11 Myths About Student Loan Forgiveness

If you have more student loan debt than you can handle, or if you’ve been paying and paying (and paying) and can’t make headway, chances are you’ve wondered about student loan forgiveness. As you look into your options, keep in mind that everything you read (or hear — even from your student loan servicer) may not be accurate. We asked experts who work with borrowers all the time to share the most common myths they hear about student loan forgiveness. Here are their top picks.

Myth: You have to pay someone to get loan forgiveness help.

“There are lots of online scams that charge borrowers for things that are available for free from the government. The truth is you don’t have to pay anyone,” says Pauline Abernathy, vice president The Institute for College Access and Success. Borrowers can use the free tools offered by the Department of Education — starting with the National Student Loan Data System. If more help is needed, they may want to seek advice from a reputable counseling agency or consumer protection attorney who is well-versed in student loan law.

Myth: Student loans can’t be wiped out in bankruptcy.

“The bankruptcy laws require you to show that being held responsible for the student loans will amount to what’s called an ‘undue hardship.’ Though this standard can be difficult to meet, it’s not impossible,” says Jay S. Fleischman, a lawyer who concentrates in the fields of student loan resolution and consumer bankruptcy. He goes on to explain that if you attempt to discharge your student loans in bankruptcy, you’ll have the advantage of dealing with an attorney, rather than a debt collector. “Those attorneys often have the ability to resolve payment disputes more readily than non-lawyer collectors,” he says. “Many people who seek a discharge of their student loans in bankruptcy end up settling on a reduced balance or affordable payment plan, which may accomplish your goal of bringing the payments in line with your financial abilities.”

Myth: Only Corinthian students get relief from debts involving school fraud.

Students may be eligible for cancellation of federal loans from schools that committed fraud or broke state laws. It’s called a “defense to repayment,” and the Department of Education is working on a process to make it easier for borrowers who attended other schools to apply for this relief. More information is available from the Department of Education. “The Education Department is developing a comprehensive system to assist students defrauded by any school and to hold schools accountable for their actions that result in loan discharges,” said Abernathy. Borrowers who have been victims of fraud by their schools may also want to look into state tuition recovery funds. StudentLoanBorrowerAssistance.org maintains a list of state tuition recovery funds.

Myth: Forgiveness applies only to federal loans.

While it’s true that private loan forgiveness programs are few and far between, some borrowers are able to settle private student loans for less than the full balance says Steve Rhode, founder of GetOutofDebt.org and a Credit.com contributor. “Settlement offers I’ve seen have been in the 45% to 50% range with up to two years to pay,” he says on his site.

Myth: Only consolidated loans can take advantage of public service loan forgiveness (PSLF).

Not true, says Joshua Cohen, aka The Student Loan Lawyer. “As long as all of your loans are Direct Loans, they qualify.”

Myth: Payments don’t count for PSLF until an employer certification form is completed.

Or until it is transferred to FedLoan (a student loan servicer), or until you’ve enrolled in the program etc. … “Where is this stuff coming from?!” Cohen asks. The employment certification form is encouraged, but not required. And the reality is that qualifying payments made on Direct Loans while working for a qualifying employer made after Oct. 1, 2007, currently count toward the 120 payments required under this program.

Myth: If you are a teacher, you automatically qualify for PSLF.

“There are specific requirements and if you work for a for-profit school you may be out of luck,” says Rhode. (Here’s more information on teacher loan forgiveness.) Similarly, those working in other professions that may be eligible but can run into some hurdles when trying to qualify. Nevertheless, is important for borrowers who are hoping to take advantage of PSLF to understand the requirements of the programs for which they may be eligible, so they don’t wind up missing out on an important benefit.

Myth: Student loan forgiveness is for everyone.

“In reality, it really only provides relief to those with very large debts and/or low incomes,” says Andrew Josuweit, founder of StudentLoanHero.com where this issue is explored in detail.

It makes sense that borrowers who are able to afford their payments aren’t going to be able to take advantage of the most popular forgiveness options, many of which require a certain number of payments under an income-driven plan. A recent report from Equifax found that the income group most at risk of defaulting on their student loans were those earning less than $30,000. “This rings true across all age groups, with those earning less than $30,000 suffering from triple or even quadruple the delinquency rates of their higher-earning peers within the same age group,” say the authors of the report, Dann Adams and Naser Hamdi.

But even high earners may run into a situation where they lose their income, and for anyone who isn’t working, even small debts can become unaffordable. Additionally, there are programs for lawyers, doctors, nurses and other higher-earning professionals, too. No one should automatically assume they aren’t eligible. (And don’t always rely on servicers to provide correct information. Sometimes they don’t.)

Myth: Parents are out of luck.

While it’s true parents with Parent PLUS loans aren’t eligible for Income-Based Repayment (IBR), they may be eligible for Income-Contingent Repayment (ICR), and that’s a “qualifying payment plan for PSLF,” Cohen points out.

Myth: Miss a payment or change jobs, and you start over.

If you miss a payment under one of these programs, “you just delayed it by a month for the missed payment, but you don’t start over,” says Cohen. However, if you were making payments under IBR and then consolidated you “ended the old loan and created a new loan. You start from Day One,” he notes.

Myth: I don’t have to worry about taxes on forgiven loan. (Or the reverse: Canceled student loans mean a tax bill.)

The truth is, it depends. Certain types of student loans canceled under PSLF are not taxable, but student loan debt discharged due to Total and Permanent Disability may be, unless you qualify for an exclusion. And currently, balances forgiven after completing an income-driven repayment plan are not tax-exempt. We’ve heard from borrowers who were shocked to learn that they owed large tax bill after they became disabled and were able to get their remaining balances canceled. Others were relieved to discover they qualified for the insolvency exclusion and wouldn’t have a tax bill to worry about. (Here’s a primer on taxes after student loan cancellation.)

Student loans can trap borrowers in debt for decades, and can make it difficult to buy a home or a car. If a student falls behind on payments, those late payments can ruin their credit scores for years to come. Even if loans are paid on time, debt can affect your credit scores. The programs today aren’t perfect and they can’t help everyone, but they can provide immediate relief for some. So borrowers will want to make sure they fully explore all their options for student loan repayment and forgiveness programs in order to take advantage of the programs available to them. It’s also wise to review your credit reports and scores (you can check two of your credit scores for free on Credit.com) to find out how your loans affect them.

Related Articles

• The Best Student Credit Cards in America
• What’s a Good Credit Score?
• How to Get a Credit Card With Bad Credit

This article originally appeared on Credit.com.

This article by Gerri Detweiler was distributed by the Personal Finance Syndication Network.

The New Program Designed for Low-Income Homebuyers

Government-sponsored mortgage giant Fannie Mae is starting a new home loan program for low-income borrowers called HomeReady, with the goal of improving creditworthy consumers’ access to affordable mortgages through low down-payment requirements, homeownership education and other specialized underwriting criteria.

The HomeReady program will be available to borrowers in areas designated by the U.S. Census Bureau as low-income, in addition to borrowers who make less than 100% of the area median income in high-minority census tracts and designated natural disaster areas, according to a news release from Fannie Mae.

Perhaps most notable is the new way HomeReady will determine applicants’ debt-to-income ratio: It will include non-borrower household members’ incomes, extending mortgage access to multi-generational households.

“Fannie Mae’s research indicates that these extended households tend to have incomes that are as stable or more stable than other households at similar income levels, positioning them well for homeownership,” the news release says.

Additionally, applicantions can include incomes from borrowers who will not be living in the homes, such as parents, as well as rental income the borrower may generate from something like renting out a basement apartment. HomeReady can help any qualified borrowers, whether they’re first-time homebuyers or not, to purchase a home with a down payment as low as 3% of the property value. As part of the program requirements, borrowers must complete an online education course that will prepare them for the homebuying process and the homeownership that follows.

The program is supposed to extend homeownership access to low-income consumers, but they still need to have decent credit to qualify (Fannie Mae did not define what it deems creditworthy). Someone with good credit generally makes loan and credit card payments on time, minimizes their debt and credit card balances and applies for new credit only when necessary. A good credit score means your past financial behaviors indicate you’re likely to repay your future loans on time, which makes you more appealing to a potential lender. Good credit also helps you get lower interest rates on loans, which can make a huge difference in what you pay for a mortgage, so regardless of what program you go through to get a mortgage, you want to start the process with as good a credit score as you can manage. To see where you stand, you can get two free credit scores every 30 days on Credit.com.

Related Articles

• What’s a Good Credit Score?
• How to Get Pre-Approved for a Mortgage
• The Best Cash-Back Credit Cards in America

This article originally appeared on Credit.com.

This article by Christine DiGangi was distributed by the Personal Finance Syndication Network.

3 Ways to Maximize Your Credit Card Rewards

Picking a credit card can be a challenge — there’s interest, APR, fees, cash back, points and rewards to consider. You want to get the right choice for you. If you plan to use your credit card for everyday spending while also paying off the bill in full each month, a rewards credit card might be a good option for you. Rewards credit cards can offer the convenience of a standard credit card with the potential for some major travel, merchandise, gift card and cash benefits, though they tend to carry a higher interest rate and possibly an annual fee.

The more strategically you use your rewards credit card, the bigger the payoff will be. So before you pull out the plastic, check out these three tips to help stretch your credit card rewards.

1. Pick a Card That Matches Your Style

When you are choosing a rewards card, it’s a good idea to find one that will do two things — help you earn things you want to use and reward you for how you already spend. The offered rewards should align with your interests and goals. If you are hoping to go on a trip soon, an airline miles rewards card (here’s a list of the Best Airline Miles Rewards Cards in America) may be the way to go. This also works the other way — some cards offer more points based on what you buy. If you commute to work, you may choose a card that gives extra points when you fill up the gas tank whereas if you eat out often, you may want a card that gives you more dining points. Just don’t pick one you aren’t likely to use or benefit from — look for a card that works with your spending style.

2. Know the Rules & Fine Print

Earning rewards won’t do you any good if you don’t know how to use them or what you can use them for. It’s important to understand the details of your rewards credit card before you put it to work. Be sure to meet the minimum if your card has one and know when your points or rewards expire, if they can be transferred or traded and if there is a limit on the amount of rewards you can earn. It’s also a good idea to check in periodically with your card in case of changing terms. You’ll also want to know both your credit standing (you can see a free credit report summary, updated every 30 days, on Credit.com) and the credit standing required for the card before you apply, because every application can cause a small, temporary drop in your score.

3. Spend As Usual & Redeem

While I am wary to recommend this, you do have to spend to earn those rewards. Once again, this is best for a person who adheres to a budget, avoids overspending and pays credit card bills in full every month. If this is you, then you may want to use your credit card whenever you can (for planned expenses) and look into any possibilities of earning extra points (like double points at the grocery store for particular months). Once you have begun racking up the points, be sure you redeem your rewards wisely. Some cards limit how you can redeem, while some provide more flexibility. You may be able to choose whether you want to use points for travel, shopping, gift cards or a statement credit. Look at which options give you the biggest bang for your buck before you make a decision.

Just remember to use your credit card responsibly and avoid racking up credit card debt so you can get the most out of rewards without overspending.

Related Articles

• The Best Cash-Back Credit Cards in America
• How to Get a Credit Card With Bad Credit
• The Best Hotel Rewards Credit Cards in America

This article originally appeared on Credit.com.

This article by AJ Smith was distributed by the Personal Finance Syndication Network.

Privacy Is Dead: What You Still Can Do to Protect Yourself

When it comes to cybersecurity, we are all in a state of emergency, but the real question is – is anybody listening?

A recent poll commissioned by Intercede, a digital security company, asked more than 1,000 men and women between the ages of 16-35 (aka millennials) in the U.S. and over 1,000 in the UK if they believed current safeguards are effectively protecting their digital identities and personal identifying information from exposure. The resounding answer from some 95% was “NO.”

This is yet another Paul Revere moment, in a string of recurring wake-up calls, and a very sad commentary on the state of cybersecurity efforts by public and private sector organizations.

The Intercede press release refers to a growing “millennial malaise” toward existing safeguards – among them “easily-hackable, widely used password-based authentication methods.” While this may change during the next few years as many organizations work to harden their defenses (at risk of raising regulators’ hackles and class-action attorneys’ level of excitement) and experiment with various new ways to authenticate from fingerprints to blinking “selfies,” this doesn’t change the current state of data insecurity and the perception that privacy is on life support.

So—in the absence of instant security gratification at a time when breaches have become the third certainty in life and consumers are the product – how do we better protect ourselves?

As I talk about in my new book Swiped, it’s time to think out of the box and develop a new paradigm for personal protection. I call it “The 3Ms.”

Minimize Your Risk of Exposure

• Don’t carry your Social Security card or those of your children in your purse or wallet – also don’t store any Social Security numbers (including those of your elderly parents, if you are handling their affairs) in your computer or any mobile device for easier access.
• Limit the vast array of credit and debit cards that you carry because you can’t conceive of leaving home without them.
• Never provide your personal information online, on the phone or in person to anyone who claims to represent a business or governmental agency regardless of how official or threatening they sound. Hang up and dial the official number (not the one displayed on your Caller ID – which can be spoofed), or go online and type in the correct URL of the organization (not a link in an email or a banner ad), or use an officially sanctioned app.
• Always properly secure your computer and smartphone with the most up-to-date firewalls and security software and save any sensitive information on an encrypted thumb drive.
• Never use free public WiFi — private VPNs are best.
• Use long and strong passwords (alpha-numeric, symbols instead of letters where possible) which you change frequently – or develop a core phrase – and never share them across your universe of email, social networking, retail and financial sites.
• Avoid using your email address as your user ID whenever possible.
• Use a separate email address for your most sensitive activities, as well as one for your social networking interactions.
• You don’t really need to answer security questions with truthful answers (the object is not veracity but consistency). Frankly, while your financial institution needs to confirm that you are neither a terrorist nor a money launderer, they don’t really care what your mother’s actual maiden name is. They also wouldn’t know the difference as to your pet’s real name or your truly favorite color.
• Take the extra few minutes to type your user ID and password as you log on to every site you visit or app you use. Why make it easy for a hacker because you want to save one or both to shave a few seconds off your login time?
• Shred any document that has sensitive personal information like you were Leatherman in Texas Chainsaw Massacre.
• Try to break yourself of the habit of sharing every waking thought; special life moment; the itinerary of your family vacation; the picture of your new credit card and license or selfie with your newest car, diamond ring or piece of art (sorry Kim & Kylie); stream of consciousness (Donald, please pay attention); or, play-by-play of every bar or restaurant you are patronizing on any given night with everyone in your Twitterverse or Facebook community.
• Never click on any link that doesn’t look right.
• Never respond to a text message without further investigation.

Monitor Your Money

• Make sure to get a free copy of your credit report from each of the major credit reporting agencies at least once a year (some states permit more than one) at AnnualCreditReport.com. When you review your report(s), be particularly sensitive to tradelines that don’t look right or collection accounts with businesses that you have never heard of. If you discover any information that is inaccurate or incomplete, immediately notify the credit reporting agencies and ask that it be investigated. If you discover fraudulent activity, contact the fraud department of one of the credit bureaus and ask for a fraud alert to be put on your file. They will electronically notify the others.
• Use sites like Credit.com to access a free overview of your credit and get two free credit scores updated monthly to make sure that there are no significant changes, which might be an indication that you are a victim of identity theft.
• Check your credit and bank accounts on a daily basis to confirm that every transaction is appropriate and correct. If you see a charge you can’t remember or are sure isn’t yours, immediately contact your financial institution.
• Sign up for free transactional monitoring programs that are offered by your credit union, bank or credit card issuer that notify you of any activity in your accounts. Financial institutions don’t always catch fraudulent transactions because (among other things) stolen credit and debit cards are being sold on the Dark Web by ZIP code. To the bank it might seem like a legitimate transaction because it was done in the area where you live or work, but to you it could be a screaming red flag.
• Consider purchasing more sophisticated credit and fraud monitoring programs that will track and notify you of questionable activity — not only in your credit profile but also regarding your personal information. Remember, you need to know when someone is in the process of subtly changing your PII as they must recreate you to convince a third party that they are you. While it is possible for you to do much of this yourself, chances are you have a day job that you also need to attend to. To an identity thief, you are their day job.

Manage the Damage

Identity thieves have become far more sophisticated, breaches have become more plentiful (can you say Target, Home Depot, Neiman Marcus, Anthem, Premera, Carefirst, the Office of Personnel Management and Ashley Madison?) and the direct and collateral damage has become harder to detect and more difficult to unravel. Well over 1 billion files — much containing sensitive or very sensitive personal information — have been improperly accessed in the past few years. Chances your information, despite your best efforts, is now out there and in the possession of someone whose vocation is to exploit your data for their personal gain. The ravages of identity theft go far beyond dollars and cents – criminal, medical, tax-related fraud to name a few.

So, what can you do if you see signs that you’ve become a victim? Notify the authorities, who can create an identity theft incident report you can use to straighten out your credit and identity issues down the road. You may want to consider freezing or placing a fraud alert on your credit as well, depending on what’s been compromised.

Many organizations (insurance companies, banks, credit unions, employers, universities) have programs in place to help their clients, customers, policy holders or members navigate the treacherous waters of an identity incident. You may already be enrolled in such a program but you won’t know unless you either read the fine print or ask. So call your insurance agent, banker, customer service rep or the HR department where you work and ask: if they offer such assistance as a perk of your relationship; are you in it; if it’s free; and, if not, what’s the cost?

Never forget – the ultimate guardian of the consumer is the consumer and no one has a bigger stake in protecting your economic security and well-being than you.

This story is an Op/Ed contribution to Credit.com and does not necessarily represent the views of the company or its partners.

Related Articles

• How to Use Free Credit Monitoring Tools
• The Best Simple Credit Cards in America
• Citi Double Cash Card Review: What Our Experts Think

This article originally appeared on Credit.com.

This article by Adam Levin was distributed by the Personal Finance Syndication Network.

What’s the Difference Between a $13.9M & a $139M House?

Perusing homes out of one’s price range online may as well be a national pastime in America. Who doesn’t love imagining what it would be like to live someplace palatial, or even just gawk at these monster homes and their even bigger price tags?

In the world of real estate, however, there’s expensive and then there’s insanely expensive. The Credit.com team decided to take a look at two homes for this article, one of which is way out of our price range, the other of which is way, way, way, way, waaaaaaaaaay out of our price range.

(Or maybe one of these is within your price range. This calculator can tell you how much house you can afford, and this free credit scoring tool can tell you where you stand in case you’d like to apply for a mortgage for either of these fine homes — or any home, really.)

The former is a seven-bedroom, nine-bath house in Coral Gables, Fla., selling for $13.9 million. The latter is an 11-bedroom, 17-bath house, just up the road in Hillsboro Beach, Fla. The Hillsboro mansion is on the market for a mere $139 million.

We wanted to see what the real difference is between the two places. Is the Hillsboro Beach place really 10 times the house? How could one even arrive at that price?

Who are we kidding? We really just wanted to look at the pretty pictures.

Let’s Start with the “Small” Place

According to the listing on Zillow, here are the basics for the $13.9 million property in Coral Gables.

• 7 beds
• 9 baths
• 12,636 square feet
• Lot: 2.07 acres
• Built in 1999
• Price/sq. ft.: $1,104
• 2014 Property Taxes: $96,863
• Parking: Garage – Attached, 4 spaces

And here are some of the highlights from description:

“A foyer with a grand chandelier and 28-foot ceilings opens to a formal living room with 30-foot tall ceilings…”

“Perfectly manicured gardens permeate the scenery, and are complemented by a babbling brook, a resort-style pool with waterfall bridge, a sophisticated cabana with gourmet summer kitchen…”

“While the canal does not support a large vessel, the estate comes with a deeded boat slip allowing up to a 60-foot yacht.”

“Two downstairs wet bars, including one in a library lounge offers plenty of variety for entertaining…”

“Across the hall from the library lounge is a home cinema…”

“Take the elevator or the stairs to the second floor where a split plan finds the master suite set away from the other bedrooms.”

“Special features include a 80 kw generator with two buried 1,000 gallon propane tanks, mosquito misting system.”

So What Does $139M Get You?

For those of you with $139M burning a hole in your pocket, here are the basics of the Hillsboro Beach property, also known as “Le Palais Royal,” courtesy of Zillow.

• 11 beds
• 17 baths
• 41,774 square feet
• Lot: 2.48 acres
• Built in 2014
• Price/sq. ft.: $3,327
• 2014 Property Taxes: $143,855
• Parking: Garage – Attached, 30 Spaces

And here are some excerpts from the description of the house featured on Le Palais Royal’s dedicated website.

“On one side of your very own private 465-ft of Atlantic beachfront and on the other side be romanced at the view of your yacht docked on 492-feet on the Atlantic intercoastal…”

“Custom designed doors…with 22-karat gold leafing, opening beneath the grand [staircase]… taking craftsmen more than two years to realize with an investment of $2 Million…”

“The first-ever IMAX Theater contracted for private use… seating 18 along with a complete bar and IMAX lounge giving guests a unique experience…”

“A 4,500-sq. ft. infinity edge La Piscine with a 12-ft cascading waterfall, a double-loop, LED-lit waterslide which plunges into the pool…”

“An outdoor Jacuzzi is positioned above the waterfall allowing complete panoramic sea views…”

“You may enter the Spa Privé massage room, as well as, access the outdoor Cuisine d’été furnished with its very own Four à Pizza and outdoor lounge…”

Want to see more on how these two homes compare? Check out What’s the Difference Between a $13.9M and a $139M House?

Related Articles

• What’s a Good Credit Score?
• Can You Get a Credit Card With Fair Credit?
• How to Get Pre-Approved for a Mortgage

This article originally appeared on Credit.com.

This article by Michael Schreiber was distributed by the Personal Finance Syndication Network.

I’ve Been a Bridesmaid 4 Times. Here’s the Real Cost

When I set out to compare the costs of “bridesmaiding” to the costs of “groomsmanning,” I assumed that bridesmaids would spend more on appearances for the ceremony, while groomsmen would spend more on the bachelor party. Anecdotally at least, I was proven to be half right. But in an endeavor like a wedding, are the only costs financial?

(Side note: Why do I use “bridesmaid” as a verb? There is no other word that encompasses the duties of the bride’s wedding party, in the heteronormative tradition. A bridesmaid is equal parts hostess, event planner, counselor, negotiator. She is a soundboard for the bride, and an occasional punching bag. She will be thrown into intimate situations with people she barely knows and dressed as part of a trio of dolls. A bridesmaid should really love the bride in order to put up with all of the hassle she receives.)

I have loved all of my brides, all four of them: Nikki, Anne, Sam and Sarah. And they love me, too, or else they wouldn’t have paid me the compliment of asking me to be in their wedding parties. I tried to do some financial tallying. In hindsight, my brides have been fairly economical in their choices. I’ve never encountered the notorious “Bridezilla.” My lady friends are thrifty, creative people, and their weddings have been as varied as their personalities.

There are several major expenses for a bridesmaid, and you can mix and match at will: travel (I’m including it, even if it’s just a tank of gas), lodging (if you’re lucky, you’re local), a wedding gift, a bachelorette party, a bridal shower, any beauty service or products you buy for the ceremony, shoes, and a dress (plus any fancy undergarments you might have to purchase to wear with said dress).

But emotionally! What are the costs there?

These costs can be as diverse as the brides themselves. Often, there is the emotional fallout from family drama. I barely remember the first two weddings I was asked to participate in (sorry, friends), let alone ballpark what I spent financially on each. But I remember exactly how I felt about each.

1. Nikki

The first time a friend asked me to bridesmaid was in 2005, the year following my own elopement. Every little thing made me happier about my decision to not have a wedding. I watched the maid-of-honor cluck around the bride. She was a pro; this was my first wedding, but her second within four months. She had one of those wedding kits, a tackle box filled with tampons and breath mints and safety pins and stain pens. Meanwhile, I was flustered by the prospect of group shopping. I remember this wedding as being tense for those involved, and I’m certain I had a share in that. I felt out of place and un-beautiful and angry with everyone except the happy couple, and therefore generally uncooperative. A lot of my stress revolved around dress shopping. The bride did her best to run interference for me, being of a similarly zaftig body type. We finally found a dress that flattered all three of us equally, in the bride’s colors, on clearance for $50 each. It was the best possible scenario, but later, I fought over shoes.

This wedding was a fairly traditional one, with some heavy hands-on help from the bride’s mom. This wedding was a learning curve for me. Surprisingly, I did get better at this gig. After working out all my anxiety about performing and comparing myself to the rest of the wedding party – basically, getting over myself — I had a good time. It was a local wedding, and Nikki didn’t demand that her bridesmaids pay for hefty makeup or hair appointments. She might have actually paid for someone to do our hair, which is very generous for a bride. The biggest financial cost was probably the bridal shower. The other bridesmaids co-hosted it with me. We paid my sister (a chef) to cater it, hosted it at my church, and invited every close female friend or relative in Nikki’s life. Nikki is an extrovert, so that’s a lot.

2. Anne

I would not have been surprised if, given karmic accounting, I was never asked to bridesmaid again. But my best friend from high school was getting married, and she asked me to be in the wedding party. Anne’s wedding cost roughly the same to me as the first, but travel was the big expense in this instance. Her attendants consisted of her 11-year-old cousin, our friend Jason, and me. Given a reprieve from identical dresses, her mother took us to a department store, picked out some essentials, and made the rest of the ensembles herself. It was wonderful.

However, I had moved out of state by that point, so I had to drive 12 hours to attend the wedding weekend, and missed out on any shower or bachelorette party.

This was still a relatively low-key, inexpensive wedding on my end. As the matron-of-honor, the biggest stressor was my reception toast. I thought I did a beautiful job, naturally; the bride’s mother edited it heavily to omit some innocuous references to the groom that struck a little too closely for her. She’d had her own tension with him that week.

3. Sam

The third wedding was a double whammy, as my husband and I were both asked to be in separate wedding parties that weekend. Two weddings. It was an eye opener. This wedding heavily involved traveling for me. I shelled out more for appearances (dress, hair, makeup – I looked amazing) and travel (three separate weekends five hours away) than he did (tuxedo, tank of gas). This was also my first close-up view of the groomsman’s experience. The difference in emphasis on appearance was huge. I spent more on looks for this wedding than I had at either of the two previous weddings. Meanwhile, I was horrified to find that my husband had shaved his beard into a moustache for the wedding. I saw the photos later; it was pretty pornstachey.

The difference in responsibilities also stood out pretty starkly. I hadn’t really been responsible for the whole wedding package before, and it was difficult to coordinate across state. The wedding party also operated on a different wavelength than the previous ones I’d been in. Sam, the bride, is a freelance artist and paper crafter, and I think everyone was picking up on that creative energy and running with it. I went a little crazy with spending. I’m going to attribute that in part to age and employment: everyone involved was older, with a bit more money to spend. Meanwhile, my husband only had to show up in a tux. He didn’t even have to shave.

The second time he was asked to be a groomsman was a repeat. However, he shaved for that wedding.

4. Sarah

The fourth wedding was my cousin Sarah’s. In terms of stressors, I can only say that it was a family wedding. She asked my two younger sisters and me to be her bridesmaids. We joked after the fact that had she just picked two of the three, everything would have run smoothly. The three of us together are overwhelming, and a good dynamic can go south quickly. One of the key jobs of bridesmaiding is reducing headaches for the bride, and we failed on that point.

The major cost of this wedding was the dress, a hot pink strapless number that magically flattered everyone. Sarah shared Sam’s DIY spirit, and we spent quite a bit of time assembling non-bouquets out of wire and heirloom buttons, handed down from our grandmother. I made the invitations, and in my zeal for etiquette, effectively changed the time of my cousin’s wedding (my aunt just laughed and laughed). Luckily, it was a small wedding, and our church was very flexible. Sarah was understanding, the picture of stoic composure.

Ready for Another?

I don’t know if I’ll bridesmaid again. One of my sisters is engaged, but I wouldn’t want to be presumptuous about the decision. I have not been perfect at the job. I still haven’t assembled my own wedding emergency tackle box, and at this rate, I never will. Obviously, it’s an important decision for the bride. But it’s a heavy job for the bridesmaid, too, and it’s interesting to me that I’ve never personally heard of anyone saying no when asked. These women have been my closest friends throughout incredibly formative experiences in my life. How could I say no? The benefits should always outweigh the costs.

In this instance, the relationship between me (bridesmaid) and my friend (the bride) is what makes the costs worth it: having a front-row seat to the commitment between two people who love each other, one of whom is someone I love dearly myself.

This post originally appeared on TheBillfold. This story is an Op/Ed contribution to Credit.com and does not necessarily represent the views of the company or its partners.

Related Articles

• What’s a Good Credit Score?
• What’s a Bad Credit Score?
• How Credit Impacts Your Day-to-Day Life

This article originally appeared on Credit.com.

This article by Tera Brasel was distributed by the Personal Finance Syndication Network.

Are Adjustable-Rate Mortgages About to Become Way More Popular?

With the Federal Reserve hinting it may soon begin to boost short-term interest rates, will borrowers turn to ARMs to keep enjoying the rock-bottom mortgage rates they’ve grown accustomed to?

“Not in a big way,” said Ken Maes, an executive with Skyline Home Loans NW. “ARMs still have a negative perception.”

Maes and other mortgage professionals said they don’t expect to see a surge in ARM applications anytime soon. He noted that while initial rates on ARMs currently run about half a percentage point lower than on 30-year fixed-rate mortgages, it’s not a big enough difference for them to grab a big share of newly financed home loans.

“Caution is still the word of the day,” he said.

ARMs were a hot item a decade ago, accounting for as much as one-third of purchase mortgage applications during the years of the housing bubble, according to figures from the Mortgage Bankers Association (MBA). But a lot of those borrowers got burned when their loans reset and their payments jumped to unaffordable levels.

Today, ARMs account for only about 1% of mortgage applications for home purchases, according to the MBA. That’s largely because the rates on fixed-rate mortgages are so low that ARMs just don’t offer much of an advantage, but many people also remain leery of ARMs after the experience of the last decade.

“ARMs have gotten a really bad reputation throughout the financial crisis,” said Dave Jacobin, president of 1st Mariner Mortgage. “People have unfortunately been a lot more reluctant in the past to go down that road and choose an ARM, when in a lot of cases it’s actually a better plan.”

He expects that any increase in short-term rates that the Fed might make will be subtle, around a quarter of a percentage point, which would have a fairly minor effect on mortgage rates. He doesn’t think the Fed would risk triggering inflation with a bigger increase and expects that long-term rates will likely stay the same or perhaps even drop a bit.

“It could increase the amount of people choosing ARMs, but by no means is it going to skyrocket,” he said.

Jacobin describes himself as a “big believer” in 5-, 7- and 10-year ARMs, which he says give borrowers plenty of time to prepare for the eventual rate adjustment at the end of that period. Such loans are often useful for borrowers who don’t expect to remain in a home for a long period of time and won’t benefit from locking in a rate for 30 years.

“It’s really about best fit for the client,” said Josh Moffitt, president of Silverton Mortgage Specialists, Inc. “If their plan is to be in a home for five years and sell, then either a 5-year or a 7-year ARM might be worth considering. Currently the spread between fixed and adjustable isn’t that great though, so the decision becomes about risk vs. reward.”

Moffitt said borrowers can use the adjustment limit on an ARM to determine the maximum their rate could increase when the loan resets (many ARMs during the bubble years had large rate increases practically built in, which is how many borrowers got into trouble). They can then use that to determine how quickly an increase might offset the savings you’d realize from an initially lower rate.

“If a client can save $200 a month in an ARM product that resets in five years, they will have saved $12,000 ($200 times 60 months),” he said. “The ARM has an index and margin set within the parameters of the note, and based on that, you can predict what is the ‘worst case’ in Year 5 and moving forward.”

In most worst-case scenarios, it would take a year or two for a rate adjustment to offset the savings realized during the initial years of an ARM, Moffitt said. Of course, if the rate adjusts less than the maximum, the borrower would continue to see the savings for a longer period of time.

For some borrowers, an ARM might already make sense even without an overall rise in mortgage rates, according to Amy Tierce, a regional vice president with Wintrust Mortgage.

“Jumbo borrowers often prefer long-term ARMs which are fixed for 5, 7 or 10 years and then become adjustable,” she said.

Tierce said she sees ARMs already gaining in market share, but thinks fixed rates will likely have to move into the high-5% range before they really start to take a sizeable chunk of the market.

“It is important to remember sub-5% rates still are considered historically low,” Tierce said. “Conservative consumers like fixed rates, even when they believe that they may not remain in the property for the long term.”

In order to have access to the lowest mortgage rates available, consumers will also need good to excellent credit (here’s a guide to what’s considered a good credit score). Prior to shopping for a mortgage and a home, consumers may want to check their credit to see where they stand, and determine if they want to take time to build their credit before they apply for a mortgage. You can get your credit reports for free once a year from each of the major credit reporting agencies, and there are many ways you can get your credit scores for free, including through Credit.com.

Related Articles

• Why You Should Check Your Credit Before Buying a Home
• How to Get Pre-Approved for a Mortgage
• What Exactly Is a FICO Score?

This article originally appeared on Credit.com.

This article by Kirk Haverkamp was distributed by the Personal Finance Syndication Network.