Tips to Paying off Student Loans!

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Being a recent college student can be very stressful. Maybe even more stressful than being in college! Between finding a good steady job, paying all the bills, AND paying your student loans I know it can be really difficult to stay afloat. When you graduate college, most student loans taken out through the government have a 6 month grace period until the payback period begins. Right out of college with all the other bills coming in, it may seem that the best idea is to not start paying your student loans until you actually HAVE to, but really it isn't. Getting a head start on your loans can help you a TON in the long run.

Just because you aren't “required” to start paying the bill, it doesn't mean that interest isn't accumulating on the totals. Interest can build up fast on loans, especially if the balances are high. So let’s go over a couple quick tips that can help you get a head start on those loans!

• Tip #1: Skip the morning coffee run to Starbucks or McDonald’s everyday, and instead set that money aside each week for one month. On average a cup of coffee ranges from $2-$5, so meeting in the middle, let’s say each cup costs $3.50. Having a cup of coffee at least five times a week, $3.50 * 5= $17.50. Now if we get coffee five times a week for one month that can equal approximately $70! Seventy dollars may not seem like a lot, but that’s $70 less you have to pay interest on! Skipping some of your most costly habits may seem like a breeze so why not challenge yourself to quit multiple habits and save even more money! 

• Tip #2: Take a look into consolidation programs available. By consolidating your loans it allows you to have a lower interest rate and only have ONE payment, versus the five or six you may have for each loan. There are many different financial institutions, as well as other companies who offer consolidation programs. Be smart about it though, really look into each program and their benefits. You want to make sure you are getting a BETTER deal than what you currently have, not vise versa. 

There are many other game plans and options to consider when paying off your student loans, but these two options are ones that ANYONE can tackle. Also keep in mind, if you need somewhere to keep any of these savings HCCU is always here to help!

Post by: Emily P. 

Free Up Cash & Increase Your Financial Cushion

As a nation, America is not great at saving. More than 55% of American households have less than one month worth of income in liquid savings (cash, or savings or checking account). Are you one of them? Even taking into consideration retirement accounts and investments, the average family can only replace four months of income in the case of an emergency. Here are a few tips for increasing your savings and curbing your spending:

Consolidate Debt: By consolidating credit cards or loans, you can often save on interest and lower your total monthly payment, not to mention simplifying it, by just having one payment to make. The key to consolidation is to cut up those old cards, then, or close them all together. Consolidating won’t help you at all if you turn around and run up even more debt again!

Refinance Your Mortgage and Vehicle Loans: You may qualify for lower rates if you refinance. Mortgage rates are still low, so if you haven’t refinanced in the last five years or so, check your rate and compare it to offered rates in your area. If you had a mortgage loan with private mortgage insurance (PMI) see if you have paid your balance down enough to remove that coverage. If it makes sense for you, you could also extend the term of your loans to decrease your monthly payment.

Go Green: Many companies offer a discounted loan rate for borrowers who set up automatic payments for their loans. Check to see if this is offered at your financial institution. Using automatic payments can also help prevent late fees by making your payment for you, on time, every month.

Review Insurance Coverage: When is the last time you really reviewed your insurance policies? Check the rates that you’re paying and compare your rates to those of other companies on the National Association of Insurance Commissioners website. You could save money on your monthly premiums if you raise your deductible. Make sure you’re covered for what you need, but not paying for things you don’t need. You may be able to get rate reductions or discounts if you have vehicles you only use seasonally, if you have children off at college who are not typically driving, or if you have a high school student getting good grades.

At Horizon Community Credit Union, our loan officers would be glad to review your current debt and look for ways to save you money. We have great, low rates on mortgage loans and vehicle loans. You can get loan interest rate rebates for having a checking account with HCCU, for having direct deposit and automatic payments, or for being a Gold or Platinum SunDrops member. Finally, we also have partnerships with insurance companies including Liberty Mutual and TruStage. If you don’t have a savings cushion, don’t wait for a financial setback, start taking steps today to keep more money in your pockets each month!

Image courtesy of iosphere at FreeDigitalPhotos.net

Post by: Erin S.