Tag Archive for money

Savings – The Forgotten Art

December 16, 2011 admin No comments

For a long time, Americans were encouraged to buy, buy, buy. They were told it would stimulate the economy. Savings were down, spending was up.

With the current economic crisis and credit crunch, Americans have pulled in the reins on spending. They are working on paying down debt and trying to survive in a shrinking economy.

The fact is, people have not saved enough money for the current economic crisis. With adequate savings, people could save their homes from being foreclosed. They could ride out being laid off from work until they find a new job or start their own business.

Statistics tell us that 5.2% of American families have a savings account, with an average of $1,200 in savings. $1,200 will not get anyone very far in today’s economy. For most people, that is less than the living expenses for one month.

Now, there is a problem with the typical savings account. When you save in fiat currency (dollars), what happens is that even though you have done a good thing in putting some money away, the inflation rate grows faster than any interest the bank will give you. Therefore, you effectively lose purchasing power.

What is the alternative?

You can have a gold backed savings plan. In this case, you actually save in gold. You can get on a monthly purchase plan and buy some gold every month and save it, just like you would if you had an automatic monthly withdrawal from your current paycheck into your current bank savings account.

The difference is, this is savings in gold. Gold has had a 22% average return so far in 2011. Therefore, unlike losing value when saving fiat currency, saving in gold allows the value of that gold to reflect the decreasing value of the currency, so you do not experience the loss you would experience in paper money.

Can you save just any kind of gold? No, government issued gold can be confiscated by governments. It is wise to save in only a certain kind of gold.

It is time for consumers to begin to think about saving and start saving on a regular basis. There are options for saving in gold. However, consumers must educate themselves so they do not buy the wrong kind of gold and later have buyer’s regret. It is important to do a thorough study before buying gold so as not to buy the wrong kind of gold.

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Perkins Loan Facts: Get Money With Bad Credit, No Credit or a Low Income

December 16, 2011 admin No comments

Many people these days are interested in returning to school, but are concerned that low income and bad credit or no credit score will prevent them from finding the financing they need to afford this endeavor. However, as many also know, completing the Free Application for Federal Student Aid (also called a FAFSA) can help you to find sources of funding through the federal government which offer low, fixed interest rates and flexible repayment plans. One such option that you get through the FAFSA is Perkins loans.

For bad credit, no credit or low income situations, Perkins loans offer the perfect option for funding. This is because these loans are given based on need, not on credit score. The article will review some basic facts about Perkins loans.

Filing Your FAFSA: The Basic Process

Generally, you are asked to complete a FAFSA at the same time that you apply to college. When you complete your FAFSA form, there are several different factors that will go into determining your eligibility for federally-sponsored student loans such as Perkins loans. With bad credit, no credit and a low income, you are actually more likely to receive funding for school. This is because the factors taken into consideration on the FAFSA and the Student Aid Report (SAR) that it produces are based on need only. The FAFSA formula will look at income, assets, dependents and schooling costs to determine how much aid you qualify to receive.

Qualifying for Perkins Loans

Bad credit, no credit, and a low income are clearly not at all issues when it comes to assessing a student’s ability to receive a Perkins loan. In fact, the lower your income from other sources – which includes your expected family contribution (EFC) or money from parents – the more likely you are to receive Perkins loan funding.

Perkins loans are capped, which means that you can only receive a fixed amount each year and that amount varies from person to person. In 2010, the maximum Perkins loan contribution allowed for undergraduates was $5,500. However, the average amount of money given to each student through the Perkins student loan program was only $2,125 that year. This means that there will still be a need for you to find additional funding through other lending sources. You can do this either through other federal lending programs, such as Stafford Loans, or you may alternately look for private lenders who offer low interest student loans.

Bad Credit, No Credit or a Low Income Is Still Okay

No matter which path you choose for finding the educational funding you need, having bad credit, no credit and a low income is still okay. This is because the assessment given for borrowers looking for money to fund higher education is far different than the assessment given for borrowers looking for personal loans. Seeking a higher education is an important step in gaining more wealth over time. Therefore, lenders feel that the risk of helping you achieve a better education and job is worth the investment. Programs sponsored by the federal government were designed to help people like you.

Perkins loans for bad credit, no credit and low income borrowers are the norm, rather than the other way around. This makes using this particular form of funding not only an option, but one of the best choices available to students today.

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Get a Student Loan With Bad Credit: It’s Easy

December 16, 2011 admin No comments

It’s quite obvious that the current job market is in a sorry state. Therefore, many people who are unemployed or who had to take a salary cut after losing their job, the only viable option left is to go back to school and start a new career. Unfortunately, education in this country does not come cheap. Therefore student loans are essential. But where does that leave people with bad credit?

Student loans, unlike almost any other loan you can get, operate on a different level, however. This makes getting a student loan with bad credit easier than you think. However, before you start your search, consider the following facts about gaining educational funding through student loans.

Student Loans Are a Different Animal

When you apply for any type of loan, especially an unsecured loan, the state of your credit is of the utmost importance in determining your eligibility. However, in assessing your qualifications for most types of student loans, credit is not a major factor taken into account. Why is this? Well, in the case of student loans, bad credit is not as important because of the purpose of the investment as well as the rules for repayment.

First, the idea behind going to school for a new job or further training is helping yourself to make more money. Since your income will increase as a direct result of this loan, the lender sees the investment of the money as a good idea. Though you may not have the income to support the repayment of this loan now, after finishing your education you will.

Also, the rules for the repayment of student loans are often much different than what you are used to in other cases. Often, the loan will not need to be repaid until you have completed your education. Sometimes, only the interest will need to be repaid, which is generally a very low amount. This means that both your poor credit and low income will be less of a problem.

Finding the Right Loan

There are several different methods that you can use to acquire a student loan with bad credit. The first of these methods begins with the completion of the Free Application for Federal Student Aid (or FAFSA). This form will let you know your eligibility for different programs sponsored by the federal government.

The completion of your FAFSA will also help you to see what levels of funding are available and at what rates. Generally, loans sponsored by the government carry very low, fixed interest rates and some do not even accumulate interest until after you finish school. Therefore, it is important to look at the many offers presented and then to assess each honestly.

Private Lending Options

Once you have gone through the offers for government-sponsored loans you may still find that you need additional funding, especially if you want to attend a more costly private institution. That is where private student loans come into play. Bad credit may have more of an impact in determining your qualifications for these loans, however.

Online lenders generally offer the widest variety of options for student loans with bad credit. These lenders specialize in helping people similar to yourself and can also provide you with tips for managing the payments after you finish your education because choosing to go back to school is one of the most important moves that you can make to help your financial future over the long term. Finding a student loan with bad credit is not only possible; it’s easy.

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