How long until she is out of debt?

[spidey07]

Originally posted by: MBony
She has a 1BR loft in the city (probably ~$700/month + utilities), a car payment (~$350), plus living expenses (food, pet food, she has a bird), she is NOT good with money and with this kind of debt she buys things like ipods and expensive cell phones for herself. So she is not frugal, she is 31.

Her interest rates are around 10% APR for the CC, not sure for the school loan.

In that case, probably never or 15 years.

 

[xrax]

she can marry a rich guy

 

[FoBoT]

most people should not pay back student loans faster than the 10 years alotted

she should pay off the CC's faster, like 5 years if possible or less if she doesn't blow a lot of $

 

[RaistlinZ]

If she can get a second job, at least for a year or so, and stop her lavish spending she can be out of debt in a decent amount of time. At the rate she's going though, she'll be in debt until she's 50.

Don't marry this girl, whatever you do,

 

[GasX]

IS she hot enough to work at a strip joint? It could solve her money problems in a lot less time!

 

[DVK916]

Originally posted by: kranky
Let's say net is $27K, which is $2250 a month. Let's assume rent, utilities, car, and other necessary expenses like food and gas are $1600/month. That leaves $650 for everything else.

She could pay off the CC in 5.5 years paying $200/month IF SHE NEVER CHARGES ANYTHING ELSE.

The school loan we will assume is 5% and we'll assume it gets paid off over 10 years. That would mean a payment of $424/month. If she takes 20 years to pay, it would be $264/month.

1600 a month seems to low for that

Rent should be between 700 dollars a month
Food should be between 200-300 dollars a month
Utilities should be between 200-300 a month
Car Insurance should be between 250-500 a month
Lets not forget health insurance which sould be between 200-300 a month.

That is already 1550-2100 and it doesn't include car payments and other daily expences like gas.

 

[TheToOTaLL]

Originally posted by: sixone
Depends on how much of a priority it is for her. If she's willing to forego some 'luxuries', she could do it much faster than if she is also buying stuff for herself.

QFT!

It's all dependant upon the person's willingness to be debt free!

 

[Elbryn]

Originally posted by: MBony
she is NOT good with money and with this kind of debt she buys things like ipods and expensive cell phones for herself.
Her interest rates are around 10% APR for the CC, not sure for the school loan.

with the spending mentality she has, its more probable that never is the answer. if she becomes committed to reducing the debt and becomes good at money management she could do it in in less than 10 years assuming salary goes up and she devotes the increases to her debt.

 

[DVK916]

Originally posted by: MBony
she is NOT good with money and with this kind of debt she buys things like ipods and expensive cell phones for herself.
Her interest rates are around 10% APR for the CC, not sure for the school loan.

Believe me even without being psychic I can forsee the furture for this one. Bankruptcy is what I see.

 

[DBL]

Originally posted by: DVK916
Believe me even without being psychic I can forsee the furture for this one. Bankruptcy is what I see.

Unfortunately, bankruptcy does nothing for student loans.

 

[Axon]

Originally posted by: GeneValgene
should live frugally, and aggressively pay off all credit card debt

the student loans she can pay back more slowly, as she can right off the interest on her taxes

Correct. I easily banged out 10k in credit debt in a year after college. Be frugal and agressive in payments. Make a payment every week so the money does not idle. Idle money is just waiting to be spent on that "must have" pair of shoes.

 

[mrrman]

And I am worrying about $3k...thank god thats not me

 

[God On Alcohol]

Originally posted by: rdubbz420
Sometimes I'm glad I didn't go to college. That?s a lot of debt.

u didnt go to college? daytime job?

 

[D1gger]

15 to 20 years depending on the interest rate she can negotiate to consolidate the loans and how much she is willing to commit. At ~10% of her gross income and 6% interest it would be about 20 years.

 

[dullard]

Student loan will likely be done in 10 years. I doubt she'll get it delayed longer than that.

Credit card will never be paid off. Sounds like she doesn't have the balls to do what it takes to handle money properly. If she did, she could pay it off in a couple years. But I highly doubt she will do so.