Category Archives: Debt

New Grads – Avoid Introductory 0% APR Credit Cards

credit cardGraduating college and starting a new life on your own is a scary time. If you’re like most students, you already have debt to refinance, and you certainly don’t have piles of cash sitting around for you to splurge on a nice apartment, high-end furniture, and fancy work clothes yet. If you’re lucky enough to have a job lined up, your future is a bit more secure, but that’s no reason to become complacent about your finances.

Let me tell you a story about a girl I knew in college. She had a great job lined up with a nice salary, so when she left school, she got a credit card with a 12 month introductory 0% APR. She figured she could put all of her “necessities” – a security deposit on a nice apartment, an apartment full of furniture, and work clothes – on her credit card, and pay them off interest-free over the course of the year with her new salary.

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5 More Tips for Gen Y to Manage Student Loan Debt

Young GraduatesThis is a guest post by Stewart Bradley, following up on his post last week. Stewart is a contributory writer associated with the Debt Consolidation Care Community and this time he has discussed about some more points for gen Y to operate student loan to secure financial status.

Saving money is unmistakably a smart step for better future and the young generation or the gen Y is not ignorant of it. The young people know that saving money is important, but they may feel perplexed about how they must start saving. The gen Y may kick-start their savings strategy with the student loans. Well, student loans are almost inevitable for higher studies these days. Gen Y must be very cautious while choosing the proper student loan. If they’ll choose suitable loan terms and payment plan, then the loan payment will be much more hassle-free.

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If you’re a part of the “generation young”, then through this article you can find out 5 effective personal finance tips for your student loan. Follow these tips and ensure a secure financial future:

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Student Loan Debt: How to Manage it Early

Young GraduatesThis is a guest post by Stewart Bradley. Stewart Bradley is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. Though he holds his expertise in the Debt industry and has made significant contribution through his various articles, he has interest in budgeting, mortgage, insurance, short term loans, bankruptcy, credit card processing services and more.

Given today’s amount of student loan debt and the repercussions that can be seen all around among the youth, it can be safely said that student loan debt definitely spells doom for your personal finances any day. It depends on the amount of student loan debt that you’ve accrued for it might lead to repayments that can last for over 30 years. Today you’re young and carefree, but slowly with the passage of time things are going to get difficult especially as far as your finances are concerned. Hence, it’s rather important that you start handling your finances responsibly as early as possible.

Tips to help you manage student loan debt

When in your youth, it’s advisable that you develop a pattern of financial responsibility that’ll ensure your loan gets paid off. The quicker you do this, the better it’s going to be for your financial future.

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What Would You Do With $10,000?

I received an email yesterday from Ally Bank asking me what I would do with $10,000. I clicked through to find an infographic summarizing the data collected from 1022 people over the age of 18 in the continental United States. What I found was rather interesting, but what truly peaked my interest was the way in which Ally presented the data.

Ally Asks: What Would You Do With $10,000? [INFOGRAPHIC]. Check out this story and more at Straight Talk, the official blog of Ally Bank.

The choices were save, invest, pay off debt, or spend the money. About a third said they would save it, while another fifth said they’d invest it, and yet another fifth said they would use it to pay down debt. I found it pretty surprising that over 50% of respondents said they would either save or invest it. I have to hope that those people don’t have high interest debts they need to pay off, but I’m skeptical that less than half of the respondents have no credit card debt.

Then I looked closer and marveled at the fact that they didn’t list the percentage of people who would spend the money. If you add up the percentages, you’re left with 28% of the respondents saying they’d spend the money. That makes it the second most popular answer, yet it’s swept under the rug, as if Ally is hoping you won’t notice it.

Why? Clearly Ally has an agenda: they want you to save more money and they want you to save it with them. Is the idea that by down-playing the proportion of people who said they’d spend the money and highlighting more responsible choices, they hope you’ll look more favorably on the responsible choices so when you get a windfall at some point you’ll be more likely to save with them? Or are they trying to make you feel guilty by showing you that the majority of people would do something responsible with the money, so you should too?

What do you think?

My Boyfriend Has Debt – Now What?

When you’re in the early stages of a relationship, you’re busy getting to know each other and figuring out if you’re compatible. Some of the first things you’ll likely ask the person early on are his education, career, religion, political views, hobbies and interests, and maybe where he’d like his life to take him. It’s only after you’ve learned all these things and decided he’s boyfriend material that you dare ask about his financial health. So now you’re two months in, you’ve been on 15 dates, and you really like the guy. Then he mentions that he’s in debt. What do you do?

Your first reaction might be to panic. If you don’t have any debts of your own, dating someone who is in debt introduces a slew of questions, potential problems, and a much greater need for communication. The first thing you need to do is give yourself time to process this new information. Don’t make any hasty decisions, and ask as many questions as you need to give you enough information to make a decision on how to move forward.

(It’s just too difficult to constantly write him/her, s/he, boyfriend/girlfriend, but everything I’m writing is intended to be gender neutral. It doesn’t matter whether it’s the man or the woman who comes into the relationship with debt. But for the purposes of this post, I’m going to make it easy for myself and assume it’s the man coming in with debt.)
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