Do you remember the song by Beatles?

“….I’ll buy you a diamond ring my friend if it makes you feel alright,
I’ll get you anything my friend if it makes you feel alright
‘Cause I don’t care too much for money, money can’t buy me love”.

Are you in love but torn by money? You must be having tip offs with your better half? Love often seems to be attacked by the terrible money syndrome. Money is a sweet sensation and can buy anything material. But can it buy love for you? Know those vital tell-tale signs and let love reign in your hearts.

• Vital sign 1: For couples, money and sex are the only reasons for stress and estrangement. For those who have tied the knot, one person is in charge of the finances and the other one has no knowledge of the money being spent. At the end of the month, when it is time for a review, couples end up accusing each other for overspending. So as a first step, start sharing everything including money matters. Stop escaping from your responsibilities and instead of blaming each other, sort out ways to pull back the reigns of your household expenses. This will reduce arguments.
• Vital sign 2: The most common rift that takes place is due to different spending habits of two people in love. This is natural. Two individuals hail from different backgrounds and may have different spending habits. Only love is the common factor that binds them. It can be so that while you are enjoying a weekend golf, your partner is busy making efforts to consolidate debts to pay off arrears that you both have incurred. So in that case, the one who is enjoying golf must rush to support the other one in paying off debts. You need to sit together and sort out your priorities when it comes to expenditure. Talk it out. Help your partner to clear debts rather than piling them up.
• Vital sign 3: Most couples suffer from the very common “why” syndrome. For every little thing that they do or want to do, they ask each other “why”. It may be so that the lady might want to have a nice haircut at a posh salon but the man might ask “why”. At the same time the man might want to have a drink with his colleagues and the lady might ask “why”. From this stems up another tassel. So why keep a space for this irritating “why”? When you both are planning a household budget to regulate your expenses, make sure you keep aside some amount for both of you separately. If you want you can spend independently without having to give any explanation for your desires. It is important for you to understand that people may have different demands. Respect and love each other just the way you are. Ruth Hayden, author of “For Richer, Not Poorer: The Money Book for Couples,” thinks that the right choice is to avoid conflict by keeping some accounts separate. His idea echoes, “You should have some autonomy money, I should have some autonomy money, and we need to learn how to practice being a couple together with our money.”
• Vital sign 4: The most challenging situation for a married couple comes when they have to deal with a monetary crisis. No matter how much you try to control your spending, life is unpredictable. There can be a rush hour when you might have to pay for high medical or maternity charges, car repair, mortgage and many other unanticipated situations. But why so? How can money take over your love? Start maintaining an emergency fund. So both of you can decide how much you can contribute. Make sure this amount is directly proportionate to your respective income.
• Vital sign 5: Are you throwing tantrums at each other regarding a big purchase? If you are thinking about buying something big such as a house or a car, first check the agreement level. It can be that you want your partner to contribute whereas he/she cannot. So why not give some time? Postpone the idea and let the other person settle down with finances.
• Vital sign 6: If you are in love, you must be honest with each other. Lack of integrity is another vital sign that leads to a financial crisis followed by a charged up emotional battlefield. Credit cards are one of the most used financial accessories. Whenever you go for shopping, you usually swipe cards. But are you swiping your partner’s card without his/her knowledge? Stop doing this. Even if you are spending, let your partner know about this. It happens that you keep on swiping cards and at the end of the month when your partner discovers this, it is kind of shocking. This instantly makes way for a big challenge. If you feel you cannot control your temptations, start communicating. Don’t let your partner get disillusioned. It is important to be transparent. Divulge all that you are doing so that nothing is hidden between you two.
• Vital sign 7: Couples suffer from another complex-“I am right”. Usually the one who earns more tries to gain an upper hand. So any kind of advice from the one who earns less gets unheard. If you want to be happy, be a good listener. It is very important that you start respecting each other’s views. Since you earn more, it is not necessary that you are making the right decision. Your partner may have a strong say since you both are connected by love. Discuss problems and sort out solutions that would ensure your conjugal well being.

Well known therapist and author of “Overcoming Overspending: A Winning Plan for Spenders and Their Partners’, Olivia Mellan says, “people with different spending attitudes tend to “polarize” when they become a couple”. So the basic idea is to give a conscious effort towards a mutual consonance. If you think digging your head in the sand will drive away your problems, you are not thinking it right. Take the initiative to ward off these issues. Now you know a few vital signs. What next? Act on it. Knowledge is power but actions always speak louder than words as the adage goes. Realize the priority of love over money and don’t let money ruin your happiness.

By the way, I am sure that you can add more vital signs to the list. Why don’t you add it in the list or ask your friend to do so! And don’t forget to keep this blog post open in your partner’s laptop.

Many of us have made money mistakes. Additionally, some of us have had financial disasters to contend with. In any case, once the debts start to pile up, and payments are missed, the damage to your credit can be substantial. If you have tried to get a credit loan recently, and you have poor credit, you probably know that your credit report can result in being turned down for a loan. Even if you aren’t denied, you will have to pay a higher interest rate in order to offset the risk you represent to the lender. Even applying for insurance with poor credit can mean higher premiums.

If you want to be considered for the best terms when it comes to loans, and if you want the best insurance rates, you need to consider repairing your credit. If you are serious about rebuilding your financial reputation, here are some steps you can take to make improved credit a reality:

1. Modify Your Habits

If you have made money mistakes, you need to acknowledge them, and then work to change your financial habits. If your poor credit is the result of an unforeseen disaster, you need to change your money habits so that you are building up a good emergency fund to serve as a safety net. You might also need to change your mindset to help you get out of your current funk. Begin practicing the basics of personal finance: spending less than you earn; setting aside money for emergencies and for the future; and paying down debt.

2. Start Small

Your next move is to try to obtain some small amount of credit. In some cases, you might be able to get approval for a credit card with a small credit limit of $250 or $500. In other cases, you might have no choice but to get a secured credit card. You have to be careful to ensure that your secured credit card is a true credit card, and that the issuer reports your regular payments to the credit bureaus. Be wary of fees, high interest rates and other costs. You should try to establish your credit so that you can move on from secured cards as soon as possible.

3. Show Responsibility

In order to rebuild your credit, you need to show that you can handle your obligations. If you get a credit card, use it once or twice a month to make small purchases. Then, pay off the balance. Make all of your payments, from utilities to rent on time and in full. If you can make regular payments, on time, this is the single most important factor in whether or not you have good credit.

Paying down debt is also an important part of showing your high level of fiscal responsibility. If you still have debt, figure out a payment plan to reduce what you owe, and get back on track with your finances. As you pay down debt, and make on time payments, your credit will improve.

These days, whether it’s fair or not, your ability to handle credit is considered one of the most important characteristics to have. If your credit is poor, you need to do everything in your power to improve it.

For many college students, money is tight. They might dig through the couch cushions to find entertainment money or return their pop bottles and cans for a deposit refund to pay for books. Other desperate students find side gigs as babysitters, or on campus as work study students.

If you are a college student living on a tight income (or you know someone who is), the best way to make money and still have enough time to go to school is to do a variety of side jobs.

However, recently a few companies have offered college students financial incentive to get good grades. How sweet is that? College students can earn money doing what they are supposed to do–study and do well in school.

Interested? Here are some companies that are offering this program:

GradeFund

GradeFund doesn’t exactly give a college student money for getting good grades, but they offer an incentive. The student sets a goal for the grades she would like to achieve in a particular course or semester, and then the student must find sponsors to pay her if she achieves her goals. Sponsors can be family members (hello parents!), friends, or even corporate sponsors.

Why would a corporation want to sponsor a student and encourage her to get good grades? It is not entirely altruistic. The corporation often uses a site like GradeFund to encourage students to take a particular path in their education. They may even hire some of the students they sponsor when they graduate, according to Mashable.

Ultrinsic

Ultrinsic can also monetarily reward college students with good grades, but their approach is different than GradeFund. Rather than sponsors, Ultrinsic asks students to register, and then, based on several factors, Ultrinsic offers the student a wager of the possibility of the student getting a certain grade in a certain course.

While some may frown on this as gambling, others say it just provides an incentive for students to achieve good grades.

College

Yes, that is right, some colleges pay their students for good grades. A few community colleges in Louisiana experimented with paying their students for good grades. The students in the study had to go to school at least half-time and maintain a C or better GPA. In return, they could earn up to $1,000 over two terms.

While this was a pilot program, several other colleges have explored this option, so if a student attends a college that pays, they could get a very sweet reward in addition to good grades.

You may think the days of getting paid to earn good grades ended when mom and dad stopped paying you a few bucks for every A or B you earned. However, now you can find other businesses and colleges willing to pay you for good grades. Sure, these programs won’t give you spending money for the whole semester, but they do offer another way to make some extra bucks, which may mean less you have to take out on student loans.

Once you’re out of college, all you want to do is step into the professional world and put all that you’ve learned during your academic years to good use. Good news is: that enthusiasm and motivation is going to help you a lot. But the bad news is: Things really aren’t that easy.

Give it a thought: you may have decided what you want to do, and may have planned everything around the career of your dreams, but the odds cannot always be in your favor. Given the current state of the job market, many young grads are struggling to choose a career or, if they have chosen one, the line of work they want to go into doesn’t choose them. The job market works in mysterious ways, but if you really use some handy tips to beat the odds, you can improve your chances of getting a job:

But first, decide:

First things first: if you are still unsure about what to choose as a career path, in which industry should you work, whether to find a job or to start your own small business… then figure that out, first. You need to know where you want to go before you start a journey. You need a clear direction before you start doing anything. Ask yourself the following questions:

• Based upon your studies, what kind of work would you really enjoy doing?
• Have you ever taken part in projects that were successfully executed by you? What were your responsibilities in that project?
• Do you think you can do something you want to do, even if it doesn’t pay you much, or pay you at all?
• What is it that you would never want to do?

Based upon these answers, start listing down the career choices you think meet the criteria you have set for yourself. Now you have a map for where to start looking.

Don’t be Careless with the Resume:

If you have decided that you want to find a particular job then you need to prepare your resume, portfolio, or cover letter according to that. Most fresh graduates, who are stepping into the professional world for the first time, don’t invest a good amount of time and thought in preparing their resume. This is one of the most important documents and it has to be perfect, and updated with all that you’ve studied, learned, skills you possess, volunteer work you’ve done, and with anything else that can add more value to your work credibility. Don’t think your resume will ever be complete, because you will always keep on updating it.

Be Active On Social Media:

Yes, the four (or more) years in college were really stressful, and all you want to do now is explore the world, relax, and just be happy about finally getting a degree. But once the liberation fades off, you’ll realize you desperately need a job no matter what it is, because there is so much money to pay and you don’t have that. In no time you’ll have to start repaying your student loans because the interest will start adding up. So whatever it is that you’ve planned as a career has to start now.

Fortunately, social media is a great tool to put the good word about you out there. You can socialize with professionals and talk to them about your career plans- they may suggest jobs or give you advice on how to initiate your ideas. LinkedIn is the network that is commonly used by jobseekers and recruiters, so brand yourself properly there with a profile that stands out and a presence that shows your skills.

Offline Presence:

While your online presence will be extremely helpful in launching your career, you also need to have an active offline presence. Look for relevant group meet-ups, find ways to volunteer, and stay connected with your professors, your friends who are already working, and your alumni. If at first you’re offered internships or unpaid volunteer projects, take them if you can, because they can work as your first step to getting a job. You can work as an intern or a volunteer now and get to learn how the industry works, first.

Prepare for an interview:

If you get a call for an interview from the job you’ve applied for, don’t just go there blank! Learn about the company, the work they do, and how you can put your efforts to good use in making the company grow. In short, know yourself and the company before you go for an interview and at the end of the interview, don’t be afraid to ask questions from the interviewer.

Despite the urgency to find a job right after college, it’s important that you don’t apply to everything that says “hiring!” Only apply for the jobs you’re really interested in, because these will help your job search gain momentum. And building your resume around jobs that you really want will help to shape that document as you go.

Positively Patient:

If you really want to be in the career of your choice, then patience is the key. It may take a little longer than you expected, but putting in all your efforts in the right manner will eventually lead you to where you want to be. Stay positive about this process because sooner or later, you will find the job you want.

Being a fresh graduate, you might experience difficulties in finding the right job or launching your own business because of lack of experience, but you have to start at the bottom to reach the top.

	About the Author: Mathew Jade is a passionate finance, heavy machinery and lifestyle blogger who loves to write about prevailing trends.

You probably share your home, bed, and maybe even your toothbrush from time to time with your spouse. But what about your credit cards?

If you haven’t quite taken your financial relationship to this level yet, but feel like you’re finally ready to take the leap, follow these tips to make sure you do it right and avoid the most common mistakes.

Add Your Spouse as an Authorized User

The easiest way to share your credit card with a new spouse is to call your credit card issuer and simply add your significant other as an authorized user. Your spouse will then receive a new credit card in his or her name, although you will both share access to the same account and the same credit limit.

Before making the call to your credit issuer, it’s always wise to sit down and have a conversation with your spouse about what types of monthly expenses will be charged to the card and how much of the available credit limit you plan to use each month. In order to maximize each of your FICO credit scores, you’ll want to ideally keep your credit utilization ratio under 10 percent, so take the time to talk through the numbers before you both begin using the card.

Don’t be afraid to communicate openly about spending habits and the importance of sticking to your outlined budget. Trusting each other’s spending habits is vital to the process, and if the trust just isn’t there yet then maybe you still need more time before taking the next step.

Set Up Mobile Access and Text Alerts

The biggest red flag to watch out for is an unexpected charge that doesn’t fall in line with the budget you previously discussed. However, the great thing about credit cards is it’s so convenient to track all spending on your account.

Make sure you set up mobile access from your phones so you can check charges 24/7, and you may even be able to set up text alerts for any charges above a certain amount. If so, do it. This will allow you both to stay on top of your spending and immediately discuss anything that doesn’t seem to fall in line with your agreed upon budget.

Review Accounts Together on a Monthly Basis

Credit cards also make it extremely easy to review your spending on a monthly basis. So set aside 15 minutes each month to log on to your online account together, review charges, compare to your budget, and talk through how you did.

Did you stick to your plan and stay within your budget? Awesome. Go out and celebrate by doing something inexpensive that you both love.

Did you miss the mark for this month? Don’t be argumentative or point fingers at who made what mistake. Instead, make a new plan of action together and do a better job of tracking all charges during the following month. Understand that it can take some time to sync spending habits in a marriage, so don’t expect your spouse to change overnight.

Communication is Key

The biggest mistake couples make is failing to have a detailed discussion up front regarding monthly expenses and what types of things will be charged to the credit card. It seems simple enough, but many married couples just ignore this step, which often results in some fairly unpleasant conversations down the road.

So do yourselves a favor and talk through your budget, set expectations, and track your monthly expenditures together. If you do so, sharing a credit card can be an excellent way to not only improve both of your credit scores but also enjoy earning some great credit card rewards along the way.

I don’t own a TV and I don’t pay for cable television. I don’t subscribe to Netflix because I don’t watch enough to justify the $7.99/month cost. I used to subscribe to Amazon Prime but $99/year is more than the service is worth to me. Hulu doesn’t have the content I want (I mostly watch films rather than television). The service that has the greatest number of interesting titles is Netflix’s disc-by-mail service, which would be great, if not for the fact that it costs the same $7.99/month as the streaming service (or $4.99/month for max two discs per month). I watch perhaps one or two movies in a month, want to spend about $20/year for that purpose, and I certainly can’t be bothered to walk to a physical Redbox.

So, how can one spend only $20 per year on movies and television? Well for starters, with free trials, of course!

New customers can get free trials of:

• HBO GO
• Starz.com
• Showtime
• Netflix
• DVD.com
• Hulu
• Amazon Prime Video (30 days for new Prime members, or six months with an Amazon Student trial)
• Sling TV
• CBS All Access (Featuring complete past seasons of shows, including the entire Star Trek library, unlike the NBC and FOX streaming services which are free but usually feature only recent episodes)

There is some content-overlap between services, so you could cancel your existing subscriptions, and still watch some of the same things while trying out these other options. [Editor’s note: I highly recommend checking CanIStream.it to see which streaming services your favorite shows are on!]

And it’s surprising how often free trials come around for previous (and not just first-time) customers (although I had been a Netflix subscriber on-and-off between 2006 and 2012, which perhaps explains why they give me free things so often.) Within the last three years, I have received free trials of these services without being a new customer:

• Hulu, August 2016
• DVD.com (Netflix disc service), May 2016
• Hulu, April 2016
• Netflix (Streaming), October 2015
• DVD.com, September of 2015
• DVD.com, December of 2014
• Hulu, November of 2013

Another thing to watch for is completely free content, like:

• Sony’s Crackle.com (very limited library, but you don’t even need an account!)
• Amazon Video has some free content, usually pilot episodes (e.g., for Orphan Black and Gilmore Girls)
• Nickelodeon (I watched most of Legend of Korra for free on nick.com)
• [Editor’s note: A previous guest post here on PoorerThanYou listed 20+ more places you can watch movies, tv, and documentaries for free!]

But let’s say you’ve run through that list and you’re out of things to watch for free. As someone who doesn’t watch a whole lot, the service I really want is one where I can pay per movie, and not for a monthly or yearly plan. Like I said, I watch one or two movies in a month and don’t want to spend more than $20/year. Paying $3 per film on Amazon Video or YouTube seems a bit much, so what I really want is a service where I can pay just one dollar to watch a movie.

Enter VidAngel

Utah has a history of birthing innovative content solutions, presumably because they have a disproportionately high share of the “family values” market that wants “clean” versions of popular movies and television. Utah-based companies CleanFlicks, Play It Clean Video, ClearPlay, CleanFilms, and VidAngel were all created to sell edited versions of popular releases with sex, swearing, etc. removed. Some of these have been shut down after lawsuits from major motion picture corporations, others have played a pivotal role in the passing of new legislation regarding content distribution, and some legal battles are still ongoing. But putting aside both copyright lawsuits (a subject which I find fascinating) and content filtering (a subject I find delightful and endearing), I want to focus on the payment plan of VidAngel.

The way VidAngel works is that you pay $20 to buy (not rent!) a movie … but then you can sell it back to them for $19. (The oddities of copyright law are at the root of this strange distribution model.) Your next movie also costs $20, but since you have $19 in credit you only pay one dollar out-of-pocket. So basically what this means is that you pay $19 as an initial one-time membership cost, but then every subsequent movie you watch is only one dollar.

One dollar to stream a movie!? Perfect! Doing the math, two movies a month plus the upfront cost is $43/year–already cheaper than even the cheapest plans on Netflix and the like–and after two years the cost of two movies per month averages out to $33.50/year, to about $30/year at three years, and to under $30/year after four years. And even if you watch three times as many movies than I do, VidAngel is cheaper than Netflix even watching six movies each month! (By $4.88 after one year, or $14.38/year over a two year period, etc.)

So having run these numbers I said to them, “Your ideas are intriguing to me and I wish to subscribe to your newsletter.” With my digital dollar metaphorically in hand, I started browsing the catalogue. The selection of television is minimal, but the movie selection is actually quite good (better than Amazon Prime or Hulu, and even includes noteworthy titles not on Netflix).

I figured I should try out their content filtering while I’m at it, since that’s their main jam. What to watch? Game of Thrones without violence? Wolf of Wall Street without profanity? Star Wars: Episode One without the 208 shots containing Jar-Jar Binks? (All real filter options, by the way.)

In the end I decided to finally watch Mulholland Drive, with 7 out of 138 available content filters removing sex and nudity. The content control is ridiculously fine-tuned. You can just click “nudity” to take it all off (har-har), or you can enter the drop-down menus to distinguish between full nudity vs. nudity obscured by a shower door, human nudity vs. nudity depicted in statues, etc.. (And by way of apology to David Lynch fans offended by the notion of editing his directorial vision: Think of this experiment as a meta-critical reflection on Lynch’s thesis, “No hay banda.”)

The streaming quality was comparable with other services. I was annoyed that a VidAngel commercial (about how to sell back the movie) began playing before the end of the credits, but after griping about that in a feedback survey a VidAngel customer service representative sent me an email just a few minutes later explaining that this video only plays after the first movie you watch on your account. I was not expecting any response to a generic feedback survey: color me impressed!

Now, having sold back the movie for $19 in credit, I can pay just one more dollar to watch any movie in their library, which I can then sell back for $19 to repeat the process ad infinitum. They also provided me a referral link by which I can earn free movies, so if you’re interested in either screening a family-safe version of your favorite film or just having a cheap pay-per-movie streaming service, check them out at this link:

https://www.vidangel.com?vip=umx07jm9

Happy streaming!

Photo Credit: Steinar La Engeland

Let’s get the headline out of the way.

The good news: Becoming wealthy is simple.

The bad news: Becoming wealthy is not easy.

There, that clears things up, right?

Becoming Wealthy is Simple

The dictionary defines “simple” as “easy to understand, deal with, use” and “not complicated.”

Many Americans believe that there is some great secret to becoming wealthy. They think it requires a combination of luck, vast knowledge, and a trick or two that only a few can pull off. However, the truth is that the simple “basics” are all you need to build wealth. This is why becoming wealthy is simple.

The fact that you can become wealthy by following a few, simple principles is the basis of both my personal financial independence as well as the topic of my site. Simply work on earning, saving, and investing over time and anyone can become wealthy.

As simple as it gets. At least to understand.

Becoming Wealthy is Not Easy

That said, the reason so many people fail is that simple does not mean easy.

The dictionary defines “easy” as “not hard or difficult; requiring no great labor or effort” and “free from pain, discomfort, worry, or care.” Unfortunately, this does not describe wealth-building. Implementing even the simple tasks takes a few, vital characteristics that most Americans find difficult to put into action. Many would even call those actions painful.

And even those who can commit to doing what’s necessary and enduring the pain often can’t maintain both over the long term. Thus their net worths are doomed to languish.

Key Characteristics

Building wealth isn’t easy because it requires discipline, patience, and persistence. Most Americans aren’t known for these qualities when it comes to managing their money.

Discipline requires that a person shows a measure of self-control as he spends. He prioritizes his spending and purchases only those things that fall within his budget. Discipline is also required when paying down debt and saving money. Instead of using resources for only fun and entertainment, he needs to exercise self-denial and discipline to get rid of debt and build savings. Very few people are willing to make the sacrifices to live like no one else in order to grow their wealth.

Even earning money requires discipline. Growing your income means that sometimes you have to get up early and stay up late. Occasionally, you have to complete tasks you find unpleasant. Even knowledge and skills are acquired only after you exercise the discipline to study and practice.

Dr. Thomas Stanley notes that most of the millionaires he’s studied have become wealthy through discipline. He notes that “Nearly all [95%] of the top 1% of wealth holders in America reported that ‘being well disciplined was very important/important’ in explaining their socioeconomic success.”

Patience is a rare trait in today’s world. We are bombarded with messages of instant gratification and entitlement. You deserve that expensive car now. You can put your vacation on a credit card – no need to wait until you save up the money. A 60-inch television can come home with you immediately if you qualify for in-store financing. The inability to wait to save the money for the things we want leads to debt and financial insecurity.

Another difficulty is that few have the patience to wait for results. Your business ventures won’t yield results overnight. A good emergency fund takes months, or even years, to build. Dollar-cost averaging in your investment portfolio requires the patience of decades.

Persistence consists mainly of the ability to keep up your wealth-building efforts. It’s easy to give up when you don’t see instant results, or when you see your neighbors enjoying their over-leveraged lifestyles. However, in the long run, those neighbors are likely to have very little wealth, since most of the toys they enjoy now have been bought with debt. It’s hard to see that when everyone around you is having fun while you follow a more practical course.

Bottom Line

Even though the concepts behind building wealth are simple to understand, it takes hard work to put them into practice.

But if you follow the simple steps to building wealth with discipline, patience, and persistence, you will eventually achieve financial freedom.

Photo credit: JD Hancock cc

Save

Save

Editor’s Note: We’ve got a guest post on the blog today! This one is for those of you who will be graduating soon – are you ready to tackle your student loans after graduation? Liz from Less Debt More Wine has the scoop on how to create a plan during your grace period. Take it away, Liz…

The period after you finish school can be both very exciting and very overwhelming. It seems student loan servicers know this and they give you a break by not making you start paying back your loans right away. Which means it’s the perfect time to get organized and decide on how you will attack your student loans and any other debt you have.

First, you’ll need to know how long your grace period will last. Second, you’ll need to evaluate the state of your debt. Third, decide on a debt payoff method that will work best for you. Lastly, you can start practicing making those payments and start saving some money.

What is a Grace Period?

A grace period is a set amount of time (typically six months) after finishing or leaving school, where you are not required to make loan payments. If you end up going back to school then the grace period resets. You will once again have six months after leaving school before you have to make a payment towards your loans.

Editor’s Note: Always check the terms of your specific loans. I had one where the grace period restarted when I went back to school, and another where it did not. This meant that after I graduated after going back to school (following a leave of absence), I had to start making payments on that one loan immediately!

So that you don’t end up overwhelmed when your repayment term starts, it’s a great idea to use your grace period to prepare and practice making payments.

Evaluate Your Debt and Your Options

First, you need to evaluate the type of debt (typically student loans) that you have. Different debt presents different repayment options.

Private Student Loans

Private student loans typically offer fewer repayment options, but there are some benefits as well. Unlike federal student loans that offer income-driven repayment plans, private student loans usually have a set repayment term.

The good news it, it is easy to figure out your monthly payment and what a difference paying just a little bit extra each month can make. Private loans also mean you can refinance without worrying about losing flexible repayment terms.

Refinancing is typically done to lower your interest rate and save you money. If you have several private student loans, you might also consider consolidating your loans. Consolidating would take your multiple loans and combine them into one big loan. Meaning you only have to worry about paying that one loan servicer instead of several loan servicers.

Since private loans typically do not offer any flexible repayment plans like income-driven repayment, it’s worth it to see if you can save money through refinancing or consolidation.

Related: Reader Question: Should I Refinance My Student Loans?

Federal Student Loans

If you have federal loans, then you have several more repayment options available to you. Besides standard repayment, you have income-driven repayment, extended repayment, and graduated repayment as well.

You also have the ability to consolidate your federal loans at the average interest rate of your loans with a federal consolidation loan. If you consolidate with a federal consolidation loan, then you still have access to those flexible repayment plans.

The downside of federal loans is that you cannot refinance federal loans without giving up things like income-driven repayment plans. If you refinance, you have to do so with a private loan. If you have a significant amount of debt and a lower salary (for now), you may need to take advantage of the income-driven repayment plans, which calculate your monthly payments based on what you earn.

Student Loan Forgiveness

You might be thinking that an income-driven repayment plan is the way to go, not only because it’s what you can afford right now, but because leftover loans get forgiven at the end of the repayment term. The only instance where the loans are truly forgiven is if you make payment under the public service loan forgiveness plan.

If you make payments under Income Based Repayment, Income Contingent Repayment, PAYE, or REPAYE then at the end of the 20 or 25 years, the amount “forgiven” is considered taxable income. That means that if your monthly payment doesn’t even cover the interest that accumulates each month, your loans will grow. If your loans grow for 20-25 years, you’re going to end up with a very large tax bill.

So, while taking advantage of income-driven repayment plans may be your best option for now, make sure to consider the long-term consequences. Since there is more flexibility and protection regarding federal student loans, you might consider making minimum payments through income-driven repayment plans for now so that you can work to pay off any private loans first.

Miscellaneous Debt

If you have other debt, such as a car loan or credit card debt, you won’t have a grace period to pay it off. However, you can take advantage of your student loan grace period, when you aren’t making payments on your student loans to pay extra towards your other debt.

Decide on a Repayment Strategy

Once you’ve gathered all the information on the types of loans you have and the repayment options available to you for each loan, you can start to plan your attack. First, you will need to prioritize your loans.

You will, of course, make the minimum payments on all of your loans, but you will prioritize your loans based on the order you want to pay them off. Focus on one loan at a time, so that you aren’t spreading yourself too thin and can actually make progress on your debt.

How you decide to prioritize your loans may depend on what debt repayment strategy you decide to use. There are two main debt repayment strategies known as the Snowball and Avalanche methods. Then you can use the snowflake method in addition to the snowball or avalanche method to help speed up debt repayment.

Snowball

The snowball method has you order your debts from smallest to largest. You make minimum payments to all of your loans and put all extra money towards your smallest loan until you’ve paid it off.  You then apply all extra money to the next smallest loan and continue to do so until all the loans are paid off. As you pay off your loans, your extra payment will snowball and make paying off each of the larger loans go by faster. The reason most people like this payment method is because of the quick emotional payoff of getting rid of that first loan.

Avalanche

The avalanche method has you order your loans by interest rate with the highest interest rate first. Similar to the snowball method you make minimum payments on all your loans and put all extra money towards the loan with the highest interest rate. You keep going until the loans are paid off. Since you are making payments by interest rate, this method will save you the most money over the life of your debt repayment.

Snowflake

The snowflake method can be used to help with the snowball and avalanche method. Any time you find some extra money, be it a quarter on the street or a $5 rebate, you put it towards your debt right away.  If you don’t put it towards your debt right away, you’ll end up spending it on something else.

Related: How to Pay Off More Than One Debt

Estimate Monthly Payments and Practice Making the Payment

Once you know what order you will be paying off your student loans, you can estimate your monthly payment. You can use the Repayment Estimator to approximate your monthly payment under different repayment plans. Even if you have private loans, you can get an estimate of the standard repayment cost using the Repayment Estimator tool or sites like Student Loan Hero.

Once you know roughly how much you will have to pay each month, start pretending to make that payment. Take that amount and set it aside in a separate savings account. The benefit will be two-fold. First, you will get used to making the payments, and spend accordingly. Second, you will build up some savings as an emergency fund to help you when something comes up, or money gets tight.

Photo credit: Avi Richards

Save

Save

Editor’s Note: Graduation season is upon us! Congrats to all the freshly-minted graduates out there… a new chapter is beginning for you. But if this new chapter includes a page on paying for the last chapter, you might be feeling a bit overwhelmed right now. Not to worry! Kat Tretina from Student Loan Hero is here on the blog today to help you navigate everything you need to know before you start paying back those pesky student loans. Take it away, Kat…

After four years (or more) of college, it’s finally time; you’re going to graduate. Although it’s a huge achievement, you might not have a lot of time to celebrate. Graduation is a major milestone in your life and marks your transition into adulthood.

If you took out student loans to pay for school, your first harsh dose of reality will come in the form of your monthly payments. For many graduates, the amount due can come as a huge shock, and you might be unprepared to manage your debt.

If you don’t know where to begin with your student loans, here’s how to avoid common mistakes and get your financial life in order.

4 biggest student loan mistakes new grads make

When you first applied for financial aid, you probably didn’t give much thought to your interest rate, loan servicer, or repayment term. Over the course of your college career, you likely took out other student loans, too. Now that years have gone by, you might have even forgotten how much you owe.

Not having that information is a huge problem. Unfortunately, many graduates don’t understand their loans, leading to the following four mistakes.

1. They don’t know when their grace period ends

When you take out a student loan, your loan documents outline when you have to start making payments. Depending on the type of loans you have, you might not have to make payments until months after your graduation date. The period between when you graduate and when your first payment is due is your grace period. If you don’t know when your grace period ends, you could end up missing payments. That issue can hurt your credit and lead to late fees.

Most federal student loans have a six-month grace period. But payments for PLUS Loans begin as soon as the lender disburses them.

When it comes to private student loans, grace periods vary by lender. With some, payments are due while you’re still in school. Other private student loan lenders allow you to postpone making payments for a few months after graduation. If you’re not sure when your grace period ends, consult your loan documents or contact your lender.

2. They don’t know their student loan servicers

It’s easy to forget about your loan servicers by the time you graduate. To make it more confusing, loan servicers sometimes sell loans to other companies. If you don’t know your servicer, you won’t be able to make payments or request changes to your repayment plan.

There are two ways to find out who owns your student loans:

1. Check the National Student Loan Data System (NSLDS): If you took out federal student loans, you can find your servicer by searching the NSLDS. It’s a comprehensive database that will show you your loan servicer and balance.
2. Review your credit report: Private student loans aren’t listed on the NSLDS. Instead, you can find your loans by checking your credit report for free at AnnualCreditReport.com.

3. They don’t know how much they owe

One of the biggest mistakes you can make is not knowing how much you owe. Your current loan balance can be different from what you originally borrowed. With the exception of Direct Subsidized Loans, all private and federal student loans accrue interest while you’re in school and during your grace period. Depending on your interest rate and how long it’s been since the lender disbursed the loans, your balance could’ve grown by thousands.

To find out how much you owe now, contact your loan servicer for an updated balance.

4. They don’t know their interest rates

Many graduates don’t pay attention to interest rates, which can cause problems later on. Your loan’s interest rate affects your total balance and your monthly payment.

If you don’t know your interest rate, you can find out by contacting your loan servicer or by reviewing your original loan documents.

How to improve your finances after graduation

Once you know which loan servicer you owe money to, how much you owe, and when your payments are due, you can come up with a repayment plan that works for you. To improve your finances after graduation, complete the following steps.

1. Create a budget

Learning to live within your means is the best thing you can do for long-term financial stability. To do so, you need a budget. It doesn’t need to be fancy, and you don’t need special software. Just make a list of how much money you bring in each month. Then, list all your set expenses, such as rent, student loan payments, utilities, groceries, car insurance, gas, and your cell phone bill.

Your goal is to earn more than you spend each month by sticking to a budget. If your expenses are higher than your income, you’ll need to make sacrifices, such as by reducing how often you eat out.

2. Make sure you can afford your payments

When you create your budget, you might find that your student loan payments eat up too much of your income. If that’s the case, you need to take action right away before you fall behind on your bills.

You have two options when you can’t afford your payments:

1. Apply for an income-driven repayment (IDR) plan: If you have federal loans, you might qualify for an IDR plan. With an IDR plan, the government extends your repayment term and caps your payments at a percentage of your discretionary income. Although you’ll pay more in interest charges over time, signing up for IDR can dramatically reduce your monthly bill now and give you more breathing room in your budget. To apply, contact your loan servicer.
2. Refinance your loans: Another option to reduce your monthly payments is to consider student loan refinancing. When you refinance, you work with a private lender to take out a new loan. The new loan has a different repayment term, interest rate, and monthly payment. If you qualify for a lower rate or extend your repayment term, you could reduce your monthly bill. There are downsides to refinancing, especially if you have federal loans, but it can be a helpful tool if you’re struggling with your debt. If you decide that refinancing is right for you, compare offers from student loan refinancing lenders to ensure you get the best deal.

3. Boost your income

When you’re fresh out of school and in an entry-level job, your salary will probably be low. Without a large paycheck, it can be hard to pay down debt or set aside money for savings.

To help you accomplish your financial goals, boosting your income is essential. Luckily, you don’t have to depend on your regular job for money. There are a number of side hustles you can pick up to earn extra money in your spare time. You could consider walking dogs, delivering groceries, cleaning houses, tutoring students, or watching children.

If you use the cash you earn from these jobs to make extra payments toward your loans or to set up an emergency fund, you’ll be much more secure.

Tackling your finances

Graduating from college is an exciting milestone, but with it comes many obligations and responsibilities. Although it can be overwhelming, by taking the time to understand your loans and come up with a repayment strategy, you can take charge of your debt and get on track.

Photos: Jonathan Daniels

About the Author: Kat Tretina is a writer for Student Loan Hero. She graduated from Elizabethtown College, before earning a master’s degree from West Chester University. She specializes in writing about personal finance and is dedicated to helping people improve their financial futures and pay off debt.

Editor’s note: The idea of getting evicted has always been scary, but the problems of the pandemic have magnified the issue and made it particularly terrifying to face. When the pandemic moratorium on evictions was coming close to disappearing entirely, Mackenzie from Lifeat23k posted an extremely helpful Twitter thread on how to prepare when facing eviction. I’ve asked Mackenzie to come here and expand out those tips, which unfortunately come from her own experience. Here’s what she has to share about what to do when you’re facing eviction:

Housing insecurity happens all the time. It can happen because of job loss, low wages, medical emergencies, divorce, and well, global pandemics. Short of being a billionaire wannabe-space-cadet, becoming homeless can happen to anyone. Let me tell you it’s a terrifying feeling coming face to face with the reality that you no longer have a safe place to call home.

If you have never been unhoused or close to it, consider yourself very lucky. Due to an unstable housing situation in my mid-20’s, my boyfriend and I were nearly homeless three times. Those experiences gave me a lot of insight into how to adjust to being unhoused. It is not a skill set I like that I have. With millions facing the same decisions I faced, I want to share what I learned to make the transition into being unhoused as realistic as possible.

I do want to be transparent about my particular circumstances. My boyfriend and I were still working during this time. Yes, people with jobs can still be unhoused. Wages haven’t increased to match the cost of living which leaves many one paycheck away from being unhoused. We had access to our 1997 Toyota Sienna as shelter. We also didn’t have kids, elderly, or disabled persons to factor into our plans.

Understand Your Local Evictions Law

Before you do anything, look up your state’s tenant/landlord laws regarding evictions. Please know this is a process. Your landlord or property manager has to file with the courts to get an eviction order. Under normal circumstances, this can take weeks. With the backlog that already exists on top of what’s about to be filed, it may take longer. Each state is different so check your state’s official website for more info. You should also check the Department of Housing and Urban Development site to help find assistance programs at either the local or federal level. Most states have millions leftover in their rental assistance funds from the American Rescue Plan and it’s available for renters and landlords. Check here for the breakdown by state.

Get Your Paperwork Together

Any assistance you apply for is going to require documentation. Make sure you have birth certificates, social security cards, passports, lease agreements, any communication between you and your landlord or management company, and proof of hardship. Keep the originals in a safe place, with a safe person, or with you. If at all possible, take pictures of everything and keep those on your phone.

Stay Reachable With a Prepaid Phone

Speaking of a phone, if you cannot keep your current plan, get yourself a prepaid phone. You need a way to be contacted and to contact assistance services. These are extremely inexpensive, can be reloaded with minutes easily, and don’t require contracts or credit checks. Tracfone is one option where you can find phones and reload cards nearly anywhere.

Get a PO Box for Mail and Packages

While you still have a residential address, get a PO Box. A box with the postal service (USPS) is usually the least expensive option, however there are plenty of mail service businesses that offer them. Per the USPS website, here is what you need to get a PO Box:

You’ll need to visit the Post Office where you reserved your box and bring TWO forms of acceptable U.S. identification. One form of ID must contain a photograph, the other needs to confirm your physical address. You’ll also need to bring Form 1093.

Acceptable Photo IDs:

• Valid driver’s license or state non-driver’s identification card
• Armed forces, government, university, or recognized corporate identification card
• Passport, alien registration card, or certificate of naturalization

Acceptable Non-Photo IDs:

• Current lease, mortgage, or deed of trust
• Voter or vehicle registration card

A PO Box is a good thing to have because a lot of correspondence between government agencies is sent via snail mail. You can also use a PO Box as an address for other services. You will want to set up something called “Street Addressing”—this will give you a special version of your PO Box address to use in order to receive packages from services such as FedEx and UPS. Street Addressing is a free add-on service, you just need to ask about it at the post office counter.

Keep a List of Free Services

If you have access to the internet, start noting where you have access to free services. Look for free wi-fi hotspots, where you can find friendly public bathrooms, where you can and cannot sleep or park, what shelters are open and how to get on those lists, food bank locations, and laundromats. I highly suggest watching YouTube videos about surviving while homeless or how to live in your car. These searches will have mountains of information on how to keep cool/warm during the seasons, where to find free or discounted food, safety precautions, and more. As the Boy Scouts say, be prepared.

Get a Library Card and a Bus Pass

A public library card grants you access to computers and free internet, very cheap printing, and copying services. Libraries are also places that are safe, warm/cool, and have public restrooms. Get a library card while you have a residential address because you will need to confirm your residency before you get one.

A bus pass will come in handy if you physically need to show up for meetings with case workers or to find safer places to stay.

Managing Your Stuff

Now that you have the research and paperwork portion handled, you need to start looking at your stuff because once lockouts happen you no longer have access to whatever is in the home.

Sell or Store What You Don’t Need

Start selling what you can to get extra money. You can try and get top dollar but remember you’re in a bind so try not to get too attached to what you think something is worth.

Facebook Marketplace and Craigslist are always good places to start. It may be easier to have a yard sale instead of listing individual items. Pawn Shops are good for electronics, but you definitely won’t be getting anything close to market value.

If you have the financial means, look at renting a small storage unit for the items that mean something to you. It could be things like family pictures, heirlooms, etc., or see if a person you trust can hold them for you until you get back on your feet.

Keep/Use Camping Gear

Keep any camping gear you have. Camping gear is the most compact and efficient way to manage cooking, sleeping, and even showering. Most items are lightweight and don’t take up much room in a backpack or car. Items we made sure to have were a camping stove, tent, collapsible cookware, solar shower, and multitools. If you don’t have these, Walmart has very affordable options, or check Buy Nothing Groups on Facebook for free things.

Staying Clean and Healthy

Staying clean is important because it reduces the chance of you getting sick. Hygiene while unhoused can be tricky. Those solar showers I mentioned above are a great portable item to help keep you clean. It’s a bag you fill with water and hang in the sun. It has a hose attachment that gives you access to warm/hot water to bathe.

Gyms and truck stops are other options. Gyms offer low-cost day passes with access to showers and other facilities. Truck stops also offer showers at low cost or free and you do not need to be a trucker to use them. Recreation centers generally have shower facilities and don’t require membership to use them either.

Multi-use hygiene items are a must. Dr. Bronner’s soap can be used for everything. Really. It’s even on their label. One bottle can be your shampoo, body wash, toothpaste, laundry soap, dish soap, and all-purpose cleaner. Baking soda is also great as it can be used as toothpaste, deodorant, face wash, and general cleaner and is less than $1 a box. Vacuum saver bags are perfect to keep clothes clean and dry (these ones come with a hand pump so you don’t need an actual vacuum). These bags make storing clothes in a backpack or car very easy.

What About Your Pets?

Pets add a level to this that is heartbreaking. We knew we couldn’t rehome our pets. It made finding housing even more difficult, but we just couldn’t do that. However, I 100% understand that it’s the only option for others. I hold no judgment for that having faced this decision myself.

If you won’t be able to care for your pets after being evicted, please try to rehome your animals or take them to a shelter. I know shelters are full for this reason, but they can direct you to rescues or possible foster homes if they cannot accept them. Your pets don’t deserve to be abandoned. This article from Apartment Guide links to great assistance foundations.

Facing Eviction Sucks. Be Proactive Now.

There’s no real easy way to sum all this up. If you’re facing this type of situation right now, I understand how scared you’re feeling. Be as proactive as you can while you still have a residence to get things in order. Do whatever you need to do to make it through. Know your rights and fight like hell to keep you and your family safe.

If you’re lucky enough to not worry about suddenly losing your home, understand that becoming unhoused is not always on the shoulders of the person becoming homeless. Many times it’s because our elected representatives have not done their job of providing or allocating state resources to prevent someone from getting that far behind in the first place. It’s because people haven’t been given access to jobs that pay living wages. It’s because housing is so expensive that couples with full-time jobs still don’t meet rental criteria set by companies and landlords. It’s because landlords keep raising rents, and come renewal time the tenants can’t afford the $500 increase no matter how much they budget or work overtime.

Safe housing is a human right regardless of status or income.

What to do when you’re facing eviction (info graphic):

About the Author: Mackenzie started her site, Life at 23k, to offer realistic and shame-free money advice to low-income and underemployed workers, who are often left out of traditional financial spaces. Her site offers tips on how to budget, save, invest, and break money taboos all while making minimum wage. You can find more on her website, Lifeat23K.com, Instagram and Twitter.

The post What to Do When You’re Facing Eviction appeared first on Poorer Than You.