My Finance Blog

Since we’re on the subject of student loans, why not go all out and discuss its subtleties and underpinnings. Taking out a student loan might make you a happy camper while you’re in school. When graduation day comes and you’re faced with the responsibility of paying them off, then you’ll probably find yourself liking it less than you had before (who ever suggested taking out a student loan in the first place? Sheez…). But, being alive (since the only way you can completely get out of debt is when you die or when you suddenly become completely disabled), you have no choice but to pay.

Here are some ways to get yourself out of student loan debt:

1. Pay Them

HA. Were you expecting something else? I told you, you have no choice but to pay your loans. You can, however, choose the type of payment you prefer. You can: pay your loans on a set amount per month which is the shortest way to pay off everything (just less than 30 years! Wow!), pay based on the gradual increase of income, pay on an income basis depending on your monthly returns, or pay the minimum amount per month which incurs the biggest interest accrued, by the way, which means you’ll be paying A LOT more than what you actually owe.

2. Ask For Loan Forgiveness

Aha. Yep, you can ask for loan forgiveness. Not everyone can actually avail of this, but it IS possible. I’d start ticking off right here but I think that its importance warrants a separate post.

3. Consolidate or Ask for Forbearance and Deferment

If you took our more than one student loan and you’re getting more than once the headache, a consolidation is possible. The downside is it takes longer to pay and the interest accrued is much larger. If you have valid reasons not to pay for quite a while, you can also ask for forbearance or deferment, depending on which one fits the bill.

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Life is hard nowadays. I can’t count the number of people who’d want to go to college but don’t have the resources to do so. Of course, they could work while studying but most often than not what they earn isn’t even enough for pocket money. Those who do get full scholarships sure are lucky. There are also those who get grants to help their studies, but most of the time, the grants only serve as supplemental money for the students. In cases like this wherein money is desperately needed to fund studies, a student loan might be in order.

How Does One Apply for a Student Loan

The first step is filing an application for student financial aid. There will be an agency which will assess your financial needs. You will then be required to supply all the details about yourself and your family.

The Types of Student Loans

There are many different types of student loans, here are two of them.

Guaranteed Student Loans

For this type, there are two subtypes to choose from. If you can prove that you are in dire need of financial aid and you pass the requirements, you are eligible for the subsidized type. A subsidized loan means the government pays the interest accrued of the loan while you study. If you don’t fit the bill for a subsidized loan, you can always get an unsubsidized loan. In this type, the interest is accrued and is not due for payment until your graduation.

Direct Student Loans

Many students prefer this type of loan because it, like its name, is direct to the point. The school or university is in charge or collecting funds for the student and the student is not obligated to pay until after graduation. Wherein which, a payment schedule will be set.

If during the allotted time for payment, the student fails to pay the loan, then that’s one big bad mark on the individual’s credit rating. But that’s a story for a different post.

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I’ve heard many people talk about wanting to have financial freedom and the privilege of an early retirement. There are many options available, if one only knows where to look. One of these options is investing in the stock market. Purists and old-timers might still be thinking that only big corporations and businessmen could trade stocks. Nothing can be more untrue. Anyone with substantial capital could start investing in the stock market.

For this post, we’ll discuss the very basic terminologies commonly associated with stock trading.

Stock Market
Term for the market for buyers and sellers of stocks.

Stock Exchange
A stock exchange is the facility wherein traders or brokers trade stocks. There are two types of stock exchange: physical and virtual. The former consists of having to physically be present in a brick and mortar stock market such as the New York Stock Exchange while the latter entails trading through the use of computers.

Stock Trader
Individuals or corporations who buy and sell stocks.

Stock Investor
Individuals or corporations who buy stocks and allow them to mature for a long time.

Open Outcry
This is the official term for how traders communicate in physical stock exchanges — usually comprised of yells and hand gestures (not obscene, mind you).

Buying and selling in a stock market is carried out in an auction. Basically, sellers set prices while the

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Anyone who holds a credit card would most probably have heard said terms before. Young adults who’ve just gotten their first credit card, however, might not even have the tiniest inkling. In fact, even those who’ve had credit cards for years might be completely clueless about them. To aid everyone then, here are the basic information you’d have to know about credit reports and credit scores.

Credit Report

Ever wondered what are the criteria for denying and approving new credit card applications, loans, and mortgages? A credit report is a comprehensive detailing of all your credit activities. Every payment, non-payment, transfer of credit balance, etcetera, are presented as black and white in the form of credit reports. In other words, what you dismiss as only a couple of months of non-payment may have been the basis of an important loan which is turned down in the future.

Your comprehensive credit report is filed by specific credit bureaus of your country. It’s suggested that you ask advice from credit experts for details. Credit reports are limited to one country, which means you can’t take your report with you if you change your country of residence.

Credit Score

Credit score is the numerical representation of your credit report. Every action you take affecting your credit has a specific numerical value. There are different methods of scoring your credits depending on the bureau and the country. Most usually though, the higher the credit score, the better the credit rating, the more likely you’ll get that loan or that new credit card.
It’s advisable to request for a copy of your credit report months before you even consider planning on applying for anything which would be directly influenced by your credit report and score. If possible, try to rectify your bad record, if you have one, or maintain your current good standing.

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In the United States, one option for retirement benefits is the IRA (Individual Retirement Account). Using this scheme, future retirees are allowed to invest their retirement benefits as they please. Sure, they can’t literally hold the money in their hands — a handler would be in effect — but it still means you have control over your money. And instead of waiting until you’re eligible to receive your pension, you’re actually doing something for the betterment of your future.

Now, there are restrictions when it comes to investing your self-directed IRA. Precious stones or gold bullions are off-limits, for example. However, not many people are aware that they can invest their self-directed IRA in real estate. Yep, you read that right.

Even then, however, there are still some rules to follow:

1. You cannot purchase real estate properties from relatives
2. You cannot live in your purchased property until during the time of your retirement
3. If you rent your house before your retirement, the profit goes to the IRA
4. The property is tax fee but if in case you had taken out a loan, you would be liable to pay for the tax accrued

Now, what would you get if you invest your self-directed IRA in real estate:

1. What revenues or profits you generate from leasing your property would be yours once you reach retirement age
2. If you had made a good deal from your purchase, you can sell it at a higher amount once you completely own it
3. If you currently don’t have a home, then it’s a great investment for your future

Because of the current misconception about investing self-directed IRA in real estate, only 2% of American retirees explore the option. It’s an untapped resource which should be looked upon and made known to all those who are looking for a way to be financially free in their latter years.

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…was the first line I read when I logged-in to a forum I’m currently a member of. The story is that the forum member has multiple credit cards and has used them much too often that he’s now incapable of paying his debts. Sometime in the future I’m going to give tips on how to refrain yourself from overspending using your credit card, but for now let’s discuss what option this poor soul has. Read more »

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I just received a PayPal phishing email yesterday. Though I was smart enough to know what it was, a lot of people are not. I remembered listening to absolutely horrifying stories by my friends and their experiences with credit card fraud. Taking all their stories into consideration, here are some tips to save yourself from the harrowing experience of being caught in the middle of a credit/debit card fraud:

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I was watching the news earlier and almost choked on my dinner when I heard the anchors counting the days ’til Christmas. Who knew? Last time I checked, it was only July, how come it’s suddenly September? Holidays are great in every aspect except perhaps in the financial unless you’re teeming with money in your pockets. Here are some tips to keep yourself from going insane once the holiday season is over and your credit card statements start piling up.

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Mounting credit card debt is a very common problem facing many people across the U.S. If you begin with a plan, you can reduce your debt and take away much of the stress associated with having large balances on your credit card. Here are a few ways you can begin to reduce your credit card debt which often has the highest interest rates and penalties.

The most important step you must take to reduce credit card debt is to stop using your credit cards or at least use only one credit card for your purchases. It’s common sense that the larger the debt is, the longer it will take to pay it off and by eliminating some of the cards you use, you will be better able to manage what you owe and when payments are due.
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