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This post is the second in  series of  posts by Kevin Mulligan about specific steps to take to get out of student loan debt.

Now that you’ve taken the first step (congratulations!) you’re ready to move forward and get rid of this debt once and for all.

Step 2: Minimize the Financial Impact with Simple Changes

The second step is to work to minimize the impact the loans have on your finances. This could be interpreted two different ways: minimizing interest paid and minimizing your monthly payment.

Minimize Interest Paid

You took out a loan. You have to pay it back. You could take your time and stretch out the payments, but you’ll pay for it. The faster you pay it back the less interest you end up paying.

To minimize your student loan interest just start paying it back as quickly as possible. You can pay more than the minimum monthly payment just like with any other loan. (With any loan — not just student loans — you’ll want to check your loan documents to insure there is no prepayment penalty.)

Additionally you can get your interest rate reduced by 0.25% to 0.50% by setting up automatic debit from your checking account. On a $20,000 loan at 6.8% interest rate and 10 year repayment that rate reduction will save you anywhere from $306 to $610.

Minimize Monthly Payment

But what if you have so much student loan debt that you can’t afford the minimum monthly payments? It’s too late to cry over spilled loan money, so we’ll tackle what you can do.

You can:

• Increase the length of your repayment plan up to 25 years. You’ll pay more interest, but this will reduce your monthly payment.
• Request deferment or forbearance. There are specific criteria (financial hardship, unemployment, illness, etc.), and you do eventually have to start paying the loan back. This is more of a temporary stop in payments.
• Work in public service. Again, special criteria apply, but if you work in public service you can have some of the debt forgiven. This won’t actually reduce your monthly payment now — it just reduces or eliminates the loan balance.
• Consolidate. Take your two $10,000 loans, combine them into a $20,000 loan, and increase the repayment period. You get one payment, a smaller monthly balance, and (unfortunately) higher interest paid over the life of the loan.

Step 3: Avoid Student Loan Mistakes

The third step is to avoid simple mistakes that can cost you more of your hard earned money:

• Ignoring mail or e-mail you receive from your school or lenders. Open everything and read carefully!
• Assuming the lender received your payment. Verify your payment was received via your online loan management website.
• Assuming all of your loans don’t accrue interest until after you graduate. If you don’t know, ask! Begin paying on the ones that are accruing interest if you have the means.
• Not automating your loan payments. You can save on your interest rate plus be virtually guaranteed your payment was received on time.

Have you started this process? Where are you in these steps? Was this information helpful? Email us and share your story!

Written by guest blogger Ryan Guina of Cash Money Life. Ryan is a writer, small business owner, entrepreneur, and professional in the corporate world. He also runs The Military Wallet.

This post is part of a special PerkStreet series about taking the next step to living in your dream home, whether you buy or rent.

Summer is the time of year most people move. It’s easier to make a major lifestyle change when the kids are out of school and the weather is nice. My wife and I are planning on putting our house on the market this summer and we’ve already started looking at mortgage options. If you are also thinking about moving any time soon, then read on. You’ll need this information!

How to get a mortgage that meets your needs

When it comes to mortgages, boring is good! When the mortgage bubble was heading full steam, banks were offering liars’ mortgages, interest only mortgages, teaser rates, balloon mortgages, Adjustable Rate Mortgages (ARMs), and other exotic mortgages. Those are dangerous types of mortgages for the average consumer and many people on both sides of the table got burned by these exotic loans. In short – you want a plain vanilla mortgage.

Stick with a 15 year or 30 year fixed rate mortgage. As mentioned above, exotic lending terms are best left alone. The standard terms offered by most banks and lending institutions are 15 year and 30 year terms. There are pros and cons to both loans – a 15 year mortgage has less overall interest, but higher monthly payments. 30 year mortgage terms have lower monthly payments, but the longer term results in hundreds of thousands more in interest payments over the life of the loan. If you can afford it, go for the 15 year term because you will save hundreds of thousands of dollars in interest over the life of the loan. Otherwise, go for the 30 year term, which may enable you to afford more home for the monthly payment.

Shoot for a 20% down payment – or higher. 20% is the magic number to avoid paying Private Mortgage Insurance (PMI), which is required when you put down a small down payment. PMI is in the best interest of the bank and doesn’t really do anything for you except make you wallet lighter. It is an expense that is best avoided! The other benefit to putting down 20% is borrowing less money – reducing your mortgage payment and the amount of time it takes to pay off your home.

Shop around for interest rates. Don’t accept the first offer you receive – the lending market is super competitive right now and you may be able to save hundreds of thousands of dollars over the life of your loan by comparing mortgage rates. Be sure to check with your local bank or credit union, as well as the big lenders. You never know which will have the better rates.

If you can’t get a good mortgage rate, then wait. Mortgage rates are near an all-time low, but they may be a little more difficult to qualify for than they were a year or two ago when banks were handing out mortgages to anyone who asked for one. If you can’t get approved for a mortgage right away, it is probably a good idea to work on improving your credit score and saving for a larger down payment. Both of these will help you get more favorable mortgage terms.

Are you mortgage shopping right now? What’s your experience been like?