The 5 financial tips for the second week of July 2013 are given below:

Tip no 1: Check out the grace period on your loan so that you know when you have to make the first payment.

Grace periods vary from loans to loans. Grace period refers to the number of days after which you've to make the first payment on the loan. This period usually starts after you've left the school. The grace period usually lasts for 6 months in case of Federal Stafford Loans. The grace period for the Federal Perkins Loans is 9 months. As far as Federal PLUS loans are concerned, the grace period starts from the date when they were given to borrowers.

The grace period for the private loans are different for various types of loans. So, if you really want to know about the grace period, then go through the loan documents at once. You can also have a discussion with the lender and know about the grace period.

Tip no 2: Have a clear understanding of the loan repayment terms so that you don't get into unwanted troubles later.

You need to understand the term and conditions of the loan before signing any agreement. Be it a student loan or a personal loan, ask various types of questions to the lender. For instance: how much will you have to pay for the loan. Find out how much you have to pay every month. Make sure you calculate the interest rate. You may have to pay certain fees on the loan. So, it is vital to calculate the amount you have to spend on the fees. This will help you understand if your financial circumstance will really help you afford the loan.

Tip no 3: Borrow as per your debt capacity so that you can borrow just the right amount. Know and stay within your means.

Borrow an amount which you can easily repay without incurring fresh debts. You need to determine your debt capacity to know how much you can borrow. You can evaluate your debt capacity by analyzing certain facts such your income, expenses, savings, etc. If you spend a large part of your income on your other debts, then it is better to borrow a small amount. Otherwise, it will be quite difficult for you to pay off the loan in future. You'll get into a debt hole quite easily.

Tip no 4: You're truly independent when there is no debt in your life. So, work hard to pay off your debts.

You can't enjoy your life with a huge amount of credit card debt. It will restrict you from leading an independent life. So, you need to find out ways to make yourself debt free. Figure out your expenses and debt amount. Check out the ways to make additional income. Negotiate with the creditors to reduce interest rates on your loans. If you don't possess good negotiation skills, then it is better to get professional help. The debt consultants can arrange a repayment plan which will be suitable for your financial situation.

Tip no 5: If you really want to spend money, then make investments to boost your career.

If you really have sufficient money, then make investments to boost your career. This will help you increase your earning power in the future. You can use the money to do a professional course. You can also buy new clothes to impress your co-workers and employers. You may even keep a new maid in your house so that you can afford to devote more time towards your work. You can use the time to complete the projects of your clients within the deadlines.