Foximus - frugal living tips

If you are no longer a student, whether or not you are appoved for a loan depends on credit rating, which is based on your credit history, which in turn depends on your income and your spending and repayment habits.

What if, you are a student and on top of that, you don’t have a credit rating? Will you not get a student loan? The answer is, ‘Yes you will get it’! That should not stop your from getting a student loan to pursue your education.

A loan co-signer is your first option! What if, there is no co-signer as well? Yet again, you will get it. However, in the absence of a co-signer as well, the number of loans gets limited. But, just to make you comfortable, chances are not nil.

Ways in which you can get a student loan financials without having a credit rating and a co-signer are listed below.

• Have a look at federal based student loans. If you are traditional student, the federal loans get bottle-necked with only Stafford and Perkins loans available. None of the two require any credit check.
• Free Application for Federal Student Aid (FAFSA) is to be filled because without FAFSA, you cannot get a government loan. FAFSA helps not only in getting government loans but also ensures that you get any applicable grant money.
• If you are a needy student then, you can apply for a Stafford Loan. So, if you fall under a low-income group and you do not have a credit rating or a cosigner, you have high chances to get the Stafford loan. Although the amount sanctioned is small, you can actually start financing your education with the money you get.
• In case your financial needs are the greatest and you can show that, applying for the Perkins loan is a plausible option. Sanctioned at 5% interest with a longer repayment term as against the Stafford loan, you can start financing your education with the Perkins loan.
• In case of non-traditional students, options increase. Although Stafford loans and Perkins loans are the only two options they qualify for, many grants and scholarships are available for those who return to colleges for more studies and to earn degrees.

You don’t need a magic wand or a genie in a lamp so that you can finance your education, all that you need is a little bit of knowledge about the student loan options available and the ability to harness them to their fullest. Try going to your school’s student loan finance center to find out more about government student loan program.

If you’re already finished school, and looking for information on how to pay off your student loan fast, take a look at “How I paid my $20,000 student loan in 2 years“.

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People say that our future depends heavily on the decisions we make now. That’s true! We should think of future financial security, not only for ourselves but also for our familes. We need to save for an uncertain future.

Canadian Tax Laws are stringent by nature and escaping them is not an option. However, there are various ways in which you can actually save on taxes!

If we want to save, we can come up with ideas to save. Below are some tips with short descriptions that can prove to be handy in helping you save on taxes in Canada.

• If you have any non-tax-deductible debt, you can use a greater amount of your gross income to pay it off in a shorter term. This helps in reducing the interest payment for your debt.
• Alternately, use a major proportion (at least 15%) of your income (gross) to invest in RRSP. Ensure that in the long run, the returns from RRSP are greater than the interest accrued on your borrowing. This however, is prone to stock market volatility. Investing in RRSP will help you to save on taxes and you can either use the money for further investments in RRSPs or spend it right away. The second option will leave you with less money post retirement.

Withdrawing money from an RRSP after retirement or while you are unemployed will usually be in your favor, this is because the Canadian government follows a Progressive tax structure, where people with greater income pay higher taxes and those with lower income pay lower taxes.

Cutting down the day to day expenses can help you save some money. Consumption of goods leads to certain sales tax which can be avoided as long as unnecessary consumption is curtailed. These extra savings can be used for current investments leading to future income benefits in the form of interest. Tax rates applied to this interest is less than the tax rates applied when you actually contribute to the GDP or GNP.

Investing outside RRSPs (i.e. in non-registered accounts) is better if, even after retirement, you fall under a high tax bracket. Remember to invest in capital gains and not any interest generating bonds or investments. Capital losses can be used to minimize capital gains tax and you can show capital loss if you purchase bonds at a high premium rate. This capital loss can reduce the capital gains tax on maturity to a sizeable amount and as a result, this can reduce taxes owed. Avoid selling any investment prior to your retirement because, that will produce taxable capital gains while you are still in a higher tax bracket.

So, think before you invest and plan your expenditures and investments.

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It is a proud day for us here at Foximus. Today we passed the 10,000 spam comments mark. I would like to thank all the spammers that added our site to thier lists, and all the hard work they do to try and make all our penises longer while teaching how to make it big playing on-line blackjack.

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