Student loan basically helps a student to manage the cost of education without facing any difficulty but the repayment often goes with the grandparents. This is because grandparents often have the inclination to cosign for the student loans for their grandchildren. If you’ll follow the recent statistics, then you may find that after 2005 there is a considerable rise in debt level among people aged between 50 to 59. The student loan debt is obviously a great contributor behind this rise in debt level amongst people who’re nearing the age of retirement.
Balancing Retirement and Debts – How Demanding is it?
While you’re still working and earning on a regular basis, it’s more convenient for you to take care of your financial obligations. Right after retirement, you lose the assurance of regular income and this makes it even more important for you to save for your future. That’s why, after retirement it becomes a bit difficult to manage debt payments along with all the other savings accounts. Of course there are a few solutions for the retirees to deal with student loan debts without missing the other vital financial necessities. Have a look at the solutions below that may help retired grandparents to deal with student loan debts efficiently:
1. Look up to home equity lines of credit: Equity in your property is something which you can use to solve most of your financial problems well on time. The same applies for student loan debt also. Retirees who’ve considerable amount of equity in their property can use it to get rid of debts easily. Of course the usage of equity has to be proper. Otherwise it may create problems in managing the mortgage loan.
2. Make way for some budget cut: Quite obviously increasing savings to pay off debt must. To pay off the student loan debts you need to accumulate enough savings. People often feel it unsafe to use retirement savings for the debt payments. It’s definitely not a wise idea to use retirement savings for any other cause. Still, if the student loan debt is due for a long time, then you must pay it off as soon as possible to get rid of interest rates. Use a portion of your retirement savings to pay off the student loan debt. This will actually help in saving on the interest rate.
3. Encourage to follow IBR: Income Based Repayment plan or the IBR is a convenient option for federal student loans. If your grandchildren have federal student loans to pay off, then encourage them to opt for the IBR option. The greatest benefit of IBR is, after continuous payments for 25 years, government forgives the rest the loan amount. The monthly payment will be decided according to the income level of the borrower. This is really an effective solution for federal student loan debt.
4. Make the most of life insurance loan: It’s definitely a wise step to borrow from the life insurance policy to manage the immediate financial needs. Just check the interest rate properly and borrow a moderate amount. It’s important to go very careful with the borrowing. A careful attitude will make it easy to keep the things well under control.
These 4 effective solutions may help retirees to manage student loan debts efficiently. So, following these solutions is a must when debt free life is the matter of concern.
Mr. Collins has been a recognized industry expert, financial advisor and author in debt consolidation agencies and various bankruptcy lawfirms. He offers more helpful tips and information on bankruptcy, student loan consolidation, credit card debt consolidation and many more. For more informaion please go to the facebook/oakview
College students are the ones who fall easily into debt. This is because, they are the ones who get easily tempted. They are the ones who start living alone, all of a sudden. Adjusting to the new course, adjusting to new environment and adjusting to the new life is not easy. Moreover, the sudden pressure of high education takes a toll on them. So, majority of the students tend to depend on shopping and partying, thereby incurring huge debts. Debts affect your credit and it becomes hard to become debt free soon or improve your credit too, at the same time.
Therefore, it is important to avoid borrowing as much as possible, and lower your expenses too. This would also help you maintain your credit rating. Whether or not you can get a job after the completion of your course, will not only depend on your educational qualification. The employer would also check with your credit rating.
How to Manage Credit when in college
In order to manage credit, when in college, you would be required to:
1. Design and maintain a debt payoff plan – You will have to draw up and follow a debt payoff plan, if you want to pay down the debts. It is mainly high debts and missed payments, which has a negative effect on your credit. So, you will have to try your best, to pay down the debts, as soon as possible. You can follow the debt snowball payoff plan or the debt avalanche payoff plan. You can also follow the debt snowflake payoff plan.
2. Keep a check on the credit reports – If you want to avoid incurring debts as a student, you will have to keep a check on your credit reports. These have every details of the accounts you have, the status of the accounts, and various other details. So, if you check the credit reports from time to time, it can help you maintain your credit.
3. Make minimal usage of your credit cards – Credit cards are easy to use, but credit card is the main financial tool which easily gives rise to debt. So, as a student when you have almost little or no income, it would be wise of you to minimize your credit card usage.
4. Better your self controlling skill – You will have to muster the self control skill. This is one of the most important aspects of managing your finances. Self control can help you avoid unnecessary expenses and incurring too much of debt.
5. Make sure you know where the money goes – Whether you are using it for your tuitions or your daily expenses, or anything else, make sure you are aware of where the money is going. For that, you will have to maintain a list of the expenses you make in a week and also in a month.
6. Build up an emergency fund – You will have to build up an emergency fund, for various such situations can crop up, out of nowhere. These can be a medical condition, or a debt payment, helping a friend or so on. It would never be wise to borrow for every other emergency situation. It is rather wise to maintain an emergency fund. This way you will also get to muster the habit of saving money.
The above are the strategies which can help you manage the debts and maintain your credit at the same time. Richard Boyum, professor emeritus of counseling and psychology, at the University of Wisconsin-Eau Claire, says “There are many opportunities to spend money and some students think of money as something to spend rather than as something to save.” However, with time they learn that it is extremely important to save money.
With increase in the number of unemployment rates, the Federal reserve has been left with no other alternative than to keep interest rates low until the unemployment rate falls below 6.5%. This is a beneficial step in the direction of reducing inflation rates as well. Though useful in so many ways, these policies have negatively influenced the consumer-bank relationships.
With savings bank interests hitting an all-time low, investors have been compelled to withdraw their savings from accounts. Some of the major problems faced by most investors include:
1. Low Interest Rates – This is no new revelation, as these days the national average is also estimated to be less than 0.10%. The interest rates are discouragingly low, and this has lowered the morale of most investors.
2. Repeated Petitions – Most individuals have grown sick and tired of making petitions at banks, which seem to pay a deaf ear to the grievances of investors.
3. Curt Replies and Stringent Policies – Most individuals are aware of the changing relationship of consumers and banks. Banks tend to send back most of the investors thoroughly disappointed.
In this changing scenario, banking on saving banks is probably the least advisable thing to do. If however, you can enjoy high yields and profitable interest rates with banks, why would you mind? Read along to know how to maximize your interest rates with savings accounts:
1. Reward Checking and Savings Accounts – There is finally some relief, as you can avail services of reward checking and savings accounts together. Certain small banks have been offering a higher interest rate to customers who meet certain qualifications listed out by bankers.
2. Demographic Specials – Though banks have disappointed the baby boomers with lower interest rates, the millennial kids have something substantial to cheer about. Banks are offering favorable interest rates to young adults and kids planning to open savings accounts.
3. Online Bank Accounts – Online bank rates are way lower than the rates of their brick and mortar counterparts. It is imperative for individuals to brush up their Internet literacy. Most online bank accounts are easy to create. These accounts enable people to evade the tiresome real-life transactions. These online banks give customers the opportunity to get greater interest rates without much effort.
4. Use Saving Calculators - Saving calculators help an individual determine the amount of money you need to put away to enjoy higher yield. Its zero-error calculative capabilities are an advantage for most investors, as these help you plan in a better manner.
5. Choose Your Savings Account Type – Every savings account has a different set of advantages and disadvantages. You need to know the type that goes on to be profitable for you. Consider conducting a proper research, so that you can enjoy the best deals.
Most investors sadly remain unaware of latest banking developments. This ignorance leads to an increased likelihood of banking errors. You need to familiarize yourself well in advance to avoid such possibilities. It is best to remain aware of latest consumer friendly offers that most banks offer.
Read More about Online Bank Rates here
The ‘Great Recession’ has had more impact on the banking sector than anticipated by most trade pundits. The economic downturn compelled the Federal Reserve to introduce new fees on checking accounts and certain low-interest policies. These policies and new reforms were not too consumer-friendly. The economic downturn has hence, soured the once cordial relationship between customers and banks.
Why Adopt Online Banking?
Amid speculations of another fiscal cliff, most annuity holders seem to be disappointed with their current investment strategies. In these troubled times, the only ray of hope seems to be online banking. Some reasons that make online banking better than their brick-and-mortar counterpart have been discussed below:
1. Higher Interest Rates- For those who’ve grown tired of the near-zero interest rates, most online banking rates provide a new reason to cheer up. These online banking rates are visibly better than the rates provided by banks normally.
2. Better access- Online banking is quite convenient for the customers and provide greater accessibility.
3. Reliability- Online banking is quite reliable and user-friendly.
4. Cost-Effective and Fast – Online banking helps in quicker transactions and is comparatively cost-effective too.
While looking for best interest rates online, it can get quite difficult to choose because of a plethora of different options available. The best ways to get excellent interest rates online have been discussed below:
There is no substitute to hard work, so nothing can fetch you better results than extensive research. Look out for best online bank rates by visiting all those websites that specialize in listing the different online banks along with the respective competitive interest rates they offer. Some points to remember while looking for best interest rates have been listed below:
1. Choose Websites that list Savings Account Alternatives:
Look for websites that lists savings account alternatives, if you’re looking to save money while also enjoying higher interest rates. Customers can enjoy the benefits of higher interest rates with the help of certificates of deposit rates and high yield checking accounts.
2. Look for Sites that Aggregate Interest Rate Data:
Visiting every individual bank site or visiting their respective physical branches can be quite time-consuming and intimidating. If you aim to save your precious time, consider looking for sites that aggregate the interest rate data and hence, help you find the best bank rates easily.
3. Check Out Recommendations:
Make sure you check out various recommendations, and sift through the various online banks that provide higher interest rates than their physical brick-and-mortar counterparts do.
Banks that only offer excellent interest rates can sometimes be deceptive too. It is essential to seek more information about such banks. Sometimes, higher interest rates are indicative of something fishy, so don’t just get lured by the higher online bank rates.
Consider the fees and your own convenience as well. A good online bank should have not just a great interest rate, but also excellent customer service, reliability, accessibility and a reputable name. It is recommended to always consider an online bank that possesses a sound and stable financial history.
You might have heard people saying “student life is the golden period of life”. But do you agree with the same? Do you think it is still so easy being a student, when higher studies have turned so expensive? Well, it is quite difficult to manage the situation and if you borrow a loan to finish your studies, your hardship of life begins.
Yes, the matter of student loan can be easier to look at but difficult to go through. The loan is allotted with a deal, where you need to return the amount after finishing your studies. Generally, it is expected that you will get a job by the time and repaying the amount will be easier for you. However, the current economical scenario is indicating towards a different situation, where recession, inflation and unemployment troubles are always there hammer you from all the sides. Therefore, the situation becomes tougher and with your default, the innocence of student life comes to an end.
Lots of difficulties surround you from all the sides, like
• Your lender starts garnishing your wages, so a good amount of money gets deducted from your paychecks.
• Your lender starts calling or visiting you often and then. Therefore, your social and professional life encounters multiple difficulties.
• Your credit scores drop a lot, so getting other financial assistance turn difficult.
On the whole, your economical abilities reduce and if not dealt with the situation right on time, you can even turn bankrupted.
So, borrowing defaulted student loan help is really a necessity to turn the situation better. Well, you need to have some basic preparations, like-
Firstly, make out how much amount you owe. If it seems to you more than you can afford call your lender to ask for help. He can help you by suggesting multiple ways-
• If you are jobless, he can offer you a job at his own firm.
• He can ease your repayment plans by reducing the installment amounts.
• He can help you consolidate the loan amounts.
• He can even delay your repayments by deferring the payment dates, so that you can get more time to prepare yourself economically strong.
Secondly, getting a hold upon your nerves is really very important, since there is nothing to get worried about. Rather, have confidence upon yourself and start resolving the issues by borrowing defaulted student loan help.
So, resolve the defaulted loan issues at ease, because the more you care about your life the more it smiles upon you.
Yes, no matter how difficult the situation is in front of you, you should never feel defeated, because life always gives you a second chance always. All you need to do is to stay positive by fighting against all the negatives and you must recognize the right way to proceed.
Well, when you are stuck with huge amount of student debt, you need to careful about multiple things, like Mental set up
It is true that your default have drop you into bad consequences, like- bad credit scores, tortures of the lenders, economical troubles, etc. but you should never give up. You should go for resolving all these issues one by one.
Resolve bad credit scores
Since, you have failed to return the student loans amount, your credit scores have dropped. Therefore, you should start repaying the installments as soon as possible to make sure that your credit scores get repaired.
Stop the disturbances of debt collectors
There is law called FDCPA available for preserving the rights of the borrowers and stop the tortures of the debt collectors. If your debt collector is disturbing you with no reasons, you can post a complaint against him in the Federal Trade Commission. You can even stop his calls by sending him a written notice.
Put an end to your economical troubles
There can be recession, unemployment and underemployment troubles to hold you back from getting a job, but you need to prove yourself a worthy candidate by overcoming all these troubles. Therefore, getting a job is the best way to start saving and avoiding complexities for the upcoming life.
Contact your lender
Borrowing help from your lender is the best way to resolve all these issues at ease. You must contact your lender to ask for suggestions, because he can help you in many ways, like-
• He can offer you a job at his own company to ease your burdens.
• He can suggest you an easy repayment plan to help you pay off the entire amount at ease.
• He can stop wage garnishment to help you become financially stable.
So, do not stay involved with the student debt issues unnecessarily, rather make your life worthy to live at ease.
Are you going to retire very soon? Are you worried about your financial independence? Don’t you think so that life can take a wrong turn, when you will be left with no job or no salary? Is a little pension amount enough for you to bear all your expenses after retirement? Well, the economical situation is taking a turn and any time you can fall into the trap of recession or inflation. Therefore, you must stay prepared prior to your retirement with deferred annuities.
Yes, life is never static and changes come frequently, but living a happier and safer life is a requirement of all. However, people tend to spend more money than their budget and make the biggest mistake of their lives. Therefore, you must go for deferred annuities to make sure that all your savings can be spent in a systematic way.
Why purchase deferred annuities?
It helps you stay safe – When it comes to safety and security, these annuities offer you better assurance. The amounts you accumulate remain secured for your future and after you reach to your retirement age, you start getting the returns. Even it guarantees you a stable income for a lifetime.
It helps you save the maximum amount - This plan is a favorite of the retirees, because it offers them the facility of accumulating the maximum amount for their retired age. Since, no tax deductions are made upon your savings until you withdraw the amount; you get to secure maximum amounts for your retirement.
It helps you get death benefits - After the death of the annuitant, the beneficiary gets to inherit the death benefits. So, not only you, but your family gets to stay safe.
How to purchase deferred annuities?
Contact an annuity provider to know about the annuity scheme in details. Ask him to quote you the amount you can get after your retirement. To know whether he is quoting the right amount or not, you can definitely use an annuity calculator to confirm it. Once you are satisfied with the plan, you can go for purchasing it. You can purchase these plans just by paying a single installment or multiple installments over time as per your financial ability.
Since, there are two kinds of deferred annuities available, like fixed and variable; you must decide to choose the plan, which suits your requirements the best.
So, what are you waiting for? Ease you post retirement burdens borrowing deferred annuities, because your security ensures your happiness.
Life is not the same always, right? Now, you are living at ease and comfort, but will it be the same after your retirement also? You are earning now, but once you enter into your retired life, instead of a little pension amount you will be left with nothing. How will you live your dreams then? So, you need to plan out something effective, which can help you resolve all your post retirement economical issues at best.
Well, borrowing loan is definitely not a good idea, because you need to return the amount at one point of time. Since, you will be left with no job after your retirement, how will you repay your loan amounts? Therefore, you need to plan something different to make your retired life economical tension free. Why don’t you go for borrowing an equity release loan then?
You have heard it right, it is also a loan but it comes with an offer where you don’t need to return the borrowed amount. Yes, the deal is set upon your home and you get to withdraw a good amount of money depending upon the valuation of your home. Once you die, your lender sells the property to get back the amount he has spent upon you. So, in a hassle-free way, you get to resolve all your economical burdens to live the life at ease.
• You can use the amount for holidaying.
• You can use it to bear all your household expenses.
• You can use the amount to buy new property and car.
• You can use it pay off all your debt amounts.
• You can use it for getting a better medical attention.
So, without relying upon your successors for getting monetary help, you can live a happy life with the help of equity release loan.
How to get an equity Release Loan?
Releasing equity upon your property is really very easy and all you need to do is to contact your financier to discuss about the matter in details. Know the quotes and to compare it you can use an equity release calculator. It will help you determine whether it suits your requirements or not. You can even research the market condition to stay better updated with the ups and downs in the valuation of the property to get the best deal.
So, borrow an equity release loan now to ease your retirement burdens, because your life turns better when your economical condition is good.
Trying to tackle multiple kinds of debt can be frustrating. When you owe money to differ creditors, it’s difficult to manage all of your bills simultaneously, and to stay away from situations that may affect your credit score. Debt consolidation is an option, but the best strategies require some knowledge about how the ‘debt industry’ works.
Appraise Your Budget
One of the first things that most financial consultants recommend in a new plan to tackle debt consolidation is a thorough review of your household budget. You’ll need to understand each expense throughout a given month, and be able to prioritize what is discretionary and what is truly important. This is similar to looking at your finances through a ‘business lens,’ as business leaders understand that a working business must make profit by making revenue exceed expenses.
A good review of almost any budget will turn up expenses that can be decreased, or entirely deferred for a period of time. All of this will help you toward a situation where you can knock out multiple debts with a lump sum payment that fits into your budget.
Combine Existing Debts for Low-Interest Consolidated Loans
One of the other initial steps that individuals will take in debt consolidation is to identify the loans with the highest rates of interest. These are the debts that most stubbornly refuse to decrease over time. Borrowers who don’t really analyze interest rates are often frustrated because they make generous payments to the principal, but they don’t see that principal diminish quickly.
In debt consolidation, you can shop around for a lender who will give you a good interest rate on your debt. With a lower interest rate, you may find that you can pay down your debt much more over time, with the same kinds of payments that you may have made previously. That’s why working your highest-interest individual debts into a low-interest consolidated loan is such an effective way to handle debt cycles that seem to stretch out into eternity.
Credit card debt is some of the highest interest debt available to consumers today. In addition, the industry is full of aggressive marketing tactics and unethical lenders. Many consumers have realized that the high payments they make on their credit card debt is a burden to them and their family every month, and as a result have decided to make it a priority to get out of credit card debt. Fortunately, there are several ways to get out of debt quickly.
Before starting to get out of debt, a consumer has to start by educating the self and getting their personal financial data organized. Use a website such as creditcarddebtchampions.com to learn about your options. Then, gather together the last statement from every credit card you currently have. Make a chart listing out each card’s minimum payment, total amount owed, and interest rate.
Next, set up a budget based on making just the minimum payments on your debts. Put in conservative estimates of your other bills and expenses. Using this budget, determine how much money you have left over at the end of every month after paying for all of your necessary expenses. Based on your circumstances, put some of this money aside for savings, and use the rest for debt repayment.
Look at your original list of credit cards, and search for any cards with a total balance that is less than this extra amount. In this case, use the extra money to pay off this card. Paying off small balances like this, even if they have a low interest rate, will enable you to quickly reduce the number of bills that come in every onto and make it easier to manage your other bills. Repeat this step every month, eliminating as many small bills as possible.
If you have no balances that are less than the total amount of extra money you can apply towards debt repayment, then the extra amount of money that you have every month should be put towards the loan with the highest interest rate. This will let you pay off the highest interest debts the fastest, saving you money on interest in the long run.
As you pay off a credit card, take the card out of your wallet and put it in a safe place. Do not close the account, since this will result in your credit score dropping by a few points. Keep in mind, however, that this drop is slight, and therefore it is rarely worth paying to keep an account open. As each credit card is paid, rework your budget to remove the old account. Redirect the money that was going towards the payment on the card to the extra money that goes towards debt repayment. As minimum payments go down on other bills, redirect the savings in the same way.
By doing this, a consumer will be able to quickly pay off his or her credit cards as long as she or he doesn’t continue to rack up more debt. While paying off your credit cards limit your spending and use savings to pay for emergency expenses.