College debt has ruined my life, and I’m mad at myself for leting it happen.?
I am beginning to regret going to college, it seems the only thing I have attained from it, is debt. When I went to school I was allured to the dream of being an airline pilot. I finally got my pilot’s license, but it got to expensive, so I switched to Aviation Management. I am so depressed and mad at myself for letting this happen, and it seems like there is no way out. A few times I forgot to fill out the FAFSA so I had to take out loans to cover the expenses, or I was late getting it in and got no money.
Here’s where I am at:
1 Loan for ,000 (Monthly Payments of 476/mo); 1 Loan for 620 (Monthly Payments of 128); 1 Loan for 00 (Monthly Payments of 50), and Credit Card Debt of about 00. So I have loans totaling 420.
I also have a car payment, cell phone, however I pay no rent, but my grandparents will soon be asking for that.
I just got a new job that pays me 000 per year. So if I don’t put anything into savings I can pay off my loans in about 4 years, however when you begin to figure in my other expenses it’s more like 7 years.
Consolidation is not really an option, because the 000 is an “Education Alternative Loan”, it’s not a federal loan. The 00 loan is a no interest loan. And the 620 is a direct federal loan.
-My dilemma is that, I have a girlfriend that I want to begin a life with. I wish to get an apartment with her maybe in the next year or so. And I want to marry her.
Situation 1- Do I put no money into savings and just tackle the loans head on? I will have no money for retirement or a down payment on a house.
Situation 2- I put some money aside into savings, and it will take longer to pay off?
Situation 3- Declare bankruptcy if I can?
I apologize for this taking so long, but I don’t know what to do. Thank you for your help.
You cannot declare bankrupcy for student loans. Student loans, taxes owed, and garnished wages from a lawsuit cannot be removed with bankruptcy, only with death of the individual.
There is no point in saving money while you have loans. The interest will keep building upon the interest until you can’t pay it any more. Your best bet is to pay as much off as soon as possible. This means living on the bare minimum.. nothing but necessities. Get rid of your cell phone as soon as possible, probably not until the contract is done or you may face heavy penalty fees.
Sell your car.
December 21st, 2009 at 7:11 amBus is cheaper (As low as $300 per year)
Buying a bike is even cheaper. One-time fee of $100 will last you a decade and keep you in good shape too. Don’t say it can’t be done.. I know guys that bike to/from work every day a ride that takes 30 minutes in a car on the highway.
you shoulda stoped at 50 grand… sell your car… if you can take the bus … take it… ude get a copla grand for the car… and save a ton on insurance every year
December 21st, 2009 at 7:11 amThere could be worse things to have wasted the money on and be in debt. College grads tend to make a lot more money over their career than no degree. Eventually you’ll come out way ahead if you keep options open and get better jobs after more experience.
December 21st, 2009 at 7:11 amBankruptcy is the worst option you listed. Maybe patience would help you more. You don’t need to buy a house right away – try building some credit first. Just make the payments on the loans until they’re paid down more and you’re making more money before paying them off. Save as much as you can.
look around on the internet for free financial advice sites…
http://www.mymoneymanagement.net/TIPSADVICERESOURCES/ManagingDebt/TipsonManagingDebt/tabid/201/Default.aspx
Bankruptcy is a really bad idea, and you will regret that even more than the debt you have now!
Good luck!
December 21st, 2009 at 7:11 amLook to see if there is a Catholic Charities near you. They offer financial counseling and services at little or no cost.
December 21st, 2009 at 7:11 amThere may be programs that can help you to budget your income.
You may need to moonlight on a weekend job or try a homebased sales gig to make some extra $$.
Be honest with your family and gf. If they see you making an effort they will be supportive.
Try not to beat yourself up over your mistakes.
Good Luck.
This is going to be a long answer, but it’s worth it.
1) Get a copy of "The Total Money Makeover" by Dave Ramsey. You don’t need to buy it, just go to Barnes & Noble and start reading it.
OK, you’ve got a real problem here. $35000/yr = $2916/month before taxes, or about $2000/month after.
First, you need a written budget. Every dollar you make next month needs to be spent on paper this month.
Nobody gets a dime until the essentials are paid:
Food, shelter, utilities, transportation.
Here’s your first budget, for the whole month:
Food $100 (learn to cook beans & rice. When you’re out of debt, you can celebrate with your girlfriend. The food will taste better too)
Shelter $400 (free rent is free rent, and maybe you can explain the problem to your grandparents, IF you show you’re being responsible NOW with your money. But I’ll count $400 in case they don’t.)
Electric/Gas/Water $150
Transportation: $400 (you didn’t say what your car payment is, so I’m guessing with an average car note.)
Household supplies (toothpaste, toilet paper, etc.) $100
The $50,000 loan: $476
The $21620 loan: $128
The $7800 loan: $50
Credit cards: $100
Cell phone: $50
Total spent: $1954.
You have $2000 in income, and $1954 in expenses, and the essentials are covered. DO NOT FILE BANKRUPTCY. You won’t be able to buy a house or anything else for 7 years, plus you may get stuck with a repayment plan anyway.
With $80,000 in debts, you’re in no position to buy a house. That’s going to have to wait. And if money is this tight, your girlfriend is going to have to understand that she’s going to have to work too if you two are getting married.
————————————————————————-
Here is the plan:
1) CUT UP THE CREDIT CARDS.
The last thing you need is more debt.
2) HOLD THE MOTHER OF ALL GARAGE SALES.
You need cash. This is one way to get it.
3) SELL THE CAR, BUY A CLUNKER WITH CASH – NO MORE CAR NOTES.
You have $80,000 in debts, plus a car note. Sell the car, and buy a $1,000 clunker. Now you’ll have $2000 income and $1500 in expenses.
4) TAKE A SECOND JOB UNTIL THE DEBTS ARE PAID.
5) SAVE UP CASH UNTIL YOU HAVE $1,000 IN THE BANK. The transmission on the clunker might break. But you’re still ahead compared to fighting with a car note every month. If this budget holds true, this will take two months. That money will only be used for emergencies.
6) COMMIT YOURSELF TO PAYING OFF THE DEBTS.
Pay the minimums on all the debts, just like they’re listed in the budget.
Then, put down the extra cash ($500/month) toward the $7800 loan.
Once that’s paid off, you can pay $550/month plus the $128 in the budget already toward the $21620 loan.
Once that’s paid off, you can put nearly $1000 to the $50000.
7) CONTINUE SAVING MONEY UNTIL YOU HAVE $20,000. This will cover big emergencies, such as losing your job.
Yes, this will take several years.
December 21st, 2009 at 7:11 amBut then once you’ve done it, you won’t ever have to worry about it.
Attention :
In regards your mail needing finance , this is first inland investment, we offer personal loan , bills consolidation loan ,business loan , car loan , student loan but secure and unsecure.
Although there are so many online scam who are aimed at stealing from the less privilege in the name of loan offer but we still keep our stand and uphold fidelity in this loan business.
We must tell you that you are in the right place at the right time and you will be glad transacting with us.
Contact us today with the below information
NAME :
December 21st, 2009 at 7:11 amPHONE CONTACT
AMOUNT NEEDED :
DURATION:
This will help us for further loan processing, contact us via our email below.
E-MAIL : firstinlandinvestment@gmail.com
PHONE : +447045743650
LONDON/UK
based upon your status,I believe you should find something useful here.http://debt-consolidation.featured-resources.info/company-consolidation-debt-loan-mortgage.html
December 21st, 2009 at 7:11 amHi,
I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58% .It’s legitimate.I came across this company on NBC News.Check it out here:
December 21st, 2009 at 7:11 amhttp://tighturl.com/683