Weekly Roundup: 7 Tips for Taking Charge of Your Finances After a Setback

Posted in Budgeting & Planning, Debt Management, Financial Protection on

7 Tips for Taking Charge of Your Finances After a Setback – We all experience setbacks from time to time, but financial ones can be hard to bounce back from (especially without an emergency fund). This great post on Money Ning has some great advice on taking control of your finances and getting back on track.

From Debt to Financial Freedom: Blogger Interview with Budget Blonde

Posted in Debt Management, Interviews & Studies, Student & College on

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Some people think that if you pick up bad financial habits in your teens and early adult life then you will always be bad with money, but Cat from Budget Blonde is living proof that people change their financial ways. Keep reading to see how Cat went from broke to budget and lived to tell the story.

College students make money mistakes and that’s ok

Cat wasn’t always a good saver. She admits that she let her credit card debt get out of hand when she was in her early 20s. She was in debt and didn’t have an emergency savings fund to dip into. If Cat could go back and give herself some financial advice in her 20s she would go back and tell herself “not to take out so many student loans and not to rent such a big apartment!” 

Young Americans May Rethink Decision to Attend College: Students Report Concern Over Doubling Federal Student Loan Interest Rates

Posted in Debt Management, Interviews & Studies, Student & College on

Report finds 18 percent of students plan to leave college temporarily or permanently.

San Francisco, CA, July 30, 2013 — SaveUp (www.saveup.com), a national online financial rewards program for saving and paying down debt, today announced the findings of its July U.S. Consumer Savings and Debt Report. Findings from SaveUp’s student loan survey show that the doubling of interest rates on Federal Stafford student loans will affect individuals’ plans to attend or finish college, and it will greatly impact their lifestyle, savings and spending habits.

Federal Student Loan Interest Rates Double

Posted in Debt Management, Student & College on

student-loan-interest-rates-doubleThere has been a lot of buzz lately about the change in student loan interest rates. The July 1st deadline for Congress to act has passed, and rates will double from 3.4% to 6.8%. Congress and President Obama wanted to tie the interest rates for student loans to the market rate, but an agreement on how to do that couldn’t be reached.

This will impact students who are taking out federally subsidized Stafford loans. According to the WSJ, this change will “affect an estimated seven million students who take out certain federal student loans for the coming school year, representing about a third of all undergraduates.” It’s another real effect of the sequester. For other impacts, see this past post titled The Aftermath of the Sequester (And Its Effects on Our Finances)

Weekly Roundup: Are You a Financial Cheat If You Find Ways to Treat Yourself?

Posted in Debt Management, Spending (Spend Less), Student & College on

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Are You a Financial Cheat If You Find Ways to Treat Yourself? – We’ve all done it before, but does constantly using “I deserve this” as an excuse to cheat on our budget really do us any good? Good Financial Cents has some tips to weigh the pros and cons.

Student Borrowers Face Grim New Reality – Interest rates on subsidized student loans doubled this week. The Street has the details and discusses the potential impact.

Understanding the Gen Y Debt Battle

Posted in Debt Management, Interviews & Studies on

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In February, SaveUp compiled its first U.S. Consumer Savings and Debt Report titled “Gen X and Y Lead US Trend as a Nation of Debtors.” I found the report interesting and insightful. I’ll examine it from a personal financial planning perspective.

My Take on the Report’s Findings

The report states, “Over 60% of Gen Xer’s debt comes from mortgage and student loans, considered “good” debt, that helps build assets and job opportunities. Gen Yers however have close to half of their obligations, 48.4%, in non-asset building loans, mostly considered ‘bad debt.’” 

Surprise Finding: Young People Are Aggressively Saving Despite Shouldering High Amounts of Debt Early in Adulthood

Posted in Interviews & Studies, SaveUp News, Saving on

Young adults are depositing more to savings accounts and paying down 57% more student loan debt than Gen X or Baby Boomers. Finger is pointing at the Great Recession.

San Francisco, CA, April 17, 2013 — SaveUp (www.saveup.com), a national online financial rewards program for saving and paying down debt, today announced the findings of its April U.S. Consumer Savings and Debt Report. This month’s major findings focus on the trends amongst young adults (22-32 years old) including recent college graduates.

Can Debt Be Good For Your Finances?

Posted in Debt Management on

Is all debt bad? Not necessarily. Certain types of debt are either beneficial or detrimental as we try to improve our finances.

For instance, you can pay off debt consistently (like paying off a credit card in full each month) and establish good credit so that you can qualify to borrow money at lower interest rates in the future. Or, in a worst case scenario, you could get stuck in a payday lending scheme. These loans have high interest rates that are meant to be short-term. If the loan lasts longer than you anticipated, you may end up paying over 150% APR (or more). This could be damaging to your finances for years to come.