Free Checking Account

Free Checking Account

By Evie Phan

Free checking account can stand out as a huge benefit for those looking for a place to store their money, but there are also some aspects of these accounts that can be a little less appealing.

The Pros

- Checks are free. Probably one of the most obvious perks of free checking is the fact that you don't have to pay a dime to write checks once you open an account.

- Low minimum amount to start. Typically, with free checking, you can open an account with as little as $50. Again, this is great for the young person who wants to build up credit but doesn't have much up-front money to do so.

- Free debit card. When you open an account with most financial institutions, they will give you a free debit card to easily pull your money out of the ATM or at a store utilizing penalty-free cash back withdrawals.

The Cons

- Monthly automatic activity often required. One way that financial institutions make sure that they benefit from offering you free checking is by becoming actively involved with your money. If you don't participate, either you can't open the account, or fees will magically appear.

- High overdraft charges may take your money. When you open an account like this, it is likely that you will pay royally for falling below the generous minimum $0 balance. Some fees can be as high as $25 per overdraft with an additional $5 charge each day that your balance in the negative.

Aside from CD accounts, the latest financial accounts available are high-interest checking accounts. Deciding to open a high-interest checking account is a decision some are making in order to earn money while they're parking their money. There are some definite perks attached to opening this type of account.

The Basics

A high-interest checking account offers individuals who may not have money to invest an opportunity to make gains on the cash they're keeping in the bank.

Some of these stipulations might include:

• A high minimum balance. To avoid being hit with monthly penalties, you will likely have to maintain a minimum balance somewhere in the ballpark of $3,000.

• Higher balance earns higher interest rate. Again, this may not appeal to some because they may not bring in the returns they'd hoped for unless they leave several thousand in the bank - even then, the returns may not be appealing compared to those found in other forms of investment.

But despite the fact that there are some caveats associated with the high-interest checking account, there are also some perks to take advantage of.

The Perks

If you open a standard free checking account, you're likely not going to have a chance to make a buck. Another great perk is that most financial institutions reward those customers who are willing to let them "borrow" some money through the high-interest checking account.

Federal Consolidation Loan

Federal Consolidation Loan

By Ricky Lim

The federal consolidation loan program will consolidate together all the loans of the student into a single student consolidation loan and reduce the hassle of payment to multiple lenders.

Learn More About Federal Consolidation Student Loan

The support of the federal government permits a student to extend his terms of payment. In case an individual has indebted Stafford loans, he or she has a variable rate of interest, which is adjusted annually.

There are several financial institutions providing federal consolidation loan and the student can simply choose the best among them. Sallie Mae, one of the government institutions, claims to make available the best rates possible for student loans. If the rates of the loans of a student are variable and he has completed his graduation, the grace period granted for consolidation is six months.

Like each loan option, the federal consolidation loan does have a drawback. The repayment of federal government student loan consolidation can be of two types - income repayment and graduated repayment. That is to say, repayment is increased with the increase in income.

In the US, there are two types of student loan categories available: the federal student loans and the private student loans.

The federal student loan consolidation will help a student combine all his loans into a single one with a very low interest rate. A student can ask for a federal consolidation loan from various financial institutions each offering great loan packages.

Even so the federal consolidation loan offer the following beneficial features:

- Interest rate - the rates offered by the federal consolidation loan is considerably lower than any other private loan plan.

- Monthly payments - the monthly payments are now affordable and won't endanger your budget

- Single loan - each month you'll have only one payment to make.

If a student is not enrolled in any school and has repaid any other previous loans in time or he is in grace period after post graduation then he is eligible for federal consolidation loans.

The students that already have federal educational loans are eligible also for consolidation loans. The student debt consolidation loan doesn't include the private education loans. If the student does that, he'll only lose its advantages offered by a federal consolidation loan.

School Consolidation Loan

School Consolidation Loan

By Shellaine Enfesta

Because of students that are having trouble with their school financial obligations, debt consolidation companies came into existence. They serve as medium or an option on how to deal with the student’s woes. For most students, they resort to these programs of repaying their financial obligations.

To start, make a list of all your loans, the names of your lenders, the interest rates on each of you loans and debts, the amounts you owe on each of those debts and loans, and the amounts of your monthly payments on each of you loans.

By now you should be able to determine if what you are currently making (income) can meet your monthly payments. If not, there are other options. Like, get another job, a part time job to augment your finances. A school consolidation loan can be easily obtained. But, always shop around for the best- meaning, which program that can reduce your monthly payment and also reduce your interest rate.

The best school consolidation loan is the one that is from the federal government programs. To name a few, Direct Consolidation Loan, which I think, is the best. So try going through the Federal Consolidation Loan Program.

You can also make your application online.

There are also a lot of lenders that provide discounted rate if you sign up for their electronic payment program and make a consistent on time payments for some period of time that will specify.

Some programs grants some immediate payment relief if you ask for deferment or forbearance.
To lessen your burden and to simplify your debts and school loans, and get it more manageable, take a school consolidation loan.

Understanding and discovering if school consolidation loan is good for your student debts is one of those most sought after idea if you are better off or not with it. There are really two types of student loans, federal and private.

It's important to note that school consolidation loan, technically speaking, does not reduce your debt in and of itself. All you need is a new loan where you can put all your debts into one single monthly payment.

Over time, your improved score will give you access to a number of more favorable loan options. The interest rate you will get on these loans is higher than home equity loans but a lot better than credit card APRs (Annual Percentage Rates). It is important to shop around for your loan.

Calculate the monthly payments, interest and charges on your existing debt accounts. You may also need it when applying for school consolidation loan.

It depends upon the financial institution that offers the loan. Getting school consolidation loan for all your student debts may be a good option especially if you are really in bad shape financially. The options for students who consider consolidating debt loans abound. Consolidate debt loans thru the U.S. Department of Education program would be the best option. Direct Consolidation Loans allow borrowers to combine one or more of their Federal education loans into a new loan that offers several advantages.

Borrowers have only one lender, the U.S. Department of Education, for all loans included in a Direct Consolidation Loan.

Flexible Repayment Options: Borrowers can choose from four different plans to repay your direct consolidation loans, including an Income Contingent Repayment Plan. With a Direct Consolidation Loan, borrowers can switch repayment plans at anytime.

Standard Repayment Plan: You will pay a fixed amount each month until your loan(s) are paid in full. Graduated Repayment Plan: Your minimum payment amount will be at least equal to the amount of interest accrued monthly.

Extended Repayment Plan: To be eligible, your Direct Loan balance must be greater than $30,000 and you will have up to twenty-five year to repay your loan(s). You have two payment options:

Fixed Monthly Payment Option -You will pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50. Graduated Monthly Payment Option - Your minimum payment amount will be at least $50 or the amount of interest accrued monthly, whichever is greater.

Income Contingent Repayment Plan (ICR): Monthly payments that are based on a borrowers annual income, Direct Loan balance and family size, and are spread over a term of up to 25 years.

No Minimum or Maximum Loan Amounts or Fees: There is no minimum amount required to qualify for a Direct Consolidation Loan! In addition, consolidation is free.

Varied Deferment Options: Borrowers with Direct Consolidation Loans may qualify for renewed deferment benefits. If borrowers have exhausted the deferment options on their current Federal education loans, a Direct Consolidation Loan may renew many of those deferment options.

The minimum monthly payment on a Direct Consolidation Loan may be lower than the combined payments charged on a borrower's Federal education loans.

Borrowers retain their subsidy benefits on loans that are consolidated into the subsidized portion of a Direct Consolidation Loan. Now you can say you are well informed and thus make an informed decision when you do consolidate debt loans.