Could you take a break from grad school and focus on paying down all your debt? I'm not a fan of Dave Ramsey, but his methods work pretty well with someone that's in your current situation. If this issue is dragging you down this bad, it sounds like it's worth considering, even if it pushes back your plans a year or so. As others have stated, I would stay away from debt consolidation. I would also talk to the credit cards to reduce your payment on some. Use the snowball effect that Dave Ramsey encourages, pay the highest you can on one credit card while paying the rest at the minimum, and continue on that path until you slowly knockdown each card. Regarding Medical/Student debt, could you potentially work with those individuals to reduce your payments so you can put it towards your higher interest cards instead.
Im already a semester behind from medical leave and if I leave theres a good chance they dont let me back in. Id also lose housing and insurance. If I have the right offer in hand, yeah Ill leave. But I dont want to make a lateral move. I worry about my long term credit though. My program doesnt offer much flexibility. Im convinced most of my classmates are in a similar spot. I know some of the PhD students (who are legally not allowed to work outside of their PhD duties) are in similar issues. Another reason why Im delaying a PhD if not avoiding altogether.
Have you talked to a bank or credit union about a credit consolidation loan? Any rate below 15% could really make a difference in what you're paying per month. You can also ask your credit providers for freeze on your cards and negotiate a lower interest rate. Paying it off will hurt and take time but if you're young time is what you have on your side.
The latter is something Im considering. Also as a student I have some leeway with private loans. Im meeting with financial aid tmrw and a financial counselor through the school in the fall to further get this under control. Wake-up call for sure.
It happens. The avg American salary is around 53k. That's like 2 years (tax + tax + life) of eating bread and water to buy a low tier Tesla without a loan. The worry of not taking care of yourself/others is part of the adulting process. That worry can be negative and paralyzing (woe is me!!), or it can be fire to finally say, "Hey I really don't know this. What can I do to not be in it again?" Some financial tips they don't give you in school: Balance your checkbook (for millennials/younger make a spreadsheet that aggregates all CC debt) Create a spreadsheet with your debt and loan payments. Use the spreadsheet to calculate compound interest over time with the ability to adjust rates Calculate your balance sheet. https://www.moneymanagement.org/blo...al-balance-sheet-and-determine-your-net-worth Once you get your balance sheet, you know what you have in one month. Can divide that into 30 to know what you can spend, and what you can play with. If it's not much, then you have a clue on when you can pay off that credit. Learn what goes into your credit score (don't slash all credit cards like what Dave Ramsey recommends). Kill the ones with annual fees. Keep (maybe cut w/ scissors) the ones with 0 annual fees to "grow" your credit stability Don't overload the ones you're "growing" out of desperation to avoid contagion with bad money into "growth". Also, if you haven't already, check the APR rates on ALL active CC. Then dump that into your spreadsheet. Start pouring spare change into your ROTH IRA. I wouldn't use an investing app like Acorns. 3-5 bucks a month is wayyy too much a fee for small 5K-under accounts. I know some people there, and all they do dump money into low cost ETFs. There are 4 portfolios of different ETFS w/ risk diff tolerances (curated and hand crafted by a Nobel Laureate!!), all of which you can already accomplish with a ROTH set up free by Schwab or Fidelity. The market is down and could go lower by a quarter, but you don't have to care about that if you're retire in 20 years. It's an in to the market. and gives you a little skin in the game. Trade in with low cost ETFs like stuff from vanguard (VTI,VOO...learn about "growth etfs"...tech related, biotech... defensive etfs and dividend ETFS , but do not trade out. That helps you remember your mistakes, but mostly because stocks typically double after 7/8 years no matter what the performance. I'm not telling you to dump the max 5.5k alotted for a year, but something like 500 from a year of dealing with 10K worth of debt is a big big win. That 500 from not drinking or whatever means you took the time to invest in yourself. Also, the double benefit of the ROTH IRA here is that that money is outside your taxable income, so you can benefit from EITC if you're below a certain salary threshhold. If it's high, then maybe look into 401k to push that down lower...doesn't help your short term debt troubles, but will boost your overall net worth every tax year. Spoiler If you thought those bullet points were "preachy" and "commonsensical"...that's the bulk of loan consolidation!!! The last part is reallocating that revolving debt into a single source, of which you really really really really have to hope the consolidator doesn't screw you with a creditor with an even higher rate. You could at this moment "renegotiate your current debt obligations", which is hard because it's not in collections, but do the groundwork first every six to twelve months and you won't have to get to the painful part! Also, everything is negotiable. Tell the school about your problems, and ask if there's any programs that can help you. Colleges are supposed to be liberal and progressive, but if they run business like a Corporation what good is that to you?? This takes work, don't find a sympathetic ear, ask someone else, ask again and again until you find where the fingers point to. Make them work with you.
Newsflash - most of those guys living in nice houses, driving nice cars and taking exotic vacations are BROKE. 7 out of 10 households in this country are living paycheck to paycheck. Most people you see around driving nice cars are BURIED in debt and don't have $1,000 cash to their name. LOL, dude...you gotta stop beating yourself up. What's done is done. You're 28 not 58. You have plenty of time to fix this and still live a great life. I didn't get my financial life in order until my 40's. Had I started at 28....oh, man. I would have avoided a helluva lot of stress and anxiety. My nephew is about to graduate college with an Engineering degree. After he gets his big-boy job, I told him to do these 3 things: Pay off your debt as quickly as possible Do not go into any more debt including, and especially, car debt. Reasonable mortgage is fine Max out your 401(k) If he does all 3 of these things, he will be a millionaire by age 40 - no hyperbole.
I don't know you situation completely That said - Look at your expenses. I have questions 1. Is there ROOM on your credit cards? 2. Can the expenses be paid by credit card? When I started I would pay my bills with the credit cards Then paid the credit cards. i.e. Electric bills was 100$ Paid it with Credit Card Then Paid 150$ to the Credit Card Slowly the balances started coming down and I was not getting killed with Late Fees, Reconnect Fees and potentially being without lights That was TO START That gave me some feeling of control Rocket River
This is a good strategy. You will also get any rewards associated with the CC if you use them. That's the only reason I have CCs. I make a few grand a year from points. And cash back to pay for the card isn't taxible.
Yeah that's what enticed me honestly. It wasn't until they kept raising my credit limit (without my income going up) that I feel for the trap that I'm sure they intended I would.
Yeah that's generally how I lived. Maxed out my 401(k) with a generous match. Lived pretty frugally but comfortably. I just don't understand how people that spend all that money aren't ******** themselves constantly. It might be because my parents are accountants, but I freak out having any debt at all and would freak out if my checking dipped below 4 figures after bills. Going to a private college really opened my eyes...all the new money kids spent like drunken sailors. My fraternity brother from Manhattan? He watched every cent, although he spent money on things he wanted and was generous about like buying beer or would offer to buy you groceries if he knew you were tight on funds.
That briar patch is my home! Hard to freak out about something that probably has been their reality their whole lives When you POOR POOR . . .. small victories of enjoyment mean ALOT more Even if it hurts your future Rocket River
Yeah I get that. My cousins live thaf way. I definitely dont believe in having momey for the sake of having it...like there are things I still enjoy doing. I just got cocky and reckless this past 6 months
That's a mindset that you need to stop, ASAP. Because for every single person that posts a "Look at how good I have it, and we're the same age!" instagram post or facebook status update or whatever, there's so many people out there that DON'T have it good. There are other people (younger than you or otherwise) that have CC debt, student loan debt, medical bills, no stable housing, It's easier said than done, but delete that jealous mindset immediately. Otherwise, it'll set you in a downward spiral, even as you start doing better in life.
Can your current employer help with your current Master's tuition, or provide some form of tuition assistance? If you are going to get a second job (as many other posters have advised), can you try to get it within the scope of what you're studying? Example: if you were studying to become a doctor, maybe you could be a medical scribe for some side cash, etc? Maybe for your second job, try to find an employer that would be willing to pay for student loan assistance or something? I dunno...just spitballing.
I seem to remember a thread where you could buy a Tesla and do Uber and reap massive profits. Seeing the Grub Hub Uber thread reminded me of it. I mean you could deliver food eat some of each dish thru the day and not have to buy food while you profit. $$$$ I wish you much success with your situation. I lost interest in college the fall of my junior year when I realized I made insanely more money than my degree was going to get me without massively more education and tons of years on the job. I still have interest in Biology and prolly would have made more if I had stuck it out on the degree, especially form the sales side. Yeah, I was that mid 20s guy with the 30' Sea Ray cabin cruiser on Lake Travis with a Tahoe and Hoe. I worked my a$$ off selling a lot of different things over the years while bring in a low 6 figure commission. Its not for everyone but beats mowing yards, I don't regret my choice. It will happen, just takes consistency in sticking to the plan.
Im a full time student and work for the school. I may be able to get on assistantship and not pay tuition. My part time job is in my field through the school. A second job would have to be something like waiting tables or retail. Im not opposed to that; its just something I have to juggle along with school.
