Categories
Debt

Attacking Student Debt with Employee Loan Repayment Benefits

Student debt is a big problem in this country. Today’s students are graduating from college with seemingly insurmountable volumes of debt hanging over their heads. That debt can take decades to repay. And with every graduating class, the total amount owed climbs. Some employers are fighting back by offering employee loan repayment benefits.

Companies are always looking for ways to expand their benefits packages in order to compete for top talent, explains Dallas-based BenefitMall. One of the hottest benefits right now, according to BenefitMall, is the employee loan repayment benefit

Just 8% of America’s employers offer such a benefit right now, according to the Central New York Business Journal. They recently published a piece detailing NBT Bank and its new loan repayment benefit. NBT Bank chief HR and ethics officer Catherine Scarlett said that her employer’s decision to help workers with their student debt was the “right thing to do.”

Trillions of Dollars in Debt

Well-known financial expert and media personality Dave Ramsey point to statistics that show student debt now exceeds $1.6 trillion. Ramsey says that the volume of student debt has grown by more than 150% since the Great Recession. He also says it is the fastest-growing type of debt for American households.

There are some 44 million people who owe some form of student loan debt in the US. Furthermore, the average amount owed at graduation is about $35,000. Ramsey says that 65% of all students graduating from not-for-profit schools in 2017 graduated with debt.

The last statistic is vitally important in this discussion. Let us reiterate: 65% of all students graduating from not-for-profit schools in 2017 did so with debt hanging over their heads. These not-for-profit schools are, by and large, state schools. This is important for the simple fact that the student debt problem cannot be blamed on for-profit schools demanding excessive tuition. It is a systemic problem that exists throughout higher education.

What Employers Are Doing

People like Dave Ramsey are pitching in by educating consumers. They are teaching families how to solve the equation of paying for higher education without incurring massive amounts of debt. Doing so is entirely possible, but it requires discipline and knowledge.

In the meantime, employers are starting to pitch in as well. They are beginning to offer loan repayment benefits that combine their financial resources with those of their workers to get student debt paid down as quickly as possible. Best of all, student loan repayment benefits are highly customizable.

One popular method for offering such a benefit is to structure it like a 401(k) plan. The benefit requires both employer and employee to make regular contributions with every payroll run. Some employers offer dollar-for-dollar matching contributions while others offer a flat amount.

Employee contributions are deducted from paychecks, combined with employer contributions, and paid directly to creditors. The benefit is reported alongside any other benefits the company offers. It is all pretty straightforward.

Helping Out and Creating Loyalty

For employers, a student loan repayment benefit is a win-win. A company with the financial resources to offer such a benefit would come up with something else if they didn’t settle on a student debt repayment program. As long as they are investing the money in benefits, they might as well help attack the student debt problem.

Every such benefit represents an opportunity to help out. Additionally, employers create loyalty among their employees by taking a personal interest in helping them solve their debt problems. Combine a student debt benefit with an overall financial wellness program and the employer hits the proverbial ball out of the park.

Categories
Debt

Why are you opting for tax saving funds?

For these compelling reasons, you should include a tax savings mutual fund in your portfolio.

Tax benefit under Section 80C: There are no surprises here. Under Section 80C of the Income Tax Act, your investment in ELSS is liable to tax deduction of up to Rs 1.5 lakh from your total gross income.

Shortest lock-in period: Typically, all tax-saving mutual fund investments come with a mandatory lock-in period. For example, the Public Provident Fund (PPF) has a lock-in period of 15 years, which is another tax saving instrument under 80C. Nevertheless, from the seventh year, you are allowed to make partial withdrawals in PPF.

Taxes saving deposits have a lock-in period of five years. The ELSS comes with a three-year lock-in. After three years, you can sell your investment in ELSS.

Profit from equity exposure: If you are a traditional investor who chooses a tax-saving strategy with guaranteed returns, then you should consider investing in ELSS to take a small amount of equity exposure. ELSS is deemed to be ideal for first-time buyers of the stock market. The mandatory lock-in period will help investors with the uncertainty of the weather stock market.

No maturity date: Among other things, best tax saving elss funds such as PPF, tax-saving term deposits, come with a maturity date. The PPF scheme matures after fifteen years and can expand over the next five years.

An ELSS does not have such a fixed date or period of maturity. As long as you can save your ELSS, you can keep it. But a common mistake that most investors make is to redeem their investment at the end of a three-year lock-in in ELSS.

Since the underlying asset class here is equity, they should invest for at least five-seven years to get good returns. Finally, it is true that ELSS is a set of benefits. It does not mean that you should blindly invest in it. You should invest in it if it meets your investment objective, horizon and risk profile.

The best way to invest in tax saving funds

ELSS gives two investment options.

  • First, lump sum and
  • Second, a systematic investment plan (SIP).

You can invest in small monthly instalments or SIPs.

Invest lump sum at a time.

Investment in tax planning is something that a taxpayer has to do every year.

In this way, SIPs are beneficial.

If you choose an excellent ELSS fund and start a monthly SIP based on your tax planning criteria, then with a small-time effort, you can take care of your tax planning savings, at least related to the ELSS part. Always note, ELSS has a lock-in time of 3 years as a tax saver account. It will give you very little liquidity, as you cannot redeem your cash before three years.

When you invest in ELSS through SIP, you can redeem that instalment in the same way after three years. Investing often leads to stress and makes a good investment habit. An ideal practice would be to start a SIP at the beginning of the financial year and continue until next March.

Categories
Debt

Tips to choose debt Relief Company

In this world, the life style of the every people is different. The main thing that decides the life styles of the people is money. This is why the people in the entire world are running behind the ways of earning the money. Priority of every people in the world is a different one yet all of them are chasing the money so as to increase the standard of the life. Tackling some situations also needs money. Irrespective of the economical status, the need of money can happen at any time which is above their economical status. Getting the debt from the others is the options that people have to tackle those solutions. Many banks, private money lenders and many more options are available for the people to gate the money as a debt. Once you solve the emergencies, it is necessary to concentrate to repay the debts obtained from the others.

Effectively repaying them is an important one which also reflects while getting the debt for other time. Those who lend the money will provide the money by the trust you build with them. This is why the people are advised to concentrate more on the repaying the dues. Many companies are evolving on the society which helps the people to get relief from the debts. Choosing them will increase the efficiency of paying the debt. The people who have problem with the paying the debt, these types of debt-relief service providing companies will provide solution to their problems. The tensions of the people are eased and repaying the money is planed and repaid perfect with the help of them. Even many programs are run by them which increase the wisdom of the people.

The main thing that people need to concentrate is choosing the company. In the name of debt-relief service, there are many forgeries happened on the society. They consume too much money from the innocent people and forge them. Analyzing the reputation of the company and the efficiency and the quality is what more important. If the quality you expect is not matching with the companies on your locale, it is better to move towards the internet to choose them. In this decade, most of the companies on the markets have official website on the internet so as to attract the people in all over the world. Thus finding the debt relief companies on the internet is an easiest task done by the people.

Debt relief companies are nowadays found with the help of internet, analyzing their quality in service is more important to do. Most of the websites provide good customer service on their official website, ask your doubts and clear them. Examine the reviews available on their website which is written by the people like you. The quality in service and other things you are unaware of can be found by spending time over the reviews. If everything on the website satisfies you, choose them without making any delay.

Categories
Debt

Debt Relief will provide you Great Relaxation

Check Credit Score is the basic necessity of life; it is required to always have a check and balance in your life to manage your budget. Now there is a common trend of having credit cards in your pocket. Because these cards carry all of your money from your bank account. Now people do not want to carry so much cash with themselves because there are many pickpockets outside there ready to steal your money without even letting you know.

Just having credit card does not means that now you are safe, if you save your money from getting stolen then there are many other dangers as well, like many people do not keep the check and balance of their cards and keep on spending the money as usual as a result the range of their cards is finished and bank starts charging you with tax and interest. This causes you to be in a large amount of debts and one day suddenly you receive a notice to pay off your debts otherwise your account will be closed and the bank will cease your property.

This causes a great loss to you and puts a lot of burden on you. The bank divides the amount of your debt and interest in the form of monthly instalments which is too much for you to pay off. It is obvious that you have to pay the monthly rent of your apartment and all of your utility bills as well. Including this, you have to manage your vehicle and other basic necessities of your life. If you are having kids you have to pay for their education and necessities as well.

After spending all of your money on this stuff the money which is left behind is not even close enough to pay your monthly debts. If you will not pay your debts on time the bank will cease all of your property and still if you failed to pay your monthly debts then you can get arrested as well. In this situation, people start to hide and do not come in the contact with other people as well, in order to save themselves from being caught.

If your monthly amount of paying debt is less then you can manage it easily too and it does not matter that how long it will take to pay the debts, at least you will have check and balance and always check credit score. For this purpose, there are many online websites and companies who will suggest you in the best way to get out of this problem and will show you that how you can tackle this situation.

As a result, you will have debt relief from your bank which comes in your best benefit. Now you have most relaxation to pay your debts as much the bank can give you. This will help you a lot and now you can easily pay the monthly debts out of your monthly saving and you can spend the money on other necessary stuff as well.

Categories
Debt

Simple Yet Effective Ways To Control Your Finances By Effective Debt Management

Living in today’s world, and that too in keeping with the ever rising standard of living, is not an easy task. You may have to fetch other effective sources for managing the omnipresent deficit in your family budget. This is how you fall in a debt trap. By saying trap it does not mean debts are for making the life of a person difficult. On the contrary, it can make your life smooth, peaceful and easy, provided you know the effective ways to create and control your debt and manage your personal finance.

About The Debt Market

It will be wrong to say that taking debt is a tendency of people worldwide. It has become more of a necessity rather than tendency. Due to the ever increasing demand for loans, mortgages and debts, lots of financial institutions and banks have come out with several alluring loan concepts in the market. It is a good move to support the people in need. You can choose a particular loan for your requirement, but the key is to pay it back in time. Most people have a strong tendency of not repaying the debt which has worsened the situation of debt market. You can read reviews showing how many accounts have gone NPAs in the recent past. This has affected adversely the people who are really in need and have the willingness to pay back in time.

Dets Management Plan

Budget Is The Key

Proper planning and a budget of your finance according to your earnings have and will always remain the key to successful finance management. As the old saying goes, cutting your coat according to your cloth, will keep you effectively covered and protected from the cold behavior of your creditors.So, it is advised that you do not spend ostensibly but have a strategic plan for every penny that you spend or earn as well for that matter. Strategic and immaculate planning will not only provide you with effective control over your finance, but will also give you the much needed mental peace.

Have A Recovery Plan Ready

Whenever you indulge yourself into debt, it is better that you commit to have a recovery plan ready. It is beneficial for you as well as your family members to get out of the vicious circle of debt. How to recover from the debt spiral of over indebtedness needs specialized set of skills. But the most orthodox, simple and effective way to recover is to plan for a saving and keeping aside the installment amount which you have to pay every month, right at the onset of the month. This will give you peace and energy to focus on your other jobs more efficiently. Proper investments along with it are also a very effective way of recovery.

Talk To Professionals

To avail financial wellness and acquire the knowhow about effective drafting of a successful recovery plan, you can also consult one of the many debt management agencies in your locality or on the internet as well. Just login to their website and press on the click here button and all the relevant information will be in front of your eyes. Going through the pages, you will find that debt is not at all bad, if controlled and managed properly.

Categories
Debt

Swipe Deeper Into Debt Management System To Come Out Of Debt Trap

You can get a variety of credit cards from various banks and financial institutions today. By simply swiping the card in any outlet, which accepts credit card payments, you can buy your choicest of things easily. Getting the feel of it, you may over use your card and max the limit of your credit card. But what you may not understand is that with every swipe you dig deeper into the debt quicksand. There are effective ways to get out of it provided the rope you hold and the tug you give is strong and effective enough.

Take The First Step

When you have a considerable amount outstanding against your credit card and you do not have the proper means to pay the monthly installments, you may feel depressed at the constant, regular and angry calls of your creditors. There is no harm to have a debt, but you must also know the way out of it. Proper debt management system long with some simple yet effective ways can see you through. As credit card debts are more insecure than property or vehicle loans, you have to set some pre-determined goals to pay off your debt. It requires a self-discipline and time to reach to your goals. So, monitor the progress regularly to be on track of recovery.

Debt Management System

Needs And Wants

When you are in debt, it is advised to keep your credit cards away and well out of your reach. It is of no use increasing the outstanding balance by over purchasing. This way you will be forced to separate your wants from your needs, until you have paid off the outstanding amount completely. This step will help you to stay very conscious about your expenditure and spending fantasies.It will make you to think twice before you buy a particular thing, which may not be essential at that moment.

Pay Off Strategically

To get out of your credit card debt you have to prioritize it and find the best way out. It is the most popular way among people in which strategic planning to pay off debts are made. After you have paid of the debts which have monthly and fixed installments, make the minimum payment of your outstanding credit card debt every month. If you have multiple cards, then make minimum payments for card with low interest rates but maximize your payments for cards with higher interest rates. It will help you in saving money and pay all your debts quickly.

Find The Best Way

If you still feel stranded in the middle of nowhere with all your cards in hand, the best possible way to get rid of your credit card debt is by consolidating it or through balance transfer. Visit a bank or a financial institution that are willing to consolidate your loan. Know all about how to consolidate credit card debt and the terms, conditions, fees and rates of interest. It will help you to clear the dues of your multiple cards and convert it into one at lower interest rate taken from a single source.

Categories
Debt

Believe In Yourself And Be Your Own Debt Manager

There are people who like to pass the baton of debt management to professionals when they find themselves neck deep in debt waters. Although it is an effective and useful way, it involves addition of expenses as well. But if you can become your own debt manager and do it yourself, you not only gain in confidence but save a fair bit of money as well. There are some effective ways to do it though. Whatever is the case, control is the primary objective in effective debt management. As phone calls, negotiations, efficient correspondence and some other factors are associated with debt management, you have to understand about financial issues thoroughly.

Be Your Manager

To maintain the standard of life, you may have different kinds of debts. But as you know yourself the best, it is the most advantageous factor of being your own manager. There is no necessity for any explanation to a third party about your job issues, medical issues, money you have borrowed and the type of debts. If you have the time and have a fair bit of knowledge about debt management, you can do it yourself. Apart from that you may need to have access to persons in key positions at various financial institutions and banks. Above all, you must be detail oriented and ready to take the hit.

Debts settlement

Consider Debt Negotiation

Negotiating for your debt settlement is a very critical but effective way to start with. It affects in short payment plans and in most of the cases without any interest. The prime objective of your negotiations would be to minimize your payments that you have to make to your creditors. For that, click here to contact, meet your creditor directly, and ask questions to find out their mentality and amenability about any reduction in payments outstanding. As it does not cost a penny to ask, it might sometime prove to be effective.

Start With Paying

It is better to start a conversation by making some payment up front. Please be advised that most of the creditors want to see your willingness to pay first, rather than your ability to pay. If you pay around fifty percent of the amount outstanding up front, then you stand a high chance to be listened and considered. If your debt is too high, then you must also be prepared to face a lawyer from your creditor’s side. Negotiate with him as well and stick to your initial startup payment of fifty percent of amount outstanding. Remember to pay in money order as it will be the most essential document in the later stages.

Be Realistic And Seek Status

Being realistic and honest is the key to settle your debt. Creditors will always want to procure the maximum out of you. It is better not to back down to accept an amount which you cannot pay. Tell them honestly that you may turn bankrupt instead. Negotiate on the time and extend it for your benefit as far as you can. In the end, when you have paid off seek the status and make sure you see the words ‘fully paid’ or ‘debt satisfied’ clearly written so that it does not hit back.

Categories
Debt

The Ins and Outs of Debt Consolidation

There are couple of reasons why anyone would want do debt consolidation. First reason is to minimize the number of bills or in other words manage less number of debt accounts. The second reason is to save money. Lot of times people end of having various debts which include borrowing money for home, car, furniture, health expenses, vacation etc. The reason for borrowing money determines the type of debt. If a person is borrowing money for home, it would result in a debt called mortgage whereas a debt resulted in purchasing a car is synonymous to auto loan. Buying furniture or spending on vacations would mostly go in credit card debt and the debt could be shared by various credit cards at different APRs. Based on the type of loan, APR on it would vary.

If balances are carried on various accounts(credit cards, personal loans, personal line of credits, auto loans, equity loans, HELOC etc) it gets tedious to manage all these accounts and it becomes more likely that a payment will be missed resulting in penalty fees. Debt consolidation should be done in such a way that the resulting payment should be smaller than the sum of the payments made on different accounts before debt consolidation.

Some of the ways people could borrow “cheaper” money or low APR money is via using funds for 401k, refinancing a home, taking a loan on a Car, utilizing 0% balance transfer offers on credit cards, personal loans or lines of credit from the local credit union where they’ve opened a checking account, etc. All the before mentioned ways would offer money in single digit APR if a person has reasonable credit history. However, not all options stated above might suit everyone. People close to retirement should not look at taking a loan against 401k as that may impact adversely during retirement. 0% balance transfer offers usually are good for only 6 – 18 months and after that period, the credit card companies start charging double digit APR’s, so one has to very careful in doing the re-payments to credit card companies on money borrowed using balance transfer options.

Personal loans or line of credits from local credit unions would be beneficial if you are paying higher APR on various debts than what a credit union is offering on personal loans/line of credits. Such loans would have better APRs if the money is borrowed for shorter terms versus longer. As the term increases, the APR the credit union charges goes up. Overall, it makes sense to calculate your existing payments to debts on a monthly basis and compare it with your single payment after debt consolidation. Another aspect that needs attention is the amount of interest paid over a period of time. If the consolidated debt has lower payment than your cumulative payments before consolidation, it may possible that the term has elongated after consolidation which results in more charges as interest but lesser monthly payment. Whether you’re in Melbourne, FL or Seattle Washington, take a calculator and play with the numbers to see if debt consolidation if something you should consider.

Categories
Debt Insurance

Insurance protection for your debts

Usually PPI are getting through the way of banks or by financial institutions. The payment protection insurance or PPI are also called as credit protection insurance. It is the measure of insurance once the borrower is unable to pay their amount. They cannot repay the amount due to the sickness or disability that is happened in their life. The financial institutions usually have a lot of the policy to help the policy holders in such occasions. Even at the time of retired or self-employed occasion, this type of insurance protection is very much useful to lead a life in the peaceful manner. Nowadays, the high court reveals that they need to check the account before issuing the policies to the policyholders as it is wrongly issued to the organization. So banks will find out the right customers for getting these policies. Financial services authority or FSA will find out the area where the problem will be raised while selling these policies. The guidelines are given by the FSA that how to reclaim the premium in the right manner.

The reclaiming of the premiums is possible by getting the template letter. If you are not getting any kind of letter, then you can easily by PPI reclaiming guide. Even there is an occasion of getting the wrong issue of payment protection insurance policy that is happened due to the bad work of the staff. When the bank rejects your policy, the court will assist you well. These will assist the borrower well that the money will be back when something happened to the borrower. These tools will not surely reduce the reputation among the public. Even the complexities that are raised in these PPI claim will be faced by the court. In many occasions, the PPI claims are not be aware by the consumers.