Money Under 30

In the past year, we have seen banks cut back credit lines, raise interest rates, and limit new loans to only people with immaculate–and I mean immaculate–credit histories. That means it’s become difficult, if not impossible, for well-meaning borrowers to consolidate debt or transfer their debt to a lower interest rate through a traditional bank. Fortunately, however, there’s another way: A peer-to-peer loan through Lending Club.

Lending Club is a social lending network that brings together investors and creditworthy borrowers to provide personal loans at rates that are generally better than those offered by traditional banks. Borrowers apply for a loan, and individual lenders (people like you and me, not bankers) can choose to invest in your loan. Typically Lending Club personal loans are funded by many different lenders who invest small amounts (thereby spreading their risk around). The result? You get a personal loan approved at a lower rate than you could probably get from a bank. [...]

Many people live paycheck-to-paycheck. Income goes into your checking account, and all of it’s gone before next payday. That’s scary.

Even scarier? Living credit card-to-credit card.

In other words, using credit cards that already have balances to make most of your monthly purchases. Then, when you get paid, you use most of your paycheck to “clear room” on your credit card balance so you can do the same thing next month. I was guilty of this tactic long, long ago, and have known others. I got out. One friend declared bankruptcy. Some are still trapped. [...]

Credit card issuer Chase rolled out a new feature today—called Blueprint—that will allow consumers to divide credit card charges they want to pay in-full or over time. Blueprint will enable Chase cardholders to pay everyday charges in-full each month interest-free, even while paying other purchases off over time. [...]

This question often comes up among first-time home buyers: What percentage of my monthly income can I afford to spend on my mortgage payment? Does that percentage include property taxes? Private mortgage insurance (PMI) or homeowners insurance? [...]

I paid off my Prosper loan! It’s definitely been a month of celebrations. Getting married, starting to work for myself and now, paying off debt! About two and a half years ago, I wrote about applying for and getting a personal loan from peer-to-peer lender Prosper. I used that $11,500 loan at 13.50% to pay off a credit card balance at 18%. This week, I paid off the remaining balance in full. [...]

The following is a guest post by Susie Bafico, Assistant Editor of FiLife, a network of experts and community members, where people get help, advice and share opinions on family finance.

Plenty of parents help out their adult kids with cash, and it’s not just cars and trust funds. For many, the safety net is pulled on the way to college, while for others it never really ends. [...]

This is a guest post from Kat Fae, an American twentysomething living in London. Check out her blog Savings Not Shoes where she writes about trying to “…avoid the Carrie Bradshaw effect of being cash poor, shoe rich.”

Deciding to expand my life after college in another country was a big decision and one that has challenged me financially and intellectually. As I packed up and left the good old U.S. of A. for law school on the other side of the pond (where lawyers sometimes wear wigs), I attempted to put my plethora of federal student loans into in-school deference or forbearance. Five separate enterprises own a piece of my undergraduate education totaling $50,000 at the time. Four of the companies put my loans into various types of in-school and hardship forbearance. The one that wouldn’t budge, however, was my Alma matter holding tight to my $3,000 Perkins loan and those $43.23 per month payments. [...]

Here’s something I learned, the hard way, while in college. The “real world” does not necessarily begin after graduation. Getting a full-time job or your own apartment does not define the “real world” and all the responsibilities that go along with it. As soon as are earning, spending, and/or saving money, you alone are responsible for those decisions. And they do matter. Here’s why—and a few other things that I wish I knew when I was a college student. [...]

For better or worse, debt settlement is all the rage these days. The New York Times wrote yesterday about a debt-ridden freelance writer who settled a $5,000 credit card debt for half of the original balance. The Today Show discussed debt settlement on its program this morning. What is debt settlement? Does it work? And what are the consequences of settling a debt for less than you owe? [...]

We saw it coming. Last month Congress and President Obama changed the rules for credit cards by signing the CARD Act into law. A few weeks later, the credit card companies are already responding by increasing interest rates on existing customers. Have you been hit with a rate jacking in the last month? Please share your story in a comment. Here are a couple examples I’ve already seen. [...]