but more career-building job. In fact, this is exactly what I did: I paid off a lot of debts, which reduced my monthly required payments and made it easier for me to live on less income, which enabled me to switch to writing The Simple Dollar full time because my cash flow was in much better shape.

    The worse your cash flow situation is, the more you re tied to your current job. It gives your boss more power and you less power because the threat of losing your job is devastating. Your job becomes more stressful by default because the always-present threat of losing that job and the pain it would cause is always hanging over your head. Your career options are limited, too, because you can t deal with a reduction in pay.

    In short, pinching your cash flow pinches your options.

    Debt pinches your cash flow, of course. For example, getting a car loan pinches your cash flow because you re now responsible for those payments. On the other hand, living without a car loan for a while and saving up for your next car is a much better cash flow option, as it allows you to simply pay cash for the next car, keeping your cash flow as wide as possible.

    Overspending pinches your cash flow, too. If you needlessly spend a lot of money, you ve pinched your cash flow for that month. You take money away from your savings. Thus, at a later point when you need that cash for a purchase, you re forced to rely on debt, which forcibly pinches your cash flow.

    It s because of these things that I usually encourage people to just get rid of all of their debt. Eliminating all of your debt opens that cash flow up, making it easy to save for the future, change to a different job, or make other significant life changes that would be nearly impossible with a constant debt payment hanging around your neck.



    How to Pay Off a Big Student Loan #refinance #student #loans


    #fast student loans
    #

    This Millennial Paid Off $23,375 in Student Loans in Just 10 Months

    “If you have a game plan, you can accomplish your goals,” says 22-year-old Jordan Arnold.

    Like many millennials, Jordan Arnold graduated from college five figures deep in student debt. Unlike most of his peers, he paid off all of his loans less than a year after graduation.

    Bluffton, Ind.

    When he started paying it down: May 2013

    When he became debt-free: March 2014

    How I started building debt

    I always knew I was going to go to college, though I figured I d go to community college for a year or two because it s cheap. But my parents started talking to me about this private Christian school, Indiana Wesleyan in Marion, Ind. I took a visit, and I really liked it. It s only like 3,000 students on campus, so it s a tight-knit community.

    Tuition and room and board was about $31,000 a year. And the first year I hadn t applied for federal student aid, since I didn t commit to the college until about 10 days before classes started. I got some scholarships and a grant from my church, though. So, ultimately, I owed approximately $9,000 that first year.

    Getting to $23,000

    I could only borrow up to $5,500 in subsidized loans from the government each year, so I worked to cover the rest so that I didn t have to take out private loans. I also graduated in three years, which helped.

    Still, altogether, I had to take out $15,150 in subsidized federal loans and $2,000 in unsubsidized federal loans. I borrowed another $6,000 from my parents.

    My uh-oh moment

    In the fall semester of my senior year, I remember being kind of nervous. I knew I had to start paying my debt within six months. It s stressful, when you don t have any money. And I heard all these stories about college students who get out of school, they have all this debt, and they can t find jobs.

    Getting my debts paid off was important to me. I didn t want to get the point where I d have to be paying student loans for another 10 years. Right now, I m single. I don t have any dependents that rely on my income. But I didn t want to have these loans over my head when I m trying to feed a family and put a roof over their heads. It s not just about me, it s about my future family.

    My first step out of the hole

    Luckily, I got a job right out of college at an insurance agency (I had majored in finance). I was on salary, and it was pretty good: $36,000 plus bonuses.

    I didn t have to pay my student loans for another four months, but over the summer I decided to go ahead and start making payments before interest began accruing.

    I actually moved back in with my parents which is hard when you have been out on your own. But I didn t really have a reason to move out. And I was blessed that they actually preferred me to live there because I could help out around the farm they own, baling hay or feeding the horses. Living at my parents place for free was a lot better than having to pay $400 or $500 a month for rent.

    Kicking it into gear

    About four months into my new job, I picked up a second job, delivering for Pizza Hut, to help pay off my debt. I would start work at the insurance agency at 8:30 a.m. change in the bathroom at 4:50 p.m. get to Pizza Hut by 5, deliver pizzas until about 9:30, get home around 10, then shower, eat, and go to bed.

    My monthly take-home pay from the insurance company was about $2,200, and I made about $1,000 at Pizza Hut. After gas, car insurance, tithing to my church, entertainment and food, I could put about $2,000 towards my debt every month.

    At that rate, I was projected to pay off my debt in May 2014. But I got a $3,000 refund on my taxes, and paid off the rest of my debt with that.

    How I celebrated being debt-free

    I made my last payment the first of March, then I went to Florida with some friends two weeks later. It was pretty rewarding after a 10-month battle. I had probably worked 65 to 70 hours a week for seven or eight months. It was exhausting, but it was worth it.

    What I d tell someone else in my place

    If you have a game plan, you can accomplish your goals. I have an account on Mint.com, that s where I kept my budget. That s a big part of it just seeing your progress and knowing you re getting closer.

    Also, have an emergency fund. While I was paying off that debt, I had a small car accident. I was delivering a pizza, and I hit something in someone s driveway. It cost me about $760 to fix the car. But I had a $1,000 emergency fund, which was kind of a buffer that I kept because life happens.

    Finally, don t be afraid to move home if you have to. That was a big part of how I got out of debt.

    My plan for the future

    I quit my Pizza Hut job in April after paying off my debt, and now work at a bank analyzing commercial and agricultural loans, which is more in line with what I wanted to do.

    I actually haven t moved out of my parents house yet. Instead I m saving up for a down payment on a house. I m putting away 50% of my take-home income for that, and I should have a down payment by mid-summer. I also started investing. I started a Roth IRA, and I plan to max it out this year.

    Staying true to myself

    Some people have made the argument, Maybe you shouldn t have paid off the debt so fast because the interest rate is cheaper than what it will be for you to borrow for a home.

    That makes sense in my head, but in my heart, I didn t want this hanging over me. I want to be responsible with my money and build a strong foundation.

    Check out Money 101 for more resources:

    • I am unable to pay my debts. What can I do?
    • How do I get rid of my credit card debt?
    • How can I improve my credit score?
    • How do I set a budget I can stick to?


    Why you should pay off your car loan ASAP #small #cash #loans


    #car loan payment
    #

    Why you should pay off your car loan ASAP

    You may not save a huge amount on interest, but you ll free up cash in your budget every month.



    5 Ways to Pay Off Your Student Loans Faster #poor #credit #loans


    #fast student loans
    #

    5 Ways to Pay Off Your Student Loans Faster

    The first thing people say when they find out where I work: “Can you delete my student loans for me?”

    If only I had that power. Just like many of you, I am a student loan borrower. Each month, my federal student loan servicer. withdraws my $381.35 student loan payment from my bank account and I still cringe every time. (Do you know how many pairs of shoes I could buy with that money?) Point is, I understand what you’re going through.

    That said, there are manageable ways to pay off your student loans faster than you had planned and save yourself money by doing so!

    Here are some ideas:

    1. Pay Right Away Even though you’re usually not required to. consider making student loan payments during your grace period or while you’re still in school. If you’re short on cash, consider at least paying enough each month to cover the amount of interest you’re accruing. That way your interest doesn’t capitalize and get added to your principal balance. Not doing this was one of the biggest mistakes I made with my student loans.
    2. Sign up for Automatic Debit If you sign up for automatic debit, your student loan servicer will automatically deduct your student loan payment from your bank account each month. Not only does this help ensure that you make payments on time, but you may also be able to get an interest rate deduction for enrolling. Contact your loan servicer to see if your loan is eligible for this benefit.
    3. Pay More than Your Minimum Payment Even if it’s $5 a month!  Paying a little extra each month can reduce the interest you pay and reduce your total cost of your loan over time. If you want to ensure that your loan is paid off faster, make sure you tell your loan servicer that the extra amount you’re paying is not intended to be put toward future payments. If given the option, ask your servicer if the additional payment amount can be allocated to your higher interest loans first.
    4. Use Your Tax Refund One easy way to pay off your loan faster is to dedicate your tax refund to paying off some of your student loan debt. Part of the reason you may have gotten a refund in the first place is because you get a tax deduction for paying student loan interest. Might as well be smart about the way you spend it.
    5. Seek Out Forgiveness and Repayment Options There are a number of situations under which you can have your federal student loan balance forgiven. There are forgiveness and repayment programs for teachers. public servants. members of the United States Armed Forces. and more. Most of these programs have very specific eligibility requirements, but if you think you might qualify, you should definitely do some research. Also, research whether your employer offers repayment assistance for employees with student loans. There are many who do!

    Nicole Callahan is a Digital Engagement Strategist at The U.S. Department of Education’s office of Federal Student Aid. She is scheduled to finish repaying her student loans in 2021, but is hoping that by taking her own advice, she will finish much faster.



    How to Pay Off $30, 000 of Student Debt in 3 Years – US News


    #student loans payment
    #

    How to Pay Off $30,000 of Student Debt in 3 Years

    Take this crash course to obliterate your debt.

    If you are tired of having student loans hanging over your head, welcome to the crash course for debt elimination. Our syllabus is simple, the course objective has been plainly stated and grading will be based on a pass/fail basis. Let’s begin.

    What’s the rush?

    You may be wondering why we have defined such a short period of time to pay off a substantial debt. After all, The Institute for College Access Success says the average student loan balance was $29,400, which is based on the latest data available for the class of 2012. With a supersized debt of that magnitude, you need a lot of time, right? Yes, but a lack of urgency can encourage complacency, and with time the debt will grow even larger.

    This may light a fire: Calculate the amount of interest you will pay by only making minimum payments on your student loans. If you can’t put your hands on the statements for your loans, check the National Student Loan Data System to retrieve your loan information.

    It’s quite likely you’ll be surprised by the big number you discover. You might even find you’ll be paying as much interest on your loans as the original principal amount.

    Putting a short fuse on the debt bomb will inspire a significant financial turnaround. Once you retire the student loans. imagine the boost to your cash flow. You might even feel affluent for a change. With those monthly payments gone, you can focus on buying a home, saving for retirement, paying for a wedding and all the other good things in life. No student loan debt means you can kiss Sallie Mae goodbye. You’ll feel like a different person, with less stress and real financial freedom.

    While the task may seem insurmountable, consider the Harvard University alum who paid off $90,000 in graduate school debt – in seven months. Joe Mihalic is a supply chain manager in Austin, Texas now, but three years ago he was deep in debt and desperate to get out.

    “I simply felt an overwhelming feeling of being trapped,” Mihalic, author of “Destroy Student Debt: A Combat Guide to Freedom,” wrote in an email. “I felt that the debt was severely limiting my options, and I realized I would never be truly free unless I became debt-free.”

    By committing to a frugal lifestyle and squeezing every bit out of his annual salary, which was less than the balance on the loans, Mihalic accomplished his goal of rapid debt reduction .

    “I didn’t start feeling weighed down by my debt until my self-esteem finally reached a level where I didn’t need to constantly spend money to feel good about myself,” he writes. “At that point, the negative feelings associated with my debt were greater than the positive feelings associated with consumption. Only then did I seek out a life of frugality and living below my means.”

    And consider Jackie Ritz, a Paleo diet aficionado from North Carolina who blogs at ThePaleoMama.com. She and her husband paid off $50,000 worth of debt in 10 months.

    “We sat down one night and wrote down all of our debt, including our student loan debt, which was the most baggage,” she wrote in an email. “My husband had carried his student loan debt the past 15 years, and we wondered how long we were going to let that debt keep following along with us. So in order to have financial freedom we knew we were going to have to be more aggressive in paying the student loans down and turn our minimum payments into the maximum amount we could manage in our budget.”

    There is a prerequisite to this course. It is Paying Off Your Credit Card Debt 101. As much as you would like to rid yourself of the burden of college debt once and for all, if you have substantial credit card balances, they must be attended to first. The interest rate you pay on credit card debt is likely to be twice as much – if not substantially more – than what you pay on student loans.

    When you do tackle the student loans, pay off those with the highest interest rates first. That will save you money and allow each payment to reduce more principal. And before sending in a substantial payment to a lender, call first. Ensure the payment will be applied to the loan’s principal – not to interest.



    Loan Repayment Tenure Calculator: How long before I pay off my loan?


    #loan repayment calculator
    #

    How long before I pay off my loans?

    BankBazaar is the first and only site that has developed an eligibility calculator where you can compare rates from multiple banks, choose the best loan for your profile and requirements and apply to bank – everything completely online. Check out Home Loan Eligibility Calculator. Personal Loan Eligibility Calculator. Car Loan Eligibility Calculator

    Loan Repayment Tenure Calculator FAQ:

    How BankBazaar.com helps you get the best deal on a home loan, personal loan & car loan

    1. Lowest rates: We have negotiated with HDFC, Axis Bank, ICICI Bank & others to get you the best loan rates.
  • Speed: Get loan quotes customized to your profile online in 2 minutes. The loan relationship manager from the bank will call you on the same day with next steps
  • Easy loan comparison: Compare loan offers on the basis of total cost & customer satisfaction.
  • Transparency: Aimed at helping you make the right choice, we provide objective and transparent information about your loan options.
  • Privacy: Get customized quotes without sharing any contact info. Your application is sent only to the lender you choose, and is never shared with anyone else.
  • Trust: BankBazaar is a completely neutral marketplace and will never promote one lender over another.
  • Free: BankBazaar.com does not charge you any fees to use our services.

    How to get a loan on BankBazaar.com

    1. Use the eligiblity calculator above to receive customized loan quotes in a few seconds
  • Compare the loan offers you receive and apply for the one you like
  • Your application will be sent electronically to the lender you chose. The lender will contact you within one day.
  • BankBazaar will update you on your loan application status via email & SMS alerts


  • Loan to pay off cash advances


    #pay advance loans
    #

    loan to pay off cash advances

    Put your question here.

    Can I get a loan to pay off

    to be paid over a 12 to 18 month period and still be able to pay my other bills. House, car, phone, food, etc without going broke every month with the payment?

    Bonnie,

    You are not the first one to walk in these shoes, I have been there and feel your pain. You won’t find a loan here to help you, but you will find some advice from people who have been there, so to start you will need to give some more information.

    1. What state are you from? Each state has there own laws regarding payday loans so that will be the first thing you will need to know. If you post that we can find those laws for you.

    2. Are the companies that you have the loans with store front or internet loans?

    3. What are the names of the companies? How much did you intially borrow and how much have you paid back so far to each one of them. Please list all this individually.

    When I found myself to the point of no return, I found this place. I have to say that once I got a paid in full on the first two, I felt like a I had a little power back in my hands. I hope you will list all this information and that you will stick around long enough to hopefully get some help. I will look for your response.

    _________________

    Goodnatured,

    for all the ways I make $$ online



    Where Can I Apply for Free Money to Pay Off My Student Loans?


    #money to loan
    #

    Where Can I Apply for Free Money to Pay Off My Student Loans? Michelle

    Michelle

    Dear Steve,

    I m trying to figure out where I can apply for free money to pay off my student loans. I know this is a question that has been asked of you before. I m just tired of thinking I ve found ther right site, and it ends up that I have to pay for the information. You re right, It s definitely a scam. I just want to pay back the money that I owe to schools. My husband and I just had our first baby almost two months ago. I don t want to still be paying back student loans when it s time for her to start school; I sure also don t want to be in complete debt when that times comes as well. Also, I am not working right now, and my husband works, but he does not make a lot of money. Please steer me in the right direction.

    Where can I go or who can I go to in order to receive help in paying back my student loans? I have no job right now, and I don t want to still be paying back money when myt 2 month old starts school!

    There is no free money to pay off student loans. There are some student loan forgiveness programs for teachers and doctors in disadvantaged areas but no money available for people not working in a specific field or area. Even then the requirements are onerous before some federal student loans will be forgiven .