Healthy Financial Habits

Please visit Paying Student Loans – Student Loans Debt for up to date news and information on obtaining and paying student loans.

By: Kim Soyung

Student loan interest can accumulate quickly, and by using a debt calculator, you can track your interest and any other personal debt you may have.  When you first apply for those hefty student loans, the last thing going through your mind are interest rates and loan repayment.  You are envisioning all the fun and good times ahead of you in your college career.  However, each day, your student loans are quietly and secretly growing larger and larger.  By the time you graduate, you realize that the majority of your loan consists of interest that has been racking up for the passed 4 or 5 years while you were doing keg stands and beer bongs, and of course some studying here and there. Once you begin the dreaded stages of repayment, you realize that you are able to write off the student loan interest that you paid the year before.  There is a certain limit, however, of how much interest you can write off.  Yes, it would be nice to write all of it off!
You do not necessarily have to use a debt calculator to calculate your student loan interest.  Really a debt calculator breaks down your positive cash flow and your negative cash flow that is being spent paying down your debt.  Debt calculators can be found online and enable you to plug in pieces of financial information so you can have an accurate figure of your current debt.  You can also create your own debt calculator in Excel.  Start by listing any debt you may have, whether it is credit card debt, student loan debt, or a mortgage or car payment.  Add up your total debt.  This will give you your negative figure.  If you would like to find out your net worth, subtract this number from your current income.  For many, your net worth will be negative.

The Chevrolet Volt is part of a new line of vehicles that General Motors is expected to release by next year. What is particularly remarkable about this gas-electric hybrid is that it is expected to get nearly 230 MPGs in the city with a range of 40 miles before requiring a recharge. These vehicles can be charged using an ordinary outlet and do not require a special charging station.

The Volt is expected to carry a price tag of around $40,000 and will come with a nice $7,500 tax credit. The tax incentive in addition to the savings on fuel will hopefully drum up some much needed sales for General Motors in addition to improving their “green image”. GM is not expected to make a profit on these new vehicles at first because of their high production cost from product development and batteries. They are anticipating high sales make up for the initial loss.

The Volt is only a part of General Motors pan to turn the troubled company around.  GM is expected to release 20 new vehicles in the upcoming two years.

By: Kim Soyung

Debt elimination plays a huge role when deciding on credit solutions.  Do you have poor credit?  Did you apply for several credit cards and max them out, knowing you would not be able to pay them off at the end of the month?  You’re probably now up to your neck in credit card debt and student loan debt.  By now your credit score is lower than you would like and you’re trying to kill 2 birds with one stone: eliminate your debt while maintaining good credit.

Paying off all of your debt is easier said than done.  Do what you can to decrease your overall spending and focus on paying off as much of your debt each month as you can.  Start by paying off your credit cards with the highest interest rate, but still make your minimum payments on cards with lower rates.

Your credit score will not increase overnight by paying off your debt, but as you pay it off, eventually you will see an increase and more of an abundance of credit.

By: Kim Soyung

Having personal debt is not necessarily a bad thing.  However there is good debt, and there is bad debt.  Good debt includes student loan debt and a house mortgage.  Bad debt includes any type of credit card debt.  Student loan and mortgage debt are good debt to have because they have value to them; your college education can land you a good-paying job, and your house will always have price tag on it.  However when it comes to credit card debt, the only price tag on credit card debt is a negative price tag.

Good debt in inevitable-you will most likely have to pay for college in one form or another and chances are you will be a homeowner one day.  Bad debt is by choice.  It is good to have balances on credit cards in order to build credit, but just remember to pay the cards off every month.

Personal debt ultimately helps your credit score when the majority of your debt includes student loans and a mortgage.  However the more credit card debt you have, the more bad debt you incur.

The best credit cards are sought after by many. Because each card is unique and each person’s lifestyle is unique there is probably not one card that could be considered the best. If there was such a thing as a credit card with 10% cash back on all purchases, I could argue that this is the best credit card to have, but there is no such thing.

Instead of asking “What is the best credit card out there?” you should ask “What is the best credit card out there for me?”  Start with a review of your finances. If you are smart you would know how much you spend in each category of spending such as grocery, dining, gas, entertainment, etc. Where do you spend the most money?

If you are a traveler and spend a lot of time driving around, you might want to consider a card that gives cash back on gas station purchases. This is especially helpful when gas prices are on the rise.

Frequently fly? Try an airline card that offers “miles” or a similar rewards program.  If you have to fly then why not sign up for a card that allows you to fly for free?

If you have bad credit then your options are fairly limited for a credit card. You will have to take the table scraps that the credit card industry offers. Yes, this means while others are enjoying the top sirloin you have to accept the fatty trimmings. Although these cards have a very high APR (usually in the mid 20’s) you can still enjoy some of the great rewards programs that other cards have. Remember that is only worth having such a card if you keep the balance down or pay it off every month. If you are paying 25% APR on a $5,000 balance meanwhile earning 1% cash back then this might not be the best choice for you.

Selecting the best credit card is not an exact science. You have to first evaluate your lifestyle and all of your options then choose the card that fits you the best. There is no one card that is the “best card”.

Credit card bankruptcy happens to Americans more and more often. The economy is in a slump, people are losing jobs and some people are resorting to the use of credit cards to keep food on the table and a roof over their head. Before these people realize it, they are sunk several thousands of  dollars into credit card debt and consider filing bankruptcy as an easy way out. Well with a plan and some determination you can get out of credit card debt while saving your credit.

First you have to come up with a plan. Make your goals quantitative or measurable. If your plan is to stop eating out so much and spend less on shoes, then your goal is not measurable. An example of a measurable goal is “to spend less then $65 a month on eating out and only buy one pair of shoes per month that cost less than $50.

After you set measurable goals and slow down your spending then you should examine all of the places your money is going each month. You subscribe to a service such as NetFlix that you do not use or how about that gym membership that you are paying for but never stepped foot inside the gym since you signed up the day after New Years. Remember all of those small expenses add up to large expenses.

Another tip is to sell off all of the junk that got you into debt in the first place. Take a look at all of the stuff that you purchased. Why did you buy it? Do you still use it? If so how often?  If you can’t justify why you purchased something and you never use it then sell it! Have a yard sale, put it on Craigslist, or sell it on Ebay. Take the money that you make and pay down those cards.

Now that you have some money freed up and have changed your spending habits,  its time to start paying those cards down. Start with the highest interest card and put every Lincoln that you can towards paying that card off. Attack the next highest interest card next. Continue this pattern until all of your cards are paid off. Remember, any money that you free up after a card is paid off needs to go towards the next card. Don’t spend it. Also, while you are paying off one card make the minimum payment on the others for the time being. Don’t try to bite off too big of a chunk at once.

The biggest challenge is to remain determined. Always keep an optimistic outlook on your finances and stay consistent with your strategy. You will soon start to see those financial pounds  shed.

A good credit card deal is something that everybody would like but seems to be more and more difficult to find. With rising credit card rates, card companies are cutting back and being less generous. One card that stands out above the rest is the Discover card. Here are a few pros and cons of the card”

Pros:

- 5% cash back in many categories such as department stores, gas and restaurants.

- 1% cash back on all other purchases

- Save 5% to 20% on all purchases made through their exclusive online store

- Promotional 0% APR for 6 months

Cons:

All of this would be nice if you can find merchants who will accept discover. One of the reasons why they can offer higher rates to their customers is because they charge a higher fee to merchants. I recently used my discover card after it was not used for several months. After only 6 purchases I remembered why I stopped using it. Two out of six or 1/3  of my attempts were failures.  Whenever I hand someone a Discover card I brace myself for the “I’m sorry, we don’t accept Discover”. I always come prepared with a back up method of payment. Do not carry this card exclusively. You might find yourself washing dishes.

Cash back credit cards are an excellent means to put a little more cash back in you wallet. What could be more exciting than to receive money back on your credit card and spend it the way that you choose rather than to sign up for some points system that only allows you to choose from a list of items when it comes time to redeem your hard earned points?

Cash back credit cards come in all different forms. You have Mastercard, Visa, Discover, and American Express just to name a few.  They are offered by several credit card companies and each comes with its own perks. There are currently a handful of cash back credit card deals out there.

The Capital One No Hassle card gives you a solid 2% at gas stations and most major groceries stores. All other purchases earn 1%. They do not place limits on how much you can earn and your cash back does not expire.  This card comes with no annual fee and a promotional APR of 0% until may 2010. From there it goes to a 14.9% variable rate.

The Discover More card offers an even sweeter deal with 5% cash back in categories such as travel, gas, home improvement stores, department stores, pet stores and many more. They also give 1% cash back on everything else. If you use their exclusive online store you can save anywhere from 5%- 20%. This card comes with a 0%APR on purchases and balance transfers.

Chase Freedom card has an offer that only gives 1% cash back on all purchases, however;  they give you $50 cash back after you make your first purchase. They do offer a rotating 3% in select categories such as gas, home improvement and department stores. By rotating they are saying that you can earn the higher interest rate only in certain categories at during certain months. Another perk is that this card comes with a rate as low as 12.24%.

TrueEarnings card From Costco and American Express gives 3% cash back up to $3,000 on gasoline, 3% cash back at restaurants, 2% cash back on travel, and 1% on everything else. There is no annual fee if you hold a Costco membership and if you earn $25 cash back after you make your first purchase!  Enjoy a 0% intro APR for 3 months.

These are some of the more popular cash back credit cards that are out there right now. It is up to you to search for them and find the one that best fits your needs and lifestyle.

Credit card deals are everywhere. You hear advertisements on TV, you get offers in the mail, and you see advertisements on the internet for low APR credit cards. So where can you find these great deals? Well one place to start is at www.creditcards.com Here you will find a fairly comprehensive list of credit card deals that are offered to the general public.  Here you can search for credit cards by category such as bad credit cards, 0% cards, gas cards, instant approval cards, etc.

So what great deals are out there? Well it depends on what kind of deal that you are looking for.

If you fly frequently the Right Miles card by Discover may be just what you need. It offers one mile for every dollar that you spends and double miles on travel and restaurant and travel.  There is flexibility when it comes to redeeming your miles. They give you options for travel, gift cards, or even cash. If you purchase through their exclusive online shopping site you earn double miles. As an added bonus this card comes with an APR as low as 11.99%

If your credit is not so great you can choose one of the many options available for bad credit cards. Here you will find an array of cards that do not volunteer their APR or annual fees. Usually the APR is in the mid to high 20’s and they charge an annual fee.

If you have good credit and you want a card that has some great perks then you should try the Discover More card. The more card offers 5% cash back on categories such as travel, home improvement stores, department stores, gas, restaurants, pet stores and many more.  It offers 1% on everything else. They also offer 5% – 20% cash back through their exclusive online shopping site.

With many cards out there to choose from you can find all kinds of deals. Start by performing an online search. Beware of sites that attempt to steal your identity.

Want to apply for a credit card?  Need help choosing a credit card?  Credit card shopping can be an exciting task. The number one rule to follow while applying for a credit card is to do your homework. Don’t just apply to the first credit card that comes your way. You have to be selective and choose the one that is right for you.

With a slowing economy comes less credit card offers that arrive in your mailbox. I can remember a time when I checked my mail to find several credit card offers in the mail each day. Now it’s more like a slow trickle. Credit card companies are making offers to less people and not offering as much in return as they once were.  Because of this your options may be a bit more limited than they once were when you could receive several in the mail.

Thankfully we have the internet. You can still apply for credit cards directly through creditors’ websites or through credit card search engines such as creditcards.com.  Many of the applications can be filled out online thereby decreasing processing time. Usual response time is about 1 to 2 weeks. You will either receive a rejection letter or a new card in the mail.

Before you make that decision to fill out the application you may want to consider exactly what you are applying for.  Carefully read over the terms and conditions and make sure that you know exactly what you are getting into. At a minimum you must know what the APR is and what this equates to as far as how much interest you would end up paying over the course of the year.

There are other factors such as rewards and incentives, introductory periods, annual fees, credit limits, etc., that you must understand before you take on the responsibility of holding a credit card.

After your decision is made either fill out the paper form and mail it in or fill out the application online and submit it. It’s as simple as that! A couple weeks later you get either a “yes” or “no”.