Higher Education One Of Victims of Bad Economy

It has long been apparent that higher education has a direct correlation with what a person can expect to earn during his or her lifetime. But there is growing concern that the high cost of higher education may be nudging some young people out of the matrix. With the amount of their tuition checks constantly rising, the number of students borrowing to pay their college costs has doubled in the past decade, the College Board reports. The average cost of one-year tuition at a public four-year college is now $20,000, and at private non-profit schools, the average jumps to $35,000. Those numbers are lending themselves to a groundswell of discontent among young students who say they are being priced out of the prospects for the higher education they need to compete in today’s world.

One group of students recently expressed their concerns in a demonstration at New York University’s Washington Square. The group characterized themselves as “Casualties of Debt.” and their objective was to foster more understanding of their situation. Among the figures they tossed up for review: The amount of outstanding student loans in America surpassed credit card debt for the first time in August 2012. The indebtedness inevitably eats into the prospects of the better earning power they are trying to build, they complained. NYU, incidentally, leads the nation in student debt at $659 million and growing.

College tuition continued to rise even when other industries were cutting prices to accommodate a sluggish economy. During the 2008-09 school year, in-state tuition at public schools rose by 6.4 percent, while out-of-state tuition jumped by 5.2 percent. At private four-year universities the increase was 5.9 percent. College graduates are leaving school with major debt and, at this point in time, at least, moving into a depressed job market plagued by high unemployment, making the promise of increased earning power just empty promises for many of the graduates.

The New York demonstration, which was supported by MTV personality and filmmaker Andrew Jenks, may have had minimal impact, but it is an indicator of unrest among students and among those who would like to be students, but whose current personal finances don’t allow them to pursue the education that they are convinced would enhance their future earning power.

Depression Caused by Debt

Many experts say that getting depressed over mounting debt is normal. For many individuals just the thought of not being able to overcome their debt can trigger major psychological problems. Generally, the depression is just a phase, as the debt loan lightens, so does the depression. However, for others, the depression can lead them down a dark and tragic road, ending in suicide or thoughts of suicide.

It is critical for anyone that has had thoughts of hurting themselves or others to seek out the care of a doctor or mental health care professional. They will be able to offer a proper diagnosis and help develop a care treatment plan. In conjunction with a doctor’s care, it is also important to get to the root of the problem. If the root of your depression is seemingly insurmountable debt, a debt relief counselor can help assess your situation.

A debt counselor can offer just as much help in lifting depression as a doctor or psychologist can if debt is your main source of stress. They will take note of your financial crisis, develop a plan of action to start managing your debt and a budget that will help you avoid new debt and financial pitfalls in the future.

Financial stress can, at times, feel unbearable. Whether you are stuck in a cycle of late payments, growing credit card debt or you unexpectedly lose a source of income, it can negatively impact all aspects of your life. This allows depression to take hold as you feel a distinct lack of control over your situation.

The brain does not always think logically during a depressive phase and debt that can be successfully managed looks like a never ending battle. Some people feel they cannot face a battle that seems like it offers no way out. That is why it is so critical to seek outside help if you or someone you love exhibit any signs or symptoms of depression.

Seeing outside help through a debt relief counselor is one of the best things you can do for yourself. Many times, just the act of asking for help can make you feel more in control of your situation and lighten the dark cloud hanging over you. A debt counselor can help you determine the best course of action to begin paying down your debt and recognize any areas that you may be able to save money in order to maintain you living within your means.

Being in debt can feel like a heavy burden around your neck, but there is help out there and often it is just a phone call away. You do not have to wait to hit rock bottom before seeking help. Debt should not be a source of depression or anxiety, but an opportunity to better your situation by taking control over your finances once and for all.

You can tackle your personal finances by first recognizing that it is a problem beyond your means and acknowledging you need help. Climbing out from under deep debt is not easy and it does take commitment and some sacrifice, but you will be better off accepting that and deciding you are willing to fight rather than give up because of money problems. There are solutions out there that will work for you.

Guest post by Suzan Bekiroglu

Budget is Not a Dirty Word

The word “budget” may seem like a dirty word, but during these trying economic times, it can be your life line. If you think “it can’t happen to me”, look around you; national unemployment is hovering around 9.5%. Unless you are self-employed, you have no idea what lies around the corner.

Sadly, the great majority of us have never had to budget our money. Our parents and grandparents grew up when times were lean, living within their means, on a budget, which became a habit. But, those of us born after 1945 have grown up in the land of plenty, quite accustomed to instant gratification. A budget can be a hard pill to swallow.

Do you live paycheck to paycheck? Do you “do without” as a result? Do you regularly bounce your account? If you answered yes to any of these questions, a budget will be your salvation.

The first step in planning a budget is to gather the family. Write down every possible, itty-bitty expenditure. You can transfer it to a computer spread sheet later, though many people prefer to use an inexpensive accounting journal; writing it in longhand seems to get their creative financial juices flowing.

Sort your expenses from the largest to the smallest, then focus your attention on ways to reduce your largest. If you can refinance your home, you may be able get enough to pay off your vehicle, which may enable you to put money into a savings account, a tax-free IRA or to pay off your high interest credit card debt. The end should always justify the means, so consider this carefully.

Now, look at your credit card debt and commit to becoming “plastic free”. You will want to save one or two cards for emergencies, but these should be cards you’ve held the longest and should be paid off along with the rest. You may even want to cancel the cards you don’t plant to keep, insuring you can’t add to your debt. Also cancel that costly “insurance” you have on each card. That money would be put to better use by applying it towards the balance.

Just start with the largest balance and start budgeting extra money to pay on that card. Do this faithfully. Once you have paid off one card, take that money and put it towards the next, plus what you’ve already been paying, then do it for the next and the next…. It may take some time, but time flies when you’re having fun! The satisfaction of paying off each card will be incredible.

Consider online bill pay to save on stamps, envelopes, pens, checks and time. Stamps and stuff add up, while your time is incalculable; add the cost of your morning latte at $3.50 ($910.00 annually) and the family dinner out 3 times a week (upwards of $4992.00 a year for a family of 4). If you start looking at the receipts for the last month or two, you can identify a lot of frivolous spending that can be cut or reduced.

Allocate money to savings and treat your savings account just like any other bill. You can’t take the money back that you’ve paid on your electric bill, right? Treat your savings much the same and include long-term goals like retirement, college and inevitable high dollar household needs in your annual budget.

No, it won’t be easy, but it will ultimately be extremely satisfying. Try it, just for a few months, and see how much better you feel. It really helps to know exactly where your money is going and as you save, having that financial cushion will be absolutely priceless. Budget is not a 4-letter word; it is a 6-letter word, just as “relief” or “comfort” is.

Getting Out of Debt Stories

Getting out of debt is a struggle for some people. Here are some good stories around the net that can inspire you. Enjoy!

• Building A Lean-To On The Side Of The Shed – Last year, before we moved into our new house, I bought a shed. I really like the shed. It’s nice and big and has plenty of space for all of my tools. I just have one problem -. I also have a lawn mower. …
• Reliability – Is It Just A Feeling? – I have a Saturn. A 2001 Saturn L300 that we bought used in 2004, to be exact. The Saturn is completely paid off. And there ends my list of nice things I have to say about it. Those who have been long-time readers of the blog know that …
• My Get Out Of Debt Success Story – $70000 In Four Years :The Happy … – My Get Out Of Debt Success Story – $70000 In Four Years. Posted by The Happy Rock on May 15, 2007.  The title of the site mentions gaining freedom through personal finance, so it is about time that I share some of our …
• What does getting out of debt “buy” you? :The Happy Rock – What does getting out of debt “buy” you? Posted by The Happy Rock on May 16, 2007. freedom.jpg So we battled for three years to get rid of our $70000 dollars in debt….so what! Here are the benefits that being debt free(besides the …
• comment on 15 ways to establish and improve your credit history … – […] diligence, you can protect your credit rating from adverse affects due to errors, but it is up to you to make sure that they are taken care of […]
• Pay Off Credit Card Debt – Despite unemployment, my husband and I managed to pay off our credit card debt completely.
• DIY Debt Consolidation Options – The quickest way to get out of debt is to never get into debt in the first place. The next quickest way to get out of debt is to throw as much money as possible at your loans until they are gone. Unfortunately, that may not be quick …
• 10 Ways to Pay Your Debt Off Faster – 10 tips to pay your debt down faster and use your money for better things – like growing wealth!
• 5 Key Strategies For Getting Out Of Debt The Happy Rock – Being debt free has been more amazing than I thought, and I want others to be able to share in a similar joy. For those who are trying to get out of debt or entertaining the thought, here is some ammunition. Find Your Passion Finding your passion is my number tip for anything that requires a large amount of energy and commitment.
• If You’re Going to Consolidate Debt Then You Have to Stop Using Credit – When it comes to paying off debt there’s one useful tool that can not only simplify your finances but also reduce the amount of interest you pay. Debt.
• Build an Emergency Fund, Pay Off Debt, or Save for Retirement … – Should You Save for Retirement or Build Up Savings? And What About Debt? What does building up an emergency fund, paying off debt, and saving for retirement.

Feel free to add your debt story here.

How People Get Into a Spiral of Credit Card Debt

Credit cards were actually introduced to help people make payment without carrying a lot of cash. The benefits of credit cards are many and people have always been using these cards in different situations to deal with their needs. But, today, it seems like credit cards are loaded with booby-traps and suck people into a spiral of card debt.

There are lots of reasons why credit card debt is really becoming a big problem. The biggest reason is that housing prices are down and people are not interested in home equity loans. It is due to this particular reason that plastic has again become a favorite option for many business persons. They get credit cards, use it irrationally, and find them debt.

The next big reason is the fact that people can not resist the temptation of getting a credit card all adorned with special offers. For instance, people now just love to get a new and shiny business card, airline miles, zero percent interest and discounts on rent-a-cars. Apparently it feels like this card is going to give them a lot, but things always work in a different way. These offers are only used to trap careless borrowers who think there is no better way to get discounts that using a specific credit card. But, they often forget that these credit cards come with very high fees, which is to compensate for lower interest.

That’s exactly another reason behind the fact that more people are now in credit card debt. Since people are no longer interested in high-rate credit cards, companies have to charge a lower interest rate. But, they make up for this lower interest rate by charging higher fees. In fact, it is found that more than 10% of lender’s revenues come from penalties. Late fees, for instance, are extremely high, which are now more than $33.64. When people get one such credit card where interest is low and penalties are high, they often end up getting into card debt. It is so because many people sometimes find it hard to make timely payment, and that’s the point when they start creating problems for them.

These are few of the most important reasons why people get into debt. But, they can always find a solution to deal with this problem. For instance, consolidation is a great solution to these types of problems. Although people consolidate credit card bills when interest is high, you can still make use of it to avoid facing high late fees. So, just connect to the internet to find a right site and consult with a professional to see what you can do to get out of debt fast.

Consolidate-bills.com is a place to visit by those who want to consolidate credit card debt to live a debt-free life. This site is offers a quick way of consolidation and allows you toget out of debt fast. So, check it out and see how you can get rid of your card debt.

By Adam Peter

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