IBR-Income-Based Repayment plan ……a new hope.

July 1st signs an array of new hope to lower your federal student loan payment as IBR (Income-Based Repayment plan) starts from 1st July 2009 now you pay and manage your debt more easily. This plan will help you to safeguard on adjustable-rate mortgages and forgives you from the increase/decrease of interest rate change on your loan amount per year or during the life thus caps your monthly payment forgiving remaining debt and interest after 25 years. If you are employed in a government, nonprofit, private sector or working as a teacher then your federal loans can be forgiven just after 10 years.Must watch this animated video for more explanation, what it is all about and where to look for more information.

Hope this video was helpful .Best of Luck.

National Debt Road Trip......A visualization to know who you are.

The Nation Debt of our country is getting bigger its multiplying like anything trillion has become the billion under Obama administration .No one knows how far it will go and what steps are been taken to stop this increasing national debt .Here is a visualization by looking debt as a road trip and to watch and know how far is Obama’s administration different compared to past presidents that we have seen in history. This video tries to give answers to those questions and to visualize who you are.

Financial Crisis and World Hunger…”hits more then a billion."

The Global financial crisis has forced more then one billion throughout the word to suffer from hunger a record of 100 million increases due to global financial crisis threatening to peace and security coz of war,high food prices ,drought, political instability,poverty according to UN.According to a report based on estimation by the UN’s food and Agricultural Organization (FAO) one in a six people are effected by hunger now. A 100 million more then last year poses a major threat to world peace and security.

The worst affected about 642 million is of the world’s undernourished of Asia-pacific region living in developing countries according to UN.

The next worst affected region is in Sub-saharan Africa about 265 million only 15 million people are of developed word are left hungry.

The main reason behind the increase in the number of hunger was pointed out on increased unemployment and lower income, the UN agency said.

According to spokesman Kostas Stamoulis director of the organization’s development department. It's the first time in human history that we have so many hungry people in the world," in spite of the evidence that most of the countries are developed and richer then before despite of the economic crisis.

We all are aware of the situation and we urgently need to take action bringing your helping hand together not only with monetary but also with love and care to come of this situation and save people starving from hunger and bring peace and harmony to this beautiful world.

Student Loans

Student loans are the loans offered by the Government of the country to help students continue with their education and pay their student loans.

Student loans this way student loans not just help the student but also their family.

Many Universities and colleges offer student loans. Basically there are two types of loans: Federal loans and Private Educational Loans.

The students opting for Federal Students loan program are funded and administered initially through the US Department of Education’s Federal Student Aid Programs. These loans are the easiest to get student loan consolidation services. The Federal student loan programs disburse about $60 billion a year. Stafford loans are the most common form of federal loans for students.

Private student loans are administered by standard lending institutions. The most commonly opted loans in this are Sallie Mae Signature and the Citibank student loan. These organizations provide unsecured loans to a student and charge hefty interest on it.

A student can combine the private and the federal loans to gather funds for his further studies. However a student should bear in mind that these two loans should not be combined or consolidated. He should consolidate his federal loans first and then separately consolidate privately the student loan debt.

Student loan consolidation refers to building all your student loans into a single loan with one lender and one repayment plan. You can plan to consolidate your loan like refinancing a home mortgage. The time you consolidate your loan, the balances of your other current loans are paid off, with the total balance playing over into one consolidated loan. However at the end you will be left with just one student loan to pay off. The student loan can be consolidated by the student as well as his family i.e. parents.

There are several benefits of consolidating a student loan. For instance loan consolidation offers lower monthly payments, combining of your student loan payments into just a single monthly bill and the lock or the stoppage loan consolidation puts in a fixed, usually lower, interest rate for the term of your loan thereby saving thousands of dollars as per the interest rates of your original loan.

Moreover there are no fees, charges and other prepayment penalties after the loan is consolidated. The consolidated loan offers flexible repayment options. The loan consolidation can be done without any credit checks or co-signers.

The interest rate of your consolidated loan is calculated by averaging the interest rate of all the loans that are consolidated. The figure that so appears is rounded up to the next one-eighth of one percent and so the maximum interest rate comes out to be 8.25 percent.

Loan consolidation is a wonderful option if this lowers the interest rate of your current loans especially at the time you are confronting problems in making monthly payments. But if your current loan is about to end, consolidation is just not a wise idea.

The U.S. Job market ….is this the path towards recovery or the worst is still to happen?

After the Job loss of 345.000 in the month of May much better then since last few months the U.S. job market is on his way to recovery .The pace of job loss is declined since September compared to March and September."The bad news is getting less bad ", says Nariman Behravesh chief economist at IHS Global Insight.

According to the Economist, latest data and the improving trend in jobless shows that the job market is close to a bottom and the pace of job loss is improving. But there is some bad news also the unemployment rate was the highest in 25 years in the month of may 9.4% much more then expected and it may exceed to 10% by the end of the year according to “Behravesh” .Let's hear from him ..

Retire Debt free…..few tips to retire debt free

It's not very long time when Americans used to retire debt free but now things are totally opposite to it more and more Americans are retiring with the burden of debt on mortgages credit-card debt, home-equity lines of credit, auto loans and many more.

Before the great recession of 2008-2009 things were quite well and debt was not at all a huge problem but nowadays it has become a major problem for the Americans citizens. Recent report from surveys of financial values and debt shows that one in few 22% boomers owe at least $50.000 in non-mortgage debt in 2009 and nearly 4 in 10 baby boomers had non mortgage debt of $25,000 in 2009 and their parents with debt of $25.000 and the main reason for this is the recent trend of extraordinary expense for lucrative living basically among the youngsters. However the great recession of 2008-2009 and the economy crisis have brought a lot of change in many boomers and they are saving their money for future and utilizing for good purpose only.

So from now onwards every Americans should make a goal to retire debt free even mortgage free and they should start from today.

Here are some tips that will help you to make you retire debt free:

1.Set up a plan and work on it-Every Americans from now onwards should make a habit of savings for future you need to change way of living.(change in the way of living in the sense change in your lucrative lifestyle) keep a check on your finance and spend according to your financial strength.

2.Paying down debt Vs Saving for retirement-Different experts have different opinion on this some says pay off your debt then start saving and some to do both at the same time, my suggestion is that have a look at your financial strength and go for both at a time. Yeah it might be painful sometime coz you need to do a lot of sacrifice for this cut off your extra lucrative expenses. But you need to do this for a debt free retirement.

3.Avoid borrowing from your 401(k) to pay down your debt-Sometime it sounds great to pay off your debt borrowing from your 401(k) plan when you are suffering from the burden of debt. But sometime it may create more problem as because you have to pay off the loan amount within 60 days of leaving your employer.

4.Try to work longer-If you are in debt especially non-mortgage debt and you are planning to retire then don’t do that because doing that you will be in trouble so try to eliminate your debt while you are working. Work for full time or part time to eliminate your debt and retire to live a debt free life in your old age.

So make a goal to retire debt free and enjoy a stress free life with your family members in your old age.

A step towards debt free retirement

Bankruptcy Myths

Bankruptcy is a four letter word for many people and many are not aware of the truths and have misconception about bankruptcy, but if you in debt it can be a very good option to regain your financial strength. And if you want to know what exactly Bankruptcy is all about you must watch this video.