Some colleges have started programs to help students ease or eliminate student debt as pressure builds in Washington to help them afford the rising costs of school. Several colleges have eliminated loans from all financial-aid packages beginning next school year and replace them with grants and student employment contracts.

Other schools have provisions in place dictating who is able to obtain loans and who is eligible for other benefits. For example, Emory University is eliminating loans for undergraduate students whose families earn less than $50,000 per year, while capping total loan volume at $15,000 over four years for families with income up to $100,000.

Typically, schools will assess family income and assets to come up with an “expected family contribution”. This is subtracted from the expected contribution from the total cost of attendance – tuition, fees, room and board and other expenses – to come up with how much “need” there is for a given student. A financial aid package is then devised to meet this need, which is typically a combination of loans and grants. The new provisions will replace these loans with an all-grant package.

These initiatives are being financed through endowments, but many colleges plan on cutting down on non-academic spending in order to raise new funds. The move also comes after Congress has begun encouraging universities to start dipping into their endowments instead of simply reinvesting the money in global markets. Combined, many are hoping that these provisions will help lessen the burden on students that are struggling to get under a cloud of debt.

The best way to avoid excessive debt this holiday season may be to shop with a plan, according to many experts. Many shoppers find themselves financially unprepared for the extra expenses and turn to home equity loans or credit cards. As a result, many people can end up overspending during the holidays trying to get the perfect present for friends and family. Credit cards may offer a free 30-day loan, but shoppers that overextend themselves may find themselves in more financial hurt than if they used a checking account instead.

The best solution to curbing your holiday spending may be to establish a budget. Make a list of everyone you wish to buy presents for and figure out exactly what you want to get them. Then compute the total price and compare it to your cash on hand and make sure you can afford it. Finally, go to the stores with your list and purchase only those things on the list. Many people end up buying much more than they plan when going to stores, so it is important to stick to the list. The end result is a very manageable holiday shopping season.

Debt is a very real problem for millions of young Americans as they borrow to get through school, spend money on healthcare, and buy on credit to keep up with the latest trends. This new generation is quickly shaping up to be a generation of debtors. The most recent statistics from the College Board show undergratudates that attend a for-profit school use more than $24,000 in student loans while the number stands at $10,000 at public universities. These numbers represent a 35% climb over five years ago, which is lightyears ahead of the inflation numbers that can justify it!

Meanwhile, federal student aid has dropped or remained stagnant over the past few years. Grants have converted to loans as America forces more and more of its young generation into debt. Many students find it hard to pay back such large loans later in life when interest starts piling up and the job market shrinks. The cost of living in many cities has only gone up too as renters are even accepting the plastic to pay bills! Clearly this is a disturbing trend that will need to be addressed on both the government and individual levels.

Everyone can appreciate a little financial relief during the holiday season, whether it be a special discount, cash rebate, or free gift. Many of these perks are made available during this season to shoppers who sign up for credit cards and special financing offers. Savvy consumers can take advantage of these deals in order to obtain some perks, postpone some bills, and collect some free gifts. Here are a few of the popular promotions available:

• Retailer Discounts – Many retailers are now offering discounts for shoppers using their store credit cards. Consumers should look into these cards if they are available free of charge and offer significant discounts. Consider obtaining one card (such as an Amazon.com card) and doing all of your holiday shopping in one place to maximize your savings.
  
  
• Deferred Payments – The idea of buying now and paying later may seem great, but it is important for consumers to read the fine print. Often times, these deals let you defer payments interest-free for months (or even years!) but if you miss one payment, you will owe past interest for all those months! So, if you take these deals, be sure to make timely payments in the future!
  
  
• Rewards Point/Perks – Many credit cards offer rewards points or cash back for everything you spend. Consumers can use one credit card with rewards for all of their shopping in order to maximize cash back, rewards points, or free airline miles.
  

Combined, these are some ways in which you can leverage your holiday shopping to start paying some dividends!

Credit card debt is at $920 billion and climbing as more people are using the handy piece of plastic to cover everything from $3 a gallon gas to holiday shopping. Many consumers will eventually pay back what they spend; however, there is growing concern that some cash-strapped borrowers may take on more than they can afford to pay back due to the lack of home equity cashflow.

Credit card delinquency rates remain near their all-time lows, but are inching higher according to banking industry reports. Statistics are beginning to surface showing an increase in cash advances and smaller balance portions being paid off each month. Many believe that this may eventually force banks to raise their credit card interest rates to compensate for increased losses, which will put the whole cycle into motion yet again.

Compared to mortgage lending, however, credit card losses are not all that significant. This is partially because lenders who give people more credit on the promise to pay back already apply more rigid standards to borrowers with questionable records. This is in stark contrast to the subprime lenders who had little to no criteria for their borrowers – believing that homes would be sufficient collateral.

In the end, consumers may be facing increased pressures in the future amid higher gas prices, a holiday season and tightening credit standards. It is more important now than ever to get out of debt and keep a spending budget in order to make sure you can weather the storm.

Saving is the most important step on the way to financial well-being, both in the short-term and long-term. Short-term savings can provide you with an emergency fund that you can tap in to in the event of an unforeseen, large or urgent expense. Meanwhile, long-term savings can help you accomplish goals like purchasing a house, going to college or retiring from working life.

Ideally, everyone should have more money coming in than going out every month. If you are in debt, you should immediately begin paying off your debts (especially high interest debts) before committing any money to investment or savings. Once you are free of debts, begin to build a short-term cushion in case of emergency. And finally, you can begin putting away money for long-term goals like retirement.

How much emergency savings should you keep in the bank? Well, most experts recommend keeping 3 to 6 months worth of living expenses, but this number could vary based on the number of dependents in your household and the type of income you are earning. Once you are free and clear with this amount, you can invest additional savings in stocks, bonds, or riskier places.

As a final note, it is important to remember that you should not rely on credit cards or investments to become your short-term emergency savings. Credit cards can easily put you in substantial debt while selling investments before they are due can levy significant fines.

It is very important for consumers to stay prepared in today’s uncertain economy. A couple months ago, economists were concerned about some defaults in a small portion of the economy. Now the problems have spread into the entire mortgage market, credit markets, and the larger overall economy. How far this problem goes remains to be seen, but there are some steps that you can take to protect yourself.

Pay down your debt
Debt that may not seem like much now can become troublesome when the economy turns. Home equity lines can try up, hours can be cut at work, and investments can underperform. Combined, these events can make paying off high-interest credit cards or other debts nearly impossible. If you need help, be sure to consult a credit counseling or debt negotiation service.

Postpone major purchases
Major purchases can cost a lot not only now but in the future. They can tighten your spare cash, lead to future payments (if on a payment plan), and can often lead to buyer’s remorse. Additionally, the US dollar is very weak right now and may mean higher prices for some foreign goods.

Bulk up savings and investments
Now is a great time to start saving money, max out your 401(k) contributions and setup a Roth IRA. This is especially true if your employer matches your contributions, as this is free money! Saving is best at banks like ING Direct that offer 4%+ interest rates. Also, be sure that your investments are diversified away from one or two companies. Blue chip companies that have strong growth overseas are the safest.

Make yourself valuable at work
One way to protect your job is to make yourself valuable at work. You should carefully analyze taking any available promotions or new work.  Joining a professional network or association to keep up to date with the latest trends and keeping professional contacts are the best way to do this.

The holiday shopping season is quickly approaching and thousands of Americans are poised to spend more than they can afford. One way to avoid this problem is to create a spending plan to limit your spending to an amount that you can afford while keeping the season happy and meaningful. Draft a plan in November and stick with it through December in order to maintain your sanity in January!

Here are a few tips to help:

• Determine how much you can afford during this holiday season.
  
  
• Find ways to cut back on expenses or increase your income by working overtime or taking a part-time job.
  
  
• Make a shopping list and set an exact dollar amount for each person on your list. Remember, it’s the thought that counts – not the price tag.
  
  
• Shop alone so you can avoid making impulse buys and instead of focus on making good selections. Many stores are slower on Monday, Tuesday and Wednesday.
  
  
• Once you’re done with your list, stop shopping!

Do you think bankruptcy will end all your problems? Think again. Many big lenders have found ways to continue squeezing money out of consumers whose debts have been canceled by the courts. In fact, there is even a healthy market for such debts that have been supposedly canceled by the courts being actively bought and sold every day. Five of these companies trading debts are even publicly traded on the NASDAQ! So, how can you avoid these problems?

First, let’s take a look at how and why this practice occurs. A consumer that has $10,000 in credit card debt that was canceled may not technically owe the debt any longer; however, the credit card company may continue to report the discharged debt to credit bureaus as a live balance. This can continue to hurt the consumer’s credit rating and impact his interest rates and ability to obtain loans. And these kinds of things happen a lot more often than many people care to admit.

The practice of buying and selling discharged debts even has some judges confounded. The misconception is that discharged debt is worthless because it cannot be legally collected. However, the value lies in the creditors ability to negatively impact the consumer’s credit report long enough to force a payment just to remove the barrier. After all, the consumers only alternative is to go to court and spend money on a lengthy legal process to force change.

Many of these cases are making it to court these days with companies as notable as Capital One. However, the small number of cases brought to court keeps the strategy a profitable one for those involved in this unethical secondary market. While this may be a significant abuse in the industry, it is one that must eventually be stopped with new laws and harsh penalties for companies that do not immediately remove these debts from customers’ credit reports. Until then, it is a problem that will only persist and there is little consumers can do.

The Midwest appears to be hit the hardest when it comes to the financial fallout of the subprime and credit markets. A recent report measuring the risk of residential mortgage loan delinquencies found that nine of the nation's 10 highest-risk metropolitan areas are in Ohio, Michigan and Indiana. Those states also rank among the top six in bankruptcy filings per thousand people in the year ending June 30th despite a new law making it more difficult to file for personal bankruptcies. A report from the University of Wisconsin Milwaukee showed that the number of homeowners with mortgages in Milwaukee increased 74% in 2006 while the percentage of people paying at least 50% of their income to housing costs nearly doubled to 19%. Obviously, this is a troubling trend in that it is unsustainable. While many economists are forecasting a recover, many still believe that the worst is yet to come...