debt recovery tips

I too have a TON of student loan debt to pay off

I, too, have a TON of student loan debt to pay off. The suggestion that I have is something that you may have already done and that is to consolidate the student loans. You can choose how long to spread the payments out over – up to 30 years. There is no penalty if you pay it off early, but it lowers your monthly payment now. When I consolidated I got a slightly lower interest rate (which goes down another 1% after a year of making payments on time) and my monthly payment is about 1/2 of what I was paying prior to consolidation. I continue to pay more than my minimum on this bill so that I won’t be paying for the next 30 years and will continue to add more to this payment as I eliminate my other debt. Good luck and I hope I was able to help!

f they are government student loans, you can consolidate them and get a lower interest rate. Best to do it before the rates adjust once a year. You can only consolidate once, so do it when you are getting the best rate.

You also should consolidate yours on your own. Your husband’s on his own. Do not put them all together.

Private student loans do not always “work with you” to consolidate.

I would absolutely get rid of your credit cards since you owe so much on them, then you won’t be tempted to use them. I would also suggest that you pick your lowest bill, whatever that may be and pay it off as soon as you can by making extra payments on it and the minimum on all the others. It’s very motivating to pay off something, even if it’s not a huge amount. Then go to the next lowest one and apply the payment from the bill you just paid off to the next bill, in addition to any extra. It’s hard enough as it is trying to pay off debt, but at least when you can pay off the lower ones, it gives a sense of satisfaction. Speaking from experience here…

Just an update…

Well, tomorrow morning we’re meeting with a man (referred to us by my older son’s social worker) who does debt negotiations / repayment plans. She (the CSW) had a friend who owed AMEX 18K but he got it down to 9K.

She said (to me) that most negotiators should be able to get the total debt reduced by 30-50%. When I spoke with him he also stressed that any arrangement has to be livable. It would not do, for instance, to agree to pay X dollars a month and then not be able to keep to that agreement.

I also called Catholic Charities and left a message asking for a referral for marriage counseling.

I have the checkbook now, and all the cards (which my husband says are useless now, anyway).

I really want to get back on the right track.

I raised the issue of bankruptcy with my husband but he feels that it would affect our ability to get another apartment if we moved. (We don’t own our own place.).

I’ve considered shifting assets either into my sister’s or my father’s name, but I am not sure whether there would be a tax consequence to do this. There is also an option to get an installment loan online from this or this website or from similar and to pay off urgent bills.

Above all, I need to preserve what assets I have left, for the sake of my sons.

I think, personally, the 40K back in 2001 was enough. I ask myself, really, who else would have given him this chance of a clean slate.

I am working really hard through feelings of anger/betrayal/disappointment/sadness/fear.

I do believe in God….and I want to save my marriage….and I wonder if any of you out there have a spiritual bent on any of this?? Are there any groups for those in debt needing spiritual support?? I have been praying very hard over this and asking for guidance to find the right path.

Recent posts about credit counseling companies

I am new here and have seen the recent posts about credit counseling companies. Credit card debt is not our issue – we got rid of those years ago and now only have a debit card. Our difficulty is our student loans – we both owe a great deal on those. I had hoped to approach a credit counseling company to try to decrease the loan payment (my husband’s loan payment is almost as much as our rent). After reading your posts, I now have no idea what to do. Suggestions anyone?

If you are on good grounds with your bank try to see if they will consolidate your student loans. I think you have to have more than $10000 in loans but I know I did this and used my car as colateral for the part that wasn’t covered. The interest rate was 9.5 but the payments were significantly lowered so I could actually pay more than the monthly payment.

Use BankRate calculator for loans total them up and see how much your payments would be over a specific amount of time (mine was 48mths) look at your banks website and see if they have interest rates posted for consolidated loans. I wouldn’t go to CCC for this it isn’t considered “debt” by most loan companies. They will charge you an arm and leg in fees to consolidate them. The other thing you could look at is consolidating within the company you are already dealing with on your loans. Hope this helps.

The use of credit card debt is not just exclusive

cliff jumpingThe use of credit card debt is not just exclusive of doctors or college students. Many Americans use cc’s and just because every single resident uses cc’s does not mean it’s the way that you and your family should do it. I was kind of reminded of the old saying “if everyone jumped off a cliff, would you do it?” Of course not and that’s a silly analogy but just because all the other residents use cc’s does not mean you should.

Everyone uses this as an excuse to go into debt. If you don’t have the cash in your hands to pay for it, then you can’t buy it. Simple.

I am not sure what you meant by this comment. I assume that you meant it figuratively? Many on this list have taken on second and third jobs and many have felt like they would just collapse from exhaustion or just dealing with the stress associated with large amounts of debt have led them to the edge. None of us on the list can make any decisions for you but as Chad and others have said, you are going to have to make tough decisions and huge sacrifices to accomplish what you want to accomplish without going further into debt.

I realize that you are “planning” but what happens when the debt reaches more than 25k? Will you stop then? What is plan B if this doesn’t work out the way you anticipate?

The final thing that I would say is that most people on this board are very “anti” debt and the thought of intentionally going further into debt goes against what most are trying to do. Everyone is pretty much trying to get out of debt so the concept is going to be foreign to a lot of us.

I would encourage you to be open to what the others are trying to say to you. I don’t have really advice to offer for “planned debt” as I am diligently trying to get out of debt and encouraging others to do the same.

Attorneys spend 7 years in school

I don’t agree with you though. Attorneys spend 7 years in school, doctors spend 14 years in school – there’s a big difference there. Some doctors are able to make it through the whole process without any debt ONLY if they have help from somewhere other than their own income. Some take part in the military programs, some have help from family members, etc. We have no help whatsoever.

Our student loans are 100% ours, no one helped either of us. I agree that there are ways to cut down on the debt depending on your situation. Yes, everything is a choice in life, but we don’t consider ours to be a bad choice. Just because you’ve had a problem with debt doesn’t mean that everyone who has debt has a problem. My point in this is that there is more than one perspective to take.

I have actually read all of the emails and consider you all to be “smart” about your lives. I have gotten some very good advice from a few people here, but the majority of the advice is not appropriate for me. I thank you for your honesty in your situation, and I will take from it what I can – all while making sure I see both sides and apply what I can to my own life. I’m not asking for my life to be easy, I’m trying to take the right paths in life.

Advice is what it is – take it or leave it. I believe I’m one who can take advice well, not that I will adopt one’s opinion just because you also believe you are smart and have the right answer for me. I still don’t think you are taking my situation into consideration. All you see is the word “debt” and that word is “bad” to you. I can’t agree with that in my case.

I agree with you – debt is a choice

My husband made a choice to become a doctor. With it comes the financial investment. Yes, the financial investment was a choice, but not the first choice. The financial investment HAS to happen in order for his first choice to come to fruition. If his/our investment should somehow fold on us, then at least we know that it was put to a good cause. My husband has saved many lives and made many lives better.

If his debt is what brought that to many people, then so be it. My husband is the first in his family to take on a professional career, so he has had to support himself the whole way. This means that he has HAD to take on debt. There is no way around it. It’s a different life, where debt cannot be avoided. We have spoken to financial professionals from everywhere in the country – not one of them would tell you that it’s possible to do without going into debt, unless you have help from family members.

Honestly, I agree with you – debt is a choice, but in this case, it’s the choice we made and we don’t consider it to be a bad one. It was planned, just like all of the debt we have. We will eventually be able to pay it off. We do not see it as stopping us from living, instead, we see it as living the best life we can – it just cost quite a bit to get there. We’re proud of our accomplishments and I’m proud of my husband. He’s going to be a great attending and the light at the end of our tunnel is nearing.

Also, Craig’s list is a great place to sell stuff you don’t want to ship and sell through eBay. Virtual garage sales are quite popular out here. There is also a section for free stuff and a Items wanted list too.

http://www.craigslist.org/

This is a great resource for both income generation and acquiring stuff you really need. Generally all business is conducted in CASH.

Dave Ramsey I’m sure would approve.

If you have never used Craig’s List your passing up almost as great opportunity as the public Library.

I know the more people use it the better the resource is. Here in the San Francisco Bay Area it is a really big thing and there is lots of stuff offered and bought here. Along with lots of services offered and asked for here.

Look beyond the Jobs and For Sale. In community there is loads of services bartering.

I personally know Docs who made it through

I personally know Docs who made it through med school and the first “2 hell years” without a PENNY in credit. My very best friend is an attorney who graduated last year and has ZERO debt. It’s possible, it’s just not easy…if you want easy, you’ve come to the wrong Yahoo Group…we are about the *fact* that debt is bad. Period. I’m not bragging (please don’t construe it as such) but I make more than most docs I know and I have owned several successful businesses and I was still DUMB enough to think I could handle consumer debt…well, that’s not how the game’s played.

Consumer debt handles YOU. It’s the old rule about “He who has the money, makes the rules”…..They aren’t in this business because smart people like you and I work them over for the 0% loans. That’s like going to vegas and winning the first time you play the slots and then thinking you are smarter than the casino because you figured it out and now you’re going to take all their money.

Life DOES have an instruction manual for things like this…there is one place where you can get unbiased advice about how to handle money and debt in the exact best way for your life and the lives of your family. It’s called the Bible. Regardless of your beliefs, the money principals outlined in the Bible will keep you financially safe and sound.

I promise you that you are making a recipe for disaster with your “plan” to go into debt. I have better things to do than type emails but I PRAY something I say or something someone else says will make a difference and change your course. I wish I would have known these things and had people (even strangers) who cared enough to be honest with me, whether I liked it or not.

Please reread all of these emails from REAL, smart people, who are telling you the facts of consumer debt. Don’t listen to the salesman trying to sell the debt to you.

I appreciate your viewpoint

I appreciate your viewpoint. I have thought about everything that everyone has offered me here. What I’ve come up with is this:

There’s definitely a way for me to make money, I just have to continue to find it. I’m going to be thinking about this and trying to really work on making some more money. This board is tough – I’ve been offended by the assumptions that people are making about my attitude and my “odd” idea of planning to go into debt. This is not a foreign concept, it’s just not what this board it about.

What I’m looking for is for some financial advice from maybe a financial provider. Our credit is good, and will still be good when the 2 years are up for us. I’ve never had bad credit, and I don’t intend to. Debt is something that the new generation has to live with, and I believe I’m handling it the right way. I do need some more advice, maybe from a group that hasn’t had so much “bad” experience with credit cards and such.

I thank you for your advice, and I will definitely think about what you’ve mentioned.