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Need advice on credit card debt

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if anyone's gonna consolidate any student loans, they better do it in the next two weeks, cuz on july 1 the rates go UP.
 
well for the next few months she'll be working part time in a pharmacy. dunno if she will continue working there when school starts. she wants to but I'm not sure if they will need her??
 
i think 500 a month is good, but in a situation like this, she should not even try to save for anything. make 500 a month minimum and have her put any leftover money towards the debt. a new car is uneccessary. if she currently has a car, find a quality and truthworthy mechanic to fix it if it ever needs to be fixed. cell phones at this point is a luxury. if she cant see this, she is not financially responsible.
 
loase the cell phone and the cable, those are luxuries that you can do without for a while. Glad to hear she's working part time in a pharmacy during the summer. Hopefully, she'll keep it and continue to pay down the debt. If she is financially responsible as you say, she keep the job and work towards paying off the debt faster. My older brother went through this. He racked up A LOT of credit card debt(think 50k+) and has spent the last 7-10 years paying it off. He is finally gonna get it all paid off this year. I am proud of him for taking responsibility for his debt and paying it all off. He has been a great example to me, both why credit card debt is bad and how to take responsibility for your actions. I firmly believe that bankruptcy is only a very last choice. Too many negatives and it doesn't help you become more responsible with your money. Good luck, hope she sticks to paying it off as fast as she can, the sooner she does, the better off and the happier she'll be.
 
The cell phone is her only phone, it is not a luxury. Schools require the teachers to be reachable, she has to have some phone. Ditch the cable though, unless it's cable internet and you're using it for job applications. Working after school and grading are incompatable, but she could be working weekends at a second job, most teachers do. Check intrest rates on student lones vs cc debt, it may be possible to switch to a graduated repayment play on the student loans where she makes lower payments now and bigger payments later. Then she could pay off the cc faster. Electric bill seems high, you can get bulk compact flourescent lightbulbs on ebay for less than they usually cost in stores. The energy savings would make it worth it even on 20% interest. Sell the tv. You can buy a better one in six years. Bake bread instead of buying it at the store. Make bean burritos the night before to have for lunch, etc.

That situation really isn't so bad at all, she has a steady job and can pay it off. Bankruptcy would be a terrible idea, that's the worst thing possible for her credit rating and she wouldn't be able to get another loan for anything for seven years afterwards. If she just cancels cable she could pay it off in 5.5 years instead of six. By my math she still has room to pay almost $700/month as long as she's eating frugal, like beans, rice, and eggs. If her employer matches a 401k dollar for dollar, then it is still worthwhile to save, otherwise just pay the cc bill to the max. The faster she pays it off the better a position she'll be in when she tries to get a car loan. At $700 a month it would only take 4.3 years instead of six.
 
Originally posted by: ctcsoft
Originally posted by: ncircle
bankruptcy.
Click to expand...

when i try to tell her that. she bites my head off and gets all pissy with me. and tells me how she can't do that and how she spent the $$ so she is gonna pay it off.
Click to expand...

She is 100% correct! She spent it, she has to pay for it. Respectable attitude.

But there are things she can do. She can call the credit card companies and tell them that she is having difficulty paying and they have a choice. They can either freeze the account where it is, and have her pay JUST the balance from here... or they can lower the interest rate.

If a credit card company thinks that they will only get pennies on a dollar thru default, they will usually work with the person who owes.

You say she consolidated the debt... she got a company to buy her debt at a lower rate?
 
bankrupty laws are in the offing (if not already passed) that makes it harder for individuals to file for it when they get themselves into too much debt. It is also not a good option. No one will want to loan her money for the next 7 years or so. And if you both have your names on all CC and such, it could affect you also (I could be wrong). As it has been mentioned, call the CC companies and request for lower interest rates.
 
Originally posted by: ctcsoft
Originally posted by: ncircle
bankruptcy.
Click to expand...

when i try to tell her that. she bites my head off and gets all pissy with me. and tells me how she can't do that and how she spent the $$ so she is gonna pay it off.
Click to expand...

That is a very respectable stance on her part. I wish more people had this same feeling of moral obligation.
 
Originally posted by: ctcsoft
Originally posted by: ncircle
bankruptcy.
Click to expand...

when i try to tell her that. she bites my head off and gets all pissy with me. and tells me how she can't do that and how she spent the $$ so she is gonna pay it off.
Click to expand...


some very bad advice on this forum, from 'bankruptcy' to 'ditch her'.
Ok so she's about 25k in debt, while thats huge its obtainable to pay it off in about 3-4 years. But there needs to be a good effort in doing it.
Other options are for her to take an extra evening job.
Could save even more if she moved in with you haha, no rent to pay


 
Originally posted by: Plasdom
bankrupty laws are in the offing (if not already passed) that makes it harder for individuals to file for it when they get themselves into it. It is also not a good option. No one will want to loan her money for the next 7 years or so. And if you both have your names on all CC and such, it could affect you also (I could be wrong). As it has been mentioned, call the CC companies and request for lower interest rates.
Click to expand...

That is not correct. There will be lots of companies that will want to loan her money (at high interest rates) IF she declares bankrupt because she would not be able to declare bankruptcy again for 7 years.

I think if she is serious about paying down the debt, she has to either raise her income or cut expenses. Since teachers aren't exactly going to see a high pay increase in the future, cutting expenses is the way to go.

1).Dump the cell phone and cable television.
2).Move closer to her job (60 miles daily commute is hard on the car/gas) so perhaps she can take public transportation/walk to school. Even if rent is higher, you would be saving on car/gas/insurance payments.
3). How is a single woman spending $75 on electricity/month when she is spending 5 days a week at work?
4). Teachers get summer off, she can teach summer school for extra money or take a seasonal job in the summer for extra income. She can tutor some highschool kid during the evening if she has a degree in something.
5). You didn't mention her food costs. Can she get free lunches from the cafeteria?

Having written all that ... here is the other shoe.
It sounds like she has gone to some sort of credit counseling/debt management company to consolidate her debt. Some of those are shady i.e. take your money and refuse to pay the CC until your credit is shot and then they will negotiate with the CC for lower payments. I suspect her credit score is ruined because she has gone to the debt management company. It is almost as if she declared bankrupty anyway. $500 per month should be manageble but 6 years is a LONG time - that would be $36,000 when it is all said and done if she doesn't charge another penny + her student loans. I personally would talk with a BK lawyer soon if I was in her position.
 
From what I know, bankruptcy really isn't that bad. You go on cash only for awhile, then get a low limit/high interest CC and work yourself back up.
 
debt consolidation companies i've heard are pretty bad. just as bad as bankruptcy... which is a very very last resort IMO. It's somewhat of a cop out method, and for 25k in debt.. it's not worth the hassle you will get for the next 10 years.

At least she's trying to be responsible. All I can say is.. push that current car as far as it will go.. and avoid going out really. It'll suck, but its something she'll have to deal with... especially if she can't drop cable and cell.

and a part time after school thing would be nice... but I figure she'll have plenty of schoolwork to deal w/ during that time. if not, find something local.. or as suggested, an escort 😉

I feel the pain though, I have a bundle of student loans to cover... and a small credit debt to deal with. Basically, it's a good thing I don't have rent (live at home, and don't bash it, everyone has their own situations).
 
okay some updates.

1. on her student loans, i'm not sure if it all can be refinanced or not to a lower rate. I know the state is paying some of it back for her. Part of a teaching deal where she has to teach 2 years in Illinois 1st. She is in her 2nd year now.

2. as for the cable (tv and internet for $90. but we can get it down to $70 with the current promotion running) . I need that and we live together. I'll probably start covering that myself. Even though she enjoys it just as much 😉

3. Her cell phone is her only phone. Her school does require her to have a phone and be reachable. So I don't think she can drop that.

4. Her car has 180k miles on it. It seems to be mechanically sound that and has had the proper maintenance done to it. But I give it 1-2 more years. Most cars don't last much over 200k if that even.

5. Electric bill is around $150. Split 2 ways. So $75 each. I really don't know why its so high either. Always has been around here though. Unless you live in a dinky apartment.


I think we could do less eating out and more cooking at home. I'm not gonna ditch her because of the debt but I won't let it become my problem either.

No pics 😉 she isn't hot. Not fugly, but defintely not hot....
 
Just keep on her about it...as I said, she can always seek a night job to help pay it off faster. A few nights a week can make $100-200 extra a month. If she's a server in a restaurant, she can do a lot better than that. If she does it, it'd be a good way to pay it off faster...then you kids can start talking about picking out rings.
 
Talk to parents, get them to co-sign loan, or remortgage house to get super cheap interest rates.
Pay off debt with loan money, have a cheap loan, win.
 
I know I'm repeating some of what's been said, but anyway...

Most people don't know where their money goes, so take a very detailed look at expenditures. She can probably cut back $200 a month without much pain. But some people can't do that because they won't sacrifice.

More income is another good answer. The trick to making it work for her is to make sure she puts all that second income against her debt. Babysitting is a good option compared to a minimum wage job because there's no taxes (that's 20%+ more takehome pay right there), it's really easy, and people pay well for reliable, adult, responsible babysitters. Try to target upper income people because they gladly pay for the best.

Does she have stuff she bought she doesn't need? Sell it.

She's already past the toughest part - deciding to pay it off. If she can do all the above she will make progress that will surprise her. Better to live lean for a few years now than to keep dragging that debt around for a longer time.
 
definitely tutor as a second job. my friend's a teacher in LI and she charges $65/hr tutoring kids from like 5pm - 8:30pm at her home.

great second source of income.
 
my CC debt is consolidated thru cccsla.org.. i pay <400 a month and it will be done in a year and half or so.
Total debt elimnation time about 4 years.

 
retard! SLAP HER! How do you buy so much on CC, its NOT FREE MONEY YOU FVCK-TARDS. ITS ACTUALLY THE OPPOSITE! IT COSTS MORE TO USE CC (if you dont pay it all off, obviously)


that is all.
 
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