Managing Your Money
Financial Aid Philosophy: A successful financial aid package is a cooperative effort between the student and the institution that not only meets the student’s educational needs but also fosters an environment from which the student can effectively manage any debt that may be incurred during the course of their education.
CREATE A BUDGET:
– What is you’re your current income?
– How you are spending your money?
– SAVE, SAVE and SAVE unused money each month.
Federal Student Aid has resources available to assist you in creating and managing your money.
MANAGING YOUR CREDIT:
Good credit is important and plays an overall role in your personal finances. Keeping track of your credit score can help keep your finances on track.
Why is good credit important?
Companies use your credit score as a predictor of your ability to pay back a loan in a timely fashion. For this reason, consumers with higher scores will be offered better terms such as lower interest rates and flexible repayment periods. Federal law also allows potential and current employers to view a modified version of your current report for employment purposes. Managing your money is essential to keeping a good credit score.
Steps to Help Control Your Debt:
- Get a hold of your spending – Write down everything you spend for one month and cut back on things you do not need.
- Pay-off your high interest rate debts first – The key to debt efficiency is first to pay down the balances of loans or credit cards that charge the most interest while paying at least the minimum due on all of your other debt. Once the high-interest debt is paid down, tackle the next highest and so on.
- Don’t fall into the minimum trap – If you only pay the minimum due on your credit cards, you will barely cover the interest you owe. Pay more than your minimum due when possible.
- Expect the Unexpected – Build a cash cushion worth three to six months of living expenses in case of an emergency.
- Get help as soon as you need it – Debt can break you! There are many reputable debt counseling agencies that may be able to consolidate your debit and assist you in better managing your money.
MT Training Center School Code: 042264