I have Crushing Student Debt and Bunk-Ass Credit, What do I do?

Ill never understand what kind of career demands a graduate degree, but doesnt pay you enough to pay off debt to get said degree.
 
Don't let yourself get attached to anything you are not willing to walk out on in 30 seconds flat.


Do you really love your debt that much?
 
I have a 785 credit score without any credit cards besides my bank card. You don't need them to have good credit.
 
Overtures said:
Under grad and grad. I can pay my loans, car payment, and rent, and still have some to spend on candy and video games.

But I ain't buyin' a house any time soon and that's where I'd like to be.
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Get rid of car payment, roll it into debt. Or the usual save Ramsey stuff: attack small debt and roll it into next larger debt. Then roll it into the next larger, so on and so forth.
 
Benjamin Burton said:
I have a 785 credit score without any credit cards besides my bank card. You don't need them to have good credit.
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True but I doubt your bank card offers you a million plus US credit line. There is not really a disadvantage to being able to fly anywhere at the drop of a hat and say buy a home all without using any of your own money.
 
In all reality every adult should have atleast 1 high limit credit card with low apr and some perks.

Just in case there's an oh shit moment.
 
ithinktheymad said:
True but I doubt your bank card offers you a million plus US credit line. There is not really a disadvantage to being able to fly anywhere at the drop of a hat and say buy a home all without using any of your own money.
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A lot of people can't handle having a credit card responsibly. I agree that having access to credit has its advantages I just don't think "building your credit" is a good reason to have credit cards. I would only get a credit card if I were starting a business or something.
 
Overtures said:
90k student debt
broke ass credit

1. How do I pay these off most effectively?

2. I need to make secondary income apart from my job, any ideas?

3. How do I improve my credit score quickly?
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Soooo many questions.

First, how is only $90k crushing? You could probably pay that off within about 5 years of living frugally.

Second when you say "pay these off" that seems to imply that you owe more than just the student loan? Why are you borrowing even more money if you are already troubled by the student debt? I see later that you mentioned a car payment for example. Do you live somewhere it is absolutely impossible to get by on mass transit and a bicycle? Why are you borrowing if you have a bad credit score? Why are you jonesing for home ownership if your finances don't currently support it?

Anyways, re: how to pay off debts. You are best off in the long run by paying down the highest interest first, but some people need the psychological lift that comes from paying the smallest debts first and then rolling the payments into the next debt and so on. You have to figure out which kind of person you are and apply some dedication and discipline.

Also consider automating the extra payments. Many people decide to use whatever money they have left at the end of the month to pay down debts only to find they don't actually have any money left over.

Re: spending on credit cards; there are studies that show people spend more easily when using a card versus paying out actual cash. If you do all your spending in cash it causes you more psychological pain to part with your money and helps you hold down spending.

I don't think you should go for a secondary income. It is probably better to spend the energy on your primary job and get a raise/promotion. A second job will likely mean you end up phoning it in on both jobs.

Don't worry about gimmicking your credit score (except make sure your credit utilisation isn't high; that is you haven't borrowed over half of your total credit limit). Worry about paying off debt and your score will fix itself.

Right now you are likely living slightly beyond your means but not recognizing it.
 
At least you dont have kids on top of all that. Youd be super fucked and unable to pay those loans because kids cost a fortune.

<DCrying>
 
Credit score is easy, just pay your debt on time, use credit cards sparingly and pay them off monthly. For student loan debt, just make more/spend less and use your surplus to pay down as much as you can each month.
 
Ask Daddy for a small $1M loan like all the other self-made men did.

pookiyama said:
Never answered the what did you major in, did you graduate questions huh?

Join a blue collar union. Make $50 an hour, fix your life.

FYI, you cant clear college debt with bankruptcy, but you can take out a substantial loan on your life insurance payout, pay off your student loans in full and then clear your life insurance debt with bankruptcy.
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WTF is that for real?
 
what do you do? join the club dude lol. Actually, some of the advice in here is good. listen to a lot of Dave Ramsey or even go do his financial peace university, its gonna take you time to widdle it down, but you'll get there. its all about choices and priorities.
 
I just found out Elizabeth Warren wants to forgive all student debt.

Pray she pulls it off and just make minimum payments to the student debt in the meantime
 
Crocop42 said:
In all reality every adult should have atleast 1 high limit credit card with low apr and some perks.

Just in case there's an oh shit moment.
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I put everything on a credit card. It has perks. Why wouldn't you do that? Anywhere that accepts Visa gets mine unless there is a cash discount or something better.

The security for the oh shit moment is good as well.
 
Overtures said:
90k student debt
broke ass credit

1. How do I pay these off most effectively?

2. I need to make secondary income apart from my job, any ideas?

3. How do I improve my credit score quickly?
Click to expand...


You only need one kidney bro and volunteering yourself for a snuff Film would pay big....just be sure to get paid up front
 
Overtures said:
90k student debt
broke ass credit

1. How do I pay these off most effectively?

2. I need to make secondary income apart from my job, any ideas?

3. How do I improve my credit score quickly?
Click to expand...
Get rid of your car. If you don't have public transit where you live, move closer to your work and walk.

Check all your bills and remove any extras from your services whether you want them or not. Call your internet/cable/cell phone/whatever providers and ask them for help lowering the bill.

If you have cable, best to get rid of it unless you have a good tv/internet/phone bundle.

Review everything you have a monthly subscription for, e.g. websites, iShit, Spotify, and cancel all of them, or as many as you possibly can.

Track the amounts you're now saving from each of the above. Apply the total amount to your loan every month.

If you put your head down and just suck it up for a while you can have it all paid off in a reasonable amount of time.

Then the hard part really starts: once you get out of debt, start saving rather than spending all that surplus money you will suddenly have. Ideally, because everyone needs a reward for their efforts, you'd pay yourself a predetermined percentage of the surplus and the rest would go to savings, 20% of your total income is said to be a good amount.

The advice about the credit card is good if you are sure to pay it in full each month. Don't do it if you might not resist to spend money you don't have.
 
Overtures said:
90k student debt
broke ass credit

1. How do I pay these off most effectively?

2. I need to make secondary income apart from my job, any ideas?

3. How do I improve my credit score quickly?
Click to expand...
Move in with your parents
 
Wasnt there a guy here who had like 300k-500k of student debt?

Now that is something
 
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