25 & need some help big time.

**btctony** · 02-19-2014, 05:31 AM

I wouldn't consider bankruptcy in your position. You can't file bankruptcy on student loans anyway, so you'd still have that.

Your CC debt isn't terrible to the point that you can't get yourself out of it. Don't make late payments, get it paid off, and never do it again. What interest rates do you have on the CC's?

If the car is still drive-able, I don't see that being a huge deal either. Maybe you could sell it and pay cash for something used, if you need to.

What kind of degree do you have and what are you making?

I would go ahead and find a second job and take care of the debts. I worked 70 hours a week for nearly two years go get student loan debt paid down. It isn't fun, but if it is important to you to become debt free, you'll do what it takes.

**snafu** · 02-19-2014, 11:43 AM

While listing your costs, please add the interest rate on student loans, car loan, personal loan and each of the credit card as well as the monthly payments. No point in beating yourself up, much better to look forward and make a practical plan to work through these problems. There is no instant fix or a way to wish away past decisions but many of us have been successful in paying off debt in a relatively short time. I agree it's a good idea to work over time if available or find part time work for the short term. I'm confident you can get this resolved if you're wiling to make some changes.

**MoneyTips4U** · 02-19-2014, 08:26 PM

Student Loans cannot be taken care of with bankruptcy.

You're CC debt isn't terribly outrageous. I would say call to see if you can get a lower rate. If you have been on time with your payments maybe your company will be nice to you.

How much is your car worth? Would it be worth selling and downgrading to a used car? You can get a pretty decent car for $5000 (or less - just gotta look around).

That personal loan sounds like it's not a huge priority compared to the CC debt?

And yes, getting a second job would be a really good idea. 40 hours is just the norm. I've done 85+ hour weeks before. It is hard. But, you have to do what you have to do.

I would try to avoid bankruptcy if I were you. You can imagine what it does to a credit score.

And just so you know, according to Google, the Average American is $15,000 in CC debt alone. So, you are less than average on that stat. Many people have car loans, too. And many people also have student loans.

It's better you realized that debt is a bad thing now rather than later!

Buckle down and you can be debt free in 5 years or less. Work hard and anything is possible.

P.S. If you haven't heard of Dave Ramsey look into his advice/books. He has some really good material. And last of all, don't beat yourself up over this. You just need to form a plan and stick to it. You will do fine.

**mholl95** · 03-02-2014, 04:14 PM

I would say that you have enough stuff going on that you need to follow a formal laid out plan to deal with your debt. Have you considered working with a reputable credit counseling agency?

Any reputable agency would help layout a basic budget and debt pay off plan for free or a very small amount---less than $75.

The only time they would charge more is if they decided you were in such dire straights that it would be better to call the creditors and negotiate lower payments or rates on your behalf.

If you go with an agency, do your homework. Check their BBB rating, complaint history, and whether they are state approved. Also ask them if their counselors are paid based on commission or salary. Avoid those that are 100% compensated via commission.

Michael

**Eagle** · 03-05-2014, 01:19 PM

Originally posted by ThaAceman View Post

Hello everyone I am new here; but in desperate need of some advice. I have considered bankruptcy plenty of times; but as I've read on a lot of other posts & the internet in general that should only be used as a last ditch effort. Forgot to say Hello

I was young & dumb and just starting to realize it now that it is somewhat too late. I don't have any collection agencies on me at this time. I racked up some student loan debt about 28k(currently in deferment), 4CC's , 1personal loan, and a car loan. My personal loan & 4CC's have the highest int rates right now, then my personal loan & finally my student loans. I make about a little over $1600mo & just started donating plasma which should add up to an extra $365 into my pocket a month for pmts. It is really starting to affect my life(stress & frustration) this debt which is all my fault because of "DUMB" spending habits, I want to get started but do not know where.I try to keep a positive attitude around people, but then I beat myself(emotionally) up when I am by myself. I was thinking my credit cards to free up some money. I work full time but am really considering getting a 2nd job, just because it is becoming overwhelming for myself. I saw some people post on their CC's saying they called in to see if they can get a lower rate & I was wondering also if that is possible?

DEBT:
CC's: close to $4800
Student Loans: $28k(currently in deferment)
Personal loan: $9800
Car loan: $9800

Any advice will help & I greatly appreciate it.

Welcome to the forums!

First step is to figure out you need to stop beating yourself up and find a solution. Finding this forum and realizing you don�t want to live like this anymore is a good start.

As others have said we need more information:

1. What are your monthly expenses? What are necessities and what are luxuries?

2. What are the minimum payments on all your debts? What are the interest rates?

3. What is your monthly car payment and what is the car currently worth? What kind of car is it?

4. I�m going to infer you don�t have any investments or savings� Is that correct?

5. Is it possible for your to move home for a while to live with relatives (for free or at a very reduced rent rate) while you try to get your life and finances in order? If that isn�t possible do you have a roommate that you live with or have you considered a roommate to share expenses?

6. What industry is your first job in? Could you work a second job say nights or weekends?

7. What was your degree in? Did you finish and do you have a diploma?

Welcome again! Hang in there. You can beat this debt thing!

**JoeP** · 03-06-2014, 04:34 AM

Posts like this always make me wonder: What can we do as a society to guide young adults so that they don't end up in situations like this? From what I can tell, the "young and dumb" excuse usually boils down to "I don't have the money but want it anyway." The solution probably involves addressing consumerism more than basic financial concepts.

**T1985** · 03-07-2014, 06:46 PM

I had a similar problem between 18-21 years old on a smaller scale. You need to spend less. Don�t make spontaneous purchases. If I want something I waited a few months and spent the cash. Most times the feeling past and I never made the purchase. $4800 & $9800 is not the end of the world. Making a change in habits is the first step. Although, I am not expert its worked WONDERS for me.

**Eagle** · 03-10-2014, 04:04 AM

Originally posted by JoeP View Post

Posts like this always make me wonder: What can we do as a society to guide young adults so that they don't end up in situations like this? From what I can tell, the "young and dumb" excuse usually boils down to "I don't have the money but want it anyway." The solution probably involves addressing consumerism more than basic financial concepts.

Personally, I think a personal finance course should be mandatory for all high school students. And to top it off I think colleges should have a mandatory personal finance course in order for students to graduate.

25 & need some help big time.