Posted by Tangela Davis on February 8, 2009 at 4:16pm
My Professional Sisters, we must be fully educated on the dynamics of our finances (personal and business) in order to maximize our efforts of realizing our goals and dreams and most of all reducing our financial stress. I will be sharing with you in several series, education surrounding debt management. Please avail yourself to become truly knowledgeable about this nationwide challenge that we face today. You don’t have to be an expert; however, you need to understand how you can make your money perform better for you. Debt management is the core our careers, relationships, families and communities in which we live. Join me as I bring to you the wisdom of truly understanding how we manage our debt effectively and build wealth on our terms. The first part of our series speaks to student loan debt; if this is you today or you have children in college, be alert to the key points outlined in this segment. Enjoy the wisdom!Our topic for the series is "Good" Debt vs. "Bad" Debt!Feature Points Covered:-Student buy non-essentials more often than other groups-There are different types of debt-Being responsible with debt will result in long-term benefitsA friend in the banking/investment industry summed it all up: good debt is an oxymoron; there's no such thing as good debt.However, while debt may be something we all wish could be avoided, there are some forms of borrowing that do have advantages, and even those that are considered bad debt can be useful if used properly.Part 1Background on Student DebtFirst and foremost, student loans should be utilized for education and required living expenses only. Trends in college student spending indicate a rise in non-essential expenses.Pricegrabber.com, in conjunction with Rand Youth Poll and Campusmag.com, issued a 20-year study showing trends in student spending. Basically, the results showed that students are more technologically savvy than 20 years ago.Spending has increased in the area of entertainment with large plasma TVs, cellular phones and iPhones with all the bells and whistles, and iPods with subscriptions to download music and DVDs.Other increases are clothing costs for designer clothing and the emergence of gourmet coffees and other specialized foods.As a result, students (not just the 18- to 21-year-olds, either) are easily drawn into borrowing extra student loans to purchase extravagant tangible and intangible goods.The key to good borrowing through student loans is to set up a budget and resist spending on unnecessary items. There's time for purchasing nicer items after graduating.Article by Terri Hare – elearners.comThanks and until our next series on “Good Debt” – stay wise!Tangela M. Davis, MBADistrict ManagerUnited First FinancialT. 704-299-1195E. tdavis@trinitystrategicconsulting.comW. www.unitedfirstfinancial.com“Be Mortgage and Debt Free in Half the Time or Less – Own It Free and Clear!”
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