I am 26 years old with 20,000 credit card debt 25,000 school loan i leased a car for 474 a month?
by Author on Monday, April 26th, 2010 | 3 Comments
i have not fallin behind on bills but a pay minimum my principal balances on 5 crecit card does not seem to go down due to interest finance charge i dont want to pay 30,000 in interest over 20yrs for this debt im thinking about filing bankruptcy i cant consolidate what should i do i wish i was never given credit cards at 18 i under stand no one forced me to use them and i am responsible to pay but this a the united states biggest scam credit cards should be abolished if i only knew then what i know now
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and knowing this you just leased a car? in the short term look for a second job, using the money just to pay off the highest interest card.
you might want to see what the degradation in your credit score would do to your future career options. It’s harder to get hired with a low credit score (bankruptcy). It’s also harder to rent, and almost impossible to buy.
Figure out a budget, trim the costs you can live without, and stay on it. If you can pay an extra 20-50 dollars a month it will seriously reduce your long term interest. All extra money should go to getting this off your shoulders, bonus, raise, they should go to paying more on the cards. Pay down one card at a time, then use it responsibly. Then the second highest interest rate and so on.
That being said I still can’t go more than 8 months on my budget, but now I take money from my savings to splurge instead of using my cards. and in 5 years my credit score has gone from 630 to 730 and its still rising. (thankfully you make more than I do) cause I could not make those payments and still buy food, and I was only 10,000.00 in debt. A budget really helps! I love excel.
I was the same age as you when I had a huge debt,at about 21,000.It was starting to take over me.Remind you this was 15 years ago.I did the math too and realized I was over my head and filed for bankruptcy.Best thing I did,it was a huge weight off my back,but you have to remember it will take 10 years to wipe it off the books and you will be 36.
DO NOT FILE BANKRUPTCY! You will never get another loan from any where until it’s discharged. Read the laws for your state.
If I were you I would let the debt go to collections and at least the companies will let it charge off. Just be ready for the collection calls. You’re not getting any where by just making the minimum payments on your credit cards. You’re just hurting you’re self financially and your credit report is already reflecting that you are struggling.
Student loans are different from credit cards. They will take you to court for student loan defaults because it happened to my sister so I would say call the school or bank and ask to be put on a different payment plan.