Use Your Credit Cards Responsibly

Written by David Medlock


With Americans going deeper into debt every day, usually thanks to uncontrolled use of credit cards, you may wonder if there is any good way to use a credit card. If so, how can you control your credit card debt, as opposed to letting it control you?

The first step is self-control. If you can’t discipline yourself to make wise decisions about credit card use, then don’t get a credit card. You’re just asking for trouble. This means that you have to be brutally honest with yourself. If you’re not judicious withrepparttar money in your bank account, how can you be judicious when it comes torepparttar 112021 use of someone else’s money, which you’ll have to pay back with interest? Don’t fool yourself. Be honest and be willing to makerepparttar 112022 decision not to get a credit card if you feel that you won’t be able to control it.

That being said, there is a difference between thinking you can handle a credit card and actually handling one properly. It can be like a loaded weapon if you’re not careful. But, if you’re wise, it can be a valuable tool that can reward you for proper use. Here are a few tips for gettingrepparttar 112023 most out of credit cards:

•Shop Around: Don’t just fill out any application and hope forrepparttar 112024 best. Look forrepparttar 112025 best deal. Make sure thatrepparttar 112026 card you get will fit your lifestyle and your financial management style. •Pay It Off: Never charge more than you can afford to pay off within 30 days. With most credit cards, you get a grace period that allows you to pay off balances without being charged interest. •Leave Home Without It: Don’t carry a credit card with you. If you have to go allrepparttar 112027 way home to getrepparttar 112028 card in order to make a purchase, it will force you to think aboutrepparttar 112029 purchase before you make it. This can reducerepparttar 112030 number of impulse purchases you make.

Student Loan Consolidation – How does it Work?

Written by Vanessa McHooley


Student Loan Consolidation – How does it Work? Student loans are a great source of financial aid for students who need help paying for their education. Unfortunately, students often leave college with burdensome debt. In addition, they often have multiple loans from different lenders, meaning they are writing more than one loan repayment check each month. The solution to this problem is loan consolidation.

What is loan consolidation? Loan consolidation means bundling all your student loans into a single loan with one lender and one repayment plan. You can think of loan consolidation as akin to refinancing a home mortgage. When you consolidate your student loans,repparttar balances of your existing student loans are paid off, withrepparttar 112020 total balance rolling over into one consolidated loan. The end result is that you have only one student loan to pay on.

Both students and their parents can consolidate loans.

Should I consolidate my loans? Loan consolidation offers many benefits:

-Locks in a fixed, usually lower, interest rate forrepparttar 112021 term of your loan, potentially saving you thousands of dollars (depending onrepparttar 112022 interest rates of your original loans) -Lowers your monthly payment -Combines your student loan payments into one monthly bill

In addition, consolidated loans have flexible repayment options and no fees, charges, or prepayment penalties. There are also no credit checks or co-signers required.

You should consider consolidating your loans ifrepparttar 112023 consolidation loan would have a lower interest rate than your current loans, particularly if you are having trouble making you monthly payments. However, if you are close to paying off your existing loans, consolidation may not be worth it.

How willrepparttar 112024 interest rate forrepparttar 112025 consolidated loan be? The interest rate for your consolidated loan is calculated by averagingrepparttar 112026 interest rate of allrepparttar 112027 loans being consolidated and then rounding up torepparttar 112028 next one-eighth of one percent. The maximum interest rate is 8.25 percent.

To figure your interest rate, visit loanconsolidation.ed.gov for an online calculator that will dorepparttar 112029 math for you.

How much can I save? How much you save by consolidating loans depends on what interest rate you get and whether you choose to extend your repayment plan. According to Sallie Mae,repparttar 112030 leading provider of student loans inrepparttar 112031 United States, consolidating student loans can reduce monthly payments by up to 54 percent. However,repparttar 112032 only way to reduce your payment this much is to extend your repayment plan. You typically have 10 years to repay student loans, but, depending onrepparttar 112033 amount you're consolidating, you can extend your repayment plan allrepparttar 112034 way up to 30 years. Remember that if you choose to extend your repayment term, it will take longer to pay off your overall debt and you'll pay more in interest. There are no preypayment penalties, so you can always choose to pay offrepparttar 112035 loan early.

Am I eligible to consolidate my loans? In order to consolidate your loans, you must meetrepparttar 112036 following criteria:

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