Recommended option for credit card debt!
Date: Thu, 09/11/2008 - 10:23
Can I get any recommendations. I am just getting into the process of wanting to pay off my credit card debts and get out of debt for good.
As of now I owe...
Credit cards (citibank) $16000 at 8.99% interest.
Consolidated federal student loans $34000, at 2.8% interest.
As of now everything is up to date, but money is very tight. I've sold most of what I own. I don't own anything large like a car or house. I tried to start a freelance graphic design business and a record label and went into debt for each one. I'm actually getting unemployment now for the first time. I just moved to a new city (san diego) and the slow economy is making it difficult for me to get a job in my field.
Anyway, is my situation bad enough to consider settling debts or bankruptcy? I plan to not get into debt again, for any reason if possible, but I know my credit score is still important. It's about 690 now, because I have a few other cards with zero balances that I've managed to pay off.
Does a bankruptcy ever effect student loans?
I'm trying to get out of debt and streamline my expenses so I can start working on my art again in peace without so much overhead I have to struggle to pay. I have a Master's degree in Fine art.
Any suggestions appreciated.
Thanks!
Steven
As of now I owe...
Credit cards (citibank) $16000 at 8.99% interest.
Consolidated federal student loans $34000, at 2.8% interest.
As of now everything is up to date, but money is very tight. I've sold most of what I own. I don't own anything large like a car or house. I tried to start a freelance graphic design business and a record label and went into debt for each one. I'm actually getting unemployment now for the first time. I just moved to a new city (san diego) and the slow economy is making it difficult for me to get a job in my field.
Anyway, is my situation bad enough to consider settling debts or bankruptcy? I plan to not get into debt again, for any reason if possible, but I know my credit score is still important. It's about 690 now, because I have a few other cards with zero balances that I've managed to pay off.
Does a bankruptcy ever effect student loans?
I'm trying to get out of debt and streamline my expenses so I can start working on my art again in peace without so much overhead I have to struggle to pay. I have a Master's degree in Fine art.
Any suggestions appreciated.
Thanks!
Steven
reply
well,student loans wouldn't be discharged in bankruptcy,and you can't really settle them either.i would look into rehabing the student loan and trying for a hard ship with the credit cards.
I realize that sometimes bankruptcy is the only option for some
I realize that sometimes bankruptcy is the only option for some people but I think if you can at all avoid bankruptcy, do. I think it should be the very last resort. debt settlement or debt consilidation get my vote over bankruptcy.