Friday, July 25, 2014

How To Quickly Pay Off Student Loans


There’s no doubt about it—law school grads today are feeling the student loan squeeze.
A recent New America study showed that the average law student leaves school with more than $140,000 in loans, the second highest debt burden behind medical degrees.  That’s up 63% from just 10 years ago, and translates to a typical monthly payment of $1,611 (at a 10-year term and 6.8% interest rate).  Not an easy load to bear for a decade or sometimes more.
Want to be done with your loans sooner?  It’s not only possible, but easier than you think.  There are two main drivers that accelerate student loan payoff: prepaying, or paying more than the minimum amount required, and reducing interest rate.  Here are three simple ways to do both of those things—minimal effort required:

Sign up for automatic billing

If you haven’t already switched from manual to automatic (ACH) payments, this is the first easy way to give yourself a break.  Not only does it save you time and hassle, but most lenders offer a small interest rate discount (usually 0.25%) for doing so.  That may not sound like much, but every little bit counts when it comes to saving money and speeding up loan repayment.
For a borrower with $140,000 in loans at a 6.8% interest rate and 10-year term, a 0.25% reduction in interest rate would lower monthly payments by $17.89 and save $2,146 in interest over the life of the loan.  And if you get the interest rate break but keep your payments the same (in other words, prepay an extra $17.89 each month), you’ll be done with your loans a full month sooner.
How could ACH accelerate your loan repayment?  You can do the math on your own loans here.

 Pay bi-weekly

This is a commonly used mortgage strategy, but it works just as well for student loans.  Matching up payments with your paycheck makes it easier to increase the amount slightly without noticing the money is gone, plus bi-weekly payments add up to an extra month of payments each year.
In the case of our $140K/6.8%/10-year borrower, switching from one monthly payment of $1,611 to bi-weekly payments of $805 would not only save more than $6,600 in interest, but it would also eliminate the debt in less than nine years.  Just think what an extra $25 per payment could do.
Most of the bi-weekly loan calculators out there are mortgage-specific, but they work great for student loans, too.  Here’s one to try.

Consider refinancing

One of the best ways to be done with student loans sooner (and save a bunch of money in the process) is to lower your interest rate by refinancing.  Many law school grads become eligible for this option within a few years of graduating, when they’re steadily employed and their financial situation has improved.  Not only does refinancing slash interest, it can also reduce your monthly payments or shorten the amount of time it takes to pay off the loan—you decide what’s more important to you.
If our $140K/6.8%/10-year borrower is able to reduce interest rate by just one percentage point—to 5.8%—he could keep the same term, lower monthly payments by $71 and save $8,500 in interest over the life of the loan.  Or he could reduce the term to five years, pay an extra $1,000 per month and save a whopping $31,000 in interest—plus, be done with loans 5 years ahead of schedule.

Thursday, July 24, 2014

This Is What Happens When Insurance Is Made Mandatory


FROM GEICO

Thank you for contacting GEICO for a rate quote.

The price we are quoting you is based in part on information provided to us by the consumer reporting agency listed below.

We are sending you this notice, as required by the Fair Credit Reporting Act, because you received a higher price based on your credit information. However, you may contact us for additional consideration if the credit information used is a result of an extraordinary life circumstance.

The consumer reporting agency provided the following description of the credit factors that had the most influence on the price we quoted you:

-Too many inquiries in past 24 months (-)

-Insufficient number of bank revolving accounts updated in past 12 months (-)

-Insufficient time since oldest finance installment loan established, excluding auto and mortgage loans (-)

-Credit history is too short (-)


Please note that the consumer-reporting agency did not participate in our adverse decision. They are unable to provide you with specific reasons for our decision.

You have the right to obtain a free copy of your credit report from the consumer-reporting agency, whose address is listed below, if your request is made within 60 days of receiving this notice. You also have the right to dispute the accuracy or completeness of any information in the report by contacting the consumer-reporting agency at the address below. If we receive notice that inaccurate or missing information in your credit report has been corrected, we will re-rate your policy.



Trans Union
PO Box 2000
Chester, PA 19022-2000
1-800-645-1938 - To order a Report
1-800-916-8800 - For Dispute



Still have questions? Visit GEICO's Credit Use FAQ page.

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This email was sent to you at the following email address: kakembo11@yahoo.com

For customer service, questions or feedback, please contact us.

Mailing address: One GEICO Plaza, Washington, D.C. 20076

Message ID: GE000006

Version Number: 498438690

GEICO General Insurance Company,



FROM CUSTOMER

This is Bs. why are you evening sending this?


From GEICO 

Dear Customer,

Thank you for your email, we would be happy to clarify the notice that you have received.

The notice you received does not affect your rate, and does not mean that your rate has increased. The Fair Credit Reporting Act mandates the notice. The rate you were quoted still stands. In certain cases, the notice means that the rate may have been lower had your credit report been more favorable.

If you have any further questions, please feel free to call us at 1-800-841-5660. Our insurance counselors are available 24 hours a day, 7 days a week to assist you.


Sincerely,

Anthony Dicioccio
GEICO Internet Team


From Customer

What does my credit score has to do with insurance? You people are trying to tie people with your insurance. Credit score has nothing to do with insurance. People will challenge this in courts of law. 


From GEICO

Dear customer,
 
Thank you for your email.
 
Like many property and casualty insurers, GEICO Direct uses credit information as part of our underwriting process. We use this data because of its statistical correlation with future losses. Using this information, along with our other underwriting criteria, allows us to keep our rates competitive. The Fair Credit Reporting Act specifically gives insurers permissible purpose to obtain credit data when used for underwriting. When you originally requested your rate quote, we obtained a credit score and identifying information from Trans Union. However, our system does not utilize your complete credit report.
 
Our insurance inquiry on your credit report should not impede your ability to obtain credit. All credit-scoring models (whether for insurance or obtaining credit) used at Trans Union do not take into consideration insurance inquiries. Anyone reviewing your credit report will be able to identify our inquiry as an insurance inquiry since it is marked as such. Most financial underwriters and loan officers are familiar with the widespread use of credit data by insurance companies. If you were to ever have difficulty obtaining credit as a result of our inquiry, we can provide a letter stating that it was for the purpose of obtaining insurance and not for the purpose of obtaining credit.
 
If you have further questions, please feel free to call us at 1-800-841-5660. Our insurance counselors are available 24 hours a day, 7 days a week to assist you.
 
 
Sincerely,
 
Anthony Dicioccio
GEICO Internet Team
 
 

Wednesday, July 9, 2014

What can western countries do?


According to the Observer a newspaper in Uganda, an employee who works at State house Uganda (For dictator #Museveni) earns more money than the president of United States. For example, Anne Babinaga an employee at this Uganda State House earns 460,800 U.S dollars. More still, he or she earns more money than any U.S government employee. All said, in that same country there are starving women and children, no medicine in hospitals, lack of advanced medical services whereby Ugandans have to leave the country to seek advanced treatments, poor infrastructure, Epidemics, unemployment, non functioning public institutions, arrogance among public employees and teachers are not well trained and are paid less than 500 dollars a month. The list goes on but I will stop on these few.

However, the irony is that U.S and other western countries are acting hypocritical for failing to call out the dictatorial government of #Museveni. These countries have allowed #Museveni to use Uganda public resources as his own. They have allowed him to build an army he controls, allowed him to be in power for more than two decades and have continued having diplomatic relations.

The problem western countries have failed to understand is that keeping a dictator in power does not only affect Ugandans but also affects western countries. I will not elaborate on this.

What can western countries do?

1. Use intelligence to find out where #Museveni and his group keeps the money they steal from Ugandans.

2. Block and freeze all foreign accounts and properties of #Museveni, his family and his close colleagues

3. Institute serious travel barns of #Museveni, family and close colleagues.

4. Call out #Museveni to leave power

5. Finance opposition in Uganda

6. Have control on Bank of Uganda

7. Institute a trade embargo on Ugandan Government. Denying all transactions done by Museveni government can do this but allow private Ugandan to trade freely.

8. If possible institute arms embargo on Uganda.

9. Increase Western intelligence service in Uganda