It seems that most people are in favor of a regular job for paying off the debt. Doing things like selling items on ebay or craigslist could serve as additional payments on the loans.

Make sure that what ever you do, you contact the companies as soon as possible. The longer you wait, the more it will look like you are just trying to avoid what you owe instead of making it right.

It sure seems like random strangers on the internet agree with what mom and/or dad must be saying right now...get a job.

Think about your options here. For a mere $220/month, $2600/year, you are considering throwing away job opportunities, housing opportunities, credit scores, Lower interest rates, along with your pride and integrity. Having to answer "yes" for the rest of your life on applications asking about bankruptcy, is a huge price to pay, and one you should be very sure is your only option.

If I were you, I'd not look at this as $30K of debt. That will make getting out from under seem impossible...it's too overwhelming. Take each debt separately and consider how you can pay each one off, one at a time.

You mentioned that you're a student, but it seems like a job IS feasible. Like many friends, I worked a full-time job throughout my last 2 years of school, and I had a decent courseload so I know that it can be done. If you are living now without a job, then if you do get one, you can pretty much put everything you earn towards your debt. If you can draw at close to $1K a month, you can have at least two of the cards paid down in about 7 or 8 months. By this time next year, you can have the whole CC debt taken care of, and at that time you can start to attack the school loans. $1K a month for about 6 months and you're done. So, give or take a few months, within less than a year and a half from right now, you can be debt free (and then obviously you handle the personal debt). Imagine that...if you continue to make timely payments, in less than 2 years not only will you be debt free, but your credit will still be intact.

My ex-husband declared a BK prior to my meeting him. His debt was discharged in 2002. It will affect his credit until 2012, according to his FICO report. He has terrible trouble getting any credit, even for a store credit card. He can't get a car loan without MAJOR hemming and hawing, and the mortgage rate they quoted him this year was downright laughable. He will always have to acknowledge his BK on any financial forms in the future, even after 2012, and that has the potential to really hurt later.

Look, I'm not saying that you should be punished for your debt. At least you are facing it and not just throwing the bills in the trash. And I do think that we need to do something about the harsh price people continue pay for debt problems many years after the problems have been resolved. And, for many, the simple relief that comes with declaring BK is enough to risk the future unknown. For you, though, I don't think the situation is at that hopeless point.

Also, have you considered debt settlement? A reputable debt settlement company could possibly reduce your debt by as much as 50%. Yes, you will have to pay a fee, and yes, participation in this type of program will negatively effect your credit for the duration of the enrollment, but once you are totally paid off, your credit will slowly improve. It is a *much* gentler alternative to filing bankruptcy, and it might be a option thing to research.

Good luck to you. I have been there...I know how hard it is. But you can dig yourself out.

Thanks for the reply, Kestie484 and welcome to The Finance Forums.

If at all possible, DON'T file bankruptcy. It's not worth it to trash the future on something like this. Yes, you have quite a bit of debt, but you CAN do something about it. And, yes, that means biting the bullet and getting a job to help PAY for those debts.

Cut the cards up, don't use them again, close the accounts. Then, if you have to have something either save for it, or spend cash to get it.

Cut up the cards yes but DON'T close the accounts.

Why?
1. Your credit score is calculated partially with a debt to available credit ratio. Which means if you have 3 cards with $4000 limits and they each have $1000 on them, your ratio is $3000/$12000 so comparatively not much debt. Move all those balances to one card and close the other two your ratio is now $3000/$4000, and your credit score will go down.

2. Let's say you got a card with a T-shirt offer on your first day of college, $2000 limit and 32% interest, of course, you didn't know what the rate was so you spend like crazy. Mom and Dad bail you out and you close the card in the midst of tons of promises. 5 years later you're newly married and in a good job, you go to apply for a mortgage. "Sorry kid, you don't have enough credit history." If you would have just cut up that card (and any additional ones they send you) There would be 5 years of on-time payments because the balance was paid in full each month. That alone could put you in B+ or A credit rating.

You could also try getting a p/t job, saving up some money rather than paying off bills little by little, and try to do settlements with your creditors to pay a portion of the balances. Sometimes they will settle for 40-60% of what you owe them. If you file a Chapter 7 bankruptcy, it will stay on your credit record up to 10 years (in the U.S.), meaning your hopes of being financed in the next 10 years are shot. However, if you don't make at least the minimum payments on your cc balances, they can sue you, which can lead to judgments, and eventually executions on those judgments (i.e., selling your property to pay off debts). Either way, you need more income. You could also try getting an unsecured debt consolidation loan, and make one payment on the loan every month. The loan payment would probably be much lower than what you would be paying per month to the credit card companies. And stop using credit!