Credit Card Debt: $17,000

[ponyo]

Originally posted by: astroidea

Originally posted by: Naustica
Rolling credit card debt into student loans is a terrible idea. Student loans are like taxes and stay with you for rest of your life until it's paid off. Credit card debt is unsecured and it can be wiped away whole after 7 years even if it's unpaid.

I would much rather default on credit card debt than roll it into a student loan. Student loan is the devil and many young people will find out the hard way later when they have to repay it.

😕
So that means I can max out all my credit cards, and they'll stop bugging me about it in 7 years?

They might still bug you but it's off your credit report after 7 years and you're not required to pay.

Student loans have no limit. Only your death will resolve unpaid student loans.

 

[Capt Caveman]

Originally posted by: TruePaige

Originally posted by: Skoorb
Holy crap, would half of you please spend less time here and more in a reading comprehension class? OP NEVER SAID ANYTHING ABOUT 6 MONTHS.

edit - good to see you figured that out.

 

[vi edit]

Originally posted by: Naustica

Originally posted by: astroidea

Originally posted by: Naustica
Rolling credit card debt into student loans is a terrible idea. Student loans are like taxes and stay with you for rest of your life until it's paid off. Credit card debt is unsecured and it can be wiped away whole after 7 years even if it's unpaid.

I would much rather default on credit card debt than roll it into a student loan. Student loan is the devil and many young people will find out the hard way later when they have to repay it.

😕
So that means I can max out all my credit cards, and they'll stop bugging me about it in 7 years?

They might still bug you but it's off your credit report after 7 years and you're not required to pay.

Student loans have no limit. Only your death will resolve unpaid student loans.

Or like...actually paying them off instead like you are supposed to do instead of cutting and running like a little bitch.

 

[kranky]

Originally posted by: astroidea

Originally posted by: Naustica
Rolling credit card debt into student loans is a terrible idea. Student loans are like taxes and stay with you for rest of your life until it's paid off. Credit card debt is unsecured and it can be wiped away whole after 7 years even if it's unpaid.

I would much rather default on credit card debt than roll it into a student loan. Student loan is the devil and many young people will find out the hard way later when they have to repay it.

😕
So that means I can max out all my credit cards, and they'll stop bugging me about it in 7 years?

It's misleading. Derogatory information on your credit report is removed after 7 years up to a point. So if you make a late payment on a credit card, the late payment notation will come off your report after 7 years. But if you default on $17,000 of credit card debt, the bank is going to go to court and get a court judgment against you, garnish your wages, get a lien against your house and/or car. That judgment can be renewed in most states. As long as the judgment is active, it will stay on your report. That's the kind of black mark which could make it impossible to get any kind of credit. It DOES NOT go away after 7 years.

So what can start out as unsecured debt can turn into something that is on your report for many years - if the bank chooses to pursue it in court.

 

[ElFenix]

declare bankruptcy.

 

[preslove]

Bankruptcy is a much better option than student loans. You can never get rid of/reduce your student loans (unless the Democrats reform the system). Qualifying for bankruptcy is harder now, though, so I don't know if it is an option for you.

& jesus christ, how do you rack up $17 grand as a student?

 

[daveymark]

Fatwallet finance forums FTW

 

[Pabster]

Originally posted by: her209
Good lord, how does one rack up $17K in CC bills?

17K is nothing. I know folks with well over 50K on credit cards.

It's called spending beyond your means, which credit often allows one to do.

 

[Pabster]

Originally posted by: kranky
So what can start out as unsecured debt can turn into something that is on your report for many years - if the bank chooses to pursue it in court.

Yep. And for $17,000, they probably will.

 

[imported_Lothar]

Originally posted by: astroidea

Originally posted by: Naustica
Rolling credit card debt into student loans is a terrible idea. Student loans are like taxes and stay with you for rest of your life until it's paid off. Credit card debt is unsecured and it can be wiped away whole after 7 years even if it's unpaid.

I would much rather default on credit card debt than roll it into a student loan. Student loan is the devil and many young people will find out the hard way later when they have to repay it.

😕
So that means I can max out all my credit cards, and they'll stop bugging me about it in 7 years?

I hear some peope do this in the UK a lot...
1) Spend lavishly
2) Declare bankruptcy
3) Your record becomes completely clean after 5 years
4) Rinse and repeat.


I pretty much agree with Naustica here. Read the links below for more info.
http://www.creditcards.com/Mov...n-to-a-Credit-Card.php
http://www.creditcards.com/Don...t-on-Student-Loans.php

 

[wyvrn]

Raise you income and live below your means. Learn how to invest (don't just rely on stock market). Once you do those things, you'll have the money you need to live. Go to the library and read one of the many hundreds of books on the topic.

 

[blipblop]

OP, do you mind telling us how much you earn if you have a PT job or something and all your expenses?

 

[yhelothar]

Originally posted by: chusteczka
BT game is Balance Transfer game.

I assume the OP is a student from the reference to student loans. Student loans exist to provide a student the means to pay bills without incurring debt in a manner better suited for other aspects of society. It is understood that students have to pay bills but have little opportunity to make money to pay for the bills. This is why student loan interest is deferred until after school and why that student loan interest is tax deductible.

All that credit card debt should be put into student loans. If possible, it may be best to receive the maximum amount of student loans each semester and use this money to pay off all bills.

The idea to sell belongings to pay for the debt does not sit well with me. Assuming those items were purchased for utility rather than novelty, those items have a useful purpose. To sell these items will let that need go unfulfilled and the money received will be a fraction of the total debt incurred for that item. Basically, the result is that money is owed for utility that is not received. This is hardly a wise financial decision to make. The best thing to do is to decrease spending and purchase less expensive items in the future.

Take a look at a typical product, such as a computer processor. The spoiled view for such a purchase is to think "for just a little more money, I can receive 200MHz more". The frugal view is to think "I can save money by purchasing this other processor with only 200MHz less". A 200MHz difference for a processor is nothing but the monetary difference can sometimes be $50.

I tried to play the balance transfer game, but no credit card company wants to approve you when you're so close to your credit limit.

 

[aplefka]

Holy hell dude, that's a lot of debt. Clearly your sig is wrong, the only winner is the credit card company.

 

[Gooberlx2]

Originally posted by: her209
Good lord, how does one rack up $17K in CC bills?

My wife and I did it....but the vast majority was medical. I took out a loan from my Dad since he won't destroy us on interest.

I :heart: my Dad.

 

[Dacalo]

Originally posted by: her209
Good lord, how does one rack up $17K in CC bills?

That's nothing. My friend has about $30k in CC debt. He also just traded in his 1 year old Honda Civic for a brand new G35 sedan.

This kid is hopelessly lost.

 

[Gooberlx2]

Originally posted by: ElFenix
declare bankruptcy.

Before even doing that....just threaten to declare. Before we got the loan with my Dad my wife did this with a couple of cards. They closed the card (made it so no purchases can be made) and dropped to 1-3%, and had to be on automatic withdrawals from our bank account. It worked out and the cards were paid off fairly quickly. But this was before the housing market took a dump, not all of our CCs would do it (hence the loan), and the balances weren't astronomical on these particular CCs.

 

[kalrith]

OP, it could possibly be a good move to roll the CC debt into a student loan. The monthly payments might be lower, the interest rate is lower, and you can claim the interest paid on your income taxes. However, it all depends on how responsible you are. A lot of people say that they really want out of debt when all they want is to reduce their monthly payments and have more room on their credit cards. If you're that kind of person, then DON'T get a student loan to bail you out of CC debt. If you get a $17k student loan and then max out your cards again, then you'll be screwed.

If you can't be responsible to not at all use your credit cards (running them through a shredder will do wonders), then you should do what people already recommended and call each company and get your interest rate reduced. Live on as little money as possible, make as much money as possible, and put all your extra money toward the card with the highest interest rate. Once it's paid off, then move onto the one with the next highest interest rate.

Someone else mentioned it, but here's a link to the fatwallet finance forum and some links to related threads there: 1 2 3 4.

 

[CPA]

Originally posted by: her209
Good lord, how does one rack up $17K in CC bills?

lol, you should see my cc debt.

 

[mugs]

Originally posted by: her209
Good lord, how does one rack up $17K in CC bills?

Pizza delivery boy + BMW SUV FTW!

 

[FP]

"I declare bankruptcy!"

I am not saying it I am declaring it.

Op, Student Loans == Bad idea.

Cut all expenses out of your life that you can. How much can you reasonably pay a month toward the CC debt?

There is good debt and bad debt. Your kind is bad debt. Getting it paid off should be your #1 priority.

 

[jagec]

Originally posted by: Dulanic
I agree with others... 6months history and 17K is impossible without it being a secured card which means you would have most the money. This is BS.

I have 8K debt myself and have for 2 years from moving around and switching jobs for expenses in between. I have not paid one cent of interest by playing the BT game.

Yeah, but you've paid a crapload of BT fees. You're still losing lots of money.

Originally posted by: chusteczka

The idea to sell belongings to pay for the debt does not sit well with me. Assuming those items were purchased for utility rather than novelty, those items have a useful purpose. To sell these items will let that need go unfulfilled and the money received will be a fraction of the total debt incurred for that item. Basically, the result is that money is owed for utility that is not received. This is hardly a wise financial decision to make. The best thing to do is to decrease spending and purchase less expensive items in the future.

Take a look at a typical product, such as a computer processor. The spoiled view for such a purchase is to think "for just a little more money, I can receive 200MHz more". The frugal view is to think "I can save money by purchasing this other processor with only 200MHz less". A 200MHz difference for a processor is nothing but the monetary difference can sometimes be $50.

He did NOT buy $17k worth of stuff for utility. No one "needs" that much stuff. He can sell all that crap, buy much cheaper things that he needs, and come out ahead.

Originally posted by: Naustica
Rolling credit card debt into student loans is a terrible idea. Student loans are like taxes and stay with you for rest of your life until it's paid off. Credit card debt is unsecured and it can be wiped away whole after 7 years even if it's unpaid.

I would much rather default on credit card debt than roll it into a student loan. Student loan is the devil and many young people will find out the hard way later when they have to repay it.

Aww, you mean you have to pay back those loans?:roll:

Student loans are much better than CC debt...if you're not an irresponsible bastard

 

[imported_Lothar]

Originally posted by: jagec
Student loans are much better than CC debt...if you're not an irresponsible bastard

Chances are, if you've racked up $17k in credit card debt as a college student...you're an irresponsible bastard.

😉

 

[Eeezee]

Originally posted by: fuzzybabybunny
Wait a sec... how do you have a CC with a <= $17K credit limit with a credit history of only 6 months?

I think this implies he has multiple credit cards. Seems like the beginning of every term is rife with credit card vendors; free t-shirt here, free sandwich there, but all of them require you to sign up for credit cards.

 

[Demo24]

geez, and I thought my debt of 10k was pretty big...especially considering I racked that up before college. Granted it wasn't CC debt (dont own one) and it was paid off in under a year. Properly managing your finances FTW!