Stress at a young age..

**noppenbd** · 11-17-2008, 11:32 AM

Assuming you have filled out the FAFSA, you should qualify for either grants or loans. There is a big difference between the two. Generally grants do not have to be repaid, so they are preferable. But you should not be turning down federal student loans in your situation. The interest rates are usually highly favorable on them (much lower than your credit cards, and likely lower than your bank loan). Some federal loans even have the interest deferred until you graduate (these are called subsidized). I suggest you set up a meeting with your college's financial aid department to see what can be done.

EDIT: Check out this government website to explain the different types of grants and loans that are available: FAFSA - Free Application for Federal Student Aid

**arthurb999** · 11-17-2008, 11:58 AM

Grants are money you do not have to pay back… like pell grant, etc. Most people take out student loans and it’s ok to do so IMO.

I would suggest that you get a better job as well. I recommend you get a job in the field you are studying to figure out if you like that line of work and also gain experience for when you graduate.

Basic stuff:

1. ditch your cellphone
2. stop spending money on your credit cards

**GREENBACK** · 11-17-2008, 12:15 PM

I think at your young age you have time to get it straight. You need to stop buying anything on credit and get another or additional job to eliminate the cc debt. If you need to go the student loan route that's ok but make sure it's an investment towards the future that you'll get back with your career.

You'll always have some kind of stress but now is the time to learn how to manage it. Getting your finances in order will go a long way towards easing your stress.

It's easier to say than to do but I once too was in a financial bind at about your age and it's great when you conquer it You just need to have the determination to overcome it.

**disneysteve** · 11-17-2008, 01:02 PM

Originally posted by dpmisk View Post

I have 4 credit cards, all maxed out.

1 - 1700 Limit (Balance ~2000)
2 - 1500 Limit (Balance ~1800)
3 - 700 Limit (Balance ~800)
4 - 650 Limit (Balance ~700)

What are these charges from? You've got $5,300 in charges. What did you spend that money on?

You told us your income and that you live at home. Now tell us your expenses, besides the cellphone which you need to get rid of ASAP. A cellphone is a luxury, not a necessity, and you can't currently afford luxuries.

**kork13** · 11-17-2008, 02:29 PM

Look for a second job, or ask to take on more hours where you're currently working. Stop using the credit cards--cutting them all up (maybe except one) tends to help. Quit using the cell phone so much. Stop texting. You should be easily able to have your cell phone work for you for no more than $40/mo. Cook your own meals (from scratch), stop eating out. Cut out all expenses you possibly can. Just getting your finances under control will improve things for you.

As for stress management in general, I personally go running when I'm really stressed or upset. Listen to your favorite music. Read a book. Whatever your hobby is (preferably one that doesn't cost you much to do), carve out some time in your schedule to do it. You need to have some time for maintaining your personal well-being (sanity?). What you do just needs to be something that you enjoy, something that relaxes you, that gets your mind off of your concerns, whatever they are, for that time you've carved out for yourself.

**maat55** · 11-17-2008, 02:40 PM

I think while you are living at home you should concentrate on paying off your current debts and then get serious about your education.

As Steve has said, you don't need a cell phone. As Greenback has said, you need to stop using your credit cards. You should not buy anything unless you can pay cash.

Sell everything you do not need. Look for a better job and get a second or part-time job as well.

I know these things sound difficult, but if you do these things, you will get out of debt quickly and build good financial habits that will serve you well for life. Read these books:

The Total Money Makeover by Dave Ramsey. (First)
The Automatic Millionaire by David Bach.

You need to set goals and achieve them.

Get out of debt. (first, so that you can concentrate only on your studies later)
Get an education.
Have a financial plan.(reading the above books will help with this.)

P.S. Most of your stress is due to being overwhelmed. When you have a plan and determination to follow it through, you will have peace at any stage of the process.

**Inkstain82** · 11-17-2008, 05:47 PM

The most excellent news is that you are only 20. If you learn the lessons you need to learn now, then by the time you are 30 you will be lightyears ahead of your peers financially.

**Diolla** · 11-18-2008, 05:09 AM

I would suggest you talk to a financial aid counselor and find out what you have qualified for...a grant, a loan or both. I qualified for a Pell Grant, a subsidized student loan and an unsubsidized student loan. the first never has to be paid back, the second the interest is paid by the gov't while you are in school and the third the interest is deferred but still accrues while you are in school. Part time students do not usually receive the first two offered above. Usually only full time degree seeking students receive grants or subsidized loans. If that is the case how much more would tuition be if you went full time? You might find it cheaper (because of the grants). In my scholl full time is 12 hours a semester (usually 4 classes)

You are not working enough at a good enough paying job. My school has a career counseling center where there are paid internships, find one for the field you are studying. They usually pay better and are flexible around your school schedule. I go to school full time and work 30 hours a week at an internship I also work seasonal jobs in my field. There is not alot of time for fun but it is also not forever, just until I finish school.

I agree with the prior poster, you have too much cell phone. I am not sure I would ditch it entirely but you need to bring it down. My cell runs me about $20 a month on a pay as you go plan.

You need to get rid of ALL the credit cards. You have proven (twice if I read your post right) you can't handle them right now.

What is it with this bank loan? If it was a student loan and you are still in school it wouldn't be due even if you changed schools. I would guess it is a personal loan. Either that or you didn't just change schools but actually quit school for awhile and caused it to activate. If it is the second you should be able to get a deferrment if you are back in school now. If it is the first I would take all the student loans you are offered and pay it off as I doubt the interest rate is lower than any of the guaranteed student loans mentioned above. Do not however go the private loan route as that would probably just be trading one debt for another.

Do free stuff, work hard, and make a plan is the way I deal with stress. I find once I have a plan to deal with it I am not as stessed.

Best of luck...BTW What are you studying?

**rizzmo** · 11-18-2008, 06:46 AM

Just wanted to point, out that you don't have to make any payments on student loans until you stop going to school. My wife just got her second master degree and we haven't had to make a single payment. She is going back to community college this semester to take some basic bio and chemistry requirements so she can gain admission to Vet school. So even though she is now taking beginner courses, we still do not have to make payments on her loans until she graduates Vet school.

Making $600 a month you should not even own a cell phone IMO. Even if you only paid $40 a month this is almost 7% of your total income. You have stated that your bill is $120 a month which is 25% of your total income, percentage wise that is around what most people pay on their home mortgage. Additionally, my work reimburses me for my iPhone and it only cost them $75 a month (actually $150, they pay for my wife�s phone too). I am a moderately heavy phone user as this is both for business and personal. I'm confused on how you can be paying $120 a month?

I suspect the credit cards problems are from you using the CCs to supplement your income when you come up short each month, rather than adjusting your budget (lifestyle) to live within your means. I'm sure there were a few luxury purchases in those totals as well. I would suggest cutting/cancelling all your CCs as self control seems to be a problem currently.

I find it hard to believe that out of four able body people (assumption), you are the only one who can find work, perhaps there is another issue here needing to be addressed.

Another poster said you should pick up more hours at your job, I agree, however doing so is more of a band aid than a fix to the problem. The real solution here is to find a job that pays you more money. I worked in a fiberglass injection molding sweat shop and earned $11/hr, or you can drive a fork lift for $10-15/hr depending on your location. These jobs are just a few among many positions you can get with no school, experience, or training.

**disneysteve** · 11-18-2008, 07:15 AM

Originally posted by rizzmo View Post

The real solution here is to find a job that pays you more money. I worked in a fiberglass injection molding sweat shop and earned $11/hr, or you can drive a fork lift for $10-15/hr depending on your location. These jobs are just a few among many positions you can get with no school, experience, or training.

I agree. My wife works part-time as a secretary for a local hospital. All she does is shuffle papers and file all day. She earns $13.95/hour. No particular knowledge or experience was needed for that job.

**rooskers** · 11-18-2008, 09:35 AM

I know a lot of you guys always recommend finding a job that pays more money or getting second jobs and I use to agree with you. A year ago that would have been easy around where I live. I could open the paper and see around two to three pages in the newspaper for job openings and at least a third of those were entry level jobs. Not anymore though the job openings page is less that half a page and almost all of those are jobs like nursing, electrician, or something else that takes certification. I don't see anymore signs in windows saying hiring. One of the local companies that hires people seasonally for the holiday season hired maybe a quarter of what they usually do. To top it all off many of the businesses around here are going out of business. We may be starting a stage in select areas in the U.S. where people will not be able to find jobs because there are not any to be found (at least for those who only have a high school degree and no additional training in a specialty).

**disneysteve** · 11-18-2008, 09:47 AM

rooskers, I think you are right about it being a regional issue. I'm sure there aren't a ton of help wanted signs in Detroit right about now. Here in NJ, there are plenty. Practically every store I go in has a sign up. Employers that I speak to (in all fields) complain that they can't fill open positions and when they do hire people, they don't want to work or don't show up. So around here, anyone looking for a second job should have no trouble at all finding one.

**jIM_Ohio** · 11-18-2008, 11:34 AM

The education is not a COST it is an INVESTMENT. That $7.50/hor wage you earn could be quadrupled or more immediately with a degree. I have billed out my time as high as $120/hr before- usually closer to $60/hr if I bill my time to someone.

I could not have billed those high rates without my degree or significant experience.

Here is what you want to do
1) spend less than you earn
2) pay down the debts
3) continue to take a course or two at the local college (downsize the education to get the debt under control).
4) Once the debt is paid off overload on college courses. I took 23 credit hours one semester, 22 two other times. Make a commitment over a short period of time to get that degree.
5) Take professional training if you can find the time and interest. For example if you are business major, consider taking a tax course to work for a company like HR block. it will cost you around $200 to take the course, but you should be able to earn $5000-$10000 during tax season, and also get industry experience.
6) find a job in your field of choice as young as possible. Be an errand boy, intern or something. Even if it pays low. Have another job to earn more money if needed, but get experience as young as possible.

**skylovessea** · 01-25-2009, 03:07 PM

Originally posted by disneysteve View Post

besides the cellphone which you need to get rid of ASAP. A cellphone is a luxury, not a necessity, and you can't currently afford luxuries.

That's not necessarily true. Especially depending on the lifestyle of the specific person. For example, I have to have one because of my son.

Some people need them because they are always on the go.

Plus, it is ideal for emergencies. I can't imagine if something happened to me or my family and I couldn't call for help.

Like everything else, it's mostly a matter of opinion.

Stress at a young age..