Home > Personal Finance > TweetChat Recap: Credit.com Credit Experts

Comments 1 Comment

Earlier today, Credit.com hosted our first Credit Experts TweetChat on Twitter.  A big thank you to everyone who participated this afternoon!  For those that missed it, we had Credit.com’s Farnoosh Torabi online to answer your questions about student loans, paying for college, financial aide and dealing with student loan debt.

I’ve included some of the more interesting questions and answers from today’s TweetChat:

Paying Back Student Loan Debt

Question: What’s the best way to attack student loan debt when you know it’ll take years to pay it off?

Answer:  If it’s a federal loan, see if you can peg your monthly payments to your income. Check out IBRinfo.org, for information on Income Based Repayment options. Or, try to reduce the loan’s term. You’ll have to pay higher minimum/month, but you’ll be out of debt faster.

Volunteering Your Way Out of Student Loan Debt

The same consumer was explaining that increasing payment and reducing the term of her debt scared her and would leave her “poor” for a while. She was encouraged to get a ‘student loan’ gig to help pay down the loan. There are also ways to volunteer your way out of student debt.

[Related Reading: Volunteer Your Way Out of Student Loan Debt]

Student Loan Deferment & Forbearance

Farnoosh also explained the possible risk of deferring on your student loan–watch out for accumulated interest charges during your forbearance period. That $20k student loan could become $25k quickly.

Roth IRAs

When asked investing advice by a consumer who isn’t certain that opening a ROTH IRA was wise, Farnoosh assured her that it was a good move.

She said, “I’m a big fan of IRAs. A Roth is great because you won’t need to pay taxes on withdrawals. Stick with no-load mutual funds in your IRA, since those don’t carry commission fees.”

[IRA Info: Watch Farnoosh on the Today Show for more on where to find ‘No Fee IRAs’]

Third Party Debt Help

One of our participants also had concerns with using outside or third-party help to fix their debt problems. Farnoosh explained that “the most trusted financial advisors are CFPs that charge you a flat consulting fee and don’t get paid commissions.” And to “make sure he/she understands your goals, communicates well and again, gets a flat rate (annual or per hour).”

Have a question for Farnoosh or one of Credit.com’s other Credit Experts? Post it in the comments section below, or send us an email at questions@credit.com.

To see full transcripts of today’s tweetchat with Farnoosh, click here.

Image by TPorter2006, via Flickr

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

  • http://www.larryfry.com/ mortgage

    All of those things are good for your credit score. Still use that card to buy one thing a month to keep it active so that the card company doesn’t turn around and close the account for inactivity.

Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team