Archive for June, 2011

Ideas for Minimizing and Preventing Student Loan Challenges

Author: sciaq

Jun 24

Student loans are the bane of many graduates’ existence. The debt and payments can be a part of your life for 10 years or more. Your life circumstances may change, but that debt is always there until it gets paid off. So it’s wise to know ways you can prevent or minimize issues with your student loans.

These ideas can help you, whether you’re in trouble with loans already or planning ahead to prevent such a situation:

1. Borrow only what you need. From a financial standpoint, being a student isn’t fun. Everyone gets tired of not having any money. However, a student loan isn’t the solution to improving your standard of living.

• Living a challenging life for 4 years beats 10+ years of payments. You may be tempted to borrow an additional few thousand dollars each year to ease the financial pain, but that can be a mistake. Thousands of graduates every year would readily support that statement.

• Consider the school you choose to attend. Is that $40,000-a-year beautiful little liberal arts college worth the expense? Going to a state-funded institution and living at home can save tens of thousands of dollars a year. Choose wisely.

2. Avoid defaulting. If you can’t make your payments, the two options available to you are forbearance and deferment. Both options are better for your credit than not making payments and being in default on your loan.

• Forbearance allows you to not make payments for a period of time; the catch is that the interest is still being charged on the account. That means your student loan continues to grow while you’re not paying.

• Deferment refers to a suspension of payments, without any additional interest accruing during that period. Obviously, a deferment is preferable, but harder to obtain. See your lender’s website for the acceptable circumstances and forms necessary to apply for a deferment.

• Receiving forbearance is relatively easy. Again, look to your lender for the situations that apply and the required forms. Just remember that the loan continues to grow while you’re not making payments.

3. Live beneath your means. After completing 4+ years of college, everyone wants that great apartment and a new car. Until those loans are paid off, though, the wise will choose to live a humble lifestyle and forgo the luxuries.

• To many, that sounds like a miserable life for ten years. But nothing could be further from the truth. Yes, it may require a little more thought and planning to entertain yourself on the weekends, but you just got done learning how to think in college. There are lots of enjoyable ways to spend your time that require little to no money.

4. Consolidation. This option allows you to make one monthly payment instead of several by effectively combining multiple loans into a single loan.

• Consolidation also allows for a lower monthly payment, typically by increasing the payment period of the loan. A common consolidation would stretch the normal 10 year loan to 15 years. Although you may be able to receive lower payments, consider how much more you might end up paying over the longer term.

• Consolidation may also result in a lower interest rate, depending on the economy at the time of consolidation.

For many, student loans are an unfortunate but necessary part of obtaining a college education. While these loans can be challenging, they can be managed intelligently and with proper planning.

A little sacrifice now can go a long way to fortifying your financial health. Avoid borrowing more than you need and ending up in default. Try some of the tips above and you may find yourself graduating into a very comfortable lifestyle!

0 Comments
Filed under: Uncategorized | Tagged as: , , , , ,

Save Money on Your Next Vacation

Author: sciaq

Jun 5

Like most of us, you probably love to go on vacation, but hate the expense. Below are six tips that can dramatically cut the cost of your next vacation. Instead of putting so much money toward your travel expenses, you can save it or spend it on something that really matters to you.

1. Check out nearby airports. Many decent-sized cities have multiple airports. You might be surprised at the difference in cost.

• Consider looking into airports within a 50-mile radius. The money you can save might be worth an hour drive.

2. Avoid checking your bags. Airlines have become aggressive about charging for bags you check. Look into any fees the airlines charge for checked bags; policies vary considerably. It might make sense for everyone in the family to have a carry-on to avoid those charges.

3. Think big. If a large group is travelling with you, you might be better off renting a house or a large suite with a kitchenette.

• Get some friends to travel with you, and your trip may be even more economical. You can split the rental fees and you might even have more fun in the process.

• Not only can you save money on your accommodations, you can prepare your own food. You can save a lot by eating in. If you want to spend that money while on vacation, put it toward something you’ll remember 10 years from now. That’s probably not going to be food!

4. Consider your travel days. Some days can be much less expensive for flights than others. Look at all your options. The same situation applies to hotel rooms; the rates often vary widely by the day. Some real savings can be found here.

• One note: house and villa rentals are frequently by the week. However, some rentals are Friday-Sunday or Monday-Thursday. Weekend rates can be much costlier than weekdays. See if your plans will allow you to take advantage of the lower-priced days.

5. Go during the off-peak season. Off-peak travel seasons may not work if you have children, since school can be an issue. But if you don’t have kids, the savings can be considerable. Hotel rooms, car rentals, and flights can all be much less expensive.

• An airline ticket to Europe can be half the regular cost during certain times of the year, saving you hundreds of dollars on each ticket.

• Not only will you spend less money, but the crowds are much smaller.

• In many places, like Florida, the beach can be a lot more comfortable in May or October than it is in July.

6. Stay home. You may be surprised how many French people have never been to Paris. Or how many people from Arizona have never seen the Grand Canyon. Try looking locally for destinations. Have you fully taken advantage of what your area has to offer?

• A vacation with a day spent at the amusement park, another day at the beach, another exploring the woods, and another site-seeing, all while sleeping in your own bed at night might be the perfect vacation for you and your family.

To really cut vacation costs, use as many of these tips as your situation will allow. A vacation doesn’t have to be financially painful. Plus, you may have more fun doing something out of the ordinary. And you may even save enough for another vacation!

0 Comments
Filed under: Uncategorized | Tagged as: , ,