June 17th, 2014
For many college graduates, commencement is not only a time to reflect on all of their hard work over the past four years, but also a reminder that reality is waiting on the other side of the stage. In addition to the threat of a weak job market where 44 percent of recent graduates work in positions that don’t require a college degree, this reality includes the burden of student loans.
What’s going on?
Currently, the average college student graduates with well over $27,000 in student loans. This average represents an increase of 70 percent between 2004 and 2012. Student loan debt is the second highest type of nationwide debt According to the most recent Credit Karma data, consumers on average have over $29,000 in student loan debt – and that includes consumers well over the age of the typical recent graduate.*
As if that wasn’t bad enough, a recent study reveals that these numbers could possibly be impeding the American economy. Historically, more educated, often higher-earning consumers were more likely to purchase homes by the age of 30. But in the past few years, the number of 30-year-olds with mortgages has plummeted from 30 percent to 22 percent. In 2012, 30-year-olds without student loan debt were more likely to have a mortgage than people in the same age bracket who did have student loan debt. The same trend held true for vehicle purchases. In theory, this shouldn’t be the case since college graduates supposedly have a chance at higher wages and better jobs.
June 13th, 2014
Lenders aren’t exactly giving jumbo loans away, but they’re certainly making it easier for borrowers to snag one. In an effort to pick up the pace of their loan growth, more banks are offering jumbo loans to borrowers who can make up for poorer credit scores and unproven income with other assets like investment accounts and stock grants.
June 11th, 2014
In 2010, President Obama made it evident that the country’s student debt dilemma was going to be at the forefront of his agenda. That year’s Health Care and Education Reconciliation Act capped repayments for new student loans at 10% of the borrowers’ monthly income, providing momentary debt relief for distressed borrowers.
June 6th, 2014
For the first time since the housing crisis, consumers are now more likely to miss payments on their credit cards than their mortgage.
December 9th, 2013
Being stuck with credit card debt can feel like an unending cycle. Whether poor spending decisions, a job loss, or a medical emergency got you to this point, the time to get out of debt is now. Solving your financial problems won't be easy work, but fortunately there are plenty of simple ways to generate extra cash from home that can help you climb out from under those balances. Read on for some ways to eliminate your debt as quickly as possible.
November 27th, 2013
The holidays can decimate your finances if you’re not careful, which is why it makes sense to be prepared. There are numerous ways to prevent debt during the holiday season, but the one factor all of these tactics have in common is that they require planning and forethought. If you want to save your wallet later on, clear your schedule and mentally prepare yourself for the holiday season.
October 28th, 2013
Paying off credit card debt is one of the best things you can do for your finances and your future. Unfortunately, it is also hard work! Here are 5 tricks to help you tackle your credit card debt and pay it off even faster.
October 26th, 2013
At Credit Karma, we love sharing numbers and helpful financial tips... so we decided to combine them both! In this week’s infographic, we look at how Credit Karma members are doing when it comes to paying off student loan debt. Scroll down to see the data and some payment strategies.
October 7th, 2013
Reducing debt rewards the steady, but there are also things we can do to get to our destinations more quickly. From cutting small expenses to going on a spending diet to forming a support group, here are some tips to help you speed along the way to financial freedom.
September 23rd, 2013
For most people, student loans represent their first encounter with the world of credit and finance. They can open a world of opportunity to young people who might otherwise not be able to pay to continue their education. More than 60% of American students (that’s almost 12 million in total) will borrow money annually to help pay for college. It’s likely that this is where you’ll begin to build your credit score: a little number with huge consequences. It can be intimidating, but there’s really no reason to stress out. Staying in control of your student debt is easier than it sounds. When dealing with loans, you should:
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