Helping the Class of 2012 to be free from Heavy Student Loans

Heavy Student Loans
Heavy Student Loans

Mark Kantrowitz, publisher of, projects that the class of 2012 who have borrowed for their education will hit a debt load of $28,700. When broken down, that amounts to $330 of standard monthly payments, which means the graduate must have a salary of around $40,000 to be able to pay that easily. The sad news is; half of all the current graduates are unemployed or underemployed according to an AP analysis.

The class of 2012 is said to graduate college with bigger loans than the classes before them. With an economy recovering from a recession, getting the means to pay for this heavy debt load is quite difficult. For parents, this is probably a situation they thought they would never see. So how can parents help their children with their financial issues without hurting their own pockets, financial experts suggest a 3 step plan to help the new graduates.

  • Get Organized

To help the newly graduates pay off the loans, get them organized on knowing the IOUs as soon as possible. You wouldn’t want your child signing for a car lease in July as it would leave a zero surplus for the loan payment coming in December, remember they only have six months to repay. To determine how much they owe, call a financial aid from the college and visit the website

2 months before the loan is due, instruct your child to visit the site so they can merge the federal loans into one for a simpler tracking and billing process. Earlier graduates that have yet to consolidate should do the consolidation by June 30, so they can avail of the discount (0.25%).

For private and federal loans, have your child arrange an automatic payment, also encourage the child to budget the income to avoid late dues or insufficient funds.

  • Opt for Lighter Loads

If the borrower owes payment more than 20% of their income (defined as above $1,400 a month for single people) then they could get into financial trouble. If your child owes an amount close to that, the federal loans could offer some options:

  • Income Based Payment- here bills are restricted to 15% of the child’s discretionary income, for borrowers involved in public service, the balance may be pardoned after 10 years.
  • Graduated payment- removes 30% off the standard payment during the first two years, then raises the payment two years allowing the borrow to pay in 10 years time.
  • Extended payment- If the graduate owes more than $30,000 the loan terms can stretch for up to 10 years and 25 years for low payments.

Of the three, some experts suggest graduates to choose income based repayment as it offers more flexibility.

  • Offer a Hand but Consider Your Welfare as Well

Statistics show one in five students receive financial help from relatives or family members, this is entirely normal of course, as family members can’t take the burden placed on the child. But before doing that, consider less costly ways first, remember you also have retirement to look out for. You can let the child live in your home and direct the money from rent towards repayment of the loan.

The author of this article on student loan is written by Merck Williams, writer of numerous online articles on loans and debt repayment. Merck particularly writes on current and pressing issues such as student loans. He blogs at


Helping the Class of 2012 to be free from Heavy Student Loans


How to Repay your Sleep Debt?

Repay your Sleep Debt
Repay your Sleep Debt

The sleep hours you need each night minus the hours of sleep that you actually get is called sleep debt. Some of us have been very busy that we are just having 5-6 hours of sleep every night during weekdays and plan on getting the full 8 hours sleep on weekends to pay for sleep debt. This is not really a good idea because we tend to sleep more during the weekend and can’t do what we suppose to do too. Furthermore, you will notice that you are underperforming or not performing well on your work or whatever you do when you suffer from sleep debt.

According to studies, the highest possible debt of sleep that one can get is less than 20 hours. You will eventually pay it off and there’s no substitute for a good and well-rested sleep. Normally, when we fight our sleep debt, we drink coffee, and energy drinks. Sometimes, when we are so desperate to be awake, we splash cold water on our face, but these are just temporary solutions. Sleepiness is very hard to resist and paying off your sleep debt is very much hard to elude. There is no alternative, but to repay it with sleep.

The Effect of Sleep Debt

There are many dangers to sleep debt. What are significantly affected are your memory and your concentration on things. It can cause you emotional, mental, as well as physical fatigue.  Over fatigue can be very dangerous especially when driving. You can’t do your work well either if you have sleep debt and more often, you can get into accidents. So, be sure to pull over when you are driving without enough sleep or don’t hold any pointed things. Take a nap first to avoid major accident. Eventually, large sleep debt will take its toll and need to be repaid with interest. So, how will you be able to repay your sleep debt?

Repaying Your Sleep Debt

Sleep debt will have to be repaid soon at some point, so you must make it up by sleeping extra hour later and balance your sleep count. You must invest in a better sleep by sleeping at least 7-8 hours daily on a quiet environment or room with comfort mattress and pillows. Get consistent with your sleep and don’t make your debt any larger. Also, with persistence, determination, and good planning, you can get again your needed rest and be at your best.

We can’t always get the full hours of sleep so in times that you are free to sleep extra hours, take advantage of it. Pay in installment or take a holiday for a sleep. Make a sleep routine for yourself. Make a habit of going to sleep at a specific point in time and wake up at a specific point in time as well. Make your sleep a priority. Sleeping must be as important as your work or any other things in your life. Place it on top of your list. You are the one who gets the most benefit when you avoid sleep debt. You will be at your best every time you wake up and perform everything that you need to do excellently.

Author Bio-Patric Seeley is a Global Brand Manager at -The UK’s no 1 mattress brand and the best suppliers of bedframes and divans. Mattressnextday include well known names such as: Sealy mattress, Silentnight mattress, Sleepeezee, Dream Works, Serene, Sprungland, and Joseph International, just to name a few.


How to Repay your Sleep Debt?


5 Ways To Get Out Of Bad Debts

Get Out Of Bad Debts
Get Out Of Bad Debts

It’s very easy to get in debt, but it’s really hard to get out of it; it may take few days to secure a debt but it will certainly take years to pay it off. Numerous people are suffering from bad debt problems due to lack of proper financial planning. Different people follows different strategies to get out of their overwhelming debts, below mentioned are top 5 ways to overcome bad debt problems:

  1. Avoid taking new debts: This will not get you out of the debt but this will at least have a control over your existing debts. When you’re paying off the debts and simultaneously adding new debts it doesn’t help you in clearing the dues. Actual problem starts when you spend more than yours income; avoid credits cards, control your desires and also avoid purchasing expensive products which will help you to control the situation.
  2. Pay off debts on time: After controlling the new arrears then it is time to pay off the existing amount dues. Make monthly or yearly planning for paying off the dues. Pay off the dues on regular intervals of time so that you can escape the penalties and save money. Also pay more than the minimum amount; this will help you to clear the dues much earlier than prescribed time limit.
  3. Find ways to earn extra Money: One of the fastest ways to overcome bad debt is to earn extra income; this will eventually help to pay off the dues. If you want to clear the dues by doing some part-time job then are plenty of options available to choose from and you can work on them in your free time. Some of these jobs include sell your stuff online, babysitting, rent out a room, freelancing, consultancy services etc.
  4. Negotiate for reduce the interest rates: The amount that you pay as interest rates seems to be negligible but if that is calculated as a whole it would turn out to be a huge amount. Therefore, it is better to discuss the matter the creditors and ask them to lower the interest rates. This may not be the successful all the times but you can try for it. Often, customers with good payment history will get this type of chance.
  5. Build your Emergency funds: Create an emergency fund from your monthly savings this will help you to meet any unexpected circumstances. You can also avoid taking advances in such emergency situations since interest rates will be high. If you don’t have such an emergency funds and require instant cash then you can opt for short-term loans like payday loans.

When you are overburdened with different debts you can go for consolidating your debts. Here you take a new loan to repay all your existing debts. The main advantage of consolidating your debts is that you need to pay a single monthly payment with reduced overall interest rate.

About the Author:
My name is Katie. I am a tech writer from UK. I am into Finance :). Catch me @financeport



5 Ways To Get Out Of Bad Debts


To Invest or To Save: Which is Better for You?

To Invest or To Save
To Invest or To Save

In times like these, everyone should take in to consideration saving or investing in something for the future generation. It is easier to spend money on things, but it is wiser to save. The two words, save or invest, have two different meanings, but are related to each other. It is the process of handling each where it differs. Before confusing yourself, you need to understand the basic concept between saving and investing for you to be able to understand their individual differences.

To Invest

When one invests, it simply means the process of using a defined financial amount or capital to buy assets, which may generate an acceptable and safe return over time. This includes gold coins, stocks, bonds, mutual funds, antiques, small businesses, fine art and the like. Good investment takes time and effort but when you achieve it, it will lead you to being potentially wealthy. Experts in investing have suggested the following tips when you are planning to enter the investment arena:

Commission free stock is worthy of investment

This is a great plan especially if you are planning to invest in stock. When you do this, you will expect a zero average cost basis, which may lead to potential returns.

Accumulation of dividends in brokerage account is used

What you need to know when investing is that passive sources of income should be the source of expenses. You will then see that earned dividends will grow from these kinds of stocks.

Dividends are allowed to accumulate

Experts suggest that you let your dividends accumulate which will in return reduce the commission fee to about one percent less.

Few trades

When you invest, you have to have few trades. When you do this, you will lessen the chances of failing or not getting your financial return.

Never buy new investment magazines or books

You should not invest in these things. You should know that we live in a world that is evolving, what is new and useful now may not be useful and new tomorrow.

To Save

Saving is the mere process of placing hard cold cash aside for future usage. Most often, people save in a bank with or without interest rates. Not spending cash is saving. This is tricky and hard for some individuals. However, for thrifty persons, this is an easy task to do. The following are tips you can use when you save:

Cut down expenses

You need to cut down expenses so you do not to spend so much money. Cutting down expenses starts with pinpointing what things you are better off without.

Reward yourself by setting aside money

Another trick to saving money is rewarding yourself by setting a special amount of money aside.

Write down expenses

This will aid you in seeing where you spend your money the most. This is a great overview.

Write down financial saving goal

What you write down is a first step towards your goal. You must write it down clearly and specifically.

This article is written by Amarendra, the guest author. He writes on finance, especially on personal loan rates and gives important financial advice which covers loaning strategies and loans to avoid.


To Invest or To Save: Which is Better for You?

Credit Cards – 3 Ways to Use Them Smartly

How to use your credit card smartly
How to use your credit card smartly

Due to the current financial climate, credit cards have become increasingly popular amongst people around the world. Unfortunately, the majority of users get into trouble with their cards, mainly because they are using them in the wrong way.

They use their credit card to make purchases which are unnecessary and then quickly find that they reach their credit limit, which then leads to them struggling to pay the minimum payment every month.

In order to avoid such a situation yourself, it pays to use your credit cards in a smart way.

Shop around

Firstly, it always a good idea to spend a bit of time researching the different credit cards before you make a decision on which one to choose. Not every credit card is created equal, and some have higher interest rates than others.

The best way to find the perfect credit card for your needs, is to visit a comparison website which lists the main features of each credit card side by side. This allows you to easily compare the advantages and downsides of each one, and then make a choice based on this information.

Pay off the full balance

Let’s face it, the majority of credit card users spend all of their credit limit and are then stuck paying the minimum payment every month. This not only affects your credit rating, but also ensures that you’ll still be paying off the balance many years down the line.

Instead, learn to be smarter about using your credit card, by paying off the full balance every single month. Doing this will make you think twice about making a purchase, so you can stop using the card for unnecessary items.

Also, it will have a positive effect on your credit score, meaning you’ll always be able to get a loan with favorable interest rates in the future.

Avoid late payments

A big mistake made by credit card users around the world, is missing monthly payments. If you do this on a regular basis then you need to stop this habit right away.

Not only are you subject to late fees and charges, which plunges you deeper into financial turmoil, but making late payments also has a negative effect on your credit report.

Always make sure you have enough money in the bank to make your monthly payment, and make sure you do it on time.

Kevin Fountain is an expert on the subjects of credit cards, loans and investment banking. You can find more of his work at

Credit Cards – 3 Ways to Use Them Smartly

What Can Small Businesses Do to Improve Their Credit Management?

Credit Management
Credit Management

Credit management for any business is very essential but for any emerging small business it is a crucial factor. It is considered a crucial skill for individuals, families, small or big businesses or even consumers. By effective credit management you can increase your finance and investment possibilities. You can also boost your reputation among suppliers, lenders and stock holders to a great extent. This process will help your business to flourish and spread steadily over time.

Thus it is a fact that designing an effective credit management plan is very essential. So if you own a small business what can you do to improve your credit management?

To solve this problem given below are a few tips that you can consider implementing:

1.      Consider the Financial Ratios: In order to make the right decision about credit allotment or distribution you should always consider the financial ratios. That way you will have the clear idea of how much money you should borrow and what terms can be acceptable. It will be better to check out the key ratios first and then the other ratios that can be equally effective.

2.      Analyze the changes: It is important to analyze the changes in the debt-to-equity, debt-to-sales, debt coverage ratios and times-interest earned ratios for more insights. You should also have a clear idea about how the credit management policies affect your company valuations. You can compare the ratios against that of the averages for your industry or against those of your top competitors.

3.      Look for discounts: There is never a better idea to manage the credit than looking from discounts from suppliers. There are many suppliers who offer cash discounts if you offer early payments on accounts. You should always take the advantage of such situations. The suppliers may quote their own discount price. You may choose the one that suits you the best.

4.      Reduce the interest: A great way to manage your credit can be to work on the total amount of interest that you are likely to pay to your creditors. You should take special note of not allowing the interest to accrue or compound. However you should look for every opportunity by which you can make the interest compound in your favour.

5.      Consider organic growth: While reviewing the financial growth plans it is essential that you use a higher proportion of earned income to debt. If you think you do not currently have a sizable source of savings for your business, consider adding some changes. You can add the changes to your business model to earn more profit before you take on the growth strategies. You can also rethink your goals according to your presently earnings. This will help you to clearly understand whether to expand or run your business steadily for some more time.

6.      Do not default: It is very essential for a growing business to look after its payments and dues. You should pay more attention on defaults and the ways to reduce them. Try every means that will help you to avoid defaulting on your accounts. Try reducing the later payments also if possible.

Note: A small business should be more concerned about the credit management as it can help the business to expand further. There are many ways by which you can improve your credit management system. Understanding your business plans, setting more improved goals, reducing the risk of defaults being some of them.

Author bio: Jason A. Morris a full time SEO Writer. One of his long-term career goals is to move forward from being a content writer to becoming a well known author at which is at present one of the leading firms in the country.

What Can Small Businesses Do to Improve Their Credit Management?

Differentiating Bull Market and Bear Market

Bull Market and Bear Market
Bull Market and Bear Market

When there is an upward trend in the market and the investors are very confident about the fact that there can be a rise in the stock values then, it is known as the bull market. But, the bear market is completely different than the bull market. A bear market is generally the downward trend in the market. The investors are not confident and there is a sure loss in investing in this market, and hence, people avoid investing in the bear market. The people who are involved with the bear market are more interested in selling their shares.

Profit in bull market

It has been said that the investors who invest in bull market are likely to get more profit. This mainly happens due to the rise in price of the stocks. The investors generally buy at an early stage and sell them when there is a rise in price. As there are high chances of making profit here, so it is very important that one should invest in such a company that is very much sound financially and can maintain the financial condition in the long run. So, it has been found that because of the profit, more and more people are investing in the bull market.

Handling bear market

As we have discussed earlier that the bear market is the downward trend in the stock market, so it has been found that very less number of people take the risk of investing here. But, if you are engaged in bear market then you should not get scared as if you have right knowledge and guidance, then also you can earn a huge amount of money through the bear market. Here we have thought of providing you certain tips that you can follow in case you want to earn money with the help of bear market.

Tips for bear market

If you can follow these investing tips then it will surely help you to make profit even with the bear market. You should always stay calm and should never sell off your stock out of panic as it has never helped anyone and you will surely make loss from it. When you have invested in stock you know what are the risks associated with it, and hence, you should never sell it in the worst time. Diversification is the only way that can help you out. You have to make your portfolio more diversified when you want to make more profit. Try to be more defensive.

Differentiating Bull Market and Bear Market