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Tag: debt

First-come, first-served: Trump will let some student loan borrowers erase their debt

First-come, first-served: Trump will let some student loan borrowers erase their debt

Finance
As part of the new $ 1.3 trillion federal spending bill, Congress authorized a $ 350 million "fix" to fund a popular student loan forgiveness plan that many financial experts say is failing.If you thought or were told you didn't qualify for the Public Service Loan Forgiveness program because you were not enrolled in a qualifying repayment plan — typically an income-driven plan — the Department of Education might still let you erase your loans. Congress has allocated the DOE $ 350 million to offer forgiveness to student loan borrowers who meet all requirements for PSLF except that they were enrolled in graduated or extended repayment plans, which are ineligible for relief. To qualify, you'll still need to have a loan from the Direct program, have had made all of your payments in full and on
He can afford to pay off his student debt faster. But should he?

He can afford to pay off his student debt faster. But should he?

Finance
How to talk to your kid about paying for collegeI have a student loan with a balance of $ 95,000 that has an interest rate of 2.4% over 20 years. I save at least 18% of each paycheck for retirement and only pay the minimum on my student loan balance. If I have money left over at the end of a pay period should I invest it or pay more on my student loan? -- Joe At the core of Joe's question is a challenge a lot of us face: Where should my next dollar go? There are almost always competing priorities and it can be tricky to know which is the better bet. Joe is in a pretty solid financial position despite being in debt. The interest rate on his student loan is pretty low and he got a great jump on saving for retirement while making minimum payments on his debt. If he has money left over after...
Your 3-Point Guide to Paying Off Debt

Your 3-Point Guide to Paying Off Debt

Finance
If there's one thing Americans are unquestionably familiar with, it's debt. Consumer credit card debt is now at an all-time high , with the average household on the hook for about $ 16,000. Yikes.Of course, the problem with credit card debt is that it can be extremely difficult to shake, especially when you have high interest rates working against you. But there's some good news: If you employ the right tactics, you can eliminate that pesky debt and stop throwing money away on interest. Just take it from a bunch of folks who managed to do just that.IMAGE SOURCE: GETTY IMAGES.How to pay off debtIf you're convinced you'll never break free from your nagging debt, consider this: Last year, 64% of Americans who set a goal to pay down debt wound up succeeding. That's ...
Credit card debt is costing you nearly $1,000 per year

Credit card debt is costing you nearly $1,000 per year

Finance
Three simple ways to pay off credit card debtThere's plenty to crow about in the economic picture right now: the stock market is charging ahead and the economy is expanding. But the bad news is that credit card debt is on the rise. Nearly half of Americans carry credit card debt, with an average balance of $ 15,654, according to an analysis by NerdWallet, based on data from the Federal Reserve Bank of New York and the U.S. Census Bureau. Credit card debt continues to be one of the costliest kinds of debt for us. Households pay an average of $ 904 a year in interest alone, assuming an average annual percentage rate of 14.87%. And the price is bound to go up. If the Federal Reserve makes its anticipated rate increase, that average cost of credit will go up to $ 919 a year. "Finding a way ...
How to get in the holiday spirit without going into debt

How to get in the holiday spirit without going into debt

Finance
For many people, getting into the holiday spirit means stringing twinkly lights everywhere, hosting parties plentiful with food and drinks, piling stacks of gifts for loved ones — and overspending.If you head into the season of giving without a budget, there's a good chance you'll come out on the other side with a holiday hangover in the form of debt.NerdWallet's Consumer Holiday Shopping Report shows that 27 percent of consumers who shopped during the 2016 season had no budget, and another 24 percent went over budget.The survey also showed that 56 percent of shoppers last year incurred credit-card debt, up from 48 percent in 2015."A lot of people are still paying off holiday debt from last year," said Kimberly Palmer, a personal finance expert with NerdWallet. "You don't want to be in tha