We have 10 fact sheets and resources to help students and parents understand student loans, identify other ways to pay for college, and manage student debt.
Going to college means going into debt for a majority of American college students and the total amount of student loan debt now exceeds 1 trillion dollars. Students have a choice of Direct Loans from the U.S. Department of Education or other lenders. When making the choice, students should keep in mind that federal …
Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu
There are two types of credit card fees: those that are charged to all borrowers to use a credit card or specific card features (e.g., annual fees and transaction fees for cash advances and balance transfers) and those that have been established to discourage, and indeed profit from, certain consumer behaviors (e.g., late fees and over-the-limit fees). Both types of fees increase the cost of borrowing money. Some credit cards with relatively …
The High Cost of Credit Card Minimum Payments
Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu
When it comes to managing your money, compound interest can be your friend (e.g., through systematic long-term investing) or your enemy (e.g., by making minimum payments on outstanding debt). This article will focus on the latter; specifically, the high cost of credit card minimum payments. Of all the credit card traps that are out there, and there are quite a few (e.g., late fees, …
Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu
The best way to select a credit card is to match it to your intended use and bill-paying habits. Are you a “revolver?” Revolvers are credit card users who rarely, if ever, pay their credit card bills in full and, thus, pay finance charges each month to carry outstanding debt. If you plan to carry a balance from month to month, select a credit card with a permanently low-interest rate; i.e., not …
Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu
Got outstanding loan balances and credit card debt? Do monthly payments seem overwhelming? You are not alone. The ability to “buy now and pay later,” coupled with slick advertising, has made living beyond one’s means very tempting. As a result, many Americans, at all income levels, went on a credit-fueled “spending spree” during the late 1990s and early 2000s. Now it’s time to pay back what we owe and get out of …
Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu
The term “consumer debt” refers to all types of non-mortgage debt obligations. Examples include outstanding balances on credit cards, installment loans for cars and other “big ticket” items (e.g., furniture and appliances), and student loans. For every person with outstanding consumer debt, there comes a point, called “enough,” where carrying too much debt starts to cause financial stress. Even minimum required payments become difficult to make or perhaps some payments get skipped …
Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu
Outstanding credit accounts often go to collection agencies when people fail to pay their creditors. One of the most stressful parts of being in debt is receiving phone calls and letters from collection agencies requesting immediate repayment of outstanding balances. It is typical for calls and letters to become more aggressive and threatening over time. The term “collection agency” describes a variety of business models that have one thing in common: recovering …
Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu
According to Webster’s Dictionary, debt is defined as “the state of owing.” Most commonly, the word debt is used in reference to money that is owed to various creditors as in the case of debt incurred through loans and credit cards. How do you know when you have taken on too much debt? Take the following quiz to determine whether you are using credit wisely or getting in over your head.
Circle …
Cultural Differences in Handling Credit
Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu
When it comes to decisions about borrowing money and handling credit, the culture of a family, community, and country can have a major influence upon an individual’s behavior. What people are taught to believe about borrowing money and the use of credit can affect their financial decisions and debt payment practices for the rest of their lives. This is especially true when strong family role models or …
Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, oneill@aesop.rutgers.edu
If credit reports are like receiving a “report card” in school, credit scores are similar to a grade point average. They are a three-digit number, ranging from 300 (lowest) to 850 (highest), used to measure the risk that borrowers will become delinquent or default on their debt obligations. Credit scores are based upon information contained within credit reports. Thus, consumers will likely have different credit scores from each of the three major …
