I am slowly drowning in debt

pollocksn · #1 (**permalink**) 05-21-2009, 01:16 AM

Well I am trying to figure out how to get myself out of all my debt. Here is the back story. I had a good paying job and just graduated school. I ended up taking a lower paying job for now to get experience so in the future I can make more money. While I was in school I racked up some credit card debt. I had no help besides student loans and did what I had did to get through school.
Now my dilemma is the minimum payments+loan payments= my check. I barely have enough for rent and bills right now. I have an excellent credit score b/c I have never in 8 years missed a payment on anything. I really don't want to mess it up now. I owe about 9 grand on two credit cards. How should I go about fixing this????? My student loans go into payment in about a month. I think I am about to have a mind melt down

MarkHamilton · #2 (**permalink**) 05-21-2009, 10:24 AM

Your not to badly in debt so you have a few options. For the quick fix today, apply for some new credit cards with 0 percent financing on transfered balances. If your old cards are around 23% getting these balances over to a new card with 0% will help. Many cards are different but you should be able to find something for the first 6 months to 12 months for the 0 percent interest. Another option would be to get a bank loan. The advantage to bank loans is that they are set up to be paid in X number of years. With credit cards your monthly payments are all interest. It would take you forever to pay a card off just by making the min payment. 3rd option get a second job or side work.

pollocksn · #3 (**permalink**) 05-21-2009, 09:25 PM

I am working on the second job idea. I have to wait until my few weeks of orientation are over at the new one, then my schedule changes. I can't get a loan from a bank right now due to my debt to income ratio.

MarkHamilton · #4 (**permalink**) 05-22-2009, 09:43 AM

Do you have any assets you can liquidate? Do you own a home? What state do you live in?

MoneyStance · #5 (**permalink**) 05-22-2009, 01:57 PM

How much do you owe on the school loans? If it is over half your yearly income, I'd start hammering on the credit cards first. Use the suggestion above to keep bouncing the debt on 0% interest cards until you have paid them off. You might want to downgrade on your apartment or vehicle to bring your income level above your expenses.

pollocksn · #6 (**permalink**) 05-23-2009, 12:22 AM

Quote:

Originally Posted by MoneyStance

How much do you owe on the school loans? If it is over half your yearly income, I'd start hammering on the credit cards first. Use the suggestion above to keep bouncing the debt on 0% interest cards until you have paid them off. You might want to downgrade on your apartment or vehicle to bring your income level above your expenses.

Nope no assets I share a house with 2 roommates. I wish I could trade my car in on a lower payment. I just bought it last year so I am still upside down on it. I am thinking about sinking it in the lake

not really.

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