10 Financial tips for recent college grads - Fox 2 News Headlines

10 Financial tips for recent college grads

Posted: Updated:
David Flores from GreenPath Debt Solutions provides the following information for Fox 2's Money Monday:  Many 2014 college graduates are basking in the glory of wrapping up their bachelors or masters degrees this month. However, in many instances, their downtime will be short-lived, as they face even more responsibilities, ranging from landing that first job to preparing to start paying off their student loans.

"Graduates need to realize how much an impact their credit history can have on their future," said Bill Druliner, GreenPath Debt Solutions http://www.greenpath.org/ counselor.  "As more hiring departments take personal finances into consideration, recent college graduates need to make sure their credit and debts are in order." To help make the transition from college to the work world go smoothly, GreenPath Debt Solutions is providing a top ten financial checklist for recent college graduates.

1. If you do not already have a job lined up, contact your student loan servicer(s) immediately to ask for a six-month deferment. Most loans will do this for you right after you graduate without much difficulty. The last thing you want is to start getting negative marks on your credit right away for not making the student loan payments on time.

2. Pull a free copy of your credit report at www.annualcreditreport.com <http://www.annualcreditreport.com> and review it to make sure you are aware of all your existing creditors and debts.

3. Look for credit cards that you may have opened while in college and consider closing accounts that you do not plan on using, to help limit your exposure to identity theft.  However, keep in mind that it is good to maintain at least one active credit card account, which you use and pay in full every month, to build your credit score.

4. If a prospective employer requests a copy of your credit as part of the application process, be prepared in your job interview to be up-front about any negative marks on your credit. Employers will want to know that you are aware of the negative marks and that you have a plan for dealing with your current credit situation.  

5. Check with the registrar's office at your school to make sure you do not owe anything to the school (library fines, parking tickets, etc.). Sometimes these debts can cause the school to withhold your diploma, until they are paid.

6. If you are moving after graduation, be sure to let the post office and your creditors know of your new address. Otherwise, you may miss important statements or letters regarding your student loan, credit cards, or other debt, and that can lead to missing payments and negative marks on your credit report.

7. Keep your expenses as low as possible while you are getting started.  Don't rush out and buy a new car within two weeks of your first job offer.  Don't feel the need to take on larger expenses in your budget such as an apartment of your own right away.  Staying with your old roommates or parents for a period of time to build some savings can really pay off.

8. Develop a budget - your spending plan - early on.  Decide how much you'll spend in different areas including groceries, dining out, and clothing.  Once you begin receiving a paycheck, it is likely that you'll have more income than you've ever had before. But it can be very easy to quickly wind up with the cash slipping away without a clear idea of where it has gone.  

9. Once you land that first job, start to develop good saving habits.  Start a direct deposit into savings.  Sign up for your employer's retirement plan - especially if there's a match.  In addition, if you're carrying credit card debt, begin aggressively reducing those balances to minimize the amount of interest you're paying.

10. Ask for help! If you are paying high interest rates on your credit cards; if you're struggling with the amount of your minimum payments on credit cards, or if you need help in developing a game-plan for your finances, speak with a non-profit credit counseling agency.  These agencies will help you develop a budget and action plan to tackle your debt. Log on to www.greenpath.org, the National Foundation for Credit Counseling at www.nfcc.org ; or the Association of Independent Consumer Credit Counseling Agencies at www.aiccca.com for more information.

For more information on GreenPath, or to receive a free counseling session and budget plan, log on to www.greenpath.org or call (866) 648-8122.

Keep up with GreenPath Debt Solutions online:  www.facebook.com/greenpathdebt and www.twitter.com/greenpathdebt .

About GreenPath Debt Solutions

GreenPath Debt Solutions is a nationwide, non-profit financial organization that assists consumers with credit card debt, housing debt, student loan debt, and bankruptcy concerns. Our customized services and attainable solutions have been helping people achieve their financial goals since 1961. Headquartered in Farmington Hills, Michigan, GreenPath operates 50 full-time branch offices in 11 states.  They also deliver licensed services throughout the United States over the Internet and telephone. GreenPath is a member of the National Foundation for Credit Counseling (NFCC), the Association of Independent Consumer Credit Counseling Agencies (AICCCA) and is accredited by the Council on Accreditation (COA).

  • Murray FeldmanMurray FeldmanMore>>

  • Money Monday: Social media safety

    Money Monday: Social media safety

    Monday, July 7 2014 9:31 AM EDT2014-07-07 13:31:18 GMT
    The internet is like an elephant -- it never forgets. While spoken words leave little trace and are quickly forgotten, written words endure in the online environment. Whatever you post, tweet, update, share -- even if it's deleted immediately afterwards -- has the potential to be captured by someone, somewhere, without your knowledge.
    The internet is like an elephant -- it never forgets. While spoken words leave little trace and are quickly forgotten, written words endure in the online environment. Whatever you post, tweet, update, share -- even if it's deleted immediately afterwards -- has the potential to be captured by someone, somewhere, without your knowledge.
  • Money Monday: No one has a crystal ball on the market

    Money Monday: No one has a crystal ball on the market

    Monday, June 30 2014 10:44 AM EDT2014-06-30 14:44:05 GMT
    Jonathan Citrin of Citrin Group talks about how make investments after so-called experts were flat wrong about predicting how the market will perform.Play the video in the player to see his interview with Murray Feldman.Click here to learn more about the Citrin Group.
    Jonathan Citrin of Citrin Group talks about how make investments after so-called experts were flat wrong about predicting how the market will perform.Play the video in the player to see his interview with Murray Feldman.Click here to learn more about the Citrin Group.
  • A CEO's exit interview: Alan Mulally on his 8-years at Ford

    A CEO's exit interview: Alan Mulally on his 8-years at Ford

    Wednesday, June 25 2014 4:17 PM EDT2014-06-25 20:17:56 GMT
    Five short videos in what could be described as an exit interview to the media.  For business people of all kinds, there is some real insight to be had here as Murray Feldman poses questions that go beyond the auto industry.  Alan Mulally is candid with his answers.
    Five short videos in what could be described as an exit interview to the media.  For business people of all kinds, there is some real insight to be had here as Murray Feldman poses questions that go beyond the auto industry.  Alan Mulally is candid with his answers.
  • Local NewsLocal NewsMore>>

  • FBI joins the search for Armada teen's killer

    FBI joins the search for Armada teen's killer

    Friday, July 25 2014 11:08 PM EDT2014-07-26 03:08:38 GMT
    The FBI has joined the investigation team searching for the killer of a 14-year-old Armada girl, April Millsap.
    The FBI has joined the investigation team searching for the killer of a 14-year-old Armada girl, April Millsap. Authorities also say they are now looking for a small motorcycle in addition to the gray, dented van seen in the area.
  • Vandals damage historic Detroit cemetery

    Vandals damage historic Detroit cemetery

    Friday, July 25 2014 10:38 PM EDT2014-07-26 02:38:55 GMT
    Police are looking for suspects after vandals disturb the peace at a historic Detroit cemetery. Someone broke into a mausoleum and made a mess with spray paint and ashes.
    Police are looking for suspects after vandals disturb the peace at a historic Detroit cemetery. Someone broke into a mausoleum and made a mess with spray paint and ashes.
  • Man hospitalized after run-in with Ecorse police

    Man hospitalized after run-in with Ecorse police

    Friday, July 25 2014 10:05 PM EDT2014-07-26 02:05:54 GMT
    Witnesses and lawyers say a man was attacked by Ecorse police Monday morning even though he was complying with police demands.
    Witnesses and lawyers say a man was attacked by Ecorse police Monday morning even though he was complying with police demands.
Powered by WorldNow

WJBK-TV | Fox 2
16550 West Nine Mile Rd.
Southfield, MI 48075

Main Station: (248) 557-2000
Newsroom: (248) 552-5103

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices