As a student in the halls of higher education, you’re faced with several tough situations – all of which require some ingenuity, good decision-making and mental toughness to see you through. First, you’re in school instead of working full time, so cash flow is going in the wrong direction. Second, you may have living expenses in addition to the cost of schooling. Third, you need to keep focused on your time in school as being an investment so you’ll stay the course through to successful completion. Fifth, it’s quite important to make your educational investment pay off, so keep your sights set on objectives that are both the “long view” and the broad view.

All things considered, getting an education is an expensive juggling act of sorts, and there are many ways to address these issues. Here are four suggestions for balancing finances, getting the most of your time in school, and getting all of this investment to pay good returns.

1. Work while in school.

Whether it’s a job at school, after school, during the summer, or you alternate between a year at school and a year of work, it’s nice to keep the bank account replenished. Showing prospective employers that you worked your way through school isn’t a bad credential to have either. It shows tenacity, planning, and a willingness to work steadily toward important goals.

One of the better ways of working yourself through school is the co-op or intern program where students work for a few months and then go to school for a while. This approach to helping fund your education has more than simple financial benefits – it allows you to build real work experience and create important personal points of contact in the working world. At the end of your studies, you have more than a diploma – you have a resume and references. That gives you a huge advantage over graduates that simply have a degree to their name.

2. Meet the challenges of living expenses with creativity.

As if the cost of education wasn’t enough, some of us face added living expenses as well. To minimize additional expenses, try starting out at a local college or university where you might be able to live at home and commute. How about selecting a school near friends or relatives that could help out by providing you with a low or no-cost housing arrangement? It might not be the most desirable, but then neither is trying to swing the cost of education and a place to live.

You might investigate alternatives to student housing. How about renting a room in a home instead of renting an apartment? Could you exchange work around the house and yard for room and board? Get some “feelers” out there and see what might be available.

There are also on-line study programs that can get you off to a good start and allow you to live and work at home. Carefully investigate these as a means of getting started in higher education. Be sure whatever you select is accredited, so it will be recognized by other schools and prospective employers.

3. Keep the investment perspective in mind.

At times school can seem much like a boring chore or an exceptionally difficult challenge. Many times it’s all of that and then some. A key to successful completion is to recognize your education as an investment in your future. Some employers won’t consider individuals who didn’t at least pursue some form of higher education. Many employers in the professional fields consider any degree from a university as a requirement for an interview. Even if your degree doesn’t match what you might choose as your first interest in employment, it at least shows initiative and a “can do” attitude, and many times, this is a great way to open doors.

In technical and specialize fields such as medicine, engineering, architecture, law and the sciences, the type of education you get is of key importance. It’s a required “punch” on your “ticket.” You’ll want to make the most of your time in school to extract as much knowledge and experience as you can when it’s absolutely required to get started in your chosen field of endeavor. In many cases, it’s not just the degree, but it’s also where you obtained the degree that matters. In any event, choose carefully and study well . Only you can make your time in school pay off as a good investment instead of just something that needs to be slogged through.

4. Take classes that provide broad and long range return on investment.

Many of us have a particular focus in our studies. This focus often requires that we take an assortment of classes to help fill in what’s necessary for our degree. Choose classes wisely so you have complementary skills to go with your formal, technical and specialized education and training. Communication skills are some of the first general skills that come to my mind when I think of broad and long range return on investment. If you can communicate, you can present, you can persuade and you can sell. This quite often means that you can also lead others. The ability to do all of these communication oriented tasks means that you’re much more likely to become the supervisor, manager, senior manager or principal of an enterprise, and that means your income earning potential is all the greater.

Don’t overlook classes in writing, speaking, acting and interpersonal skills as fluff. Some of the highest paid individuals in America use those very skills on a daily basis to earn obscene amounts of money and gain fame as well as great fortunes. I’m not pointing towards any particular career path, but merely suggesting that being able to communicate well is often an overlooked talent that can help take you from the entry level to the executive level. Good return on investment is often found in technical results and the ability to effectively communicate those results to the non-technical among us.

It’s easy to give advice for success in school once you’re on the other side looking back, but sometimes that’s the only way the value of such advice can be clearly appreciated. The proof is much more convincing when it can be seen in the results obtained rather than simply anticipated. Financing an education shouldn’t require getting deep in debt at the start of your career. Graduates should leave school with more than simply a diploma – they should have practical experience and references as a competitive edge. And, the serious investment you make in education should pay dividends well into your working life. You can help provide assurance of this by having a central focus and complementing this with broader skills and knowledge that you know will be necessary to support upward mobility in the workplace.

Clair Schwan helps others live a more frugal and self directed life at Frugal Living Freedom , and he offers advice to the self employed and small business owner at Sensible Small Business Ideas.

You always hear about living withing your means. What’s it really all about? Why do personal finance dudes always talk about living within your means. I think that living within your means is an interesting topic that deserves to be explored. I want to throw out to you guys what my thoughts are on living withing your means:

Spend realistically.

If you lose sleep over a specific purchase you probably shouldn’t have made it. What’s the point of making a purchase, if you can’t fully enjoy it after. I’m not about being a miser that never spends a dime. I fully believe in spending money consciously so that you don’t feel bad after the purchase.

Alright so you’re thinking, “define realistic spending, smartass.” In my opinion, realistic spending is all dependent on your income. It’s a tough pill to swallow, but the guy making $40,000 a year can’t drive the same car that the dude making $100,000 a year does. Once you accept this reality internally, you can become realistic with your spending.

Avoid lifestyle inflation.

We all want what we can’t have. Unfortunately, credit cards allow us to have what we probably shouldn’t have. I’ve been there many times. Why would I want the $15 t-shirt, when I can have the way more cooler $100 t-shirt? It’s really easy to come up with excuses and to justify spending. We’ve all done it.

“I finally got that raise. I deserve to buy a new wardrobe now.”

“My iPhone is old now, I need the newer version to improve my networking.”

Making more money allows us to have more money for the things we enjoy in life. I love making more money because I see it as a chance to travel more or to focus on the things that bring me immense pleasure. Unfortunately, an increase in income usually leads to an increase in unnecessary expenses.

Associate with people in similar financial situations.

It’s cool to have rich friends, but do you really want to be going to night clubs with a $50 cover when you earn $35,000 at your entry level position? I find that your group of friends will have a major impact on your financial decisions. Instead of living a life that you know isn’t right for you, surround yourself with positive and like-minded people that will help you on your financial journey.

Keep your old car as long as possible.

I just wanted to throw this in here. A car has gone from a necessity that allows you to get from point A to point B to a mega expense plaguing this generation. I would love to impress chicks by driving around in a BMW with Gucci shades on all day. Unfortunately, I don’t think any of these chicks would stay around after seeing my credit card bill. I’ve seen too many of my friends finance a car that’s completely out of their price range. As you graduate from college, progress through your career, and begin making more money, try to avoid buying that luxury car until your salary justifies it.

Any other tips for living within your means? Are you living within your means?

(Note: Don’t worry guys, I’m not turning Studenomics into a frugality blog. I wanted to touch upon this topic today, but in the coming weeks I’ll be writing more about the making-some-damn-more-money equation of personal finance.)

Many members of the Studenomics Syndicate are currently killing their debt. Congrats! Keep it up. Killing debt can be very exciting. Watching your balance go down will feel sweeter than a cold drink on a hot summer day. Being able to start putting money into your emergency fund, towards your retirement, or even that two week winter vacation, will feel tremendous.

There’s one common topic that most debt-killers will face. That is debt consolidation. I’ve covered the topic of consolidating student loans extensively here. Today I wanted to address debt consolidation services and companies that offer these services.

Before you walk into an office to seek debt consolidation services, please read this. I want you guys to be armed with powerful questions so that nobody tries to take advantage of you.

What is really free?

Will they simply see you for free? Will they offer you a free initial consultation? There’s usually a limit on the free consultation that you’ll receive. There’s also a limit on the free debt reduction help that you’ll receive. The first meeting is where you must find out what exactly will be free if you decide to move forward with the company. You don’t want any surprises a few months down the road.

What will I be charged?

You need to know how much money you’ll be charged. I almost lost my mind when an acquaintance was charged a ludicrous amount for a debt consultation. Your goal at the initial meeting should be to find out exactly what you’ll be charged so that you can decide whether you are comfortable going forward with the debt consolidation help.

What will I be charged for?

You need to know what you’re paying for. This is likely the first time in your life that you’re reaching out for this kind of help with your finances. The company is helping you out by consolidating all of your debt for you because they are simplifying your finances and in most costs, offering you a lower overall interest rate. However, this doesn’t mean that they can charge you whatever they would like to for no reason. You need to find out what it is exactly that you’ll be paying for.

Are you guys licensed for debt consolidation?

You need to ensure that you’re not being scammed. Any company can claim that they offer debt consolidation services. You need to double check their qualifications to be sure that they are properly licensed. If the company isn’t properly licensed or they’re not willing to show you the proper paperwork, this should immediately raise a red flag with you. You don’t want to be dealing with a company that is showing signs of shady business right at the beginning.

What is the education of your staff?

You want to work with an experienced consumer credit counselor that is experience and well educated in the field. This person is dealing with thousands of dollars of debt that you’re eager to pay off. You want to find out what qualifies the employees of the company to help you with your financial situation. This is no different than finding out the qualifications of many other professionals (i.e. financial advisors, lawyers, doctors, etc.).

Hopefully the debt consolidation companies that you speak with will be able to provide honest answers that make you feel a little bit more comfortable about the process. For anyone that has been through this process, could you please tell me if I missed something?

This is a guest post from Alban. Alban is a personal finance writer, specialized in credit cards. He helps people to compare and choose the best credit cards for their needs.

We don’t like to think that someone else is controlling what we do, say and think but the reality is that we are all products of our environment and this is a fact which peddlers of consumer products and services are able to exploit in their marketing and advertising campaigns. Dependent on our upbringing, community and culture we all have certain behaviour patterns which can be triggered by appealing to universal needs, wants, desires, insecurities and fears and as a result it can appear that credit card companies are using mind control techniques to make you spend more when in reality they are simply triggering thoughts and feelings you already had, and offering you a way to fulfill those needs or quash those insecurities through a credit card purchase.

However it has been found that credit card providers are not only encouraging you to spend more on your card, but also in other aspects of your life with other financial products. While being aware of the marketing and promotional ploys used to encourage you to spend on your credit card may initially come as an unsettling revelation, you will have to delve deeper into your reasons for accumulating credit card and consumer debt to truly take back control.

The Mind Control Marketing of Credit Card Providers

There are many theories and studies surrounding the mind control and influencing techniques used by credit card providers to encourage you to spend. Some are more conclusive than others, so consider how the following findings and results correlate to your own credit card spending experiences:

• You are likely to spend more on credit, than using cash or debit. Visa themselves conducted a number of studies to prove that consumers will spend more when they are able to pay by credit, to convince merchants to accept credit card payments. A famous example is the decision by McDonald’s to accept credit cards which led to a higher average purchase by their customers. In fact average spending per customer is 30% higher when they are able to pay with a card.
• Your credit card separates you from the purchase. While credit cards and debit cards are almost interchangeable significant differences still exist in the way they are used as the increase in spending on plastic does not extend to debit cards, only credit cards. A debit card, like paying with cash, is easily tied in your mind to the funds in your own account. However when you pay with credit you are separated from the purchase and you are able to choose when, if ever, you pay for it.
• You can more easily recall cash and debit transactions. Because a cash or debit card transaction is associated with the funds immediately leaving your possession you can more easily recall the purchases you have made and account for those purchases for future budgeting. However when it comes to a credit card purchase you do not associate that purchase with your own funds until a statement arrives several weeks later.
• The credit limit is set so you must be able to afford it. Credit card users also put a lot of blind trusts in their credit card providers, rationalizing that if the banks have assigned them a credit limit it is based on their income and financial situation and so they assume they can easily repay any purchases up to the credit limit amount.
• Does the presence of your credit card trigger spending? A number of studies have been conducted to try and prove this fact but the results have not been definitive and if the presence of a Visa or MasterCard logo encouraged spending then it would encourage spending on a debit card as well but this is not the case. Similarly while MasterCard, Visa and American Express worked hard to promote their brands consumers do not necessarily associate these logos with spending, but it is the credit aspect of the card which encourages purchases.
• Is it the promise of what credit can buy? Credit card providers such as MasterCard and Visa are certainly banking on the fact that they can encourage you to spend by showing you all of the wonderful things you can buy, experience and have simply by using your credit card. The MasterCard Priceless series of advertisements is a telling example, and now that you know what you are looking for you can see exactly how the Willy Wonka candy store episode of the series for example plays to your desires, as the shelves of the candy store are filled with consumer products, embodying the message that MasterCard is the best way for you to realise your fantasies whatever they are.

Credit Card Spending Effects Extend Further

Unfortunately the overuse of credit cards does not just affect the user but also has wider implications for your financial situation and your financial security, and the web of financial distress can be spun even wider to encompass your other creditors and even consumer borrowing habits. When your credit card use increases:

• Wider financial distress ensues. The effects of credit card spending are more widespread than the effects on just those doing the spending. The children and spouses of credit card users are also affected as credit card debt is likely to be linked to a decline in mental and physical health which affects family and personal relationships. Also if you have a significant credit card debt and become financially stressed, your economic activity will decline as a result, having a follow-on effect for the entire economy as those who were previously spending up big on their cards are now too indebted to continue to do so. This also affects other creditors and if you are financially stressed due to the debt on one credit card your other creditors won’t be paid, in turn affecting their economic health and activity.
• Greater credit card use indicates greater borrowing. Where credit card use is more prevalent you are using your credit card more, and accumulating fewer savings, in Germany for example, they have one of the lowest rates of consumer borrowing among highly developed countries, they also have high savings and lower credit card use. Therefore you could expect to find a connection between greater credit card use and greater consumer borrowing.
• Increases in total debt are preceded by an increase in credit card use. Studies of credit card use and levels of consumer borrowing in Australia, Canada, Japan, the United Kingdom and the United States show that credit card use does not generally rise without being followed by an increase in total debt. These risers remain unaffected by employment and GDP, and show that an increase of $100 in per capita credit card spending is associated with an increase one year later of $105 in consumer spending.
• Credit card spending is not separate from credit card debt. In the above example credit card spending and credit card debt did not affect the figures independently. This suggests that not only are we being encouraged to spend on our credit cards, we are also not feeling any pressure to repay those purchases or minimize our debt.

While there are any number of factors which make it easier for us to dissociate with the purchases we make on our credit cards at the end of the day we remain responsible for the purchases we make and the spending habits we exhibit. Instead, being aware of how credit card companies play to our natural and inner inclinations can help ensure a heightened sense of financial responsibility when it comes to your credit card use, especially coupled with the understanding of the wider effects of credit card spending and debt.

“I need to fix my spending habits ASAP!” Do you fall under this category? Do you see a clear flaw in your financial system? Do you spend more money than you should? Do you wish you could get your spending under control and finally beef up that savings account? If you answered yes to any of the above questions, don’t worry because you’ve come to the right place.

Let’s get your spending issues fixed right now!

Stop making excuses

This is by far the very first step of this process. That $150 dress shirt may look good, but is it absolutely necessary? If you’re looking to justify your spending then I’m sorry because you’ve come to the wrong place. When you’re ready to stop making excuses, you can read the rest of this article.

Cut back

Have you simply tried consuming less? Have you tried downgrading a bit? I’m not hear to judge the decisions that you make. I’m in no position to do so. I just want you guys to try cutting back.

You might be thinking, what’s so special about cutting back? Cutting back can actually save you lots of money on an annual basis. Let’s take a look at some examples:

If you go out for lunch every single day and spend about $10, you can try cutting down to 2-3 lunches a week. Your wallet will thank you.

If you cut back from high speed internet to the regular speed you can save on average $10 a month. An extra $120 a year in your bank account isn’t too shabby.

You guys get the point. Complete elimination is bad. Cutting back is good.

Once you try cutting back on spending in certain areas, you’ll find that the small savings add up. A few bucks here and there can make a significant difference when you’re attempting to pay off debt.

Try alternatives

Are there cheaper alternatives? Do you really need a membership from the most expensive gym in town? Do you really need to upgrade your laptop to the newest model every chance that you get?

There are always cheaper alternatives to every purchase. It could be the medium through which you shop (online vs in person), the brand (value vs established), the usage (new vs used), or even the quality.

Pay as you go

Have you considered paying for certain subscriptions/payments every time you actually consume instead of paying a flat rate? This is often referred to as the a-la-carte method. How does it work? Instead of signing up for a yearly magazine (or any thing else) subscription, pay per use. You will almost always notice that you don’t consume enough of the product to require an annual subscription.

Re-evaluate

We all live different lifestyles. Some personal finance pundits would mock how much I pay for my gym membership on a monthly basis.

Perhaps you could cut that tanning package this summer and enjoy the sun more often.

You could drop that gym membership and go for a jog outside every morning.

These are all just ideas. You don’t have to heed all of this advice. I just urge you to re-evaluate certain packages. You’ll be pretty surprised when you find out what purchases you can live without.

Congrats for making it to the end of this article! This means that I’m not that boring and that you’re really serious about cutting back on your spending. What will be the next step for you? Please do share…

Your stockbroker might not know as much about investing as you think…

It is truly amazing how many people entrust their entire life savings to stockbrokers who know absolutely nothing or very little about investing. In their defense, many stockbrokers may be honest individuals who truly want to help their clients. However, the problem is that they were never trained to be investors but instead were trained to be salespeople, and they are constantly being pushed by their employers to sell. After being recruited by a brokerage company, they are subjected to intensive sales training where they are taught how to cold-call, prospect for clients, and counter various clients’ objections. The actual education on how to select and analyze particular investments is limited.

Brokerage companies spend millions of dollars every year on training new stockbrokers. Because more than two-thirds of them leave the industry within a few years, the industry has become good at training and attracting the right candidates. They lure them in with advertisements promising unlimited income potential and high-end lifestyles. However, brokerage companies are not interested in just anyone – they want people who will sell. For example, they are not interested in hiring good investors because they want people who can sell their investment products and generate commissions. Good investors spend time researching and studying possible investments. From the company’s point of view, the time spent on researching is time not spent on prospecting and bringing in more clients.

After the training, stockbrokers are judged by their companies based on how much they can generate in terms of commissions and fees instead of the quality of the returns of their clients’ portfolios. They have to meet certain quotas such as commission amounts and the number of new accounts opened during particular periods. If they don’t meet them, they lose their jobs. The brokerage firms are also known for having sales contests where brokers compete for expensive vacations, boats, and TVs. The purpose of these contests is to generate high commissions by motivating brokers to sell, and to create a hierarchical system where some of them are viewed as superior to others. In this kind of environment, brokers are likely to focus on how much money they can make off their clients, not how much money they can make for their clients.

If people were aware of really goes on in the investment industry, they would think twice about whom to entrust their money to. Investing is not rocket science, yet it requires some basic knowledge. Unless people make investment education a priority in their lives, they will continue to be easy targets of an industry that is that is more concerned with its profits than the well-being of its clients.

About the author:
Mariusz Skonieczny is the founder and president of Classic Value Investors, LLC, an investment management company. He is also the author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market.

We’ve all heard about the difference between good debt and bad debt. We’ve also all looked into the argument of good debt vs. bad debt and attempted to decipher what category certain purchases fall under.

Seth Godin touched upon this topic recently, when writing about how consumer debt is not your friend:

Dave [Ramsey] has spent his career teaching people a lesson that many marketers are afraid of: debt is expensive, it compounds, it punishes you. Stuff now is rarely better than stuff later, because stuff now costs you forever if you go into debt to purchase it. He’s persistent and persuasive.

So how does this tie into good debt vs. bad debt? The general theme of the article is that bad debt is anytime you go into debt to make a purchase that depreciates in value over time.

As a result, I want to open up this discussion and look at common purchases as to where they would fall under the– good debt vs. bad debt argument:

Your car:

Are you better off buying that use car with cash or that brand new car with credit?

There’s the argument that you need a car for the following reasons:

• 1. Get around town.
• 2. For job reasons.
• 3. For job interviews.

My only comeback is this: do you really need to go into debt for that new car? I’m not telling you to take the bus, because that would just be lazy advice. The decision you need to make revolves around the thought process of how valuable is it for you to go into debt to acquire a new vehicle? Will a used car not be suffice?

Your home/primary residence:

You shouldn’t view your primary residence as anything more than a shelter/place to live. If you start to view it as an investment, you will be really disgruntled during a recession, when home prices sharply decrease in value. Not only will lower home prices discourage you, but the realization of how much money goes towards interest and other related expenses, will definitely depress you.

On the other hand, your home may greatly appreciate in value and this increase could offset all of the other costs. Unfortunately, this is a optimistic and rare scenario.

There is no right or wrong answer in this discussion. There will be those that argue that rent is, “throwing money away,” and there will be those that urge you to wait until you have enough money to purchase the home with cash. At the end of the day, this will likely be the most important decision that you’ll ever make in your life. Put in ruthless amounts of research before you ultimately make your decision.

Your education/Graduate School:

Most young people don’t even think twice before acquiring debt to pay for their college education. I’m not saying that this is right or wrong, it’s just what happens.

One thing you need to consider is how much more valuable you will become with your Graduate Degree/new education. If you plan on starting your own business or working for yourself in any way, shape, or form, do you really need to go into debt for more education?

Once again there will be those that leverage the debt required to obtain a Graduate Degree and use it to score a 6-figure salary. There will also be those that use debt to pay for an education that will simply never benefit them. Where do you realistically see yourself 5 years down the road, once you’ve used debt to expand your resume?

What would you guys consider to be good debt? What would you consider bad debt? Do you even think there’s a such thing as good debt?

(Note: Sorry if you found this article to be all over the place. I really don’t have an answer to this debate and I would really love to gather your input.)

One interesting way to make money off the whole college experience is to invest your student loan money. Since I already bashed this idea, let’s look at something else. Another interesting topic along the same lines involves paying for college with a credit card.

Some college students cover their college expenses with a credit card. This may include: a portion of tuition, monthly rent, college textbooks, transportation, and other random charges that our schools love to give us.

Why are college expenses covered with a credit card? Until the recent Credit Card Act of 2008, a credit card was the easiest loan to get. You fill out a few forms and you receive a brand new shiny credit card in the mail a few weeks later. Most student credit cards can start off at $500 and go all the way up to a couple of thousand dollars.

Well now– Is this a half-decent idea? Is paying for college related expenses with a credit card worth it?

Not at all. The interest rates that credit cards charge are ridiculous compared to a bank or private student loan. If you want to know why using your credit card to pay for college isn’t a great idea, keep on reading…

1. High interest rates.

As just mentioned above, interest rates on credit cards suck. Honestly, after building good credit and being a customer in good standing with the credit card provider, how low will your interest rate go? Not that low at all. These high interest rates can make this process a very potent recipe for financial disaster.

(If you don’t believe me, check out this scary calculation on credit card debt.)

2. Lack of options after.

There are plenty of student loans consolidation options out there. Not as many plans for those that cover college related expenses with a credit card. Getting into high interest credit card debt in your really 20s can really set you back when it comes to reaching your financial goals.

3. Very simple to screw it all up.

It’s easy to tell yourself that you’ll only cover “college related expenses” with your credit card. After a few swipes the line will get blurry. The night out at the bar will become a college expense. The new pair of Afflicton jeans will be justified as a college related expense. You get the point. It’s very simple to screw this whole process up.

Those are my quick thoughts on paying for college expenses with a credit card. What do you guys think? Has anyone tried this? Would love to hear some success/failure stories…

There’s a harsh reality when it comes to student loans. Do you want to know what this harsh reality is? A majority of student debt is the direct result of acquiring high amounts of student loans to pay for a college education that will financially not justify the investment.

What does this mean? It means that if you want to work in a field where you won’t be making lots of money, it’s going to be difficult to justify the 50 grand in student loans. I’m not just pulling this out of thin air. I initially read about this in a post about student loans over at Free Money Finance.

Why does this happen? Why do young people acquire massive amounts of student debts that will follow them for decades to come?

Unrealistic expectations.

To be honest, I don’t think many of us knew what to expect prior to beginning college. Some of us had unrealistic expectations going into college, while some of us really had no expectations. Either way it’s rare that most young people think about paying back student loans or student loan consolidation prior to entering college.

False dreams.

We all want to change the world. We also want to make some money doing it. Some jobs are very rewarding (i.e. Social Worker or Teacher) but simply don’t earn what is considered a “high income.” These are very well respected jobs in society. Unfortunately, they don’t lend themselves to earning a justifiable income for the high amounts of student debt that may be used to get them.

Lack of information.

Sure we all look into salary expectations after college. The only problem is that most of us are fairly biased when conducting this research. Nobody looks at the low-end. We all look at the high-end and expect to be making the big bucks right off the start.

This begs the question: is a college education still a decent investment? At the end of the day I think that it still is. Without dwelling into a debate about the ROI of a college education, I would like to move on to the next topic… Now that we’ve discussed why student debt is often very high, let’s try to look at how this can be combated. How can you minimize the amount of student loans you acquire to pay for college?

Paid work terms.

A paid internship can do wonders for your student loans situation. Not only will you get a chance to throw your name out there, but you’ll make some money too. Don’t dismiss the small wage that most work terms offer. Earning money throughout your college career can put you well ahead of your peers.

Work during the summer.

If you have no luck with finding a work term and can’t slip in a part-time job into your school schedule, you can always work during the summer. I’ve heard many young people balk at this idea, but it’s really not that bad. There’s usually not much going on during the week as it is. You might as well use this time to make some money. Sleeping in until 3 and watching Fresh Prince of Bel Air reruns isn’t the best way to spend your summer.

Attend a community college/school close to home.

An option that I’ve discussed in the past when it comes to saving money on college tuition is to attend a community college. A community college education may not be as prestigious as attending a private college. However, the real question here is: can that community college education land you a similar paying job? For many careers the answer is no. For some careers the answer is yes. It all depends on your situation, what you want to study, and what field you want to work in after college. All I’m saying is that you shouldn’t dismiss the value of a community college education without at least looking into it.

I DO understand that there is more educational assistance available from private schools. What needs to be taken into account is the cost of moving, rent, and all of the expenses that come with living on your own. You could save thousands of dollars by staying at home to attend college. Of course, you do miss out on the college experience (drinking on Tuesday nights) but you won’t have to deal with student loans into your 40s.

Please try not to fall victim to this harsh reality of the majority of student debt. I understand that college is likely the most fun time in one’s life. I’ve certainly had my fair share of fun the last few years. Just make sure your student debt doesn’t plague you as you want to move on in life.

The Credit Card Act of 2009 was supposed to introduce credit card consumer protection. One of the proactive measures taken in the Credit Card Act was the introduction of a 45-day written notice on behalf of the credit card company prior to raising interest rates. Credit card consumers also would then have the option to opt-out of a interest rate increase. Customers would have be late for a credit card payment by 60 days before the credit card provider could charge some ridiculously high “default” interest rate. Sounds really helpful for consumer protection.

So did the Credit Card Act of 2009 lead to credit card consumer protection?

Not all the way. Just yesterday, Credit Shout wrote about how if you miss a payment with CitiBank, the Credit Card Act won’t help you. That’s right. It won’t help.

What’s the loophole with the Credit Card Act?

Introductory rates and “special offers” are exempt from this 45 day written warning. CitiBank offered it’s customers a so-called “special” rate of 8.99%. Any customers that were late on their payments, were charged with the default rate, without any advance warning, certainly without any written warning. Since “special” rates are exempted from the 45-day written warning rule, this is perfectly legal.

A few months ago I wrote about what the credit card acts means to you. I was fairly skeptical at the time and I really didn’t know what to expect going forward. It would’ve been far too ambitious to view the Credit Card Act as backing ultimate credit card consumer protection. We are now slowly going to see some of the loopholes come out when it comes to credit card consumer protection. Only time will tell how helpful the act truly is.

Here’s the thing, even the best credit card customers can miss a payment by an hour or a few days. Not everyone has their finances fully automated. Some of us prefer to go through our credit card balance with a tooth pick before we transfer any money over.

I’m not going to be an idiot and state the obvious. Everyone knows that they need to pay of their credit card debt. More importantly, we all know that we must make our credit card payments on time.  All I will say is to please be cautious. Read over anything that your credit card company sends you. It could contain really important information. If you’re unsure of what something means, then contact customer service or seek third-party assistance.