Vaginance | Money & Life In The New Roaring 20s
Debt, Credit Scores & Table Saws | 21
Surprisingly, only 1 of these comes with an instruction manual. Why your credit score is important even if you don’t plan on taking out debt & how to get it in tip-top shape. We’re breaking down different types of debt, the fastest way to tackle your credit card debt, and we barely scratch the surface on the many ways the student loan system is super fucked up.
Clarification on Deferred Student Loans & Interest
* Interest on federally subsidized loans does not accrue during the deferment.* Interest on unsubsidized loans does accrue during deferment and is added to your loan at the end of the deferral period.* Deferment on private student loans varies by lender, and not all lenders offer it.* More Info on Deferment: https://www.investopedia.com/what-is-student-loan-deferment-4771251* Student Loan Forbearance during COVID-19: https://studentaid.gov/announcements-events/coronavirus
Full Show Notes Coming Soon
* History & State Of The Union* Women got bank accounts in the 1960s, credit cards in 1974* Credit Scores* Why is a good credit score important?* Even if you don’t plan to take on any debt (credit cards, mortgages, etc), your credit score may still be used by employers when you’re applying for jobs and by landlords when submitting rental applications. A poor credit score can limit your job prospects, limit your rental options, and cost you more in upfront deposits on your rental housing.* The two most important factors to raise your score.* Sneaky strategy for maintaining your credit score if you want to close a credit card.* Student Loans* Income Based Repayment* The abysmal acceptance rate of the Non-Profit Forgiveness Program* Credit Cards, Mortgages, Car Loans* Credit Cards* Revolving debt that is typically not backed by any assets* Ways Credit Card Companies make money* transaction fees* interest charges* late fees* How credit card interest works* Myth Busted: Carrying A Balance On Your Credit Card Improves Your Credit Score… FALSE* Mortgages * Considered installment debt not revolving debt so don’t affect credit utilization* Debt on an Appreciating Asset (value of asset grows over time)* Car Loans* Debt on a Depreciating Asset (value of asset declines over time/with use)* Snowball vs. Avalanche method for paying off debt* Additional Resources* Explained: Money | episode on Debt* Two Income Trap | Book* How to help incarcerated family members