Making your student debt worth its burden

By Peter Andrew

If you write about personal finance for enough years, you end up on a lot of strange email lists. So I wasn't surprised when a message intended for debt collection agencies turned up in my inbox yesterday. But I did raise an eyebrow over its content.

It was advertising a publication called "Student Loans -- A Primer," and the message's subject line read, "One Trillion Reasons to Collect Student Loans -- What You Need to Know." The trillion (it actually topped $1.2 trillion last May) refers to the amount of outstanding student loan debt in this country, and is a sum that makes this the second biggest form of consumer borrowing, behind home mortgages but well in front of auto loans and credit cards.

Am I alone in finding the email a touch distasteful -- not dissimilar to training sharks to be better at sniffing out blood in the water? Maybe I should be. Without collection agencies, paying debts would become optional, and that could create a collapse in the economy and society faster than any zombie apocalypse.

Public problems with student loan debt

There are problems surrounding both public and private student loan debt.

By Georgie Miller

Generally, the expectation when a couple says "I do" is that one of the first financial tasks they will handle is to switch to joint accounts. However, joint finances are not mandatory and may not work for everyone.

Here are some things married couples should keep in mind when considering maintaining separate finances.

1. Separate accounts foster a sense of autonomy

No matter how long you dated before tying the knot, going from an "I" to an official "we" can be overwhelming. Especially if one partner makes more than the other, merging accounts can make the lesser-earning spouse feel as if they don't have as much of a say when decisions need to be made. Additionally, when accounts are jointly held, it is easy for one partner to end up with all the responsibility of bill-paying -- whether they are interested in doing so or not.

Keeping accounts separate puts each spouse in charge of how the money they earn is spent.

By Peter Andrew

If your credit score's less than perfect, this could be the most cheerful thing you're going to read all day. That's because FICO, the company whose scoring systems are used in 90 percent of all lending decisions, and two of the three major credit bureaus are making changes that might give your score a boost -- without you having to lift a finger.

In other words, one morning soon, you could wake up with a significantly better credit score, simply because of the way these scores are tallied.

FICO Score 9: the best sequel ever?

In August, FICO announced that it was launching a new version of its credit scoring system. And FICO Score 9 includes some big changes that could save you money the next time you borrow.

The first affects those who have medical collections on their reports. Up until now, these have had the same negative impact on scores as all other debts. But they're set to be counted differently. And the company estimates that the median impact on its 300 to 850 scale for those who have medical collections as the only major negative references on their reports should be a score boost of 25 points.

Others who might benefit include those with "thin files."

By Georgie Miller

Every July 4, people celebrate our nation's independence by going camping, watching a fireworks display or grilling some burgers. Sounds like fun! Less fun, however, is living a life shackled to your debt. If you're interested in achieving financial independence, here are some tips to get you started.

1. Take a serious look at your spending

Before you can create a meaningful budget, you have to know where your money is going. How much are your monthly bills? When are they due? You may want to note which bills are optional (like cable or a gym membership) and which are not (like your mortgage or your student loan payments).

In addition to gathering information about your bills, it's also important to track your discretionary spending.

By Justin Boyle

I'll just come out and say it: I did not make smart financial decisions when I was 20 years old. The things I wanted were ill-considered and the things I bought were absurd.

But as time passed, I did eventually learn to look after my money. Household budgeting -- one of the most basic principles of money management -- turned out to be so helpful that I wished I'd figured out sooner how easy it was.

Here are a couple of the world's simplest ways to get a handle on your everyday spending, in case you or someone you know -- perhaps a new graduate? -- could use some help with this fundamental money skill.

Sort your spending

Studies have shown that the average American adult has three or four credit accounts open at any given time. If that sounds like you, there's a way you can sort out your monthly spending that might also help you get a little extra value out of all those credit cards.

By Georgie Miller

I love yoga, so when I think of the word flexible I tend to think of some of the asanas I can't do (but aspire to!). However, there's more to flexibility than limber muscles. Flexibility is also one of the key concepts in personal finance.

Ideally, your financial flexibility should allow you to handle any money-related issue that comes your way with a minimum of panic or missed payments. Just how can you accomplish this? Begin with these simple steps.

1. Start an emergency fund

No, a credit card is not an emergency fund. While zero percent credit card offers may be a good idea for balance transfers and debt payoff, adding to your debt load is never a good strategy. By starting an emergency fund while times are good, the money will be there when disaster strikes. You want the funds to be accessible in case you need them. However, you probably don't want them to be too accessible or you'll be tempted to spend the money on something frivolous.