Loaning and Groaning

There are times when I love adulthood, and times when I'm terrified that I've entered the gates.

This weekend, as I sifted through loan statements, I had one of the scarier moments. Even though I attended my loan exit interviews and planned my "temporary budget" and payback plan, I'm still learning how everything works. After spending time on the phone, online and with knowledgeable friends, I felt like I had gone through a financial aid boot camp just to learn about deferment, forbearance, which lending partners operate which loans, how long I can go without being penalized ... the list goes on forever.

If I can sum up what I've learned so far in three suggestions, they would be:

Always open your mail. There was a good chunk of years - end of high school, most of college - when everyone solicited you - the credit card companies, modeling agencies, volunteer and community organizations- and it seemed like the majority ended up unopened and in the trash. Now, a letter opener can come in handy because every envelope needs to be opened, even if the return address is a P.O. Box in Georgia and you have no ties to the South.

Always call if you have questions. As a disclaimer, I always start every phone call off with ... I'm really sorry, I'm completely new at this so I have a ton of questions ... but I still feel like the person on the other end must think I'm a nut job by the end of the call. I feel bad, but I know I'll feel way worse if I get a statement with a late charge or extra "accrued interest" because I didn't call to clarify something I didn't understand.

Always be organized. I know some people who are severe neat freaks, and although I admire their diligence to cleanliness and organization, I know deep down I'll never care about details that much. But when it comes to loan paperwork and forms, the best way to keep on top of things is to keep things together. I have a folder with all of my information, and in it I have a chart with all my lenders, my loan amounts and my monthly payments. It's organization to the extreme, and for the first time in forever, I wouldn't have it any other way.

I'm only at the beginning of the journey that is debt repayment. Anyone else have any helpful tips or suggestions?

--- Molly Hirschbeck

Comments

[James H]

Excellent advice. I suggest you do all your banking online through a program like Quicken. Balances are updated daily, so you always know how much money is in your account; you can also pay bills online and monitor when individual checks clear, so you know when your creditors have received payment. Finally, it automatically balances your checking account - - who ever has time for that??

[Don H]

Pay your utility bills and bank loans by authorizing those companies to take monthly payments directly from your checking account. The utilities will continue to send bills so you know how much is owed each month. All you need do is record the payment in your checking account register, either by hand or on computer, and of course, have enough funds in your checking account to cover the withdrawals. This is a great way not to miss a payment, avoid interest charges, and protect your credit rating.

[outofbuffalo10]

Get a filing cabinet. It's not just going to be loan payments, it's going to be utility bills, medical bills/statements, phone, credit card, etc. You can buy a 2 or 3 drawer one at any office supply store.