Smart Ways for College Grads to Minimize Debt

(This is a guest article by Omar Adams*)

If there’s one thing that most college students are graduating with these days, it’s a mountain of debt. And even though they know this situation is bound to arise when they take out a student loan to cover their tuition costs, they don’t realize that it is compounded several times because of the way they use their credit cards and rack up other unnecessary expenses. It’s not that hard to graduate debt-free or at least with a relatively low amount of debt; the only hitch is that collegians have to plan and execute even before they start their four years on campus. If you’re a high school student hoping to minimize your debt when you graduate from college even as you enjoy most of what college has to offer, here are a few tips that are sure to help:

1. Choose your college with care. Remember, a prestigious name is not going to help you when you’re faced with a mountain of debt on graduation. So unless you want to spend the better part of your adult life slogging away to pay your student loans, think carefully before you make the choice. While you don’t have to go to the other extreme and choose a community college, opt for a university that’s close to home or where you have friends you can stay with. This way, you cut back on accommodation costs. If that’s not possible, choose a degree at a college that’s reasonably affordable and which doesn’t demand that you pay through your nose.


2. Work while you study. College is not all about fun and games, parties and sororities. You need to adopt a more serious attitude if you want to graduate without a care in the world. When you assume responsibility for your debt right from your first year by getting a job that allows you to pay for your extraneous expenses and also settle some of your student debt, you not only prevent your debt from accumulating, you also reduce the interest on the amount that’s outstanding.


3. Use credit cards judiciously. I’m sure every college student has been given this piece of advice; even so, it falls by the wayside more often than not. While I’m not saying you must avoid credit cards altogether, it’s best to use them wisely – charge all your expenses to them if needed, but ensure that you have enough money to cover the entire payment every month on or before the due date. The best way to avoid racking up huge credit card debts is to get a secured card, one where you’ve paid a sum in advance and which is your spending limit. Also, if you have a savings account, tie it up to your credit card and set up an automatic debit facility the day your bill is due. This way, you don’t have to worry about going overboard or racking up a huge interest because you’ve forgotten to pay your bill, and even if you don’t have money to take care of your bill, the amount you paid upfront is enough to take care of it.

*About the author: This guest post is contributed by Omar Adams, he writes on the topic of online accounting degree programs. He welcomes your comments at his email id: omaradams47@gmail.com.

*Image Credit: Photograph by upsuportsmouth [via Flickr Creative Commons]

What Every First Time Car Buyer Must Know

(This is a guest article by William Eve*)

There is lots of info for first car buyers. You might think that the most important things to know before you buy a car are which ones have the best gas mileage or were voted the best in safety standards but that is only a small part of buying a car. More important then the actual vehicle is figuring out how you will pay for it. You might not have thought of it, but if this is your first new car purchase it is quite likely the largest purchase you have made to date. It might also be the first time that you put your credit file to test in hopes of getting a low interest rate and reasonable terms for your car loan.

As this is often a significant purchase in your life it is important to understand how buying a car works and what you can do to get the best deals. The first step is to get a copy of your credit file. All you need to do is contact one of the credit reporting agencies and request a copy of your file. Hopefully you will find that your file is free of blemishes and your score is good. If you have that you will be able to secure a good rate before you go car shopping. This is an important step because you can go into a car dealership pre-financed, knowing what you are able to afford and what rate your credit score entitles you. Usually you can gain this kind of approval online or by visiting your local bank.

Important Info For First Car Buyers

Settle on a price - The first step in purchasing a vehicle is to find the one you want and then settle on a price for it. Most people do not pay sticker price for a car because you can haggle with car salespeople and usually get a much lower price then the one listed on the window. Take into account when you figure out a price that you will pay a bit more because of interest and other fees, this is info for first car buyers that is often forgotten.

Negotiate on financing - Most car dealerships are able to offer financing through an affiliated bank. When you are first taken back to meet with the sales manager he will try to get you to settle for a higher interest rate then you are probably eligible. This is in the car dealerships best interest, but not in your best interest. Keep pushing to get a lower rate until he meets or is less then your pre-approval rate. Even if the car dealership offers the same rate be sure to check on the terms of the loan to make sure getting it through the dealership is the most cost effective.

Look for other ways to negotiate - Many first time car buyers do not realise that the sales price and the interest rates are not the only chances to negotiate. The sales manager will also try to get you to buy things like an extended warranty. Typically the prices for these things are also not set in stone meaning that you can also negotiate them for a lower rate. Do not be afraid to haggle with the car salesman or the sales manager, they expect it and know exactly how little they can charge for any of their products or services. Odds are the numbers are lower then you think.

By taking note of this info for first car buyers you can ensure that you get a great deal. The first step is to arm yourself with your credit rating and find out on your own what kind of interest rates you can get. Do not let the car dealership dictate your interest rates, if you do you will likely wind up spending more then you should to finance your vehicle. As always, work hard to maintain a good credit file so that the best rates and terms are available to you. If you find that your credit file contains negative marks you might even want to work on improving it before you purchase a card. Although it will put off your purchase, improving your credit score before you get a loan can save you loads of cash.

*About the author: This article was written by William Eve who is a regular personal finance writer for Home Loan Finder, a 100% free mortgage comparison and application service. Whether a first home buyer or investor, visit the Home Loan Finder website for more quality information and guides on competitive mortgage products.

*Image Credit: Photograph by cseeman [via Flickr Creative Commons]