<p>I kind of went waay overboard with the credit card I was given. Due to foolish spending I managed to rack up about 4,000 dollars in credit card debt (due to books, and lots and lots of stupid things like movie tickets, pizza). Now I'm pretty much ****** because I have to pay all of them and I have never been in this situation before. Any of you guys have any advice on what's a good next option? Is there some sort of all purpose loan I could take out that has deferred payments on it so I can begin to pay it off once I get a job and start churning out cash?</p>
<p>Whatever you do, make sure that you pay at least the minimum, on time, every month -- and put away the card (or cut it up) so you can't use it any more. Look to see how much interest you are being charged --- if you keep on paying at least the minimum, you will have good credit, and you might at least receive some sort of offer to transfer the balance to another card with lower interest, which will save some costs.</p>
<p>It will take far too long to pay off the card if you keep paying only the minimum-- plus you will be paying a fortune in interest -- I am just telling you what to do until you get the job. As soon as you have a job, make a plan for yourself to get the full amount paid off, within a time frame that you are comfortable with. For example, if the card is charging you interest of 15% monthly, and you make payments of $400 each month, then the balance will be paid off in 11 months. </p>
<p>What if the card is at 18% interest and you can only make payments of $200/month? Well then it would take 24 months to pay off the card. </p>
<p>Here's a calculator you can use to play around with the numbers:
<a href="http://www.bankrate.com/brm/calc/creditcardpay.asp%5B/url%5D">http://www.bankrate.com/brm/calc/creditcardpay.asp</a></p>
<p>You can also use that to see how long it will take to pay off the card if you only paid the minimum due each month --you will quickly see that is not a good idea. But you should never let yourself miss a payment or be late, because then you will get hit with a huge late fee (usually around $30), and your interest rate may be raised -- so of course that means that you will end up owing even more.</p>
<p>My suggestion for getting out of debt is that once you figure out what you can pay every month -- (and you have put away all credit cards so you can't be tempted to spend any more)- to use online banking to set up an automatic withdrawal from your account to pay that amount each month. It makes it a lot easier to stick to the plan if the money is coming out of your account automatically.</p>
<p>calmom is right, as long as you pay the minimum, your credit score is going to be okay, this is very important in the long run. Can you plan for a summer job and work more than one job using all the funds to attach the debt? One of my kids had about $1000 on her cc, same stupid reasons and she paid it of over about 6 weeks using a summer job. She had paid the minimum at least and more when she could all along, so whilst she was struggling to pay ity off, they were increasing her credit limit! Not that she wants to use it, butat least she did not long term harm.</p>
<p>Thanks for your help. So are you guys saying I should instead just try and pay it all off right now?</p>
<p>Yes, you should do your best, as it is highly unlikely that you would get a any sort of favorable loan to pay it off. I mean, the only type of loan you could get would be another credit-card type arrangement -- with the exact same problem you have now. Shifting the debt around isn't going to solve the problem.</p>
<p>I'm not saying it's a matter of shifting debt, but I want to put off paying off the money for a few years. Do you know any kind of loans I would be able to get? I still have to pay for my books.</p>
<p>To the OP...do NOT take out any more loans. Your debt is already beyond your means. No bank is going to give you a loan alone, and I can't imagine any adult is going to co-sign a loan for you giving your "spending" history. The best thing you can do for yourself is pay that credit card bill every month...more than the minimum. Paying only the minimum will mean that you are paying the interest and a small amount of the principal (what you spent). Doing it that way, you will take years to pay the debt. I'm sorry to say...but my advice would be to stop using the credit card entirely. Either give it to your parents to hold for you...or cut it in half. Then if you need something, save the money for it, and pay cash...while at the same time paying that credit card bill monthly. There is no way to reduce your debt otherwise. Taking out a loan is simply TRANSFERRING that debt to another loan obligation...oh....and then you probably would use that credit card again...amassing even more debt. By the way...any LOAN you might be able to secure (doubtful) would require monthly payments within a month of securing the loan. There are very very few loans out there that you can take and then pay later. So you would be shifting the debt. P.S. If you decide you HAVE to keep your credit card, call the company and have them REDUCE your credit line to $500.</p>
<p>There are free or very low cost legitimate financial counselors for people like you who have gotten into debt over their head. They provide financial counseling and legitimate, non loan shark ways of addressing your debt.</p>
<p>I suggest that you start by talking to your college counseling office, which more than likely has found help for other students who have had similar problems. There also may be parents on CC who can post the name of the kind of agency that I'm referring to. </p>
<p>Your situation isn't unusual, and I'm sure that the counseling center has assisted other students in your kind of situation. I know when my S was in college and had major difficulties managing his money, his college referred him to a free finance workshop that the college itself sponsored for students.</p>
<p>I already have a student work study job, and I only take 4 classes but I have 4 recitations. I don't really have alot of time as it is, and I don't want my schoolwork to suffer. I've been looking online at some options that I have. I think that I would be able to get a student loan without cosigner on some online website.</p>
<p>mhaile,</p>
<p>What everyone is trying to tell you is that you will not solve your problem by taking out more debt (I think you are looking for someone to day that it is ok, but it is not). All you will be doing is digging your self deeper in a hole.</p>
<p>Getting the additional loan will be at a much higher interest rate and will hurt you in the long run when there are other things that you may need money for (example- completing school). </p>
<p>Right now the beswt thing for you to do to bite the bullet. No spending period (use your college's food plan, borrow books from the library, no going out unless it is a free event on campus). Movie tickets and pizza are a thing of the past. Use some of your work sutdy earnings to pay doen your debt each month (even if it means making the minimum payment for the next couple of months until you can get a summer job). When you get this summer job you may need 2 save for next year's school expense and pay as much as you can on decreasing your debt.</p>
<p>it can be done. good luck</p>
<p>It would be nice to get the interest rate down....sometimes there are credit cards with lower rates...or taking out a loan for a lower rate....if you belong to a credit union...ask for their help and suggestions....if you don't belong to a credit union...check into one...and yes, banks do offer help and suggestions. Check with the bank that you have your accounts...ask to meet with someone... and yes, check with your parents...perhaps they can float you a no interest loan....rob a bank (just kidding)</p>
<p>its simple. dont use it and try to pay as much as you can above the min. without messing with your daily budget. but just expect it to be hard and frustrating becuase 4000 is hard to pay off depending on interest. i am a bank teller so i know that is the only true smart way to do it. no loans either. bad news.</p>
<p>The fact is that I can't get another job on top of everything I have to do. I know that everyone hear is saying not to take out a loan but I must. I can't pay for everything else that I need to pay for. Do you guys know any lenders that would offer something to me in my position?</p>
<p>Perhaps you need to cut back on school activities until you pay some of this puppy off. You'll be doing more harm by taking out a loan than you will if you take one less class or do one less ec.</p>
<p>I've already quit all my extra curricular activities. I have a second job. I just don't have options left to me that I can do. I just want to take out the loan and be done with this whole affair so I can start focusing on my grades.</p>