I had an opportunity to meet Karla last year on one of my trips to Spain. My interview preview will give you a bit of background on our meeting. Karla is a fascinating individual, a painter, writer and overall creative person, but also an entrepreneur with a bit of an alternative flair. Here is what she has to say about her experience as a North American expatriate living in Spain.
1. Tell us a bit about your background. Where did you grow up, what is your educational background and what did you do before you moved to Spain?
I was born in Toronto and raised in a small provincial town called Bowmanville - just east of Toronto. I moved back to Toronto after high school and attended Humber College in Rexdale where I studied creative arts - like fashion design, photography and writing. After college, I opened my first enterprise - a boutique in Toronto's trendy Queen St. area - that sold weird and wonderful wearable art objects.
I sold that business in 1983 and went to the University of Waterloo where I received an honours degree in Fine Arts. I graduated in 1990 - and started my second enterprise - called Zona Communications. It was a communications company - and I jumped into the internet with both feet. I went on to build my first Internet enterprise - which I sold to a California company in 2000. I lived in sunny southern California after the sale of my enterprise - until the New York World Trade Centre tragedy - September 2001.
I packed up everything and went back to Bowmanville. Then 10 days later - I packed some items and flew to Zurich, Switzerland and married my long-time Spanish boyfriend - who had been working in Zurich for 8 years. We packed up his apartment - and by December 2001 - Christmas - we moved to Spain.
2. You now live on the Costa Blanca in Spain. How long have you lived there and what made you move there?
We have been here since December 2001. We didn't know where we were going to live - so the first logical place to go was to where Jose, my husband was born - Xativa. This is a castled city in the interior of the province of Valencia. We lived there for 6 months. We were unemployed and free to travel around Spain - as it was our honeymoon. We bought a 4x4 and traveled up mountains and down into valleys and places that no tourist would ever think of going.
However, we really wanted to move out to the coast - to the sea. We had met in a fishing / holiday village called Javea - back in 1988 - when I was a University student. I came to Spain twice - on student loans - to study art at the Prado in Madrid. Then, I would head out to the coast to party and hit the beaches.
My Spanish sweetie was a waiter in a fine little restaurant called - El Solomilllo - right on the beach. We fell into a crazy kind of love - and spent two wild summers together. We kept in touch for the next years though a friend - until the Internet was developed.
When we came to visit Javea from Xativa we found an old friend, Carmelo. He gave my husband a job and we moved over to the coast. We now make Benitachell our home - which is only five minutes from Javea.
3. What is it like to live in Spain? What are the main cultural differences between living in North America and living in Spain? What was the adjustment phase like initially when you moved there?
Spain is an old culture, full of raw passion, tragedy, love and a fascination with the macabre. It takes some time to get used to the intimate nature of the people. They are a nation of huggers and kissers. In North American culture where a handshake is normal to greet people, here in Spain it is a hug and a kiss on both cheeks. This is standard for men and women. No one ever thinks that you are gay because you are kissing a member of the same sex. This is a silly notion.
Spain is a noisy country. They have a great love of fireworks. Motorcycles do not have mufflers and they roar like big beasts through the streets. People don't talk to each other - they yell. A North American would think that fight is taking place in a bar when the Spanish get going. But they are not fighting, this is normal communications.
Spain is a dangerous country. Every criminal who flees persecution in their own country comes to Spain. Every type of mob is here, Russians, Romanians, Italians, Yugoslavians... Plus every killer soldier left over from some Central European war. Terrorism has been a common scenario in Spain thanks to the Basque separatist movement (which learned everything they know from Canada's FLQ). Every week, an unknown body will show up dead in a ditch due to some Columbian drug payment that didn't get paid.
Drinking and Driving in Spain is normal. Death is cheap on the motorways. Every weekend families say goodbye to loved ones as the jaws of death scrape the mangled bodies of young and old from a twisted up piece of metal that used to be a car. Beer is not considered a dangerous drink, yet it has a 5% alcohol content. If you do need to get one you can go through the Drive-Thru window at your nearest McDonalds. Both wine and spirits are very cheap in Spain - so it is an alcoholic's dream come true.
Smoking is not prohibited and cigarettes are very cheap. Everyone here starts smoking at a very young age. The women stay nice and thin as they don't eat, they just smoke. Everyone has black circles under their eyes. The mix of the cheap brandy and cheap cigarettes creates for very smelly people.
4. You have now spent several years living in Spain. What places have you seen? What festivals have you experienced? What gastronomic pleasures have you enjoyed?
Our favourite festival is the Fallas Festival in Valencia. We look forward to the first two weeks of March with such passion. It is the most amazing festival both visually and emotionally. The combination of art and fire, noise and danger - it all comes together in this festival.
We have so many favourite foods - like paella and sausages packed with pork and mountain grown herb. We love flan and rice puddings. We love all types of seafood and fresh veggies from the market.
5. You are always involved in a variety of endeavours. Tell us about the various websites you are working on.
My husband and I try and keep all of our important information on our own website - http://www.darocas.com/ - this is where I keep track of my paintings too. Then, I have another website called http://www.spainlifestyle.com/ where I store my writings and poems and photos of the renovations on our house. Then, we have another site called [http://www.spainphotos.net/] where we store our Spanish adventure photos.
6. In addition to web sites, you also participate in several business organizations. What are they and what is your role?
http://www.palomera.com/ is a website that seeks out and tracks what the Spanish business community is doing and we can watch business trends.
Last year, I started a business club for women - which has grown and we are actually hosting International Women's Day. It just goes to show the power of women to make something out of nothing. This is a club of international women who have come to live on this coast. The website is http://www.wibc-spain.com/
7. Obviously both you and your husband have a strong entrepreneurial orientation. You are now also involved in a project that involves a luxury Canadian cedar log home development in Spain. Tell us more about that project.
We both love wood homes. The homes in Spain are made from cement - so they tend to be cool in summer, which is good, but during winter and the stormy season cement homes are damp, cold and clammy. They are always full of cement dust and if they don't get enough sun they get moldy.
The Spanish don't have a good understanding of wood home building but the many of immigrants from England, France, Switzerland, Germany and so forth love their wood homes. So I hooked up with some old university friends from Canada who design and build wood homes in order to be able to offer a Canadian cedar log home to the Spanish landscape and marketplace. We are currently working on a project with a Spanish developer to build the first wooden home community in Spain. That website is called [http://www.spainloghomes.com/]
8. In addition to your entrepreneurial ventures, you are also an artist. Tell us a bit about your artistic background and the creative endeavours you are involved in now.
I love to paint. I had not done it for many years due to being so involved with the internet industry. When we moved here I was so happy to get back to my passion and use my skills that I developed at university. Now, I paint to please myself but the paintings sell very easily to people buying new villas or to tourists.
9. Talk to us about the expatriate experience in Spain. Where do community of foreigners live, how do they interact, what types of business and activities are they involved in, and how has that changed the country?
The coastlines of Spain are turning into very international communities. It reminds me of what California and Florida must have been like back in the 60's and 70's. Every retired person from northern Europe is moving to Spain for the sun and sea.
They are bringing their cultural mix and adding it to the Spanish culture. The rest of Spain is changing too - for the good and for the bad. There are more social reforms happening in Spain now - for women and for labour and social welfare. The new government is young and progressive.
The bad side is that the progress is too fast and the natural beauty and landscape is being filled up with cement houses looking like low cost housing, but as holiday homes they are fetching a huge price. This inflation is eating away at the poor in this country and now young Spanish people are looking at an era where they will not be able to buy a home.
10. What advice would give to someone else who is considering moving to Spain?
Don't' move to Spain unless you are willing to be flexible. There is nothing stable about this country and perhaps there never will be. If you are rich, and can live off a pension and golf everyday you will be fine. If you think you can move to Spain and get a job forget it. However, if you are an entrepreneur and can see the holes in the marketplace and you have the guts and know-how to fill the hole you will be fine.
Thanks, Karla, for sharing your viewpoints and experiences. I appreciate your insider's insights into a culture that has fascinated me for a long time. Good luck with your endeavours in Spain!
Susanne Pacher is the publisher of a website called Travel and Transitions (http://www.travelandtransitions.com). Travel and Transitions deals with unconventional travel and is chock full of advice, tips, real life travel experiences, interviews with travellers and travel experts, insights and reflections, cross-cultural issues, contests and many other features. You will also find stories about life and the transitions that we face as we go through our own personal life-long journeys.
Submit your own travel stories in our first travel story contest (http://www.travelandtransitions.com/contests.htm) and have a chance to win an amazing adventure cruise on the Amazon River.
"Life is a Journey Explore New Horizons".
The interview with photos is published at Travel and Transitions - Interviews
Article Source: http://EzineArticles.com/?expert=Susanne_Pacher
Article Source: http://EzineArticles.com/85715
Sunday, August 2, 2015
Debt Management Advice
The best debt management gives you the most financial options. By making regular payments and having a low debt to income ratio, you can access credit when you choose. If you aren't in that situation, then ask for help from the variety of debt management companies out there. In the end you have to pick the plan that will best fit your unique financial needs.
Pay Off Debt
The best way to maintain and improve your credit score is to pay off debts. Regular monthly payments make good habits and high credit scores. High interest credit cards should be tackled first, followed by other unsecured loans. Mortgages and student loans are considered "good" credit, and can be paid off last.
Debt consolidation loans, through home equity or personal loans, can help make payments easier by reducing interest rates and lowering monthly payments. You can also transfer credit card balances to reduce rates.
Get Help
If you find making on time payments difficult, then it is time to get some help. Credit counseling can help you figure out a budget and saving plan. They can also educate you on financial services that could help, such as a debt management company.
Debt management companies consolidate your unsecured debts into one payment. They will also negotiate lower interest rates with your creditors. This may temporarily lower your credit score, but it can get you out of debt in less than five years.
Debt negotiation is also an option. For a fee, a company will negotiate with your creditors to reduce your loan amounts. Not all creditors will agree to this, but many will. By reducing your debt, you will be able to pay off loans, but it will be on your credit report for seven years. It may be a couple of years before you can qualify for credit.
Choose What's Best For You
There is no one answer to debt management. Each person's financial situation is unique and requires an individualized plan. Take a good look at your financial situation before deciding on a debt management plan. Don't be afraid to ask for help. Lenders and debt consolidation companies can supply you with free information about their services.
To view our recommended sources for debt consolidation loans, visit this site: Recommended Debt Consolidation Lenders.
Carrie Reeder is the owner of ABC Loan Guide, an informational website about many difference finance topics.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Article Source: http://EzineArticles.com/85657
Pay Off Debt
The best way to maintain and improve your credit score is to pay off debts. Regular monthly payments make good habits and high credit scores. High interest credit cards should be tackled first, followed by other unsecured loans. Mortgages and student loans are considered "good" credit, and can be paid off last.
Debt consolidation loans, through home equity or personal loans, can help make payments easier by reducing interest rates and lowering monthly payments. You can also transfer credit card balances to reduce rates.
Get Help
If you find making on time payments difficult, then it is time to get some help. Credit counseling can help you figure out a budget and saving plan. They can also educate you on financial services that could help, such as a debt management company.
Debt management companies consolidate your unsecured debts into one payment. They will also negotiate lower interest rates with your creditors. This may temporarily lower your credit score, but it can get you out of debt in less than five years.
Debt negotiation is also an option. For a fee, a company will negotiate with your creditors to reduce your loan amounts. Not all creditors will agree to this, but many will. By reducing your debt, you will be able to pay off loans, but it will be on your credit report for seven years. It may be a couple of years before you can qualify for credit.
Choose What's Best For You
There is no one answer to debt management. Each person's financial situation is unique and requires an individualized plan. Take a good look at your financial situation before deciding on a debt management plan. Don't be afraid to ask for help. Lenders and debt consolidation companies can supply you with free information about their services.
To view our recommended sources for debt consolidation loans, visit this site: Recommended Debt Consolidation Lenders.
Carrie Reeder is the owner of ABC Loan Guide, an informational website about many difference finance topics.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Article Source: http://EzineArticles.com/85657
Tips on How to Survive College Life
Starting a new life, college life, can seem a bit strange and it is important that you learn a few tips and tricks to be sure you will survive as well as enjoy college life. The first thing and the most obvious is that money is going to be vital, so make sure you pay your essentials before spending for enjoyment.
The majority of students live in shared accommodations in their college life. Because this may be the first time they share space with non-family members, this is the time when college may either become enjoyable or hellish. If you can develop a boundary with your roomies, your success is guaranteed. Make sure you have the time to study for your exams undisturbed and then you can enjoy your new college life. Although you cannot change people around you, as long as you clean up after yourself, your life will be much easier.
In this new college life you will meet lots of new people, but don't let this affect your relationship with your family or those back home. Remember that you had a life before college and you will have one after it as well. Also, keeping the relationships with your friends from outside the college life can be a form of relaxation when your college life gets to be too much.
There aren't many rules that teach you how to settle into college life but you have to give it a chance. Don't rush back home every time you run into some difficulties because then you will find it harder to adapt in real life as well as in college life. Also, the best parts of college life happen on weekends, so don't miss them.
College life can be sometimes so exciting that you won't remember the most important things: to eat and sleep well and to take care of yourself. You should enjoy college but don't forget to rest and concentrate on your studies and exams.
Jordan Dunham is an expert on college student loan consolidation [http://www.students-loan-consolidation.org/], visit [http://www.students-loan-consolidation.org/] today for details.
Article Source: http://EzineArticles.com/?expert=Jordan_Dunham
Article Source: http://EzineArticles.com/85388
The majority of students live in shared accommodations in their college life. Because this may be the first time they share space with non-family members, this is the time when college may either become enjoyable or hellish. If you can develop a boundary with your roomies, your success is guaranteed. Make sure you have the time to study for your exams undisturbed and then you can enjoy your new college life. Although you cannot change people around you, as long as you clean up after yourself, your life will be much easier.
In this new college life you will meet lots of new people, but don't let this affect your relationship with your family or those back home. Remember that you had a life before college and you will have one after it as well. Also, keeping the relationships with your friends from outside the college life can be a form of relaxation when your college life gets to be too much.
There aren't many rules that teach you how to settle into college life but you have to give it a chance. Don't rush back home every time you run into some difficulties because then you will find it harder to adapt in real life as well as in college life. Also, the best parts of college life happen on weekends, so don't miss them.
College life can be sometimes so exciting that you won't remember the most important things: to eat and sleep well and to take care of yourself. You should enjoy college but don't forget to rest and concentrate on your studies and exams.
Jordan Dunham is an expert on college student loan consolidation [http://www.students-loan-consolidation.org/], visit [http://www.students-loan-consolidation.org/] today for details.
Article Source: http://EzineArticles.com/?expert=Jordan_Dunham
Article Source: http://EzineArticles.com/85388
You've Got to Believe
Christian needed a new car.
The car he was driving was on its last leg. He wasn't sure when it would die, but he was sure that it would die. He needed a new car and he needed it fast.
But how was he going to get the money? Right now, his money was too tight. At the end of the month, he didn't have an extra dime left after paying his bills. How would he be able to pay a car payment each month? One good thing about the car that he did drive was that he owned it and therefore didn't have to worry about any monthly payments.
Every time he got behind the wheel of the car he stressed about it. He prayed that he would get where he had to go and back safely without incident. But even though he prayed, he spent the entire time while he was in the car, stressing that it might, at any minute, break down. He couldn't remember if his AAA had expired or not.
Then, one day, Christian realized that it made absolutely no sense for him to stress over whether or not he could afford a new car. So, he made the decision to let the stress go. He decided that he was going to simply pray on it, and trust that God would do the rest.
He prayed and said, Lord, I thank you for my new car. I thank you for the money that I need to pay for the car. I thank you for allowing me to easily and effortlessly pay for the car each month and for having the car that I desire.
And then, he let it go!!!
When I say, he let it go, I mean, he let it go. He didn't think about it again. He simply KNEW that he was going to have a new car, and that he would have the money to easily pay for it. He made the decision to not worry about it. Just trust that God had it all covered.
The next time he got in the car, he didn't worry about it breaking down. He trusted that God would allow him to get where he had to go and back again.
He started going out to Used Car Lots and looking for his next car. He didn't find the car that he wanted, but he now knew what make and model he was going to have--a Honda Civic. He liked the car and figured he would like one in green. Yeah, that's the ticket. A green, Honda Civic.
Well, I simply have to tell you what happened to Christian. You probably won't believe me. Or, if you do, you will think it was a huge coincidence. But trust me when I tell you, it is not a coincidence and it did happen. In fact, it could happen for you in a similar way if first you made the decision to trust that God will bring to you all the things you desire.
Check this out--without even trying, Christian received a promotion on his job, three days after deciding he wanted a green Honda Civic. He received the promotion because someone left the company, unexpectedly, and he was the only person who knew the job and could readily step into the new position with minimal training.
Four days after his promotion, he received his income tax return for $2,100.00. This was amazing because he thought he wasn't going to receive it. He had not received an income tax refund for the past three years because it was always offset due to the fact that he owed money on his student loan. But now, here he was receiving his tax return, after 3 years of not receiving it.
How happy Christian is and how thankful and blessed he feels. He immediately took that check and found a green Honda Civic, used it as a down payment, and can now easily and effortlessly pay for his new car with the additional money he is receiving due to his promotion.
I know you are thinking, YEAH, RIGHT. How "coincidental."
But it's not a coincidence. If you have been a subscriber to this newsletter for any length of time, you have heard me say many times that there are no such things as coincidence.
Christian received exactly what he asked God for. Christian received exactly what he BELIEVED would come to him.
Once you decide on something that you want, and ask and thank God for supplying your need, all that is required of you is to BELIEVE that you will receive it.
OK, your turn. Think of something you desire right now. Ask God for it and believe that you have already received it. Trust that it is on its way to you, right now. I don't care if you don't have "evidence" of it right in front of you, just trust that God will supply your need. Then, let it go.
If you truly believe that your desire will be given to you, it will.
Try it. You'll like it.
Dawn Fields is a Motivational Speaker, Life Coach and Author. She helps you discover and live your life's purpose in a down-to-earth, easily comprehensive type of way. Visit her web site at [http://www.dawnfields.com] and be sure to sign up for Your Life's Purpose newsletter by sending a blank email to mailto:yourlifespurpose-subscribe@topica.com with SUBSCRIBE in the subject line. Tune in each and every Thursday to Your Life's Purpose Interactive Internet Radio Show at 9 p.m. EST [http://www.dawnfields.com/radioshow.htm]
Article Source: http://EzineArticles.com/?expert=Dawn_Fields
Article Source: http://EzineArticles.com/85105
The car he was driving was on its last leg. He wasn't sure when it would die, but he was sure that it would die. He needed a new car and he needed it fast.
But how was he going to get the money? Right now, his money was too tight. At the end of the month, he didn't have an extra dime left after paying his bills. How would he be able to pay a car payment each month? One good thing about the car that he did drive was that he owned it and therefore didn't have to worry about any monthly payments.
Every time he got behind the wheel of the car he stressed about it. He prayed that he would get where he had to go and back safely without incident. But even though he prayed, he spent the entire time while he was in the car, stressing that it might, at any minute, break down. He couldn't remember if his AAA had expired or not.
Then, one day, Christian realized that it made absolutely no sense for him to stress over whether or not he could afford a new car. So, he made the decision to let the stress go. He decided that he was going to simply pray on it, and trust that God would do the rest.
He prayed and said, Lord, I thank you for my new car. I thank you for the money that I need to pay for the car. I thank you for allowing me to easily and effortlessly pay for the car each month and for having the car that I desire.
And then, he let it go!!!
When I say, he let it go, I mean, he let it go. He didn't think about it again. He simply KNEW that he was going to have a new car, and that he would have the money to easily pay for it. He made the decision to not worry about it. Just trust that God had it all covered.
The next time he got in the car, he didn't worry about it breaking down. He trusted that God would allow him to get where he had to go and back again.
He started going out to Used Car Lots and looking for his next car. He didn't find the car that he wanted, but he now knew what make and model he was going to have--a Honda Civic. He liked the car and figured he would like one in green. Yeah, that's the ticket. A green, Honda Civic.
Well, I simply have to tell you what happened to Christian. You probably won't believe me. Or, if you do, you will think it was a huge coincidence. But trust me when I tell you, it is not a coincidence and it did happen. In fact, it could happen for you in a similar way if first you made the decision to trust that God will bring to you all the things you desire.
Check this out--without even trying, Christian received a promotion on his job, three days after deciding he wanted a green Honda Civic. He received the promotion because someone left the company, unexpectedly, and he was the only person who knew the job and could readily step into the new position with minimal training.
Four days after his promotion, he received his income tax return for $2,100.00. This was amazing because he thought he wasn't going to receive it. He had not received an income tax refund for the past three years because it was always offset due to the fact that he owed money on his student loan. But now, here he was receiving his tax return, after 3 years of not receiving it.
How happy Christian is and how thankful and blessed he feels. He immediately took that check and found a green Honda Civic, used it as a down payment, and can now easily and effortlessly pay for his new car with the additional money he is receiving due to his promotion.
I know you are thinking, YEAH, RIGHT. How "coincidental."
But it's not a coincidence. If you have been a subscriber to this newsletter for any length of time, you have heard me say many times that there are no such things as coincidence.
Christian received exactly what he asked God for. Christian received exactly what he BELIEVED would come to him.
Once you decide on something that you want, and ask and thank God for supplying your need, all that is required of you is to BELIEVE that you will receive it.
OK, your turn. Think of something you desire right now. Ask God for it and believe that you have already received it. Trust that it is on its way to you, right now. I don't care if you don't have "evidence" of it right in front of you, just trust that God will supply your need. Then, let it go.
If you truly believe that your desire will be given to you, it will.
Try it. You'll like it.
Dawn Fields is a Motivational Speaker, Life Coach and Author. She helps you discover and live your life's purpose in a down-to-earth, easily comprehensive type of way. Visit her web site at [http://www.dawnfields.com] and be sure to sign up for Your Life's Purpose newsletter by sending a blank email to mailto:yourlifespurpose-subscribe@topica.com with SUBSCRIBE in the subject line. Tune in each and every Thursday to Your Life's Purpose Interactive Internet Radio Show at 9 p.m. EST [http://www.dawnfields.com/radioshow.htm]
Article Source: http://EzineArticles.com/?expert=Dawn_Fields
Article Source: http://EzineArticles.com/85105
Joint Debt - Loan and Credit Card Bills
Julie, a 20 year old full time college student, married Bert, a 24 year old medical clerk. On the day she signed their marriage license, her credit report score began to worsen.
Julie knew Bert had been previously married, and though that marriage had lasted only two years, it was long enough to spread a bad credit virus onto her and Bert's joint credit report score.
Bert's ex-spouse, Camille, already had delinquent credit before she married Bert. And, she had continued being delinquent during her marriage to Bert and after the divorce. Unbeknownst to Bert, Camille's bad credit had passed onto him when he married her, and then passed on to his new bride, Julie.
Why? Because when couples marry, assets; as well as debts, become joint. Unfortunately, divorce does not nullify financial obligations, even if a judge specifies in a divorce decree which spouse is responsible for re-paying which bills.
But this is just the beginning of Julie and Bert's bad credit horror.
Julie had racked-up several thousand dollars in student loans. After she married Bert, she dropped out of college and that action initiated the loan repayment period. Like Bert, she also has a full time job, but it's hard to pay the debt because of other bills.
In the divorce decree with Camille, Bert retained possession of the car which still had loan payments due. Camille received all the furniture in the divorce settlement. Bert and his new bride, Julie, had to purchase new furnishings for their apartment. Additionally, they had spent a lot of money on their wedding and honeymoon. Together they had a lot of debts to repay, and some bills were being paid late. Their credit score continued to dive.
They got an idea. They would balance transfer Julie's credit card and Bert's credit card to a new credit card that offered 0 interest balance transfers for the first six months. Unfortunately, since their credit score was bad due to excessive debt-to-income ratio and late payments, they were rejected by the card issuer.
Bert refinanced his car to lower the monthly payment. Since his credit was bad, he had to extend the term (repayment duration) of the loan an additional two years and at a higher interest rate than the original loan, but he was able to get $1,000 in equity. He and Julie used the $1,000 to catch up on their bill payments.
Six months later, now that they had caught up on their payments which also lowered their overall debt-to-income, they reapplied for the 0 intro balance transfer credit card and were accepted. They transferred their credit cards to the 0 intro card.
Three months later, they received a letter from the new card issuer that stated their 0 interest period had been terminated. Why? Because Julie and Bert had mailed an auto loan payment a few days late. The late payment was reported by the auto lender to a credit reporting agency which lowered their credit score. The new card issuer's terms required Bert and Julie to maintain (or improve) their credit score by making all payments (not just payments on the card) on time. In addition to terminating the 0 interest period, the issuer also increased their APR rate.
Other than ordering credit reports before marriage, what could Bert and Julie have done differently to avoid the bad credit virus?
Before divorcing Camille, Bert should have made sure all debts assigned to her would be repaid, and repaid on time. Obviously, the only sure way to have done this would have been for Bert to make the payments himself. He could have refinanced his auto after divorcing Camille, used the equity to payoff her debts, and then have her repay him. He should have also ensured that all joint accounts with Camille had been closed to prevent additional charges.
Julie should have continued her full time student status; not only to improve her career opportunities, but also to delay the student loan repayment requirement.
And there are obvious things Bert and Julie could have done, such as buying used furniture whenever they had available cash instead of charging purchases for new furniture on their credit cards. Additionally, they could have spent less on their wedding and honeymoon.
Marriage and joint debts can indeed spread bad credit like a virus. Don't rely upon a divorce decree to separate you from bad credit.
Article by Toni Phelps of Credit Federal where you can find more credit information and resources.
Article Source: http://EzineArticles.com/?expert=Toni_Phelps
Article Source: http://EzineArticles.com/84937
Julie knew Bert had been previously married, and though that marriage had lasted only two years, it was long enough to spread a bad credit virus onto her and Bert's joint credit report score.
Bert's ex-spouse, Camille, already had delinquent credit before she married Bert. And, she had continued being delinquent during her marriage to Bert and after the divorce. Unbeknownst to Bert, Camille's bad credit had passed onto him when he married her, and then passed on to his new bride, Julie.
Why? Because when couples marry, assets; as well as debts, become joint. Unfortunately, divorce does not nullify financial obligations, even if a judge specifies in a divorce decree which spouse is responsible for re-paying which bills.
But this is just the beginning of Julie and Bert's bad credit horror.
Julie had racked-up several thousand dollars in student loans. After she married Bert, she dropped out of college and that action initiated the loan repayment period. Like Bert, she also has a full time job, but it's hard to pay the debt because of other bills.
In the divorce decree with Camille, Bert retained possession of the car which still had loan payments due. Camille received all the furniture in the divorce settlement. Bert and his new bride, Julie, had to purchase new furnishings for their apartment. Additionally, they had spent a lot of money on their wedding and honeymoon. Together they had a lot of debts to repay, and some bills were being paid late. Their credit score continued to dive.
They got an idea. They would balance transfer Julie's credit card and Bert's credit card to a new credit card that offered 0 interest balance transfers for the first six months. Unfortunately, since their credit score was bad due to excessive debt-to-income ratio and late payments, they were rejected by the card issuer.
Bert refinanced his car to lower the monthly payment. Since his credit was bad, he had to extend the term (repayment duration) of the loan an additional two years and at a higher interest rate than the original loan, but he was able to get $1,000 in equity. He and Julie used the $1,000 to catch up on their bill payments.
Six months later, now that they had caught up on their payments which also lowered their overall debt-to-income, they reapplied for the 0 intro balance transfer credit card and were accepted. They transferred their credit cards to the 0 intro card.
Three months later, they received a letter from the new card issuer that stated their 0 interest period had been terminated. Why? Because Julie and Bert had mailed an auto loan payment a few days late. The late payment was reported by the auto lender to a credit reporting agency which lowered their credit score. The new card issuer's terms required Bert and Julie to maintain (or improve) their credit score by making all payments (not just payments on the card) on time. In addition to terminating the 0 interest period, the issuer also increased their APR rate.
Other than ordering credit reports before marriage, what could Bert and Julie have done differently to avoid the bad credit virus?
Before divorcing Camille, Bert should have made sure all debts assigned to her would be repaid, and repaid on time. Obviously, the only sure way to have done this would have been for Bert to make the payments himself. He could have refinanced his auto after divorcing Camille, used the equity to payoff her debts, and then have her repay him. He should have also ensured that all joint accounts with Camille had been closed to prevent additional charges.
Julie should have continued her full time student status; not only to improve her career opportunities, but also to delay the student loan repayment requirement.
And there are obvious things Bert and Julie could have done, such as buying used furniture whenever they had available cash instead of charging purchases for new furniture on their credit cards. Additionally, they could have spent less on their wedding and honeymoon.
Marriage and joint debts can indeed spread bad credit like a virus. Don't rely upon a divorce decree to separate you from bad credit.
Article by Toni Phelps of Credit Federal where you can find more credit information and resources.
Article Source: http://EzineArticles.com/?expert=Toni_Phelps
Article Source: http://EzineArticles.com/84937
Guide to Finding an Alternative Student Loan
Although US Department of Education student loans are the most
common form of financial aid, sometimes families find they need
an alternative student loan to get their children through
college. For one thing, competition is rising to secure the
limited number of federal student loans, and if your application
is not received early, you might not receive any aid. At the
same time, the maximum loan amount available through a Stafford
loan has stayed the same for over ten years, while tuition costs
continue to soar. Furthermore, most federal student loans
presume that parents will foot part of the bill, but some parents
are unable or unwilling to contribute to the student's education
fund, leaving even more money for the college applicant to come
up with. If federal student loans are not enough to cover a
college attendee's bill, then he or she needs to find an
alternative student loan.
The most common form of alternative student loan is the private
loan, which is offered by banks and other lending institutions.
Students with poor or no credit might require a co-signer on the
loan, however, and alternative loan rates might not be as stellar
as with Department of Education loans. The financial aid office
of most universities will be able to help students find a banker
that offers an alternative student loan at a fair interest rate.
The personal bank of the student's parents might also offer
educational loans. Young adults searching for an alternative
student loan should be very careful to read the fine print of any
private lender and to shop around to receive the best rates.
Of course, before signing on the dotted line, students might
consider ways to avoid an alternative student loan altogether.
Some creative ways to lower college costs include researching
accelerated study courses which take less time to earn a degree,
attending a less expensive community college for the basic
credits and then transferring to a more prestigious school for
the last few years (and the precious degree), and scholarships.
There are oftentimes more scholarships available than people
realize; a local grant may be enough to bring college expenses to
a manageable level. There are even colleges that charge no
tuition at all, requiring instead that their students work a few
hours a week at jobs related to their course of study. Not only
is this a way to secure an inexpensive education, but it also
provides valuable experience in your field. Finally, some
investment groups offer creative ways to fund college by banking
on the student's future earnings. They will pay the college
costs in exchange for a percentage of future earnings (usually
between 1% and 4%) for a fixed period.
Whether you finance your college fees through alternative student
loans or simple ingenuity, there is no reason today for tuition
costs to hinder students from receiving an education. Even if
federal student loans do not seem to be enough, there are many
ways to get an excellent education and to secure a brighter
future.
Mark Kessler's website, Student Loans 411, is a comprehensive free resource of college financial aid for Alternative Student Loans, along with, Consolidating, ACS, bad credit, US Department Of Education loans, including a variety student loan articles. ==> [http://studentloans.seeking411.com/alternative.html]
Article Source: http://EzineArticles.com/?expert=Mark_Kessler
Article Source: http://EzineArticles.com/84772
common form of financial aid, sometimes families find they need
an alternative student loan to get their children through
college. For one thing, competition is rising to secure the
limited number of federal student loans, and if your application
is not received early, you might not receive any aid. At the
same time, the maximum loan amount available through a Stafford
loan has stayed the same for over ten years, while tuition costs
continue to soar. Furthermore, most federal student loans
presume that parents will foot part of the bill, but some parents
are unable or unwilling to contribute to the student's education
fund, leaving even more money for the college applicant to come
up with. If federal student loans are not enough to cover a
college attendee's bill, then he or she needs to find an
alternative student loan.
The most common form of alternative student loan is the private
loan, which is offered by banks and other lending institutions.
Students with poor or no credit might require a co-signer on the
loan, however, and alternative loan rates might not be as stellar
as with Department of Education loans. The financial aid office
of most universities will be able to help students find a banker
that offers an alternative student loan at a fair interest rate.
The personal bank of the student's parents might also offer
educational loans. Young adults searching for an alternative
student loan should be very careful to read the fine print of any
private lender and to shop around to receive the best rates.
Of course, before signing on the dotted line, students might
consider ways to avoid an alternative student loan altogether.
Some creative ways to lower college costs include researching
accelerated study courses which take less time to earn a degree,
attending a less expensive community college for the basic
credits and then transferring to a more prestigious school for
the last few years (and the precious degree), and scholarships.
There are oftentimes more scholarships available than people
realize; a local grant may be enough to bring college expenses to
a manageable level. There are even colleges that charge no
tuition at all, requiring instead that their students work a few
hours a week at jobs related to their course of study. Not only
is this a way to secure an inexpensive education, but it also
provides valuable experience in your field. Finally, some
investment groups offer creative ways to fund college by banking
on the student's future earnings. They will pay the college
costs in exchange for a percentage of future earnings (usually
between 1% and 4%) for a fixed period.
Whether you finance your college fees through alternative student
loans or simple ingenuity, there is no reason today for tuition
costs to hinder students from receiving an education. Even if
federal student loans do not seem to be enough, there are many
ways to get an excellent education and to secure a brighter
future.
Mark Kessler's website, Student Loans 411, is a comprehensive free resource of college financial aid for Alternative Student Loans, along with, Consolidating, ACS, bad credit, US Department Of Education loans, including a variety student loan articles. ==> [http://studentloans.seeking411.com/alternative.html]
Article Source: http://EzineArticles.com/?expert=Mark_Kessler
Article Source: http://EzineArticles.com/84772
Earning a College Degree Online
Traditionally, earning a college degree has required a student to physically attend a college or University at one of the campuses the institution runs. This might require a student to relocate, or the student might be limited in the classes he or she can register for due to job requirements or scheduling conflicts. Today, the advantages of technology afford students opportunities outside the brick walls of an institution of higher learning. Many students are now opting to earn their college degrees online. As the popularity of attending college online increases, more traditional colleges and Universities are joining the fast-growing group of online-only college and Universities in offering several different levels of college degrees over the internet, presenting students with broader educational options, as well as flexibility and convenience.
There are many advantages to seeking a college degree online. A student need not live locally to attend the college of his or her choosing. Attending classes and submitting coursework online eliminates the need for commuting or relocating. Convenience is another factor in earning a college degree online. A college may be able to offer more sections of certain courses, allowing students more choices as to when to attend classes. Night and weekend sections of courses are usually offered as well, which is ideal for the student that also works full time and/or cares for a family. The flexibility of online college is very attractive. Further, for those who are considering returning to school after several years, attending college online is a great way to ease into the routine of class work and projects again, and can reduce the pressure of feeling the need to fit in with younger students. In addition, who wouldn't find it appealing to attend college from the comforts of home?
When considering going online to earn a college degree, there are a few options open to the prospective student. There are several online-only institutions that are fully accredited and offer many choices of degrees. Accreditation is an important factor to consider in choosing an online college. If you have previous college credits you would like to transfer, attending an accredited college will be necessary to do that. Also, accreditation is beneficial for having your degree recognized by employers and professional organizations. Online-only colleges offer the benefit of a cutting edge learning format technologically, as well as accelerated programs for those who are in a hurry to earn a college degree for professional advancement.
The type of college degree earned online ranges from Associate's, Bachelor's, Master's, and PhD degrees. And the fields of study and degree programs available are extensive. No longer is online education just for web designers and computer programmers. Students may study Business, Social Sciences, Humanities, foreign languages, Mathematics, Human Resources, Fine Arts, and various Healthcare programs. These are but a few of the fields of study available to the online student.
If you are worried that you might not be able to afford to earn a college degree online, there are options available to you. Some employers might offer to pay a portion or even all tuition and fees toward an employee receiving a degree. Also, financial aid in the form of grants, loans, and even scholarships might be available to you. Check with the particular online program of interest to see what financial options are available, since some colleges might not offer financial aid to students who attend part-time.
You might be concerned that earning your college degree online won't provide as enriching an experience as attending a traditional face-to-face college or University. Earning a college degree online can be an experience that is every bit as enriching, interpersonal, and dynamic as attending college the old-fashioned way. A big misconception is that online learning is impersonal. This isn't the case at all. Programs offered online present the same opportunities for group work, independent study, and interpersonal communication as do traditional methods of learning. In fact, attending college online helps to facilitate the independent learning process, as well as developing time management skills. Attending college online takes just as much commitment as the old-fashioned way of going to school, and the potential career and personal benefits are just as great, if not greater. Going online to earn your college degree is a legitimate, convenient, and flexible way for you to advance you education, as well as your career and personal potential.
Learn the essential information for picking the right online degree course at Online College Degree [http://www.higher-education-online.com]
Article Source: http://EzineArticles.com/?expert=Frank_Marshall
Article Source: http://EzineArticles.com/84424
There are many advantages to seeking a college degree online. A student need not live locally to attend the college of his or her choosing. Attending classes and submitting coursework online eliminates the need for commuting or relocating. Convenience is another factor in earning a college degree online. A college may be able to offer more sections of certain courses, allowing students more choices as to when to attend classes. Night and weekend sections of courses are usually offered as well, which is ideal for the student that also works full time and/or cares for a family. The flexibility of online college is very attractive. Further, for those who are considering returning to school after several years, attending college online is a great way to ease into the routine of class work and projects again, and can reduce the pressure of feeling the need to fit in with younger students. In addition, who wouldn't find it appealing to attend college from the comforts of home?
When considering going online to earn a college degree, there are a few options open to the prospective student. There are several online-only institutions that are fully accredited and offer many choices of degrees. Accreditation is an important factor to consider in choosing an online college. If you have previous college credits you would like to transfer, attending an accredited college will be necessary to do that. Also, accreditation is beneficial for having your degree recognized by employers and professional organizations. Online-only colleges offer the benefit of a cutting edge learning format technologically, as well as accelerated programs for those who are in a hurry to earn a college degree for professional advancement.
The type of college degree earned online ranges from Associate's, Bachelor's, Master's, and PhD degrees. And the fields of study and degree programs available are extensive. No longer is online education just for web designers and computer programmers. Students may study Business, Social Sciences, Humanities, foreign languages, Mathematics, Human Resources, Fine Arts, and various Healthcare programs. These are but a few of the fields of study available to the online student.
If you are worried that you might not be able to afford to earn a college degree online, there are options available to you. Some employers might offer to pay a portion or even all tuition and fees toward an employee receiving a degree. Also, financial aid in the form of grants, loans, and even scholarships might be available to you. Check with the particular online program of interest to see what financial options are available, since some colleges might not offer financial aid to students who attend part-time.
You might be concerned that earning your college degree online won't provide as enriching an experience as attending a traditional face-to-face college or University. Earning a college degree online can be an experience that is every bit as enriching, interpersonal, and dynamic as attending college the old-fashioned way. A big misconception is that online learning is impersonal. This isn't the case at all. Programs offered online present the same opportunities for group work, independent study, and interpersonal communication as do traditional methods of learning. In fact, attending college online helps to facilitate the independent learning process, as well as developing time management skills. Attending college online takes just as much commitment as the old-fashioned way of going to school, and the potential career and personal benefits are just as great, if not greater. Going online to earn your college degree is a legitimate, convenient, and flexible way for you to advance you education, as well as your career and personal potential.
Learn the essential information for picking the right online degree course at Online College Degree [http://www.higher-education-online.com]
Article Source: http://EzineArticles.com/?expert=Frank_Marshall
Article Source: http://EzineArticles.com/84424
Earning Your Bachelor Degree Online
Traditionally, earning a bachelor's degree has required a student to physically attend a college or university. This might require a student to relocate, or the student might be limited in the classes taken due to job requirements or scheduling conflicts. Today, the advantages of technology afford students opportunities outside the brick walls of an institution of higher learning. Many students are now opting to earn their bachelor's degrees online. As the popularity of earning a bachelor's degree online increases, more traditional brick and mortar institutions are joining online-only colleges and universities in offering undergraduate educations over the Internet, presenting students with broader educational options, as well as flexibility and convenience.
There are many advantages for the student seeking a bachelor's degree to choose an online institution. A student need not live locally to attend the university of his or her choosing. Attending all courses and submitting coursework online eliminates the need for commuting or relocating. Convenience is another factor in earning a bachelor's degree online. An institution may offer more sections of popular courses, allowing students to have more options as to when to attend classes. This allows the student more flexibility, and is ideal for those who work full time and/or care for a family. Further, for those who are considering returning to school after many years, going to school online is a great way to ease into the routine of class work and projects again, and can lessen the stress of feeling the need to fit in with younger students. In addition, who wouldn't find it appealing to attend college from the comforts of home?
When considering earning a bachelor's degree online, there are a few different options open to the prospective student. There are several online-only institutions that offer bachelor's degrees, such as The University of Phoenix, that are fully accredited and offer many choices of both Bachelor of Arts and Bachelor of Science degrees. These universities generally allow the student to take a bit longer in earning a degree, which is yet another example of the flexibility of online learning. Traditional colleges and universities that offer distance learning programs in addition to their traditional face to face courses might maintain a requirement of completing all required coursework within 4 to 5 years, but might also offer the option of attending part time. However, this could have an effect on any financial aid eligibility for the student. Specific requirements would need to be checked depending on the institution of interest.
The type of bachelor's degree earned online is practically limited only to the student's imagination. No longer is online learning just for web designers and computer programmers. Students may study business, social sciences, humanities, foreign languages, math, marketing, human resources, English, art, and healthcare programs. These are but a few of the bachelor's degrees programs offered online through various institutions of higher learning. In researching specific schools, it is important to remember that each school and its individual degree programs have specific requirements (such as minimum grades on entrance exams) that have to be fulfilled by both local and online students.
The misconception of earning a bachelor's degree online is that the experience is not as enriching as attending face-to-face classes at a traditional college or university. Programs offered online present the same opportunities for group work, independent study, and communication with classmates and instructors as do the traditional methods of earning a degree. In fact, going to college online helps to facilitate the independent learning process, as well as developing time management skills. With the prevalence of the Internet and technologies such as teleconferencing in education today, it is possible to come away from the experience not only earning a bachelor's degree, but also being more in tune with technology, which carries the potential of broadening career opportunities even more. Another misconception is that financial aid is not available to online students. This is not necessarily the case. Loans, grants, and even scholarships might be available to the new online student. Earning a bachelor's degree online is a legitimate, convenient, and flexible way for a person to advance his or her education and career potential.
Learn the essential information for picking the right online degree course at Online Bachelor Degree [http://www.higher-education-online.com/bachelor-degree-online.html]
Article Source: http://EzineArticles.com/?expert=Frank_Marshall
Article Source: http://EzineArticles.com/84441
There are many advantages for the student seeking a bachelor's degree to choose an online institution. A student need not live locally to attend the university of his or her choosing. Attending all courses and submitting coursework online eliminates the need for commuting or relocating. Convenience is another factor in earning a bachelor's degree online. An institution may offer more sections of popular courses, allowing students to have more options as to when to attend classes. This allows the student more flexibility, and is ideal for those who work full time and/or care for a family. Further, for those who are considering returning to school after many years, going to school online is a great way to ease into the routine of class work and projects again, and can lessen the stress of feeling the need to fit in with younger students. In addition, who wouldn't find it appealing to attend college from the comforts of home?
When considering earning a bachelor's degree online, there are a few different options open to the prospective student. There are several online-only institutions that offer bachelor's degrees, such as The University of Phoenix, that are fully accredited and offer many choices of both Bachelor of Arts and Bachelor of Science degrees. These universities generally allow the student to take a bit longer in earning a degree, which is yet another example of the flexibility of online learning. Traditional colleges and universities that offer distance learning programs in addition to their traditional face to face courses might maintain a requirement of completing all required coursework within 4 to 5 years, but might also offer the option of attending part time. However, this could have an effect on any financial aid eligibility for the student. Specific requirements would need to be checked depending on the institution of interest.
The type of bachelor's degree earned online is practically limited only to the student's imagination. No longer is online learning just for web designers and computer programmers. Students may study business, social sciences, humanities, foreign languages, math, marketing, human resources, English, art, and healthcare programs. These are but a few of the bachelor's degrees programs offered online through various institutions of higher learning. In researching specific schools, it is important to remember that each school and its individual degree programs have specific requirements (such as minimum grades on entrance exams) that have to be fulfilled by both local and online students.
The misconception of earning a bachelor's degree online is that the experience is not as enriching as attending face-to-face classes at a traditional college or university. Programs offered online present the same opportunities for group work, independent study, and communication with classmates and instructors as do the traditional methods of earning a degree. In fact, going to college online helps to facilitate the independent learning process, as well as developing time management skills. With the prevalence of the Internet and technologies such as teleconferencing in education today, it is possible to come away from the experience not only earning a bachelor's degree, but also being more in tune with technology, which carries the potential of broadening career opportunities even more. Another misconception is that financial aid is not available to online students. This is not necessarily the case. Loans, grants, and even scholarships might be available to the new online student. Earning a bachelor's degree online is a legitimate, convenient, and flexible way for a person to advance his or her education and career potential.
Learn the essential information for picking the right online degree course at Online Bachelor Degree [http://www.higher-education-online.com/bachelor-degree-online.html]
Article Source: http://EzineArticles.com/?expert=Frank_Marshall
Article Source: http://EzineArticles.com/84441
Getting Out of Debt - Teacher Takes Responsibility
I teach second grade. I wouldn't trade this job in for the world. As a kid when I read the book a Wrinkle In Time I couldn't believe by reading I could travel through time and be transplanted somewhere else, that's why I wanted to be a teacher. To bring new worlds to my student's eyes. To make them see beyond themselves and their own families and communities.
I didn't realize I needed this same lesson until I wound up in debt without any plan for getting financially sound.
When I went to college to become a teacher I never thought my students loans and the credit card I used for books and school supplies would get the best of me. I figured I would get a teaching job and pay off the loans. Boy was a naive! Trying to pay off $60,000 in student loans and $45,000 in credit card bills on a teacher's salary that's not much above the poverty line got the best of me. Pretty soon my health suffered from all the stress. I wound up with a bad ulcer, insomnia and way too many cases of the flu. Things looked pretty bleak.
I didn't know how to reduce my debt. Advertisements touting a solution to my financial woes sounded confusing and in many cases misleading. Fear set in: could things get worse instead of better? I wondered should I just declare bankruptcy? Or should I do what so many others do and just walk away from my financial obligations and stop being the good gal? None of these options sounded good.
This second grade teacher could not under good conscience be perceived as a dead beat by some creditor. I couldn't face my students and teach them about taking responsibility in there own lives if I couldn't do the same. These are the beginning steps I took to charting a course of action for getting out of debt.
List all the creditors and loans
Establish a monthly budget
Figure out how much I could pay
Review my options
I also asked these questions:
How much money is the bank? Can use it to pay down the debt?
If I take out a loan and pay down the debt, will it give me more debt instead of reducing it?
Is my age a factor in reducing the debt? Yes, being in my late twenties I have many working years ahead of me.
Could the debt be paid off in a reasonable time frame? Not on my teacher's salary.
Under the current income how long will it take to reduce the debt? I estimated a good ten years.
Answering these questions proved to be painful but very necessary. The answers helped point me in the right direction as I reviewed debt consolidation, debt settlement, and various loan programs.
My Journey To Getting Out of Debt
I found the terms debt consolidation and debt settlement confusing, but realized it was imperative that I understand the difference between these two terms.
1. What is the difference between debt consolidation and debt settlement?
A debt consolidation loan is essentially borrowing money to pay off debt, in the process a new debt is incurred. The rationale is that by consolidating all debt into one loan, it's less stressful than paying a lot of creditors. The way it works is you borrow enough money from one lender to pay off all of yours creditors. On a monthly basis under this kind of arrangement you make one payment to the lender.
Solving current debt with another debt is a warning sign to creditors, that a person is spending beyond their means. Debt consolidation is not the route I chose to take. My research shows it's not a good course of action unless it:
Eliminate existing debt
Decrease monthly credit card payments
Lowers interest rate on debt
Results in one monthly payment
What I found alarming about debt consolidation is that some companies advertise "lower your payment by 50%." These ads are misleading. Debt consolidation companies are in business to make money off of someone else's financial woes. They talk about utilizing hardship programs which the major creditors have for "reduced payments" and "lower interest". Unfortunately, these so called hardship programs which supposedly offer payment reduction no longer exist.
1. I found out the way to reduce payment is to contract with an accountant or an attorney who can negotiate with the creditors for a reduced payment also known as debt settlement. The debt consolidation industry has earned a bad reputation by misleading people into believing they will get a low interest loan and that they will reduce payment. The service these firms do provide are loans to help pay off a debt, which I'll go into later in this article.
2. What happens in a debt settlement program?
A. An accountant or an attorney puts together a program to reduce payment and settle debt. (The debt settlement program my accountant arranged for me required that I pay the student loan and the credit card debt at $.30 cents on the dollar. )
B. When the debt is settled a full and final release is issued from the lending institution and the credit card company. After receiving these release letters I sent a copy to the credit unions: Equifax, Tran union, and TRW, so the debt would appear as settled. I learned that credit managers view debt settlement in a positive light, it shows good integrity.
3. What other ways are there to get out of debt? Short of winning the lottery or inheriting money the main option for getting out of debt is to obtain a loan. To prepare for the loan process it's a good idea to find out if you have a good or bad credit rating. If you have good credit consider a debt consolidation loan. Don't be discouraged if you have poor credit there are lenders willing to work with you, but the interest rate will be higher.
Here is a very helpful site offering information increasing your financial literacy
Richdad.com
Don't go online and fill out ten loan applications. You'll wind up with ten alerts on your credit report. It is better to fill out only 2-3 loan applications.
4. What are some resources for bringing greater peace of mind to finances?
Now that I've settled my debt I feel so much more in control of my finances. I sleep better at night and my ulcer's not bugging me as much. I still worry about my financial future with a limited income as a teacher I think that's only natural. What I've started to do are find ways to bring financial security into my life. Here are some things I'm doing to give me greater peace of mind.
A. Utilize a credit monitoring service. This kind of service guards against identity theft by keeping close tabs on your credit card. At this website they have a good comparison chart. [http://www.fightidentitytheft.com/credit-] monitoring.html For example, Equifax offers identify theft insurance up to $20,000 and provides email security alerts. This is a good value.
B. Knowledge is power. I'm reading the book Rich Dad Poor Dad by Robert T. Kiyosaki. As Kiyosaki says, "Take responsibility for your finances or take orders all your life. You're either a master of money or a slave to it." These words I've taken to heart.
This book is inspiring me to learn more about investing. At first just thinking about investments on a teacher's salary sounded foolish. Now I realize not thinking about investments is the foolish thinking.
Like I tell my students, the only limits to the mind are the limits we put there. If you believe in something strong enough you'll make it happen.
Copyright © Rene Tse has been writing about personal finance for more than 5 years. Rene has been helping people understand how to get the best financing rates when applying for a loan to start a small home based business. Choosing the right free credit report service [http://www.financial-services-online-fx.com] tips included.
I grant permission to publish this article, electronically or in print, as long as the bylines are included, with a live link, and the article is not changed in any way.
Article Source: http://EzineArticles.com/?expert=Rene_Tse
Article Source: http://EzineArticles.com/84729
I didn't realize I needed this same lesson until I wound up in debt without any plan for getting financially sound.
When I went to college to become a teacher I never thought my students loans and the credit card I used for books and school supplies would get the best of me. I figured I would get a teaching job and pay off the loans. Boy was a naive! Trying to pay off $60,000 in student loans and $45,000 in credit card bills on a teacher's salary that's not much above the poverty line got the best of me. Pretty soon my health suffered from all the stress. I wound up with a bad ulcer, insomnia and way too many cases of the flu. Things looked pretty bleak.
I didn't know how to reduce my debt. Advertisements touting a solution to my financial woes sounded confusing and in many cases misleading. Fear set in: could things get worse instead of better? I wondered should I just declare bankruptcy? Or should I do what so many others do and just walk away from my financial obligations and stop being the good gal? None of these options sounded good.
This second grade teacher could not under good conscience be perceived as a dead beat by some creditor. I couldn't face my students and teach them about taking responsibility in there own lives if I couldn't do the same. These are the beginning steps I took to charting a course of action for getting out of debt.
List all the creditors and loans
Establish a monthly budget
Figure out how much I could pay
Review my options
I also asked these questions:
How much money is the bank? Can use it to pay down the debt?
If I take out a loan and pay down the debt, will it give me more debt instead of reducing it?
Is my age a factor in reducing the debt? Yes, being in my late twenties I have many working years ahead of me.
Could the debt be paid off in a reasonable time frame? Not on my teacher's salary.
Under the current income how long will it take to reduce the debt? I estimated a good ten years.
Answering these questions proved to be painful but very necessary. The answers helped point me in the right direction as I reviewed debt consolidation, debt settlement, and various loan programs.
My Journey To Getting Out of Debt
I found the terms debt consolidation and debt settlement confusing, but realized it was imperative that I understand the difference between these two terms.
1. What is the difference between debt consolidation and debt settlement?
A debt consolidation loan is essentially borrowing money to pay off debt, in the process a new debt is incurred. The rationale is that by consolidating all debt into one loan, it's less stressful than paying a lot of creditors. The way it works is you borrow enough money from one lender to pay off all of yours creditors. On a monthly basis under this kind of arrangement you make one payment to the lender.
Solving current debt with another debt is a warning sign to creditors, that a person is spending beyond their means. Debt consolidation is not the route I chose to take. My research shows it's not a good course of action unless it:
Eliminate existing debt
Decrease monthly credit card payments
Lowers interest rate on debt
Results in one monthly payment
What I found alarming about debt consolidation is that some companies advertise "lower your payment by 50%." These ads are misleading. Debt consolidation companies are in business to make money off of someone else's financial woes. They talk about utilizing hardship programs which the major creditors have for "reduced payments" and "lower interest". Unfortunately, these so called hardship programs which supposedly offer payment reduction no longer exist.
1. I found out the way to reduce payment is to contract with an accountant or an attorney who can negotiate with the creditors for a reduced payment also known as debt settlement. The debt consolidation industry has earned a bad reputation by misleading people into believing they will get a low interest loan and that they will reduce payment. The service these firms do provide are loans to help pay off a debt, which I'll go into later in this article.
2. What happens in a debt settlement program?
A. An accountant or an attorney puts together a program to reduce payment and settle debt. (The debt settlement program my accountant arranged for me required that I pay the student loan and the credit card debt at $.30 cents on the dollar. )
B. When the debt is settled a full and final release is issued from the lending institution and the credit card company. After receiving these release letters I sent a copy to the credit unions: Equifax, Tran union, and TRW, so the debt would appear as settled. I learned that credit managers view debt settlement in a positive light, it shows good integrity.
3. What other ways are there to get out of debt? Short of winning the lottery or inheriting money the main option for getting out of debt is to obtain a loan. To prepare for the loan process it's a good idea to find out if you have a good or bad credit rating. If you have good credit consider a debt consolidation loan. Don't be discouraged if you have poor credit there are lenders willing to work with you, but the interest rate will be higher.
Here is a very helpful site offering information increasing your financial literacy
Richdad.com
Don't go online and fill out ten loan applications. You'll wind up with ten alerts on your credit report. It is better to fill out only 2-3 loan applications.
4. What are some resources for bringing greater peace of mind to finances?
Now that I've settled my debt I feel so much more in control of my finances. I sleep better at night and my ulcer's not bugging me as much. I still worry about my financial future with a limited income as a teacher I think that's only natural. What I've started to do are find ways to bring financial security into my life. Here are some things I'm doing to give me greater peace of mind.
A. Utilize a credit monitoring service. This kind of service guards against identity theft by keeping close tabs on your credit card. At this website they have a good comparison chart. [http://www.fightidentitytheft.com/credit-] monitoring.html For example, Equifax offers identify theft insurance up to $20,000 and provides email security alerts. This is a good value.
B. Knowledge is power. I'm reading the book Rich Dad Poor Dad by Robert T. Kiyosaki. As Kiyosaki says, "Take responsibility for your finances or take orders all your life. You're either a master of money or a slave to it." These words I've taken to heart.
This book is inspiring me to learn more about investing. At first just thinking about investments on a teacher's salary sounded foolish. Now I realize not thinking about investments is the foolish thinking.
Like I tell my students, the only limits to the mind are the limits we put there. If you believe in something strong enough you'll make it happen.
Copyright © Rene Tse has been writing about personal finance for more than 5 years. Rene has been helping people understand how to get the best financing rates when applying for a loan to start a small home based business. Choosing the right free credit report service [http://www.financial-services-online-fx.com] tips included.
I grant permission to publish this article, electronically or in print, as long as the bylines are included, with a live link, and the article is not changed in any way.
Article Source: http://EzineArticles.com/?expert=Rene_Tse
Article Source: http://EzineArticles.com/84729
Debt Management Plans - How They Can Help You Get Out Of Debt
Debt management plans (DMP) consolidate your short term debts into one monthly payment. They also negotiate lower interest rates, enabling you to pay off your accounts usually in less than five years. Before you sign up with one of these companies, you want to investigate them to be sure they are legitimate.
Services Offered
A DMP company, also called debt consolidation, handles the accounting side of your bills. They work with your lenders to lower interest rates, pay your accounts, and then close accounts when appropriate.
DMP are for short term debt, like credit cards and bills. They cannot reduce student or mortgage rates. However, you can reduce rates on these types of loans by refinancing them on your own.
With a DBP company, all you do is make one payment to them and provide your financial information. Part of your monthly payment will include a small fee for each account handled by the debt consolidation company.
Questions To Ask
Before you submit your financial information to a DMP, investigate the company. One important question to ask is how long will it take to pay off your accounts. A reputable company will ask for lenders' names and account balances, but not account numbers to make an estimate.
They will then give you a specific date for each account. Since you have varying account balances, each account will have a different date. You should also know that rates are predetermined by creditors, so all DMP companies will get you the same low rate.
You should also ask about fees. Most companies charge a small fee for each account handled. Companies that require a large fee up front that is refundable in part are banking on the fact that most people do not follow through with these plans.
Other Credit Services
If you are not sure debt consolidation is for you, sign up for credit counseling. Through an appointment over the phone, internet, or in-person, you can work with a counselor to come up with a financial plan for debt payment. They may suggest a DMP or consolidation your credit into one loan, usually a second mortgage.
To view our list of recommended debt management companies online, visit this page: Recommended Debt Management Companies Online.
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Article Source: http://EzineArticles.com/82951
Services Offered
A DMP company, also called debt consolidation, handles the accounting side of your bills. They work with your lenders to lower interest rates, pay your accounts, and then close accounts when appropriate.
DMP are for short term debt, like credit cards and bills. They cannot reduce student or mortgage rates. However, you can reduce rates on these types of loans by refinancing them on your own.
With a DBP company, all you do is make one payment to them and provide your financial information. Part of your monthly payment will include a small fee for each account handled by the debt consolidation company.
Questions To Ask
Before you submit your financial information to a DMP, investigate the company. One important question to ask is how long will it take to pay off your accounts. A reputable company will ask for lenders' names and account balances, but not account numbers to make an estimate.
They will then give you a specific date for each account. Since you have varying account balances, each account will have a different date. You should also know that rates are predetermined by creditors, so all DMP companies will get you the same low rate.
You should also ask about fees. Most companies charge a small fee for each account handled. Companies that require a large fee up front that is refundable in part are banking on the fact that most people do not follow through with these plans.
Other Credit Services
If you are not sure debt consolidation is for you, sign up for credit counseling. Through an appointment over the phone, internet, or in-person, you can work with a counselor to come up with a financial plan for debt payment. They may suggest a DMP or consolidation your credit into one loan, usually a second mortgage.
To view our list of recommended debt management companies online, visit this page: Recommended Debt Management Companies Online.
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Article Source: http://EzineArticles.com/82951
The $10,000 Credit Card Challenge
Ever wonder how some people deep in credit card debt manage to come out on
top financially? This is the hypothetical but realistic story of Emily, one
person who dug herself out of $10,000 in credit card debt in just a few
years.
Never a big spender, Emily was shocked when she noticed that her two credit
cards had a combined balance of $10,000. What happened?
Emily took a lower-paying job when the economy went bust at the turn of the millennium.
Hoping her lower income would be temporary, Emily didn't sell her house to get one with a lower mortgage. She didn't sell her expensive car to buy a cheaper one, since she would get much less than she had paid for it. In reality, the thought of driving a less-nice car was painful
Emily paid only the minimum monthly credit card payment most months. She was paying interest, and interest on interest, buying the privilege of having the credit card company hold onto her debt another month.
When one of Emily's credit card balances got within a few hundred dollars of the credit limit, her interest rate on the card skyrocketed from 17 to 27% .
Loans: Emily's Salvation?
Emily considered taking out a loan to pay off her credit card debt. She owned
a condominium whose property values had increased 40% since she bought it, so
she could easily get a good low-interest second mortgage.
But a loan scared Emily: it would mean admitting her debt would not go away
soon. Besides, Emily wanted to get rid of her debt, not trade (her unsecured
debt for secured debt). Plus, she knew that if she ever couldn't pay the second
mortgage, she would lose her house, while failing to pay credit card bills would
just mean a ruined credit rating.
For about a year, Emily argued with herself over whether to take out a loan
to pay off her credit card. Then catastrophe hit: her beautiful car was totaled
in an accident. While shopping for a new car with friends, Emily finally had to
admit to herself that buying another car like the one she had had would be
financial suicide.
Finding an Answer
Emily cried and cried as soon as she got home from the car dealership that
day. It wasn't just that she would have to admit that she wasn't someone who
could afford the car she had been driving. When Emily's parents were her age,
they had already bought a five-bedroom house; Emily's one-bedroom condominium
was already a stretch. If she ever got married to a man with the same financial
picture as she had, she wasn't sure they'd be able to afford children. Growing
up, her parents had always told her she'd do better than they had. What went
wrong?
Emily did not have to think hard about what went wrong. Her father had been
able to pay for college with what he earned at summer jobs, and then got a
manager-level job straight out of school. Between college and graduate school,
Emily had accumulated $70,000 in student debt that she was still slowly paying
off. Houses in Emily's town, even adjusting for inflation, cost several times
what they did when Emily's parents bought one. Cars had leaped in price about as
much. The only thing that hadn't gone up was income.
Unable to cope with having less than her parents had, Emily had used her
credit cards.
Solving the Problem
Emily knew that since her lack of financial skills had dug her into her rut,
she would need outside help to dig herself back out.
She had heard about credit counseling services that took large chunks of the
payments you made against your debt, so she was careful. She found a counseling
agency that was a member of the Better Business Bureau, American Association of
Debt Management Organizations and whose credit counselors are certified through
the National Institute for Financial Counseling Education. Doing a quick search
on the web, Emily verified that these were organizations with real standards and
not just empty names.
Here's what Emily got from the credit counseling service:
Relief. Emily was relieved to learn that her $10,000 credit card debt is in fact about average for Americans. The credit counseling agency showed her that even if she didn't have the advantages she had-a decent job and home equity-she would be able to rid herself of her debt if she just faced up to it.
Surprise. The agency urged her to put money away for a rainy day fund, even as her credit card interest mounted. But once she started saving, she felt amazing. She realized she had been under enormous stress from always being one paycheck away from poverty.
Understanding. The counselor understood Emily's reluctance to take out a loan, and helped her create a budget that would let her pay off her consolidated debt within a few years. Besides the car, all Emily had to give up were smaller expenses.
Clarity. With her finances planned, Emily could think much more clearly about her financial situation. She figured out how much more money she would have to make to have her desired lifestyle, and aggressively pursued a new job. Starting fresh with her new coworkers, Emily focused on meeting people who were less materialistic-and even met her fiancé.
Though her fiancé has no better financial prospects, Emily's confident they
can afford to give their children all the essentials she had, even if in a
smaller house.
After all, Emily knows that solid finances are just as good a shelter as a
roof over your head.
Joel Walsh has created a guide to choosing a credit counseling service: http://debtguru.com
Article Source: http://EzineArticles.com/?expert=Joel_Walsh
Article Source: http://EzineArticles.com/82903
top financially? This is the hypothetical but realistic story of Emily, one
person who dug herself out of $10,000 in credit card debt in just a few
years.
Never a big spender, Emily was shocked when she noticed that her two credit
cards had a combined balance of $10,000. What happened?
Emily took a lower-paying job when the economy went bust at the turn of the millennium.
Hoping her lower income would be temporary, Emily didn't sell her house to get one with a lower mortgage. She didn't sell her expensive car to buy a cheaper one, since she would get much less than she had paid for it. In reality, the thought of driving a less-nice car was painful
Emily paid only the minimum monthly credit card payment most months. She was paying interest, and interest on interest, buying the privilege of having the credit card company hold onto her debt another month.
When one of Emily's credit card balances got within a few hundred dollars of the credit limit, her interest rate on the card skyrocketed from 17 to 27% .
Loans: Emily's Salvation?
Emily considered taking out a loan to pay off her credit card debt. She owned
a condominium whose property values had increased 40% since she bought it, so
she could easily get a good low-interest second mortgage.
But a loan scared Emily: it would mean admitting her debt would not go away
soon. Besides, Emily wanted to get rid of her debt, not trade (her unsecured
debt for secured debt). Plus, she knew that if she ever couldn't pay the second
mortgage, she would lose her house, while failing to pay credit card bills would
just mean a ruined credit rating.
For about a year, Emily argued with herself over whether to take out a loan
to pay off her credit card. Then catastrophe hit: her beautiful car was totaled
in an accident. While shopping for a new car with friends, Emily finally had to
admit to herself that buying another car like the one she had had would be
financial suicide.
Finding an Answer
Emily cried and cried as soon as she got home from the car dealership that
day. It wasn't just that she would have to admit that she wasn't someone who
could afford the car she had been driving. When Emily's parents were her age,
they had already bought a five-bedroom house; Emily's one-bedroom condominium
was already a stretch. If she ever got married to a man with the same financial
picture as she had, she wasn't sure they'd be able to afford children. Growing
up, her parents had always told her she'd do better than they had. What went
wrong?
Emily did not have to think hard about what went wrong. Her father had been
able to pay for college with what he earned at summer jobs, and then got a
manager-level job straight out of school. Between college and graduate school,
Emily had accumulated $70,000 in student debt that she was still slowly paying
off. Houses in Emily's town, even adjusting for inflation, cost several times
what they did when Emily's parents bought one. Cars had leaped in price about as
much. The only thing that hadn't gone up was income.
Unable to cope with having less than her parents had, Emily had used her
credit cards.
Solving the Problem
Emily knew that since her lack of financial skills had dug her into her rut,
she would need outside help to dig herself back out.
She had heard about credit counseling services that took large chunks of the
payments you made against your debt, so she was careful. She found a counseling
agency that was a member of the Better Business Bureau, American Association of
Debt Management Organizations and whose credit counselors are certified through
the National Institute for Financial Counseling Education. Doing a quick search
on the web, Emily verified that these were organizations with real standards and
not just empty names.
Here's what Emily got from the credit counseling service:
Relief. Emily was relieved to learn that her $10,000 credit card debt is in fact about average for Americans. The credit counseling agency showed her that even if she didn't have the advantages she had-a decent job and home equity-she would be able to rid herself of her debt if she just faced up to it.
Surprise. The agency urged her to put money away for a rainy day fund, even as her credit card interest mounted. But once she started saving, she felt amazing. She realized she had been under enormous stress from always being one paycheck away from poverty.
Understanding. The counselor understood Emily's reluctance to take out a loan, and helped her create a budget that would let her pay off her consolidated debt within a few years. Besides the car, all Emily had to give up were smaller expenses.
Clarity. With her finances planned, Emily could think much more clearly about her financial situation. She figured out how much more money she would have to make to have her desired lifestyle, and aggressively pursued a new job. Starting fresh with her new coworkers, Emily focused on meeting people who were less materialistic-and even met her fiancé.
Though her fiancé has no better financial prospects, Emily's confident they
can afford to give their children all the essentials she had, even if in a
smaller house.
After all, Emily knows that solid finances are just as good a shelter as a
roof over your head.
Joel Walsh has created a guide to choosing a credit counseling service: http://debtguru.com
Article Source: http://EzineArticles.com/?expert=Joel_Walsh
Article Source: http://EzineArticles.com/82903
MBA Basics
The MBA is perhaps the most coveted course in today's world. This course tops the list of courses almost in all the developed and developing countries across the globe. The enthusiasm for the course has brought in many small private institutes etc. to offer this course. However, only those students who have obtained the MBA degree from some recognized eminent university find the best of placements. So the institute or the university is the first factor for a successful career in this field. This article will educate you about the various issues like finance, strategy to study, interview etc. related to choosing MBA as a profession.
o In today's competitive world there are no shortcuts. The student willing to take admission in one of the best institutes either in Asia or abroad, need to study hard and get the good grades. 3.0 to 4.0 are the minimum grades required at the undergraduate grade point average (GPA).
o Most of the MBA schools or colleges adjudicate the caliber of the student via the GMAT or The Graduate Management Admissions Test exam. This test is to estimate the individual's knowledge of English, Math and Analytical writing skills. The verbal or English section comprises of 41 questions to be answered within 75 minutes. The questions like correcting the hidden grammatical mistakes etc. The Math section has 37 questions and same 75 minutes. Questions are on various mathematical topics like percentage, ratio and so forth. The writing analysis is based on writing two essays on different issues.
o The school and university depend on the grades that you get in the exam. Good grades will fetch you a deemed university while poor ones may not.
o MBA programs are full time and part time and within this program there are many choices. Like you can take up finance management, HR, etc. it is at the discretion of the student to decide which course to go for.
o Once you have made a preference for the course, the time comes to look at the fee structure. Usually the MBA schools charge a high fee which is not within the reach of students. In this case they look for other financial aids. Many schools offer scholarships, grants etc. that can be looked up to. Else the loan facility is always available. The loan providing banks and companies also consider the grades and the institution that recommends the name of the student. The successful schools are known for producing productive students who can repay the loan conveniently with their salaries.
The FAFSA or the Free Application for Federal Students, loan offered by the federal government is doing remarkable job in this area. However, due to the popularity of the loan, the application should be sent as soon as possible.
o Many MBA schools ask for recommendation letters. This is in order to justify a student's authenticity. In this case the letter should be taken by an honored and known authority whose recommendation lifts your name in the eyes of its seekers.
o The school life is followed by hunt for a job. If you have passed from a top most school, job is not an issue; still you need to be prepared to win your contenders. When going for an interview wear decent clothes that are not too jazzy and funky and colorful. Practice properly with a friend or family member before the day of interview. Don't forget to take a copy of resume and cover letter along with your certificates. You need to be familiar with each and every word of your resume and cover letter. Don't be nervous and maintain a calm composure. Try replying in a prudent manner to all their questions. Even if you make a mistake, don't let it affect your rest of the answers and your attitude.
So go ahead and chase your dreams!
Mansi aggarwal writes about MBA .. Learn more at [http://www.mbasmakemoney.com]
Article Source: http://EzineArticles.com/?expert=Mansi_Aggarwal
Article Source: http://EzineArticles.com/82870
o In today's competitive world there are no shortcuts. The student willing to take admission in one of the best institutes either in Asia or abroad, need to study hard and get the good grades. 3.0 to 4.0 are the minimum grades required at the undergraduate grade point average (GPA).
o Most of the MBA schools or colleges adjudicate the caliber of the student via the GMAT or The Graduate Management Admissions Test exam. This test is to estimate the individual's knowledge of English, Math and Analytical writing skills. The verbal or English section comprises of 41 questions to be answered within 75 minutes. The questions like correcting the hidden grammatical mistakes etc. The Math section has 37 questions and same 75 minutes. Questions are on various mathematical topics like percentage, ratio and so forth. The writing analysis is based on writing two essays on different issues.
o The school and university depend on the grades that you get in the exam. Good grades will fetch you a deemed university while poor ones may not.
o MBA programs are full time and part time and within this program there are many choices. Like you can take up finance management, HR, etc. it is at the discretion of the student to decide which course to go for.
o Once you have made a preference for the course, the time comes to look at the fee structure. Usually the MBA schools charge a high fee which is not within the reach of students. In this case they look for other financial aids. Many schools offer scholarships, grants etc. that can be looked up to. Else the loan facility is always available. The loan providing banks and companies also consider the grades and the institution that recommends the name of the student. The successful schools are known for producing productive students who can repay the loan conveniently with their salaries.
The FAFSA or the Free Application for Federal Students, loan offered by the federal government is doing remarkable job in this area. However, due to the popularity of the loan, the application should be sent as soon as possible.
o Many MBA schools ask for recommendation letters. This is in order to justify a student's authenticity. In this case the letter should be taken by an honored and known authority whose recommendation lifts your name in the eyes of its seekers.
o The school life is followed by hunt for a job. If you have passed from a top most school, job is not an issue; still you need to be prepared to win your contenders. When going for an interview wear decent clothes that are not too jazzy and funky and colorful. Practice properly with a friend or family member before the day of interview. Don't forget to take a copy of resume and cover letter along with your certificates. You need to be familiar with each and every word of your resume and cover letter. Don't be nervous and maintain a calm composure. Try replying in a prudent manner to all their questions. Even if you make a mistake, don't let it affect your rest of the answers and your attitude.
So go ahead and chase your dreams!
Mansi aggarwal writes about MBA .. Learn more at [http://www.mbasmakemoney.com]
Article Source: http://EzineArticles.com/?expert=Mansi_Aggarwal
Article Source: http://EzineArticles.com/82870
Student Loan Discussion
Solid research has proven that the job market is becoming much more competitive. Employers are looking for individuals who can deliver more knowledge, ability and experience than ever before. Those who are able to get the higher paying jobs are those who are backed by a solid university education. While a university education is no doubt expensive, the benefits it provides pays for itself hundreds of times over throughout your lifetime.
You do not need to have unlimited financial resources in order to afford higher education. You only need to do a little research and be willing to provide information about your income and expenses. Student loans are available in the UK for persons who are entering university or who are continuing in university.
Qualification requirements for student loans are typically based either on your income if you are an adult learner or that of your parents if you are still dependent upon them. Student loans are available to pay for both university tuition and fees as well as cost of living expenses. Depending on the amount of your annual income you may be requested to make a contribution towards the cost of your university tuition and fees. The amount requested is based on income; however unless your income exceeds a certain amount it is quite possible the amount you are required to contribute will only be a fraction of the actual cost. Even if you are required to make a contribution toward the cost of your tuition and fees, that is still better than having to fund the entire cost by yourself or else forget furthering your education at all.
Student loans are also available for expenses related to maintenance. The amount of money you qualify for in regards to cost of living will normally be determined by your income, household expenses, whether you are living away from home and where you attend school. Because living in cities like London is often more expensive, students who attend university and live in London may be able to qualify for a large maintenance student loan than those who either live at home or attend university in a smaller city.
Once you are attending university you may still be able to qualify for tuition student loans as well as maintenance student loans, provided your income does not exceed certain amounts. One of the best benefits regarding student loans is that you are not normally required to begin making payments towards the loan until you leave university. Even then, if your income does not exceed a certain amount per year, you may not be required to begin repaying the loan yet. This works to help a student establish themselves after they leave university.
There are even special grants and student loans available for students who attend university part-time and/or who are considered to be mature students. Sometimes it is just not possible to attend university full-time. There are family considerations and in some cases you very well may find that you need to continue working at least par-time in order to meet your financial obligations, even you do qualify for a student loan. If you are a part-time student in the UK still may be able to receive financial assistance for the cost of your higher education. There are even extended time limits allowed.
Mature stIf you have been putting off furthering your education and entering university because you believe you can't afford the cost of tuition and fees as well as supporting yourself and possibly a family, you should consider applying for student loans.
Solid research has proven that the job market is becoming much more competitive. Employers are looking for individuals who can deliver more knowledge, ability and experience than ever before. Those who are able to get the higher paying jobs are those who are backed by a solid university education. While a university education is no doubt expensive, the benefits it provides pays for itself hundreds of times over throughout your lifetime.
You do not need to have unlimited financial resources in order to afford higher education. You only need to do a little research and be willing to provide information about your income and expenses. Student loans are available in the UK for persons who are entering university or who are continuing in university.
Qualification requirements for student loans are typically based either on your income if you are an adult learner or that of your parents if you are still dependent upon them. Student loans are available to pay for both university tuition and fees as well as cost of living expenses. Depending on the amount of your annual income you may be requested to make a contribution towards the cost of your university tuition and fees. The amount requested is based on income; however unless your income exceeds a certain amount it is quite possible the amount you are required to contribute will only be a fraction of the actual cost. Even if you are required to make a contribution toward the cost of your tuition and fees, that is still better than having to fund the entire cost by yourself or else forget furthering your education at all.
Student loans are also available for expenses related to maintenance. The amount of money you qualify for in regards to cost of living will normally be determined by your income, household expenses, whether you are living away from home and where you attend school. Because living in cities like London is often more expensive, students who attend university and live in London may be able to qualify for a large maintenance student loan than those who either live at home or attend university in a smaller city.
Once you are attending university you may still be able to qualify for tuition student loans as well as maintenance student loans, provided your income does not exceed certain amounts. One of the best benefits regarding student loans is that you are not normally required to begin making payments towards the loan until you leave university. Even then, if your income does not exceed a certain amount per year, you may not be required to begin repaying the loan yet. This works to help a student establish themselves after they leave university.
There are even special grants and student loans available for students who attend university part-time and/or who are considered to be mature students. Sometimes it is just not possible to attend university full-time. There are family considerations and in some cases you very well may find that you need to continue working at least par-time in order to meet your financial obligations, even you do qualify for a student loan. If you are a part-time student in the UK still may be able to receive financial assistance for the cost of your higher education. There are even extended time limits allowed.
Mature students, those who are married, have no living parents, or who have supported themselves for the past several years may be eligible to receive additional benefits besides student loans and grants. Special allowances as well as childcare grants are available for persons who qualify.
The amount of money you are expected to repay every month is often determined by how much money you earn after you leave university and the amounts are generally quite reasonable.
In order to begin the process to apply for student loans in the UK you will need to contact your Local Education Agency. It is wise to begin this process as soon as possible as deadlines to apply for student loan and grant applications; normally several months before you actually plan to enter university.
Remember, there is assistance available to help you fund your higher education. There is too much at stake not to take advantage of it.
dents, those who are married, have no living parents, or who have supported themselves for the past several years may be eligible to receive additional benefits besides student loans and grants. Special allowances as well as childcare grants are available for persons who qualify.
The amount of money you are expected to repay every month is often determined by how much money you earn after you leave university and the amounts are generally quite reasonable.
In order to begin the process to apply for student loans in the UK you will need to contact your Local Education Agency. It is wise to begin this process as soon as possible as deadlines to apply for student loan and grant applications; normally several months before you actually plan to enter university.
Remember, there is assistance available to help you fund your higher education. There is too much at stake not to take advantage of it.
George McGonigal
George is webmaster of a Loans Online [http://www.arctic-personal-loans.co.uk] resources website for UK borrowers. We bring under one roof lenders who offer online quotations for Secured Personal Loans [http://www.arctic-personal-loans.co.uk] and Unsecured Personal Loans [http://www.arctic-personal-loans.co.uk]. Check us out today.
Article Source: http://EzineArticles.com/?expert=George_McGonigal
Article Source: http://EzineArticles.com/83030
You do not need to have unlimited financial resources in order to afford higher education. You only need to do a little research and be willing to provide information about your income and expenses. Student loans are available in the UK for persons who are entering university or who are continuing in university.
Qualification requirements for student loans are typically based either on your income if you are an adult learner or that of your parents if you are still dependent upon them. Student loans are available to pay for both university tuition and fees as well as cost of living expenses. Depending on the amount of your annual income you may be requested to make a contribution towards the cost of your university tuition and fees. The amount requested is based on income; however unless your income exceeds a certain amount it is quite possible the amount you are required to contribute will only be a fraction of the actual cost. Even if you are required to make a contribution toward the cost of your tuition and fees, that is still better than having to fund the entire cost by yourself or else forget furthering your education at all.
Student loans are also available for expenses related to maintenance. The amount of money you qualify for in regards to cost of living will normally be determined by your income, household expenses, whether you are living away from home and where you attend school. Because living in cities like London is often more expensive, students who attend university and live in London may be able to qualify for a large maintenance student loan than those who either live at home or attend university in a smaller city.
Once you are attending university you may still be able to qualify for tuition student loans as well as maintenance student loans, provided your income does not exceed certain amounts. One of the best benefits regarding student loans is that you are not normally required to begin making payments towards the loan until you leave university. Even then, if your income does not exceed a certain amount per year, you may not be required to begin repaying the loan yet. This works to help a student establish themselves after they leave university.
There are even special grants and student loans available for students who attend university part-time and/or who are considered to be mature students. Sometimes it is just not possible to attend university full-time. There are family considerations and in some cases you very well may find that you need to continue working at least par-time in order to meet your financial obligations, even you do qualify for a student loan. If you are a part-time student in the UK still may be able to receive financial assistance for the cost of your higher education. There are even extended time limits allowed.
Mature stIf you have been putting off furthering your education and entering university because you believe you can't afford the cost of tuition and fees as well as supporting yourself and possibly a family, you should consider applying for student loans.
Solid research has proven that the job market is becoming much more competitive. Employers are looking for individuals who can deliver more knowledge, ability and experience than ever before. Those who are able to get the higher paying jobs are those who are backed by a solid university education. While a university education is no doubt expensive, the benefits it provides pays for itself hundreds of times over throughout your lifetime.
You do not need to have unlimited financial resources in order to afford higher education. You only need to do a little research and be willing to provide information about your income and expenses. Student loans are available in the UK for persons who are entering university or who are continuing in university.
Qualification requirements for student loans are typically based either on your income if you are an adult learner or that of your parents if you are still dependent upon them. Student loans are available to pay for both university tuition and fees as well as cost of living expenses. Depending on the amount of your annual income you may be requested to make a contribution towards the cost of your university tuition and fees. The amount requested is based on income; however unless your income exceeds a certain amount it is quite possible the amount you are required to contribute will only be a fraction of the actual cost. Even if you are required to make a contribution toward the cost of your tuition and fees, that is still better than having to fund the entire cost by yourself or else forget furthering your education at all.
Student loans are also available for expenses related to maintenance. The amount of money you qualify for in regards to cost of living will normally be determined by your income, household expenses, whether you are living away from home and where you attend school. Because living in cities like London is often more expensive, students who attend university and live in London may be able to qualify for a large maintenance student loan than those who either live at home or attend university in a smaller city.
Once you are attending university you may still be able to qualify for tuition student loans as well as maintenance student loans, provided your income does not exceed certain amounts. One of the best benefits regarding student loans is that you are not normally required to begin making payments towards the loan until you leave university. Even then, if your income does not exceed a certain amount per year, you may not be required to begin repaying the loan yet. This works to help a student establish themselves after they leave university.
There are even special grants and student loans available for students who attend university part-time and/or who are considered to be mature students. Sometimes it is just not possible to attend university full-time. There are family considerations and in some cases you very well may find that you need to continue working at least par-time in order to meet your financial obligations, even you do qualify for a student loan. If you are a part-time student in the UK still may be able to receive financial assistance for the cost of your higher education. There are even extended time limits allowed.
Mature students, those who are married, have no living parents, or who have supported themselves for the past several years may be eligible to receive additional benefits besides student loans and grants. Special allowances as well as childcare grants are available for persons who qualify.
The amount of money you are expected to repay every month is often determined by how much money you earn after you leave university and the amounts are generally quite reasonable.
In order to begin the process to apply for student loans in the UK you will need to contact your Local Education Agency. It is wise to begin this process as soon as possible as deadlines to apply for student loan and grant applications; normally several months before you actually plan to enter university.
Remember, there is assistance available to help you fund your higher education. There is too much at stake not to take advantage of it.
dents, those who are married, have no living parents, or who have supported themselves for the past several years may be eligible to receive additional benefits besides student loans and grants. Special allowances as well as childcare grants are available for persons who qualify.
The amount of money you are expected to repay every month is often determined by how much money you earn after you leave university and the amounts are generally quite reasonable.
In order to begin the process to apply for student loans in the UK you will need to contact your Local Education Agency. It is wise to begin this process as soon as possible as deadlines to apply for student loan and grant applications; normally several months before you actually plan to enter university.
Remember, there is assistance available to help you fund your higher education. There is too much at stake not to take advantage of it.
George McGonigal
George is webmaster of a Loans Online [http://www.arctic-personal-loans.co.uk] resources website for UK borrowers. We bring under one roof lenders who offer online quotations for Secured Personal Loans [http://www.arctic-personal-loans.co.uk] and Unsecured Personal Loans [http://www.arctic-personal-loans.co.uk]. Check us out today.
Article Source: http://EzineArticles.com/?expert=George_McGonigal
Article Source: http://EzineArticles.com/83030
When Should You Consolidate Student Loans?
If you have just graduated from college, the likelihood is that
you are under a large amount of debt in the form of student
loans. You might be wondering if there is any way to reduce the
amount you have to pay. One solution for reducing your
debt is to consolidate your student loans.
Student loan consolidation is similar to refinancing a house on
better terms: although the principal of the loan will not be affected,
the interest rates you can lock in when you consolidate student loans
to a fixed rate can be substantially better, reducing your monthly
payments by up to forty percent. Plus, you might be able to stretch
out your payment time to reduce your monthly payment amount
even further.
The disadvantage when you consolidate student loans during your
initial six-month grace period is that you must start making your
payments right away. This can be difficult if you have not found
a job after graduation, although you can wait until just before the
grace period ends to consolidate, and still receive the lower rates.
Furthermore, once you have consolidated your student loans, you
cannot un-consolidate them again, so make sure to consider your
choice carefully.
How is Interest Calculated When I Consolidate Student Loans?
When you consolidate student loans, your lending company pays off
your government loan and issues you a new loan under its own name.
The typical way to determine the interest rate on the new loan is to
take the average interest rates on all of the student loans, and offer
a new rate that is an eighth of a percentage point higher (up to a
maximum interest rate of 8.25%).
Although agreeing to a higher interest rate might not sound like a
good reason to consolidate student loans, this rate is fixed over
the life of the loan, whereas the government rates will fluctuate.
Since rates are at an all time low right now, locking in the current
rates might be a good idea.
Furthermore, many banks give you ways to bring down the
percentage rates. For example, some lending institutions will
drop the rate by as much as a quarter point if you agree to
automatic deductions from a checking or savings account, whereas
others drop the rates after a certain number of timely
payments. As an additional bonus, there is no penalty for paying
off your consolidated loan early.
When Would You *Not* Want to Consolidate Student Loans?
Before you decide to consolidate student loans, you should
carefully consider your alternatives. For example, did you
realize that it might be possible to have your student loan
cancelled altogether? Student loan forgiveness options include
volunteering, for the Peace Corps for example, or working for the
government in a low-income area as a teacher or
doctor. Cancellation is not possible, however, after you have
consolidated your student loans. If this kind of work
interests you and is available, it could be a better option than
loan consolidation.
Another time to hesitate before you choose to consolidate student
loans is when you are close to finishing your payments.
Stepping up the payments and saving yourself some interest and
the hassle of consolidation might be more advantageous
to you.
Finally, there are loans that you might want to keep open because
they offer special advantages. For example, if you are
considering going back to school and you have a Perkins loan, you
would not want to consolidate that with your other student loans.
The government will pay all interest on Perkins
loans while you are in school, but if you have chosen to
consolidate student loans, you will not be able to receive this
benefit. You could always choose to leave any special
kinds of loans out of the consolidation mix, however.
, Mark Kessler. His website is quickly becoming recognized for it's wealth of information and resources on everything you need to know about student loans. Check it out right away, your bank account depends on it! Go to Student Loans 411.
Article Source: http://EzineArticles.com/?expert=Mark_Kessler
Article Source: http://EzineArticles.com/83111
you are under a large amount of debt in the form of student
loans. You might be wondering if there is any way to reduce the
amount you have to pay. One solution for reducing your
debt is to consolidate your student loans.
Student loan consolidation is similar to refinancing a house on
better terms: although the principal of the loan will not be affected,
the interest rates you can lock in when you consolidate student loans
to a fixed rate can be substantially better, reducing your monthly
payments by up to forty percent. Plus, you might be able to stretch
out your payment time to reduce your monthly payment amount
even further.
The disadvantage when you consolidate student loans during your
initial six-month grace period is that you must start making your
payments right away. This can be difficult if you have not found
a job after graduation, although you can wait until just before the
grace period ends to consolidate, and still receive the lower rates.
Furthermore, once you have consolidated your student loans, you
cannot un-consolidate them again, so make sure to consider your
choice carefully.
How is Interest Calculated When I Consolidate Student Loans?
When you consolidate student loans, your lending company pays off
your government loan and issues you a new loan under its own name.
The typical way to determine the interest rate on the new loan is to
take the average interest rates on all of the student loans, and offer
a new rate that is an eighth of a percentage point higher (up to a
maximum interest rate of 8.25%).
Although agreeing to a higher interest rate might not sound like a
good reason to consolidate student loans, this rate is fixed over
the life of the loan, whereas the government rates will fluctuate.
Since rates are at an all time low right now, locking in the current
rates might be a good idea.
Furthermore, many banks give you ways to bring down the
percentage rates. For example, some lending institutions will
drop the rate by as much as a quarter point if you agree to
automatic deductions from a checking or savings account, whereas
others drop the rates after a certain number of timely
payments. As an additional bonus, there is no penalty for paying
off your consolidated loan early.
When Would You *Not* Want to Consolidate Student Loans?
Before you decide to consolidate student loans, you should
carefully consider your alternatives. For example, did you
realize that it might be possible to have your student loan
cancelled altogether? Student loan forgiveness options include
volunteering, for the Peace Corps for example, or working for the
government in a low-income area as a teacher or
doctor. Cancellation is not possible, however, after you have
consolidated your student loans. If this kind of work
interests you and is available, it could be a better option than
loan consolidation.
Another time to hesitate before you choose to consolidate student
loans is when you are close to finishing your payments.
Stepping up the payments and saving yourself some interest and
the hassle of consolidation might be more advantageous
to you.
Finally, there are loans that you might want to keep open because
they offer special advantages. For example, if you are
considering going back to school and you have a Perkins loan, you
would not want to consolidate that with your other student loans.
The government will pay all interest on Perkins
loans while you are in school, but if you have chosen to
consolidate student loans, you will not be able to receive this
benefit. You could always choose to leave any special
kinds of loans out of the consolidation mix, however.
, Mark Kessler. His website is quickly becoming recognized for it's wealth of information and resources on everything you need to know about student loans. Check it out right away, your bank account depends on it! Go to Student Loans 411.
Article Source: http://EzineArticles.com/?expert=Mark_Kessler
Article Source: http://EzineArticles.com/83111
A School Loan Consolidation Primer
"Hey Dad!", my son screamed from our front door, "I did it, I was accepted to Boston University.". My momentary exhilaration was overshadowed by the financial realities of college, especially private college. A quick calculation of my costs for 4 years of tuition, and expenses came to roughly $250,000, a very intimidating figure. Overwhelmed I thought, how could I possibly afford to send him to college? Fortunately, there are various options available to finance this academic endeavor.
Federal programs are the single, largest source of school loan consolidation. The first step in applying for this type of aid is going on the Free Application for Federal Student Aid (FAFSA) website, at http://www.fafsa.ed.gov/, and fill out a comprehensive questionnaire. It generally takes around 7 days to process, at which point you will receive a Data Release Number, and Estimated Financial Contribution. It is important to find out if the school you will be attending participates in the federal student aid programs, most do.
There are several federal programs available for student aid, assuming school participation. The Federal Stafford Loans, are available to both undergraduate and graduate students. First-year undergraduates are eligible for loans up to $2,625. Amounts increase for subsequent years of study, with higher amounts for graduate students. The interest rate is variable, but never exceeds 8.25 percent. The Federal PLUS Loans are unsubsidized loans made to parents; the interest rate is variable, but never exceeds 9 percent. Federal Work Study provides jobs to undergraduate and graduate students, allowing them to earn money to pay education expenses. These are the major federal sources of loan money for college.
Private education loans are also available from a variety of sources to provide supplemental funding when other financial aid does not cover costs. These loans are not sponsored by government agencies, and are offered by banks or other financial institutions. Sallie Mae is a unique loan that consists of a comprehensive package of both private and federal loans.
After accumulating 4 years of undergraduate education loans, it is best to consider a School Loan Consolidation Program. Very simply, you can elect to combine all your outstanding loans into one student consolidated loan, which may create more favorable terms and simplify repayment, benefiting both the borrower, and the lending agency. Major benefits include the convenience of lower monthly payments, a single fixed rate, and one payment per month. There is a minor downside, however, students who do not consolidate their Stafford loans will have a 6-month grace period after graduation to begin making payments. Students who consolidate must begin making payments within 60 days of their consolidation. Both parents and students are eligible to consolidate student loans. The school loan consolidation program streamlines repayment by eliminating different terms, repayment schedules, and lenders.
Will I be able to afford my son's college education? Careful financial planning, and research should make this endeavor a reality. While it is true that college tuitions continue to rise, there is more financial aid available to compensate for the increases. Ultimately, a good education is your best investment.
Jay B Stockman is a contributing editor for Online College Loan Refinance Resource [http://www.online-college-usa.com/] Visit [http://www.online-college-usa.com/] for more information.
Article Source: http://EzineArticles.com/?expert=Jay_Stockman
Article Source: http://EzineArticles.com/81895
Federal programs are the single, largest source of school loan consolidation. The first step in applying for this type of aid is going on the Free Application for Federal Student Aid (FAFSA) website, at http://www.fafsa.ed.gov/, and fill out a comprehensive questionnaire. It generally takes around 7 days to process, at which point you will receive a Data Release Number, and Estimated Financial Contribution. It is important to find out if the school you will be attending participates in the federal student aid programs, most do.
There are several federal programs available for student aid, assuming school participation. The Federal Stafford Loans, are available to both undergraduate and graduate students. First-year undergraduates are eligible for loans up to $2,625. Amounts increase for subsequent years of study, with higher amounts for graduate students. The interest rate is variable, but never exceeds 8.25 percent. The Federal PLUS Loans are unsubsidized loans made to parents; the interest rate is variable, but never exceeds 9 percent. Federal Work Study provides jobs to undergraduate and graduate students, allowing them to earn money to pay education expenses. These are the major federal sources of loan money for college.
Private education loans are also available from a variety of sources to provide supplemental funding when other financial aid does not cover costs. These loans are not sponsored by government agencies, and are offered by banks or other financial institutions. Sallie Mae is a unique loan that consists of a comprehensive package of both private and federal loans.
After accumulating 4 years of undergraduate education loans, it is best to consider a School Loan Consolidation Program. Very simply, you can elect to combine all your outstanding loans into one student consolidated loan, which may create more favorable terms and simplify repayment, benefiting both the borrower, and the lending agency. Major benefits include the convenience of lower monthly payments, a single fixed rate, and one payment per month. There is a minor downside, however, students who do not consolidate their Stafford loans will have a 6-month grace period after graduation to begin making payments. Students who consolidate must begin making payments within 60 days of their consolidation. Both parents and students are eligible to consolidate student loans. The school loan consolidation program streamlines repayment by eliminating different terms, repayment schedules, and lenders.
Will I be able to afford my son's college education? Careful financial planning, and research should make this endeavor a reality. While it is true that college tuitions continue to rise, there is more financial aid available to compensate for the increases. Ultimately, a good education is your best investment.
Jay B Stockman is a contributing editor for Online College Loan Refinance Resource [http://www.online-college-usa.com/] Visit [http://www.online-college-usa.com/] for more information.
Article Source: http://EzineArticles.com/?expert=Jay_Stockman
Article Source: http://EzineArticles.com/81895
Student Loan Consolidation: Look This Gift Horse in the Mouth - Part I
Get Life Skills - Not Student Loans
---------------
Student loans? Who needs them? Take charge of your money for the rest of your life.
=================
Part I (This article)
Part II Student loan consolidation has big benefits for losers
Part III Idea beats student loan consolidation and creates a winning mindset.
==================
You'll never need student loans with these ideas.
1.Grants in place of student loans - no repayments
2. Part time earning decreases student loans
3. Economising (builds life skills) avoids some student loans
----------------
1. Grants - Supreme way to avoid student loans
----------------
A grant is a gift of money that you don't have to repay. Isn't a $50000 grant better than taking out student loans every year for four or five years?
There is a club that keeps its members abreast of grants that they might use. You can avoid student loans. These grants aren't confined to education so you aren't confined to avoiding student loans. If you get a grant, save actively to build a nest egg and the right mindset.
-----------------
2. Part Time Earning
-----------------
There are lots of ways for you to work your way through college. What I like is that they encourage an aggressive "go and get it" mindset. Student loans encourage the "wait for it to come to me" mindset.
I have details of how a teenage girl made a profitable website. She'll never need student loans!
One girl runs dogs. That's right, she runs for half an hour with 4 dogs that need lots of exercise, then picks up the next 4 dogs.
Don't lose sight of your target. You want to avoid student loans, not impress your friends with how much you can spend.
--------------
3. Economising
--------------
I had a grant for University. Fellow students complained their student loans or college grants were too small. I saved money from the grant by economising.
A dollar saved is four dollars earned. You pay back about twice as much as you borrow, with money from which the IRS has stolen 50%. So each dollar you save avoids earning four.
You can economise on these and have better health.
1. Food
2. Lodgings
3. Health
4. Transport
5. Social life
-------
1. Food.
-------
Learn to cook. You're at the mercy of food suppliers until you can cook. One student got into the news because student loans only covered tinned dog-food for him to eat. That's too expensive! I'm cooking my own food and eating well on about$17 per week.
----------
2.Lodgings
----------
I can only suggest that you shop around. Remember that $20 saved per week is $1000 saved from your student loans each year even without interest payments.
--------
3. Health
--------
The damage you do to your body adds up over your lifetime, so it's a good idea to stay healthy. What has that to do with student loans?
It turns out that fast food is bad for your health, and so are most processed foods, and cooking your own food means that you can avoid trans-fatty acids, sugar, and all the other things that cause obesity. Curry, broccoli, tomatoes, garlic, brazil nuts, and cabbage among other things fight cancer. And they all make less demands on student loans.
----------
4.Transport
----------
Make enquiries. How much would you save from your student loans by buying a bike instead of a car? Would public transport be better? Would walking or running for exercise be even better? How much would it cramp your style for dating?
Remember, buying a car with a student loan involves not only repayments, but fuel and oil, repairs, licensing, and depreciation. I travelled 2 hrs/day on my pushbike getting exercise and no college loans.
-----------
5. Social Life
-----------
Look for free pastimes. If your friends aren't interested in ways to avoid college loans perhaps you have the wrong friends.
If you finish study at 25 and work till 60 that gives you a working life of 35 years. So a 25 year student loan takes a big chunk out of your life, even if you are never unemployed.
And that's before you take out a mortgage!
-----------------------
Other ways to economise
-----------------------
Buy second-hand whenever possible - even your textbooks. Clothes from the Salvation Army are cheap. Use eBay, but don't buy anything you don't need. My first boss said I'd furnished my house for less than he spent on his bedroom.
Negotiate - Important for second hand, even more for new goods. When you go in to buy a new fridge, the attendant waits to see if you're stupid enough to pay the price tag, or ask for a discount.
Remember a dollar saved is four dollars in student loans that you won't have to pay back.
Read more about these methods Ian has tried. You could be a millionnaire with the right mindset.
Student Loans (expanded part I)
Student loan consolidation (expanded parts II and III)
Article Source: http://EzineArticles.com/?expert=Ian_McAllister
Article Source: http://EzineArticles.com/81382
---------------
Student loans? Who needs them? Take charge of your money for the rest of your life.
=================
Part I (This article)
Part II Student loan consolidation has big benefits for losers
Part III Idea beats student loan consolidation and creates a winning mindset.
==================
You'll never need student loans with these ideas.
1.Grants in place of student loans - no repayments
2. Part time earning decreases student loans
3. Economising (builds life skills) avoids some student loans
----------------
1. Grants - Supreme way to avoid student loans
----------------
A grant is a gift of money that you don't have to repay. Isn't a $50000 grant better than taking out student loans every year for four or five years?
There is a club that keeps its members abreast of grants that they might use. You can avoid student loans. These grants aren't confined to education so you aren't confined to avoiding student loans. If you get a grant, save actively to build a nest egg and the right mindset.
-----------------
2. Part Time Earning
-----------------
There are lots of ways for you to work your way through college. What I like is that they encourage an aggressive "go and get it" mindset. Student loans encourage the "wait for it to come to me" mindset.
I have details of how a teenage girl made a profitable website. She'll never need student loans!
One girl runs dogs. That's right, she runs for half an hour with 4 dogs that need lots of exercise, then picks up the next 4 dogs.
Don't lose sight of your target. You want to avoid student loans, not impress your friends with how much you can spend.
--------------
3. Economising
--------------
I had a grant for University. Fellow students complained their student loans or college grants were too small. I saved money from the grant by economising.
A dollar saved is four dollars earned. You pay back about twice as much as you borrow, with money from which the IRS has stolen 50%. So each dollar you save avoids earning four.
You can economise on these and have better health.
1. Food
2. Lodgings
3. Health
4. Transport
5. Social life
-------
1. Food.
-------
Learn to cook. You're at the mercy of food suppliers until you can cook. One student got into the news because student loans only covered tinned dog-food for him to eat. That's too expensive! I'm cooking my own food and eating well on about$17 per week.
----------
2.Lodgings
----------
I can only suggest that you shop around. Remember that $20 saved per week is $1000 saved from your student loans each year even without interest payments.
--------
3. Health
--------
The damage you do to your body adds up over your lifetime, so it's a good idea to stay healthy. What has that to do with student loans?
It turns out that fast food is bad for your health, and so are most processed foods, and cooking your own food means that you can avoid trans-fatty acids, sugar, and all the other things that cause obesity. Curry, broccoli, tomatoes, garlic, brazil nuts, and cabbage among other things fight cancer. And they all make less demands on student loans.
----------
4.Transport
----------
Make enquiries. How much would you save from your student loans by buying a bike instead of a car? Would public transport be better? Would walking or running for exercise be even better? How much would it cramp your style for dating?
Remember, buying a car with a student loan involves not only repayments, but fuel and oil, repairs, licensing, and depreciation. I travelled 2 hrs/day on my pushbike getting exercise and no college loans.
-----------
5. Social Life
-----------
Look for free pastimes. If your friends aren't interested in ways to avoid college loans perhaps you have the wrong friends.
If you finish study at 25 and work till 60 that gives you a working life of 35 years. So a 25 year student loan takes a big chunk out of your life, even if you are never unemployed.
And that's before you take out a mortgage!
-----------------------
Other ways to economise
-----------------------
Buy second-hand whenever possible - even your textbooks. Clothes from the Salvation Army are cheap. Use eBay, but don't buy anything you don't need. My first boss said I'd furnished my house for less than he spent on his bedroom.
Negotiate - Important for second hand, even more for new goods. When you go in to buy a new fridge, the attendant waits to see if you're stupid enough to pay the price tag, or ask for a discount.
Remember a dollar saved is four dollars in student loans that you won't have to pay back.
Read more about these methods Ian has tried. You could be a millionnaire with the right mindset.
Student Loans (expanded part I)
Student loan consolidation (expanded parts II and III)
Article Source: http://EzineArticles.com/?expert=Ian_McAllister
Article Source: http://EzineArticles.com/81382
Short Term Loans - Expanding Financial Scope During Crisis
This world is so economically unsteady that you cannot always remain geared to face it. When you are faced with emergency financial situations, short term loans are ideally the best way to overcome them. Short term loans are debt instruments to provide instant cash requirements and money management.
As the name suggests, short term loans are meant for money requirements that do not extend beyond few days. Short terms loans enable you to get to your next payday if financial urgency put a threat to your regular budget. With filling an online application form you get access to short term loans very easily. Short term loans process has been simplified so that anybody above 18 years of age can access it. It does not require any faxing either.
The major incentive of short term loans is that they entail no credit checks. There are some requirements that you need to fulfill while applying for short term loans. You need to have a checking account that has been open upto a minimum of 90 days and a regular income. You must be either regularly employed or receiving a regular monthly check like pension or social security. The term for short term loans is usually 14-18 days. Choose a payment date when you are sure that you will have that deposit in the bank. You can apply for extension but that will come with very high interest charges.
You can pay the entire amount for Short term loans and the sooner you pay the better. Any financial advisor would warn you against the possible dangers of depending on this particular loan type for a longer term than usual. In fact you should restrain from taking any other loan until you repay your short term loan, for it would not be in your financial interest.
The loan amount for a short term loan is usually anywhere from £100-£1000. Typically short term loan companies are open 24hrs. You can fill the forms in the privacy of your home without worrying about confidentiality. The payment of short term loans can also be done online.
There are strict laws associated with short term loans. Check the laws in your area before you commit to any short term loans. Most loan lenders are very lenient and adjust with late short term loans payment.
Borrowers are counseled to sincerely weigh their options before they apply for short term loans. They seem all simple and easy and young people who never had any credit are more liable to fall in its trap. The interest rates for short terms loans are very high. A typical short term loan costs £15-£30 per £100 borrowed. This may not seem much but when translated in terms of APR it is 390-780 percent interest. This is huge. The debt that you can't pay is always a trap. Therefore, look for alternatives, short term loans are not the only choice left.
Short term loans should be taken after you have exhausted the alternatives like taking advance from your employer, taking a small loan from a credit union, using checking overdraft protection as an emergency short-term loan.
Short term loans are meant for students also. But they should be used as a last resort and in case you have a genuine, temporary, emergency problem. Usually only one short term loan is available for students once in a year and can be made available in three days.
Cash in hand is a very secure position for every person. But there are times when this is not possible. Situations are never similar and change from time to time has considerable burden on funds. Small term debt problems can very easily convert into long term issues. Short term loans, if used well, can be constructive in rendering long term solutions.
Maria smith has not been writing articles from the beginning but the increase in perplexing loan information has urged her to write on different loan types. She writes in a way that is logical, comprehensive, and understandably meant to cater to the needs of the general public who are left breathless while searching for loans. To find a UK loans, secured loans, unsecured loans, or debt consolidation at low interest that best suits your needs, visit [http://www.loansfiesta.co.uk]
Article Source: http://EzineArticles.com/?expert=Maria_Smith
Article Source: http://EzineArticles.com/80545
As the name suggests, short term loans are meant for money requirements that do not extend beyond few days. Short terms loans enable you to get to your next payday if financial urgency put a threat to your regular budget. With filling an online application form you get access to short term loans very easily. Short term loans process has been simplified so that anybody above 18 years of age can access it. It does not require any faxing either.
The major incentive of short term loans is that they entail no credit checks. There are some requirements that you need to fulfill while applying for short term loans. You need to have a checking account that has been open upto a minimum of 90 days and a regular income. You must be either regularly employed or receiving a regular monthly check like pension or social security. The term for short term loans is usually 14-18 days. Choose a payment date when you are sure that you will have that deposit in the bank. You can apply for extension but that will come with very high interest charges.
You can pay the entire amount for Short term loans and the sooner you pay the better. Any financial advisor would warn you against the possible dangers of depending on this particular loan type for a longer term than usual. In fact you should restrain from taking any other loan until you repay your short term loan, for it would not be in your financial interest.
The loan amount for a short term loan is usually anywhere from £100-£1000. Typically short term loan companies are open 24hrs. You can fill the forms in the privacy of your home without worrying about confidentiality. The payment of short term loans can also be done online.
There are strict laws associated with short term loans. Check the laws in your area before you commit to any short term loans. Most loan lenders are very lenient and adjust with late short term loans payment.
Borrowers are counseled to sincerely weigh their options before they apply for short term loans. They seem all simple and easy and young people who never had any credit are more liable to fall in its trap. The interest rates for short terms loans are very high. A typical short term loan costs £15-£30 per £100 borrowed. This may not seem much but when translated in terms of APR it is 390-780 percent interest. This is huge. The debt that you can't pay is always a trap. Therefore, look for alternatives, short term loans are not the only choice left.
Short term loans should be taken after you have exhausted the alternatives like taking advance from your employer, taking a small loan from a credit union, using checking overdraft protection as an emergency short-term loan.
Short term loans are meant for students also. But they should be used as a last resort and in case you have a genuine, temporary, emergency problem. Usually only one short term loan is available for students once in a year and can be made available in three days.
Cash in hand is a very secure position for every person. But there are times when this is not possible. Situations are never similar and change from time to time has considerable burden on funds. Small term debt problems can very easily convert into long term issues. Short term loans, if used well, can be constructive in rendering long term solutions.
Maria smith has not been writing articles from the beginning but the increase in perplexing loan information has urged her to write on different loan types. She writes in a way that is logical, comprehensive, and understandably meant to cater to the needs of the general public who are left breathless while searching for loans. To find a UK loans, secured loans, unsecured loans, or debt consolidation at low interest that best suits your needs, visit [http://www.loansfiesta.co.uk]
Article Source: http://EzineArticles.com/?expert=Maria_Smith
Article Source: http://EzineArticles.com/80545
How To Bankrupt Your Student Loans
Everyone knows that you cannot bankrupt student loans. Search the web with the
keywords "bankruptcy" and "student loans" and you get either many listings for
lending institutions trying to get you to take out another loan, or you see articles
telling you that it is virtually impossible to bankrupt your student loans except
under the condition of "undue hardship"-- and then they fail to tell you anything
how to go about proving the condition. How frustrating!
Below is a summary of the salient points given in Bankrupt Your Student Loans and
Other Discharge Strategies by Chuck Stewart, Ph.D. (ISBN 0-9764154-5-3). Here is
an author who has been through the process, successfully bankrupting $54,000 in
student loans, and has written a clear, step-by-step, instruction manual to help
other honest debtors in their efforts to have their student loans discharged through
bankruptcy or Compromise or Write-Off.
The bankruptcy courts originally treated student loans the same as any other
unsecured debt. Student loans could be listed in a Chapter 7 filing and fully
discharged. However, in 1976 Congress modified the Higher Education Act of 1965
and required student loans to be nondischargeable unless: (a) the debt first became
due more than 5 years before the date of filing of the bankruptcy, or, (b) failure to
discharge the debt would cause "undue hardship" to the debtor or to dependents of
the debtor. In 1990, Congress extended the 5 year rule to 7 years and eventually
eliminated the time limit altogether in 1998. Thus, the only option debtors
currently have for bankrupting their student loans under 11 U.S.C.A. Bankruptcy
Reform Act (1998) §523(a)(8) is to prove repaying their student loans would cause
an "undue hardship."
"Undue Hardship" Analysis
Unfortunately, Congress failed to define the term "undue hardship." A review of the
discussion and debate by the legislature regarding the education amendment is
unrevealing as to the meaning of undue hardship. Thus, it has been left up to the
courts to determine its meaning. Aggressive defense by Department of Education
attorneys has influenced the court to a decidedly rigid interpretation. In general, for
a debtor to qualify for an undue hardship discharge of student loan debt, the debtor
must be living at, or below, the Federal Poverty Guideline and have no hope for
increased future income substantial enough to make payments on the loans.
Over the past quarter-century, courts have developed many tests to determine the
existence of undue hardship. The leading test used in most court is the Brunner
Test. Other tests include the Bryant Poverty Test, Totality of the Circumstances
Test, and the Johnson Test. A review of these tests locate some common
characteristics used by courts to determine undue hardship. These include:
Characteristic A. An evaluation of the debtor's current living condition and the
impact that has on the ability to repay the loan while maintaining a "minimal living"
standard.
Characteristic B. The debtor's future prospects for repaying the loan.
Characteristic C. Evaluate whether or not the debtor demonstrated good faith during
loan repayment.
There are two steps involved to demonstrate Characteristic A--
1. Every court reviews the debtor's current living condition and evaluates it against
the Federal Poverty Guidelines. Debtors with incomes above poverty will be
scrutinized by the courts to assure all expenses are "minimized." Expenditures will
be compared to an "idealized" debtor of similar situation but at the official poverty
level.
2. Once the court is satisfied the debtor has minimized living expenses, the court
evaluates whether repaying the student loans will push the debtor down to or below
the poverty level.
Characteristic B is impossible to predict. Courts have recognized the folly in trying
to predict future income, but it has not stopped them from including it in their
analysis. Courts have considered many factors that may affect future earnings
including personal limitations such as: (1) medical limitations, (2) support of
dependents (and their medical conditions, if applicable), and (3) lack of useable job
skills. Courts have also considered some external factors such as age
discrimination (for debtors over age 50), having been labeled a whistleblower, and
other social and cultural factors that affect the ability to obtain gainful employment.
Congress was most concerned with debtors who seemingly "defrauded" the
government by bankrupting their student loans soon after graduation. To reinforce
that concern, courts want debtors to demonstrate "good faith" attempts at repaying
student loans. Characteristic C, Good Faith, means that the debtor must show that
he or she made payments on student loans whenever his or her income was above
the poverty level, or, when there was insufficient income, he or she obtain
deferments or forbearances to keep the loan in good standing.
Income Contingency Repayment (ICR) Plan
Even if a debtor clearly demonstrates that the undue hardship analysis applies to his
or her case, the Income Contingency Repayment (ICR) Plan may unravel the case.
The ICR allows student loan repayment to increase or decrease according to the
income of the debtor. As such, if the debtor's income is below the Federal Poverty
Guideline, then the payment drops to zero. The plan lasts for 25 years and any
outstanding debt is discharge. However, the loan discharged amount is treated as
income by the IRS and income taxes will be due.
It is often stated by Department of Education attorneys that ICR makes it impossible
for debtors to discharge their student loans in bankruptcy. They contend that
anyone can make "zero dollar" payments, thus negating the undue hardship
exception of §523(a)(8). In many cases this is true. But for some debtors the ICR is
inappropriate. For example, imagine being 65 year or older living on SSI or on a
fixed income and then a large tax liability descends upon you for debt discharged at
the end of an ICR plan. That would place an undue hardship upon you. In fact, the
ICR is really inappropriate for anyone over the age of 40 because of the tax liability
at the end of the repayment period.
Regardless, debtors planning an adversary proceeding must prepare a robust
response to the Income Contingency Repayment Plan.
Filing the Bankruptcy and Adversary Proceeding
Student loans are listed in the Chapter 7 bankruptcy as one of the outstanding
debts held by the debtor. The debtor must then file an Adversary Proceeding in
conjunction with the Chapter 7 bankruptcy case within 60 days of the meeting with
the creditors. The adversary proceeding is against the Department of Education (or
other guarantee lender) and asks the court to determine if the "undue hardship"
clause applies. If the court decides §523(a)(8) applies to the case, then the student
loans are discharged through the Chapter 7 bankruptcy.
There is research to show that debtors who file their own Chapter 7 bankruptcy and
adversary proceeding prevail more often than if an attorney is used. Most attorneys
will not touch an adversary proceeding on student loans, and those that do, want at
least $5,000 up front with additional high hourly fees. You know your situation
best and it is suggested that you try to do this yourself. Even if you retain an
attorney, you will have to perform most of the financial research needed to prove
undue hardship. If you do file your own case, you may want to retain an attorney
or paralegal to help with some of the steps, forms, or language.
Here is where strategy comes into play. You really do not want to go to trial. In a
majority of cases, the debtor loses. In Bankrupt Your Student Loans and Other
Discharge Strategies, a chapter is devoted to an analysis of court cases. Often
courts give irrational responses and rule against debtors with clear cases of
hardship. Most courts analyze the debtor at the Federal Poverty Level whereas a
minority of courts performs the same analysis at a middle class income level.
Because Congress failed to clearly define "undue hardship," the courts have ruled all
over the place; and there is no consistency even between courts using the same
test.
The better tactic is to settle out of court with the Department of Education or
renegotiate the loan and stipulate that to the court. For example, you could
convince the Department of Education to accept 10 cents on the dollar as banks
often do with bad debt. Say a $60,000 loan is reduced to $6,000 paid over 5 years
(i.e., $50/month) with the remaining $54,000 discharged through the Chapter 7
bankruptcy. By discharging the debt through bankruptcy, there is no income
reported to the IRS with no resulting income tax. You and the Department of
Education create a Stipulation to the new repayment plan and submits it to the court
for approval without trial.
Debtors need to prepare like they are going to trial. Each of the Characteristics and
ICR discussed above must be addressed in full. It is not difficult work, just detailed
and tedious. It is advisable to create worksheets to systematically organize financial
details and write, in your own words, responses to each item. Research will be
needed to obtain current financial guidelines for the Federal Poverty Level and
typical expenditures for similarly situated debtors reported by the IRS. This
research helps to establish that you have not been negligent in your spending.
Bankrupt Your Student Loans and Other Discharge Strategies has created a
systematic approach to proving "undue hardship" with the use of worksheets,
sample forms, and extensive Appendix. By gathering all these materials together,
you will be able to aggressively negotiate with the Department of Education before
the trial. Hopefully, you will succeed and avoid a judge making the final decision.
It is impossible to write in general terms about how the adversary proceeding will
proceed. Each court is different and each case is different. However, like with other
civil complaints, there are usually the following steps:
o Filing the Complaint with Proof of Service
o Status Hearing
o Mediation
o Pre-Trial Hearing
o Trial
It is before the Mediation that you present your case to the Department of
Education. This is your opportunity to try and renegotiate your loan: including
having it completely discharged. More often than not, the attorney for the
Department of Education will play hardball citing the ICR as the reason you cannot
prevail with the undue hardship argument. You continue to negotiate with the
Department of Education after the Mediation and address those questions that came
up during the Mediation. In many cases, they will accept the offer if it is reasonable
rather than risk losing at Trial.
Even in situations where debtors do not file bankruptcy, there is the opportunity to
have student loans discharged through the little known processes of Compromise
or Write-Off. Instead of filing suit and having the case decided at trial, the debtor
negotiates directly with the Department of Education to discharge the loan. Why
would they do this? It costs money to keep dead loans in the system. Also, there
are government directives allowing the Department to discharge loans through
Compromise or Write-Off. Regardless if a bankruptcy or Compromise or Write-Off
is planned, the process of proving "undue hardship" remains the same.
The above article was a brief summary of Bankrupt Your Student Loans and Other
Discharge Strategies by Chuck Stewart, Ph.D. (ISBN 0-9764154-5-3). It is the only
book to give step-by-step instructions for filing and arguing an adversary
proceeding to discharge student loans through bankruptcy. It is written in plain
English, with a minimum of legalese, and can be purchased directly from
http://www.StewartEducationServices.com or from Amazon.com.
Chuck Stewart, Ph.D.
Article Source: http://EzineArticles.com/?expert=Chuck_Stewart
Article Source: http://EzineArticles.com/80467
keywords "bankruptcy" and "student loans" and you get either many listings for
lending institutions trying to get you to take out another loan, or you see articles
telling you that it is virtually impossible to bankrupt your student loans except
under the condition of "undue hardship"-- and then they fail to tell you anything
how to go about proving the condition. How frustrating!
Below is a summary of the salient points given in Bankrupt Your Student Loans and
Other Discharge Strategies by Chuck Stewart, Ph.D. (ISBN 0-9764154-5-3). Here is
an author who has been through the process, successfully bankrupting $54,000 in
student loans, and has written a clear, step-by-step, instruction manual to help
other honest debtors in their efforts to have their student loans discharged through
bankruptcy or Compromise or Write-Off.
The bankruptcy courts originally treated student loans the same as any other
unsecured debt. Student loans could be listed in a Chapter 7 filing and fully
discharged. However, in 1976 Congress modified the Higher Education Act of 1965
and required student loans to be nondischargeable unless: (a) the debt first became
due more than 5 years before the date of filing of the bankruptcy, or, (b) failure to
discharge the debt would cause "undue hardship" to the debtor or to dependents of
the debtor. In 1990, Congress extended the 5 year rule to 7 years and eventually
eliminated the time limit altogether in 1998. Thus, the only option debtors
currently have for bankrupting their student loans under 11 U.S.C.A. Bankruptcy
Reform Act (1998) §523(a)(8) is to prove repaying their student loans would cause
an "undue hardship."
"Undue Hardship" Analysis
Unfortunately, Congress failed to define the term "undue hardship." A review of the
discussion and debate by the legislature regarding the education amendment is
unrevealing as to the meaning of undue hardship. Thus, it has been left up to the
courts to determine its meaning. Aggressive defense by Department of Education
attorneys has influenced the court to a decidedly rigid interpretation. In general, for
a debtor to qualify for an undue hardship discharge of student loan debt, the debtor
must be living at, or below, the Federal Poverty Guideline and have no hope for
increased future income substantial enough to make payments on the loans.
Over the past quarter-century, courts have developed many tests to determine the
existence of undue hardship. The leading test used in most court is the Brunner
Test. Other tests include the Bryant Poverty Test, Totality of the Circumstances
Test, and the Johnson Test. A review of these tests locate some common
characteristics used by courts to determine undue hardship. These include:
Characteristic A. An evaluation of the debtor's current living condition and the
impact that has on the ability to repay the loan while maintaining a "minimal living"
standard.
Characteristic B. The debtor's future prospects for repaying the loan.
Characteristic C. Evaluate whether or not the debtor demonstrated good faith during
loan repayment.
There are two steps involved to demonstrate Characteristic A--
1. Every court reviews the debtor's current living condition and evaluates it against
the Federal Poverty Guidelines. Debtors with incomes above poverty will be
scrutinized by the courts to assure all expenses are "minimized." Expenditures will
be compared to an "idealized" debtor of similar situation but at the official poverty
level.
2. Once the court is satisfied the debtor has minimized living expenses, the court
evaluates whether repaying the student loans will push the debtor down to or below
the poverty level.
Characteristic B is impossible to predict. Courts have recognized the folly in trying
to predict future income, but it has not stopped them from including it in their
analysis. Courts have considered many factors that may affect future earnings
including personal limitations such as: (1) medical limitations, (2) support of
dependents (and their medical conditions, if applicable), and (3) lack of useable job
skills. Courts have also considered some external factors such as age
discrimination (for debtors over age 50), having been labeled a whistleblower, and
other social and cultural factors that affect the ability to obtain gainful employment.
Congress was most concerned with debtors who seemingly "defrauded" the
government by bankrupting their student loans soon after graduation. To reinforce
that concern, courts want debtors to demonstrate "good faith" attempts at repaying
student loans. Characteristic C, Good Faith, means that the debtor must show that
he or she made payments on student loans whenever his or her income was above
the poverty level, or, when there was insufficient income, he or she obtain
deferments or forbearances to keep the loan in good standing.
Income Contingency Repayment (ICR) Plan
Even if a debtor clearly demonstrates that the undue hardship analysis applies to his
or her case, the Income Contingency Repayment (ICR) Plan may unravel the case.
The ICR allows student loan repayment to increase or decrease according to the
income of the debtor. As such, if the debtor's income is below the Federal Poverty
Guideline, then the payment drops to zero. The plan lasts for 25 years and any
outstanding debt is discharge. However, the loan discharged amount is treated as
income by the IRS and income taxes will be due.
It is often stated by Department of Education attorneys that ICR makes it impossible
for debtors to discharge their student loans in bankruptcy. They contend that
anyone can make "zero dollar" payments, thus negating the undue hardship
exception of §523(a)(8). In many cases this is true. But for some debtors the ICR is
inappropriate. For example, imagine being 65 year or older living on SSI or on a
fixed income and then a large tax liability descends upon you for debt discharged at
the end of an ICR plan. That would place an undue hardship upon you. In fact, the
ICR is really inappropriate for anyone over the age of 40 because of the tax liability
at the end of the repayment period.
Regardless, debtors planning an adversary proceeding must prepare a robust
response to the Income Contingency Repayment Plan.
Filing the Bankruptcy and Adversary Proceeding
Student loans are listed in the Chapter 7 bankruptcy as one of the outstanding
debts held by the debtor. The debtor must then file an Adversary Proceeding in
conjunction with the Chapter 7 bankruptcy case within 60 days of the meeting with
the creditors. The adversary proceeding is against the Department of Education (or
other guarantee lender) and asks the court to determine if the "undue hardship"
clause applies. If the court decides §523(a)(8) applies to the case, then the student
loans are discharged through the Chapter 7 bankruptcy.
There is research to show that debtors who file their own Chapter 7 bankruptcy and
adversary proceeding prevail more often than if an attorney is used. Most attorneys
will not touch an adversary proceeding on student loans, and those that do, want at
least $5,000 up front with additional high hourly fees. You know your situation
best and it is suggested that you try to do this yourself. Even if you retain an
attorney, you will have to perform most of the financial research needed to prove
undue hardship. If you do file your own case, you may want to retain an attorney
or paralegal to help with some of the steps, forms, or language.
Here is where strategy comes into play. You really do not want to go to trial. In a
majority of cases, the debtor loses. In Bankrupt Your Student Loans and Other
Discharge Strategies, a chapter is devoted to an analysis of court cases. Often
courts give irrational responses and rule against debtors with clear cases of
hardship. Most courts analyze the debtor at the Federal Poverty Level whereas a
minority of courts performs the same analysis at a middle class income level.
Because Congress failed to clearly define "undue hardship," the courts have ruled all
over the place; and there is no consistency even between courts using the same
test.
The better tactic is to settle out of court with the Department of Education or
renegotiate the loan and stipulate that to the court. For example, you could
convince the Department of Education to accept 10 cents on the dollar as banks
often do with bad debt. Say a $60,000 loan is reduced to $6,000 paid over 5 years
(i.e., $50/month) with the remaining $54,000 discharged through the Chapter 7
bankruptcy. By discharging the debt through bankruptcy, there is no income
reported to the IRS with no resulting income tax. You and the Department of
Education create a Stipulation to the new repayment plan and submits it to the court
for approval without trial.
Debtors need to prepare like they are going to trial. Each of the Characteristics and
ICR discussed above must be addressed in full. It is not difficult work, just detailed
and tedious. It is advisable to create worksheets to systematically organize financial
details and write, in your own words, responses to each item. Research will be
needed to obtain current financial guidelines for the Federal Poverty Level and
typical expenditures for similarly situated debtors reported by the IRS. This
research helps to establish that you have not been negligent in your spending.
Bankrupt Your Student Loans and Other Discharge Strategies has created a
systematic approach to proving "undue hardship" with the use of worksheets,
sample forms, and extensive Appendix. By gathering all these materials together,
you will be able to aggressively negotiate with the Department of Education before
the trial. Hopefully, you will succeed and avoid a judge making the final decision.
It is impossible to write in general terms about how the adversary proceeding will
proceed. Each court is different and each case is different. However, like with other
civil complaints, there are usually the following steps:
o Filing the Complaint with Proof of Service
o Status Hearing
o Mediation
o Pre-Trial Hearing
o Trial
It is before the Mediation that you present your case to the Department of
Education. This is your opportunity to try and renegotiate your loan: including
having it completely discharged. More often than not, the attorney for the
Department of Education will play hardball citing the ICR as the reason you cannot
prevail with the undue hardship argument. You continue to negotiate with the
Department of Education after the Mediation and address those questions that came
up during the Mediation. In many cases, they will accept the offer if it is reasonable
rather than risk losing at Trial.
Even in situations where debtors do not file bankruptcy, there is the opportunity to
have student loans discharged through the little known processes of Compromise
or Write-Off. Instead of filing suit and having the case decided at trial, the debtor
negotiates directly with the Department of Education to discharge the loan. Why
would they do this? It costs money to keep dead loans in the system. Also, there
are government directives allowing the Department to discharge loans through
Compromise or Write-Off. Regardless if a bankruptcy or Compromise or Write-Off
is planned, the process of proving "undue hardship" remains the same.
The above article was a brief summary of Bankrupt Your Student Loans and Other
Discharge Strategies by Chuck Stewart, Ph.D. (ISBN 0-9764154-5-3). It is the only
book to give step-by-step instructions for filing and arguing an adversary
proceeding to discharge student loans through bankruptcy. It is written in plain
English, with a minimum of legalese, and can be purchased directly from
http://www.StewartEducationServices.com or from Amazon.com.
Chuck Stewart, Ph.D.
Article Source: http://EzineArticles.com/?expert=Chuck_Stewart
Article Source: http://EzineArticles.com/80467
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