Below are additional resources to help you manage your debt:
Consumer Debt
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American Bankruptcy Institute (ABE) – If you are seriously considering filing for bankruptcy visit ABI’s website for an overview of how the process works. Visit www.abiworld.org and click on “Consumer Education Center”.
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Debtors Anonymous (DA) – If you are addicted to spending you can get help at DA. DA uses the same proven techniques as Alcoholics Anonymous. You can locate the nearest DA chapter to you by visiting http://debtorsanonymous.org or calling 781-453-2743 or 800-421-2383.
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The Debt-Proof Living Newsletter – This newsletter offers an abundance of advice and information to help you with your money, especially if you are having problems. Visit www.debtproofliving.com to signup for their newsletter.
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Federal Consumer Action Web Site – This website is part of the Federal Citizen Information Center offering a wealth of information about consumer shopping, and how to avoid and resolve problems. Visit http://www.consumeraction.org for more information.
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The Federal Trade Commission (FTC) – The FTC enforces consumer protection laws for credit reporting, credit repair, credit application, debt collectors, etc. The FTC also offers free information (worksheets, brochures) about credit-related laws, information about borrowing money and using credit cards, and a variety of other consumer-related topics. Visit www.ftc.gov/bcp/consumer.shtm for more information.
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The National Consumer Law Center (NCLC) – This is a national nonprofit organization that helps low-income consumers. NCLC helps low-income consumers with debt collectors, foreclosures, repossessions, utility terminations, and other debt-related issues. Visit www.consumerlaw.org for more information.
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Mint.com Web Site – This service allows you to bring all your financial accounts together online, automatically categorizes your transactions, lets you set budgets, and helps you achieve your savings goals. Visit http://mint.com for more information. If you have financial questions, you can visit http://answers.mint.com.
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The National Foundation for Credit Counseling (NFCC) – This is an organization with about 1,000 offices nationwide, many of which are known as Consumer Credit Counseling Service. NFCC offices offer a variety of services by telephone or in-person, which includes budget counseling and education, debt management plans, and financial classes. NFCC counselors are trained and certified. Depending on your income, NFCC services may be free, otherwise, there is a very low cost to use their services. For more information visit www.nfcc.org or call 800-388-2227.
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Free Credit Report – You are entitled to a free credit report from 3 of the national credit reporting agencies. To order your free credit report visit www.annualcreditreport.com or call 1-877-FACT-ACT.
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To purchase additional copies of your credit reports after you’ve obtained your free annual credit reports, contact the following credit reporting agencies individually. You can order by mail, phone, or online.
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Equifax: www.equifax.com, 800-685-1111, Disclosure Department, P.O. Box 740241, Atlanta, GA 30374
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Experian: www.experian.com, 888-397-3742, P.O. Box 2104, Allen, Texas 75013
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TransUnion: www.transunion.com, 800-888-4213, P.O. Box 1000, Chester, PA 19022
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Books – Below are recommended books to combat your debt:
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The Budget Kit: The Common Cents Money Management Workbook by Judy Lawrence (Jan 4, 2011)
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Cheap Talk with the Frugal Friends: Over 600 Tips, Tricks, and Creative Ideas for Saving Money
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The Complete Cheapskate: How to Get Out of Debt, Stay Out, and Break Free from Money Worries Forever by Mary Hunt (Paperback – Aug. 1, 2003)
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How to Save Money Every Day (Oct 1, 2004)
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How to Get Credit After Filing Bankruptcy: The Complete Guide to Getting and Keeping Your Credit Under Control
by Mitch Wakem (Apr 20, 2008)
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U.S. Department of Education’s National Student Loan Data System (NSLDS) – If you are uncertain as to the type of federal student loan you have visit www.nslds.ed.gov/nslds_SA.
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U.S. Department of Education – If you need help in determining which plan is good for you, use the DOE’s interactive calculators at www.ed.gov/offices/OSFAP/DirectLoan/calc.html.
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Student Loan Calculators :
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Budget calculator
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Standard, extended and graduated repayment plan calculator
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Income contingent repayment plan calculator
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Income-based repayment plan calculator
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Direct consolidation loan calculator
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Books – Below are recommended books to combat your student loan debt:
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Bankrupt Your Student Loans: And Other Discharge Strategies
by Chuck Stewart (May 18, 2006)
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Free Yourself from Student Loan Debt: Get Out from Under Once and for All
by Brian O’Connell (May 1, 2004)
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Take Control of Your Student Loan Debt
by Robin Leonard and Deanne Loonin (Aug 2001)
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How to Wipe Out Your Student Loans and Be Debt Free Fast: Everything You Need to Know Explained Simply
by Martha Maeda (Nov 9, 2009)
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Graduation Debt: How to Manage Student Loans and Live Your Life (Cliffsnotes)
by Reyna Gobel (Mar 29, 2010)
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Glossary For Debt Reduction
- Acceleration Clause – A provision in a loan agreement that allows a lender to demand payment in full when the borrower does not meet the terms of the agreement.
- Accrued Interest – Interest that accumulates overtime on a loan that’s owed.
- Annual Percentage Rate (APR) – The credit cost expressed in a yearly rate. The Federal Truth in Lending Act requires that all credit card offers state the APR so that consumers understand the cost of using the credit card and so they can compare rates.
- Balloon Payment – The final payment on a loan that is substantially larger than previous payments.
- Borrower – Person responsible for repaying a loan who has signed and agreed to the terms in the promissory note.
- Cash Advance – Cash obtained from a credit card.
- Capitalization – Adding unpaid interest to the loan principal. Capitalization increases the principal amount of the loan and its total cost.
- Closed-End Credit – A loan that must be repaid by making fixed payments over a specified period of time.
- Collection Agency – A company that collects past-due debt for other companies or individuals. Collection Agencies are normally paid by receiving a percentage of the money they collect for their clients.
- Collateral – Assets used as security for secured debt. If the debt isn’t paid the creditor can take the collateral as payment.
- Cosigner – Someone who signs a loan agreement so if the main borrower doesn’t pay back the loan, the cosigner is equally responsible.
- Credit Agreement – A contractual agreement between a lender and a borrower that details the amount loaned, the interest rate, and terms of payment.
- Default – Failure to repay a loan according to the terms of the promissory note. This failure must persist for 270 days.
- Deferment – A postponement of payment on a loan that is allowed under certain conditions and during which interest does not accrue for subsidized loans.
- Dependent student – A student who does not meet any of the criteria for an independent student (see below).
- Disbursement – A payment of loan money to the student or parent borrower.
- Discharge – The release of a borrower from the obligation to repay his or her loan.
- Direct Loan Program – The William D. Ford Federal Direct Loan Program provides loans to student and parent borrowers directly through the U.S. Department of Education rather than through a bank or other lender.
- Direct Loan Servicing Center – The U.S. Department of Education’s agent contracted to collect Direct Loans and handle deferments, repayment options, and consolidation.
- Direct Subsidized Stafford Loan – A loan for students with financial needs as determined by federal regulations. No interest is charged while you are in school at least half-time, during your grace period, and during deferment periods.
- Direct Unsubsidized Stafford Loan – A student loan that is not based on financial need. Interest is charged during all periods.
- Expected Family Contribution (EFC) – The EFC is a measure of the financial strength of a student’s family. The U.S. Department of Education calculates a student’s EFC based on information provided on the Free Application for Federal Student Aid (FAFSA).
- Forbearance – A postponement of payment on a loan, typically if the borrower doesn’t qualify for a deferment and is unable to make payments for a reason such as poor health. Interest continues to accrue during forbearance.
- Grace period – A six-month period before the first payment must be made on a subsidized or unsubsidized Stafford loan. The grace period begins the day after the borrower ceases to be enrolled at least half the time.
- Independent student – A student who is at least 24 years old, married, a graduate or professional student, a veteran or on active duty in the military for other than training or state purposes, an orphan, a ward of the court, or who has legal dependents other than a spouse.
- Interest – An expense of borrowing money that is calculated as a percentage of the amount borrowed.
- Loan – Money borrowed that must be repaid.
- Loan fee – An expense of borrowing deducted proportionately from each loan disbursement.
- Principal balance – The amount owed on a loan, which includes any capitalized interest.
- Promissory note – A legally binding contract between a lender and a borrower. The promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid.
- Repayment period – The period during which a borrower is obligated to make payments on his or her loan(s).
- Repayment schedule – A statement provided by the Direct Loan Servicing Center to the borrower that lists the amount borrowed, the number of monthly payments, and the date payments are due.
- Variable interest – Rate of interest on a loan that is tied to a stated index and changes annually every July 1 as the index changes.
Financial Calculators For Debt Reduction
When looking to reduce your debt, it’s all about the numbers. You must pay attention to the numbers. The numbers do not lie. Numbers tell the truth. There is no ambiguity with numbers!
If you are looking to pay off your credit card debt, you can use the Credit Card Payoff Calculator to determine how fast you can pay it off. Another good calculator is the Minimum Payment Calculator to determine how long it will take you to pay off your credit card debt if you just pay the minimum. You may be surprised at these numbers! There are other calculators listed below to help you make good financial decisions.