I have a great credit score...my fiance..not so much...anything I can do to help?

[ScrimpAndSave]

thank you for your help!

[maat55]

Don't let her make any financial decissions.

[LuxLiving]

maat55, surely you mean don't let HIM!

[disneysteve]

Focus on paying down the credit card debt at least to the point where the debt is no more than 50% of the limit on each card. And absolutely he needs to stop using credit cards entirely for any reason at all until he gets that debt paid off completely. I would not be applying for any new credit at this point.

[ScrimpAndSave]

Yes, he did stop using credit cards. (Yes, he is a "he") haha!

He has two years of law school down and one to go. He can't work due to his school situation, so he is COMPLETELY living off student loans. They only last him through the school year.

Last summer, he used his credit cards a lot for food, gas...bills..etc...and there already was a high balance on them.

Now he has about $20,000 in CC debt. When he graduates in May 2009, he will have $120,000 in student loans.

He found a job for the summer (not paying a ton - $12.50 an hour), so he will not have to use his credit cards to live. He is having trouble making the minimum payments on the cards (there are 4).

I'm wondering...do you think it would be a good idea to consolidate his credit car debt through a credit managing program this summer so that he is only paying one payment throughout the next school year? He would then have one year down on his new debt management plan when he graduates.

He doesn't use the cards anymore - so he would be fine with closing them off and not using any new credit.

[InDebtInDC]

What kind of law does he intend to practice?


If you can help get him a high paying job (depends partially on the type of law he pratices) and spend wisely, you'll be able to make quick work of the debt and the credit score will adjust more quickly to reflect than you think.

If he can focus the first year's salary on wiping out the credit card debt before the student loans become payable, his credit profile will improve significantly even with the student loan if he has no other debt and high income.


As for summers, instead of working a regular job, consider either:

a) going to school full-time and applying for private loans. This will improve his education and give him money to live on;

b) taking an internship at a law firm that gives a stipend. This should be enough to make credit card payments and live on partially.

(b) will definitely help him get a better job, especially if he has no technical education or professional experience before entering law school.

[Snave]

I have a question. I have read some of your other posts and know you are a teacher and want to get a house in a few years (hopefully saving 100k in the meantime). What will your income be then in comparison to what amount you plan on taking out in a mortgage? The reason I ask is that you have stated you do not want to have your fiance on the loan at the time do to credit issues. Will you earn enough to get the mortgage you are looking for? I am assuming you will, but you may want to run some numbers.

[maat55]

Originally Posted by LuxLiving

maat55, surely you mean don't let HIM!

I stand corrected, AGAIN.

[ScrimpAndSave]

Snave, I will be making about $75,000.

Yes, this is the first summer that he actually has a job (yay). It is in a law office that serves all types of law. He will be a law clerk. The job is laid out so that when he passes the barf next year, they will sign him on as an associate.

We have no idea what that salary would be.

[vsjhoc]

Originally Posted by ScrimpAndSave

Snave, I will be making about $75,000.

Yes, this is the first summer that he actually has a job (yay). It is in a law office that serves all types of law. He will be a law clerk. The job is laid out so that when he passes the barf next year, they will sign him on as an associate.

We have no idea what that salary would be.

When he is studying for the bar, I'm sure he'll think it's the barf!!

Why did he take a job without agreeing on the starting salary?

Associate salary information is readily available on sites like vault although the figures tend to be for large firms in big cities.

[noppenbd]

Be careful about the credit counseling services. Many times using one of them will severely impact your credit score and make getting the mortgage difficult. Do your research on this before going to one.

I would suggest cutting up the cards with the highest balances (not closing the accounts) and aggressively paying them all down.

[ScrimpAndSave]

They don't talk about the associate salary - because it is not definite. He is not signed on as an associate yet, only a law clerk. If they decide to sign him on as an associate then he can decide then.

But, this is an associate track position...with the understanding that just about all of their law clerks become associates.

[zetta]

ScrimpAndSave,
I'm just a little concerned about your fiance's choice to use credit cards to pay living expenses while going to law school. Have the two of you talked about financial philosophy and the use of credit cards once you are married? Does he have the same focus on paying off this debt and staying out of debt that you do? Are you sure that once he's earning the big bucks he will be willing to sock away money for retirement, etc., rather than increasing your lifestyle right away to match the salary? This kinds of differences can sink marriages, and it would be smart to have lots of discussions and make sure you are on the same page before you tie the knot.

[ScrimpAndSave]

Hi Zetta,

Yes, we are absolutely on the same page. He wants the credit cards paid off and out of his life. He is naturally a frugal person...he just had nowhere else to turn for food/gas/rent.