Tag Archives: student loan

Is Borrowing for Education a Good Idea?

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Back-to-school time is here and many consumers are busy sourcing books, supplies, uniforms and other items for their children or for their own schooling. During this period, there is usually an increase in advertisements promoting educational assistance loans.

The reality is that many people have to borrow money to pay for these school expenses. While the ability to access financing for school purposes may seem like a blessing when your budget is tight, is it always a financially smart move? Continue reading Is Borrowing for Education a Good Idea? →

How to Manage Debt Wisely

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Since the beginning of the year, we have been expanding on the elements of our 2012 Money Manifesto. It is possible to create the financial life that you desire by understanding and following the basic principles of money success.

In today’s column, we will take a look at the sixth component which speaks about dealing with debt. Let’s examine some key do’s and don’ts that can help you to manage debt wisely: Continue reading How to Manage Debt Wisely →

Student Loan Lessons

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“Years ago I borrowed J$80,000 from the Students’ Loan Bureau. I had some difficulties paying back the loan as scheduled, but in all I have repaid about J$50,000. I’m trying to make a deal with the Bureau to clear my debt, but I don’t understand why my balance is in excess of J$120,000. There must be something wrong with their calculations!”

The Students’ Loan Bureau provides a revolving loan scheme which has given many persons the opportunity to improve their income earning potential by attaining higher education. However, despite the benefits that thousands have received, there are some persons who complain that the student loan has been more hassle than help to them.

I have heard comments like “I am just working to pay my student loan,” or “I would not encourage anyone to take a student loan.” The negative emotions are usually accompanied by a declaration that they don’t understand how the payments are calculated or why interest for students should be so high.

Even worse, the high level of loan delinquency indicates that some persons are taking advantage of the unsecured credit to get their higher education without feeling an obligation to repay. Continue reading Student Loan Lessons →

Can Debt Be Good?

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“My mother always told us never to borrow money for anything. She worked very hard and bought a small house for cash, and she never owed anyone. However, I’m finding it difficult to live debt-free in these times. Is all debt really bad, or are there any good reasons for borrowing money?”

In the olden days of Shakespeare, it may have been possible to declare “Neither a borrower nor a lender be,“ as he wrote in the play Hamlet. Even in your mother’s time it was probably also possible to acquire housing, transportation and an education without ever visiting a lending institution.

However, with today’s rising cost of living that hasn’t seen a matching increase in income, the average consumer is often left with little choice but to incur some form of debt.

But was your mother really right when she said ‘No debt’ is good? Or can debt actually be beneficial?

Continue reading Can Debt Be Good? →