money…
the state of student debt…
2/3 of twentysomethings carry some debt
most of that debt in the past five years and have gained
50% of college students and recent graduates have stopped paying a debt and been sent to a collection or repossession
agency
60% of college students say they’re facing tougher financial pressures than previous generations 30%
of students say they worry often about money issues and their debt
the
word is...
the state of student debt…
put it on my tab …
Weigh the pros and cons of credit cards…
Advantages: •Credit cards are a convenient way to make purchases. •Credit cards may come in handy in emergency situations. •Credit cards can help you establish a positive credit history, which is necessary for you to receive credit in the future if you need to borrow money to buy a car, home or other large purchase. Disadvantages: •Credit cards are not free money. They are actually high-interest loans that can take years to pay off if not handled responsibly. •Misusing a credit card can damage your credit history. Bad credit has serious consequences that can hinder your ability to find employment, rent an apartment or borrow money in the future.
the
word is...
paper or plastic?
Believe it or not, there are some convenient alternatives to credit cards… • Prepaid credit cards require an upfront deposit to secure
charges to the card.
• ATM cards allow you to obtain 24-hour access to money in your
bank account through automated teller machines. purchases with money from your bank account.
• Debit cards can be used to obtain cash at ATMs or to make • Cash is always an alternative. Saving money to pay for a purchase
with cash rather than with a credit card ensures you won’t pay additional interest charges.
the
word is...
credit matters…
So I missed a few payments…big deal, right?
• You may be charged higher interest rates on loans and credit cards because you’re a higher risk. Higher interest rates mean you pay more money. • You may be charged higher
insurance rates.
• You may lose job opportunities. Employers may evaluate your credit history before hiring you as an employee. • You may lose housing options. Many landlords evaluate your credit history before they will allow you to sign a lease. • You may be denied credit completely if you’re too much of a credit risk.
the
word is...
drowning in debt…
If you become overwhelmed by your credit card debt, get help.
You can turn to your family, credit card company or local nonprofit consumer credit counseling agency to discuss your options and get sound financial management advice.
Here are things you can do immediately to reduce your debt:
• Stop using your credit cards and don’t sign up for any new cards. • Create a budget or spending plan and stick to it. • Call your credit card company & ask if they can lower your interest rate. • Pay off your credit card with the highest interest rate first while still making the minimum payment on your other credit cards and loans.
the
word is...
has anyone seen my wallet?
What to do if a credit card is lost or stolen…
Take action immediately to protect yourself against identity theft! • File a report with the police. • Call your credit card companies to cancel your cards. • Contact the three national credit reporting agencies and ask to have a fraud alert put on your accounts.
– Equifax Credit Bureau Fraud Hotline: (888) 766-0008 www.equifax.com – Experian Credit Bureau Fraud Hotline: (888) 397-3742 www.experian.com – TransUnion Credit Bureau Fraud Hotline: (800) 680-7289 www.transunion.com the
word is...
budgeting 101
including on-campus or off-campus jobs, scholarships, grants, etc.
Identify your income. Start by listing all of your income sources, Track your expenses. Next, determine how you spend your money
now. Record all of your monthly expenses which may include your tuition, housing, books, groceries, car payment, entertainment and other bills.
Analyze the result. Add up your monthly income. Then add up your
monthly expenses. Subtract your total expenses from your total income and analyze the result. If you have a positive budget, you may want to use your budget to apply extra money to your debts and ramp up your savings plan. If you have a negative budget, your top priority should be to cut back on your spending or increase your income.
the
word is...
budget killers
Here are some everyday expenses that may be killing your budget: Budget Killer Cost Savings in 1 Year $104 $260 $364 $365 $520 $730 the
ATM Fee $2 (weekly) Fast Food Meal $5 (weekly) Evening Movie Ticket $7 (weekly) Vending Machine Soda $1 (daily) Pizza Delivery $10 (weekly) Gourmet Coffee $2 (daily)
word is...
saving money
It’s easier than you think…
• Take advantage of student discounts. • Buy used books. If these aren’t available at the university bookstore, try buying them online or from other students. • Keep money in the bank and not in your wallet. The less cash you have at your fingertips, the less tempted you’ll be to spend it. • Drink tap water instead of bottled water. • Use coupons, buy generic brands or buy items in bulk to save money on food, the laundry detergent and household cleaning items.
word is...
saving money
It’s easier than you think…
• Go to a matinee instead of an evening movie or check-out DVDs for free from the local library or Senate Movie Club. • Stick to a basic cell phone plan rather than adding costly features like text messaging. • Take advantage of student activities. There’s always something to do, so get the most from your student ID! • Limit vices. Beer, cigarettes, and pot are expensive. • Learn the art of the cheap date. Go for coffee, go to a campus event, or make a meal together.
the
word is...
for more info…
Iowa Student Loan has some great resources, including…
Loan Payment Calculator: estimate your monthly student loan payments. In-School Calculator: create an estimated budget while you are in school. Budget Calculator: input your salary or expected salary, expenses, and student loan payments to estimate your budget after graduation. Credit Card Calculator: estimate your monthly payment amount, the number of payments required, total payments made, total interest paid, or figure out how long it will take you to pay off your credit card debt. Find them all at: http://www.studentloan.org/Calculators/Calculators.aspx
the
word is...
for more info…
• Iowa Student Loan: http://www.studentloan.org/ • Iowa College Access Network (ICAN): http://www.icansucceed.org/ • 27 Money Tips for College Students: http://www.getrichslowly • Young People Struggle to Deal with the Kiss of Debt: www.usatoday.com the
word is...