Debtconsolidationcare.com - the USA consumer forum

College Student w/ CC debt - am I in that bad of shape?

Date: Wed, 06/21/2006 - 14:16

Submitted by anonymous
on Wed, 06/21/2006 - 14:16

Posts: 202330 Credits: [Donate]

Total Replies: 7


Hi everyone-

I'm new to this site and my name's Pam. I am interested in everyones opinion on my current debt situation. I have read through many of the forum messages, and compared to some, I may not seem in bad shape at all. However, I just wanted to see whether people feel I should consolidate my debt or not, since I'm only 21 and fairly new at having debt.

I attend school full time, which means in one year, upon graduation, I have an expected $80,000 in school loans due. That in mind, I also have a total of about $5,500 in credit card debt, and I owe about $3,000 left on my car. Right now, I'm trying to concentrate on paying off my credit cards and possibly my car. I have very good credit and I have never in my life been late for any payments of any kind, but I'm only able to make the minimum payments for all because I am in school and I don't work enough or make enough money to provide more. I signed up today to recieve a phone call to consolidate, but do you think i am in a situation where it would be worth consolidating my car and credit card debt?

I would appreciate any comments you may have!
Thanks so much!
-Pam


Consolidation doesn't hurt your credit negatively. If you are unable to make bigger payments, you can opt for this program. Paying the minimum amount only is adding towards the total interests and other financial charges. When you take a consolidation program, the company negotiates with your creditors to wipe off these extra charges. Hence, you get a reduction in the total debt and no further charges will be added on it. If you stick to your monthly payments, the program will be a success for you and your credit report will take a good shape.

If I am in your shoes, I will opt for a consolidation program looking at your present situation. If you are thinking anything negative about this program, I will suggest you some good options. You can give a thought!


lrhall41

Submitted by andyyoung on Wed, 06/21/2006 - 14:37

( Posts: 451 | Credits: )


Hi andyyoung-

I would be very open to any options you may have as to consolidation companies! Thanks!

-Pam


lrhall41

Submitted by on Wed, 06/21/2006 - 14:46

( Posts: | Credits: )


Good for you Pam on making your payments on time. It is refreshing to see a younger person who is responsible with money and is concerned with her financial future. When your student loans come due, remember they will defer if you decide to continue on to grad school or they can sometimes be deferred or postponed on financial hardship basis (say if you weren't making enough money or something---check with your lender when the time comes).


lrhall41

Submitted by Lorri on Wed, 06/21/2006 - 17:14

( Posts: 1721 | Credits: )


But don't you have some sort of something as collateral to qualify for debt consolidation? I also heard that even though you have lower interest rate but your debt stretches out for a longer period of time so you'll end up paying more. Is that true? As for you Pam, I think you're just like lots of other people out there with student loan and credit card debts and car loan. The good thing is you always pay on time and that is very important; so keep that up!! It's a good idea to consolidate your debt; that way, you only need to make one payment instead of many, and with many monthly payments, it's easy to overlook. My suggestion to you is keep paying on time, try to stay within budget and when you graduate, of course your financial future will be big different because you'll work full time, you'll have a career and make big money :D then pay off all your credit cards, car loan first because as you said, you won't have to start to pay your student loan until a year after your graduation, right? But right now, what you're doing is good: paying on time and don't go over the limit because then the over limit fee, the interest will start to explode! So you have nothing to worry about if you do what you're doing now.


lrhall41

Submitted by on Wed, 06/21/2006 - 19:12

( Posts: | Credits: )


Actually, you're right Lorri! Mine is also 6 months after graduation. But it was long time ago so I thought maybe it's different now. And in case if you still can't find a job I think you can fill out the form to ask them to extend to until you have a job... I can't remember the details, it's been a long time ago. Anyway, the only thing is that tuition is really so expensive nowadays, especially for medical school. My student loan back then was only $7,000 and I saw that some of my friends took advantage of low interest of student loan to borrow money to buy new car or take vacation!


lrhall41

Submitted by on Wed, 06/21/2006 - 19:42

( Posts: | Credits: )