Hi guys! First off, thank you so much for reading this. I appreciate any help and concern you guys have and can provide me from the bottom of my heart. First off, let me explain my situation.

I'm currently 20 years old and I've accrued some debt along the way. I got my first credit card at the age of 18 and I became a very bad spender which I highly regret right now and take full responsibility of. At the age of 16, I began college at ITT Technical Institute (graduated high school in Japan). I still have loans from that as well.. and it gets worse. Here's a breakdown of my debt:

School Loans
$30,000 in school loans (ITT was very expensive :\)


Credit Cards
Bank of America
Owed: $2,726
Credit Limit: $2,000
Minimum Payment: $843
APR: 29.99%


Capital One
Owed: $2,278
Credit Limit: $1,500
Minimum Payment: $561
APR: 23%


First Premier Bank
Owed: $426.91
Credit Limit: $250
Minimum Payment: $301
APR: 19.90%


--


Current Job/Income Situation
-$340 Weekly / $1360 Monthly
-Other Income: $400 Monthly (from Mom)
-TOTAL = $1760 /mo.



Breakdown of Expenses
-Rent = $500 /mo.
-Food / Gas = $480/mo.
-Dog = $60 /mo.
-Random Necessities / Emergency / Entertainment = $200 / mo.
-TOTAL: $1240 /mo.


Right now, I'm paying for food/gas for both my girlfriend and I (we basically live together, her parents pay all her other stuff) and that is why my expenses are so high.

My student loans and credit cards are all exactly 6 months behind. I've been avoiding my telephone like the plague (I know, my mistake) and I finally realized that I need to do something to fix this situation I'm in. That's why I'm here

I owe $400 in backpay to my student loans. My plan with that is to give them a call, defer my loans so that it stops accruing (if possible), and come up with a payment plan that we can both work with in paying the late fees and overages.

As for my Credit Cards, this is where I really need help. There's no way I can defer this or even think about paying each one off individually. Would it be a good idea to give each company a call explaining my situation and see if they can work on a plan to help me with this? I was also thinking of just contacting a consolidation company to help me out with this as well, but I want to try to get as much done as I can by myself. There hits another problem though.. how much can I afford to pay monthly on each credit card?

I'm really confused as to where to being with all of this and I apologize for the huge wall of text. I just needed to get it off my chest and I feel extremely horrible about the entire situation. However, I know it's possible to turn all this around, and I remain optimistic in finding out the perfect way in doing this.. realisticly.


Again, thank you in advance for all of your help and I look forward to a response. Thank you!

OK, first off: are your students loans through Sallie Mae or other federal loans, or are they private loans? And did you graduate ITT?

Also, what are your monthly over-limit fees for each of the cards?

All right, you've been to ITT, so I'm going to assume you're a big boy and can understand the numbers here.

You have $720/month, or 41% of your monthly income, either designated for "emergency/entertainment/misc" or just plain left over each month. Trust me, dude, this counts as a period in your life where you must forego the entertainment for a while and live in "emergency" mode...and be grateful Mom is sending you 4 bills a month. Start applying it wisely.

First off, dump that First Premier card. That was the most ridiculous ripoff card you ever could have become involved with. Right now, I know they're burning you $67 a month for absolutely nothin. Pay it off and close the damn account. Then next time, READ the terms on any credit offer you get. First Premier offered you a $250 credit limit and skimmed $200 right off the top in bs fees and "finance charges" just to send you that piece of plastic. You had a $51 credit limit from jump street on this card. They banked on you going over the limit so they could start hammering you before you even had a chance....and you bit. So right now, take your mommy money and kill that card. And make sure you call them and CANCEL that card the second you pay it, or they will continue to soak you for more "because we can fees" every single month for absolutely nothin***

Then, take your remaining $270 for the month and throw it at that BOA card, since it's got the highest interest rate. Once you respond re: my previous questions, maybe I can continue with some suggestions.....

But take care of this NOW, while you're still youn*** Even if you have to file bankruptcy, better now (though you're still gonna be stuck with those student loans--and lawyer fees to boot), because you'll have the chance for your credit record to be repaired before you're 30. Yeah, I know...seems like a long time, ten years. But if you really ran the numbers and grew up some (and it sounds like that's what you're starting to do), you'd realize you could wipe out this credit card mess in less than a year (about 7 months)--even with your part-time job, and keeping your dog--and hopefully, your girlfriend, too.

Don't let those card companies burn you. They're killers.

It's through Sallie Mae and it's a mixture of Federal and Private loans. I believe the private loans are the ones that are due now (the Federal are still deferred). Also, I have graduated ITT Tech with an associates degree.

As for the Over-the-limit fee's for each card (not including late fees of course):

BoA: $0
Cap One: $39
First Premier: $25

Also, thanks a ton for the advice. I understand I have $200 leftover a month for random purposes and entertainment. This is the first month that I actually have that $400/mo. from my Mom which I'm greatful for and definitely plan on using to pay off my bills.

My first premier card will be my number 1 priority then. The fees for that are really ridiculous and I'll be sure to get rid of it. My only concern is that can my other cards wait? It's been 6 months and I don't want to go another month without paying them if possible. Should I give them a call and try to work something about? What about debt consolidation, is that an option for me?

I definitely want to try and avoid bankruptcy at all costs since I know that will only hurt me more than I already am.

Thanks!

Wow! That's are crazy expensive Associates degree.

No kidding, it hurts

Ok, heres the break down. You are going to have to make some hard and maybe unwanted choices but in the end you will be happy, not stressed, and glad you did it.

Best way to get out of your debt is to first stop spending on all your cards if you haven't already.

Create a tight budget too if you have not already.

Track and cut out the wasteful spending on things like eating out, going to bars, entertainment, buying things you don't need, ect.

Also, get a second job, full time/part time, what ever you can. Try selling things you don't really need or want on Craigslist/eBay to raise extra capital to pay off your debt.

Next, you

Pay the most you can on the CC with the highest interest rate and pay the minimum payments on the rest of your CCs until you get the highest one paid off. Then move to the next highest interest rate card, paying the most you can including the money you were spending on the first card. Pay the minimum payments on the rest. Keep this up and your CC debt will be gone in no time. Be sure to pay early or at least on time since payment history is 35% and the biggest factor in your FICO score.

After you get a card paid off, DO NOT CLOSE them as a previous poster suggested. This negatively effects your credit score because it A) lowers the amount total credit you have available, when you lower (close an account) the total amount available you boost your credit utilization way up lowering your score since credit utilization is 30% of your calculated FICO score B) Length of credit history is the 3rd highest factory of your FICO score at 15%.

It is also nice to have the credit to fall back on in case you have a emergency come up like your car blows up, you lose your job, ect, since you probably do not have an emergency fund saved.

As for school debt, it's not all bad. Different types of credit used, i.e. revolving credit (such as credit Cards, ect.) and installment loans (such as school loans, mortgages, car loans, ect) is 10% of your calculated FICO score so having different types of credit helps. Student loan interest is also tax deductable so that helps a little too. Additionally, creditors generally see student loans as "good debt" since you are trying to better yourself for more pay, and it does not get as much attention as say credit card debt does. It may not be good debt if you have wasted to much money on education and will not be getting better pay from it.

Pay what is owed to each loan. The private loans are the worst since you will generally be hit with pretty high interest rates. So after you CCs are all paid off, look into throwing some extra money at the private loans. Keep paying them down until they are at a comfortable level.

I would also assume you do not have any money saved for emergencies so after you have your CC debt paid off, I would start saving extra money for that. I always suggest, especially in today's economy, to have saved 8-12 months of your take home pay. I would also suggest you save this money in a high-interest savings account such as ING among others. This will allow you make a little more money. It may not be much but it's better then nothing or the .25% you'll make at a bank savings account and keeps you money liquid (or available quickly).

You also can check out my post here

Some ideas to help make/save money

that will give you some great ideas on how to save/make extra money like stacking coupons to save a ton on grocery expenses that you could use to pay more on debt and save. It also includes some ideas for free/cheap entertainment so you can save even more. And, even some ideas on how I make a lot of extra cash from doing side jobs and selling things I get for free.

And, if you want more info on why your credit (FICO) score is important, how to improve it, and/or how it is calculated, check out

myFICO - FICO Credit Scores | Get a Free Credit Report Online

At the bottom are to awesome PDF files that explains everything in easy to understand terms.

Let me know if you have additional questions or want more detailed info.

Hope that helps and good luck.

Awesome. Thank you VERY much for the information, I'll be sure to take note of all of these things.

Just a few questions though. Should I start paying these things off immediately or give them a call first seeing if theres a payment we can work with? Because frankly, I'm unable to make a minimum payment of $800 since that's what I'm overdue.. and this is just on 1 card. Say I pay $60 for this month on it,the next month I'll be charged $30 or so for the over-the-limit fee and realistically i'll only be paying $30 :\

Any information on this would be awesome. Thanks

I would call them right away. They obviously know you have not been keeping up so they would be more willing to work with you at this point. If that does not work or you are not aggressive enough to handle them, contact the National Foundation for Credit Counseling at

National Foundation for Credit Counseling

They are a NON-PROFIT Credit Counseling group that general do not charge any fees for most services or have hidden commission charges like other shady credit counselors that will tell you to stop paying all together and ruin your credit. They are also very highly rated among professionals in finance.