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The Infamous Mystery Means
Dear Mary: My husband has two jobs — he is an artist and a salesman. He earns commissions from both jobs, so we never know what our income will be. I work part-time and am paid hourly. How do we go about setting up a budget? — Carol, …Read more.
Handy Tools Ease the Pain
Manufactures have been making a name — and a profit — for themselves creating tools and gadgets to help consumers get a "better grip" on countless household tasks. And I'm not knocking it. But I love it when I don't have to …Read more.
Let the Decluttering Begin
I know it's time. It's been time for at least five years, possibly longer. I need to clean my kitchen. Now, before you send the Health Department to my address, let me explain. What I mean by "clean" is that I need to clean out and …Read more.
A Glimmer of Hope to Cling To
Think back to a low point in your life. Don't struggle with this, just try to recall when you were going through a difficult season and life seemed bleak. Now recall that first glimmer of hope you clung to as you could see that things were beginning …Read more.
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Don't Let Student Loans Come Back To BiteWhether or not you know the statuses of the student loans you have, the lenders and the terms of repayment, it is certain that you owe the money; the debt will not go away; the lender will find you; and the consequences for nonpayment will be severe. The good news is you can escape from student debt prison. If you're in over your head and can't make payments, do not hide. Contact Federal Student Financial Aid online (http://StudentAid.ed.gov) or by calling 800-433-3243. Another important contact is the Department of Education's default resolution group (800-621-3115). Know your loans and your options: —Federal student loans. The federal government guarantees these loans. The government will reimburse your lender if you default and will come after you aggressively. —Private student loans. Banks and other financial institutions make these loans without government backing. If you default on a private loan, expect to hear from an aggressive guarantee agent. —Subsidized. If your loan is subsidized, the government pays the interest while you are in school and during times of deferment. Subsidized loans are need-based. Private loans never are subsidized by the government. —Unsubsidized. If your loan is unsubsidized, you pay interest from the moment the loan is funded. Because the lender doesn't require you to make payments while you are in school, the interest is tacked on to the loan balance and capitalized. Even though you are not borrowing more money, the balance is growing because of the interest. —Loan cancellation. There are circumstances under which you might be able to cancel some or all of your student loans.
—Deferment. This is an authorized temporary postponement of your loan payments. Deferments are never automatic. You must apply for a deferment directly with the loan holder. Interest continues to accrue during deferment. However, if you are deferring a subsidized loan, the government pays the interest during deferment. To obtain a deferment, contact your loan holder for an application. Follow up to make sure your request is processed correctly. —Forbearance. If you don't qualify for deferment but are facing hard times, your loan holder may allow you to postpone payment or temporarily reduce your payments. In forbearance, interest continues to accrue when you are not making payments, no matter what type of loan you have. The cost of default is more expensive than the extra interest that accrues during forbearance. —Consolidation. This is when a lender combines many loans into a single new loan or refinances one loan with new terms. When you consolidate, you extend your repayment period and lower your monthly payments. You might consider consolidation if you are so deeply in debt you cannot keep up with your monthly payments. You should not consolidate if you can find any way to abide by the current terms. Consolidation is expensive over the long term. Mary Hunt is the founder of www.DebtProofLiving.com and author of 18 books, including her latest, "Can I Pay My Credit Card Bill With a Credit Card?" You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com. COPYRIGHT 2009 CREATORS SYNDICATE INC.
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