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Debt’s a lot like the smoke monster from Lost. If you neglect it, it’ll grab you by the legs and shake you down like a Polaroid picture. Well, we’re here to help you “get off the island,” and contrary to popular belief it doesn’t have to be as complicated as the plot from “Lost.”

Borrowing Money After College

By Rachel Solomon
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Quick Tips

  1. Say no to credit cards – When at all possible, avoid using credit cards as a line of credit (of course, buying stuff is fine if you can pay off the balance each month). The interest that you have to pay on most cards is about what you’d expect if you borrowed money from the Mob.
  2. Suitable borrowing options – While we don’t recommend carrying debt on credit cards, lines of credit from a bank such as Wells Fargo and Commerce are a good alternative. P2P lending sites like Prosper.com and LendingClub are another option. And for loans on cars, businesses, and other big-ticket items, check out traditional bank loans.
  3. Help from the ‘rents – Don’t be ashamed to ask your family to bail you out when you’re in a jam. No other source will be as generous with terms. Just be sure to follow the IRS family lending guidelines.
  4. Maintain your credit – An important element of borrowing money is ensuring that you have good credit. Get a free credit report at from Equifax, Experian, or TransUnion. Then, learn how to build your credit so that you’ll be able to get that mortgage down the line.
  5. Start saving – The easiest way to stop borrowing is to begin saving. Get into the habit of putting even a small sum of your paycheck into some type of savings account or investment portfolio every month. Learn more about the power of investing and let your money work for you.

Many students form addictions in college, and I had a bad one. Everyone around me was doing it too; it was so easy. So accessible. I started to want it more, to need it. I’d get one supply and run through it in a night, leaving me begging for another dose the next day

Save Time with the Gradspot Guru Service

By Gradspot Dot Com
8/29/08
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AVAILABLE FOR NYC TODAY (and expanding to other cities soon)!

Ever wish you had a sage sidekick who could answer all your questions about student debt and healthcare? Or a trusty personal assistant to set up your bank account and switch your cell phone provider? Sometimes the most essential things in your life are the most annoying to deal with…so why not let us take care of them for you

Understanding the Subprime Mortgage Crisis

By Christopher Schonberger
3/01/08
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In the past year, the subprime mortgage crisis has received a healthy share of the media’s attention, especially since the dreaded “R word” (i.e., recession) has begun to rear its ugly head. But if you’re not a finance type (or even if you are), you’d be forgiven for not fully understanding what subprime lending is and

Understanding Loans and Debt

By Stuart Schultz
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Remember Economics 101? Of course you don't! But in order to make smart decisions about how to handle those loan repayments, it's important to understand how your debt works (if you actually do remember Econ, skip to the next section).

Student Debt Overview

By Rachel Solomon
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Quick Tips

  1. Generation Debt – In 2007, 42% of college graduates left school with over $25,000 in student loans to pay off, while another 33 percent have a credit card
    balance of more than $5,000. You are not alone.
  2. See where you stand – Before you can do anything about your debt, you need to know how much you have. Check in with the National Student Loan Data System, and then follow up with each individual lender.
  3. Take advantage of your grace period – There is a six-month period when your lenders give you a reprieve from paying back any debt. Don’t let this time pass without confronting your debt situation.
  4. Avoid credit cards – Transferring your loans to a credit card is extremely risky. You will suffer from uncompetitive interest rates and risk decimating your credit.
  5. Know your options – Even if you have a vague plan of action, it’s worth reading through all of our articles on debt to ensure that you make the best choice. The more you know…

We all have those sobering slaps to the face when starting our post-grad lives, and I can still feel the sting of my first. It occurred when I nonchalantly opened a letter from a beloved little bank I’ll call "Broken Noses Consolidated." It read, in so many words

Student Debt Consolidation

By Rachel Solomon
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Quick Tips

  1. The pros – Check it: consolidation combines all of your separate student loans into one streamlined loan, fixes the interest rate, reduces the risk of late payments, and can stretch out the repayment schedule (thereby reducing your monthly payments).
  2. The cons – By stretching out the life of your loan, you end up paying more interest than you would have on the original schedule. How much more? Sometimes up to three times as much!
  3. Holler at Uncle Sam – If you have federal loans (e.g., Stafford, PLUS), you’ll want to explore what type of consolidation plans you can find through the government. The credit crunch has tightened up the consolidation market, so this is where you’re most likely to get the best interest rates.
  4. Pick a payment plan – There are a number of options for payment schedules, so take some time to figure out how money you have and how much you plan to make in both the short term and long term.
  5. Got private loans? – Check out our article on private debt consolidation.

According to MonsterTrak’s Annual Entry-Level Job Outlook, almost half of the 2007 graduating class had $25,000+ in student loans when they left school. There's no way to sugar-coat it: that's a pretty harsh "welcome into the real world" moment, and it helps explains why more and more reason grads are opting to shack up with mom and dad so they can save up money and pay off their debts.

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