Need help out of this mess

[Anonymous]

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@K-in-Boston wrote:

No judgment at all here.  My getting into massive debt was due to the combination of mostly living on credit cards because I was making too much to qualify for most loans when I went back to school as an adult, and then the markets crashing with the banks then rate jacking and balance chasing.  I've been there (and I'm still there to some extent but making big progress) so I know it's stressful.

The good news is that you have $500 a month to throw at the balances.  Provided you don't continue to use the cards, you could still pay all 3 off in less than 2 years even with high interest.  I would certainly get the Chase and Citi cards paid down below $1750 immediately and throw everything you can at that Amazon card, while paying 2-3 times the minimums on the others.  Once you get your utilization under control, depending on your scores you could then evaluate whether a balance transfer card or consolidation loan may be the right move.

Crazy question, when you log into your Citi account, is there a link for Request Credit Line Increase?  Check it to see if it says something like "It's easy to see if you're eligible for a credit line increas.  No credit bureau report will be requested..."  That would be a soft pull trhat won't affect your credit, so you have nothing to lose but even a minor credit line increase would help you tremedously right now.  High utilization kills credit scores.

As for the student loans, as was my case you won't qualify for Perkins loans or subsidized federal loans, but you can certainly qualify for PLUS loans - which is more than the amount of tuition and fees.  Just make sure you take a look at the interest rates (private student loans are readily available but may not always be a good option), and make a plan to pay them off as the amounts can multiply dramatically over the course of 10-15 years.

Best of luck!

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100% agree. Great post K!

[K-in-Boston]

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@Loquat wrote:

Let's please stick to the topic at hand and offer advice to the OP if you are so inclined.  The subtle jabs at one another isn't necesssary and only distracts from the topic.  Thank you for your understanding.

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This exactly.  OP's post straddles several areas so there's plenty of opportunity to contribute friendly, supportive and respectful advice.

[Adkins]

OP - I second only getting Federal loans. If you don't already know, the application time for filling out the FAFSA (Free Application For Student Federal Aid) starts on October 1st, for next year's aid. Even if you don't think you'd qualify for a grant, fill it out anyway. Aid is given on a first come, first served, and it's better to be in line to at least get a Federal loan. Be sure to go directly to the ED.gov site to fill out the form, due to scammers.

[Anonymous]

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@Anonymous wrote:

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The OP asked specific questions. And the answers have been great!

That's what the "relationships and money" forum is for. It won't go in that direction if we continue to stay "on topic".

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donny10 has a point here. He's been on the forum a long time and on many threads, well-intentioned people have provided unsolicited advice about personal relationships, which often doesn't end well and has on a number of occasions ended up upsetting people.

Of course the responder did not mean that in this situation and certainly meant well. I believe that donny is just sharing advice based on what he's seen happen time and again in the forums, in order to ensure that the OP's questions get answered and the thread doesn't end up in a negative situation. I believe his intentions are good.

OP has been given some good advice about strategies and starting points.

If she pursues the student loan route, it may be helpful for the OP to have a good idea before proceeding of the maximum amount she is willing to borrow, in order to avoid getting in over her head with student loans. We've seen that happen a few times before on this forum and it's good to be aware of that possibility.

Wishing you the very best, OP. Good luck with nursing school and your nursing career as well!

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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Are you serious? Stick with the questions the OP asked. She didn't ask for marital advice.

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I notice you like to play the forum police a lot.  Let people post their opinions, that's what a forum is for.  I also agree that letting your spouse know will possibly open many solutions you didn't think of, and relieve a lot of stress.  

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@Anonymous

If you have an issue with a post by another forum member this is not the way to address it.  We have a process for this by using the ‘Report Inappropriate Content’ link in the drop down menu in every post.  Not that what @Anonymous said was inappropriate as far too many threads get way off topic and cause new posters like the OP to leave the thread and also discourages others from posting.  The OP expressed some reluctance to make her initial post so we all need to address her credit related question only. Thank you for your understanding and cooperation.

Irish80
MyFICO Moderator

[tcbofade]

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@Anonymous wrote:
Thanks everyone. I didn’t realize there was an actual percentage that correlated to “maxed out”. I’ll work on getting them under 89% ASAP. I’m paid hourly right now so I’m going to try to pick up some OT shifts for the next few months. I have ~$500 a month that I can designate to the cards as of right now.

My mistake was that I did not apply for a student loan, I applied for financial aid/grants. Initially I was told I may qualify for “some aide” but when it was all in, they said we made too much money. I could apply for a student loan now, since I still have 3 semesters left, but I don’t know if I could use that to pay bills as well as tuition since I’ve never had a loan like that before.

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Go talk to the financial aid people at your school.

They'll know what options are out there, and may surprise you.

[UncleB]

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@tcbofade wrote:

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@Anonymous wrote:
Thanks everyone. I didn’t realize there was an actual percentage that correlated to “maxed out”. I’ll work on getting them under 89% ASAP. I’m paid hourly right now so I’m going to try to pick up some OT shifts for the next few months. I have ~$500 a month that I can designate to the cards as of right now.

My mistake was that I did not apply for a student loan, I applied for financial aid/grants. Initially I was told I may qualify for “some aide” but when it was all in, they said we made too much money. I could apply for a student loan now, since I still have 3 semesters left, but I don’t know if I could use that to pay bills as well as tuition since I’ve never had a loan like that before.

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Go talk to the financial aid people at your school.

They'll know what options are out there, and may surprise you.

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+1

Hi @Anonymous,

It's been a while since I've had to deal with student aid, but I think there might be options still available for the current term (in addition to your three future semesters).

I would definitely be in contact with your financial aid department now (be sure to ask them about the current term), and you might consider starting a thread in the 'Student Loans' forum as well.

Good luck however you decide to move forward! 

[Anonymous]

I'm just going to toss out a few ideas. You'll know which, if any, of them would work for you. 

1. Cut these cards up immediately. You are not allowed to use them anymore. 

2. Pay as much as possible on each of them. Do not miss payments. Do not be late on payments. Budget yourself down to the penny and be very frugal in all other aspects of your financial life and throw everything you can at these cards. Take on a side job/income if possible. Have a yard sale. Put stuff on ebay and Craigslist. Basically get as much cash as you can as quickly as you can and funnel it to these cards. 

3. Once the balances are beneath the "maxed out" level, your credit should be recovered enough to seek some help. My suggestion is to apply for a Discover It card, and transfer the remaining three balances of these cards to that one. They offer 18 months at 0% on balance transfers.  Do not use this card for new purchases or spending. Simply pay it down over the 18 months. Once the balance is paid in full, you've got a nice no-fee rewards card that you can either use responsibly and pay in full each month, or stick in your sock drawer. 

4. If opening a new card and doing balance transfers isn't an option for some reason, a personal loan is a possibility. I did this with an $8,000 cc balance at 27.49%. The personal loan is 10.75%, so while still not ideal, it's better. I didn't know enough about credit cards and balance transfers at the time, or I would have tried that route. I couldn't have paid off $8,000 in 12-21 months anyway, but I could have at least transferred some of it. Which reminds me, if you do open a new card to do a balance transfer, make sure you don't transfer more than you can realistically pay off during that introductory 0% period. Anyway...depending on where you bank, and I personally suggest a good local credit union for the best rates on personal loans, this can be a good option. 

5. If you DO bank at a decent credit union, don't overlook their own credit card. Usually these exist primarily for people who want to transfer balances and cosolidate debt at a much lower interest rate. My CU has a card with an 8.99% APR. Again, had I done my research ahead of time, I would have opened one of those and balance transferred, thereby saving myself even more on interest. Live and learn. 

Anyway, I hope this gives you some ideas. You're actually not in too terrible shape. Getting the balances backed off from the credit limits and no longer using the cards will boost your credit score quickly. And it's not like you're $30k in credit card debt. You can get this sorted out fairly easily. 

Good luck!

[BurgeoningHope]

Several people have said "pay 2-3x the minimum" on the interest-free cards, and throw the rest at the one that's charging interest and I concur. There's a non-obvious reason for the 2-3x, and not just the minimum, on the interest-free cards.

Some lenders will view payments of the minimum amount as a sign that you're struggling. They may pull your credit and have a look (you've already given them permission). When they see you maxxed out on everything, they may get nervous, balance-chase you down to a toy limit, or even close the card. You don't want them to look too closely at your finances right now. So pay at least twice the minimum on those 0% interest cards, even if you rack up some extra interest on the other one.

Student loans - they are of the devil, but sometimes it makes sense. If it were another major some might reasonably suggest that you take a semester or even a year off and fix this without student loans. But I know that nursing programs are usually "impacted"; you don't want to leave because you may never get back in. And it may not be too late to see if you qualify for a Federal loan for this term. Loans are offered in nearly everyone's package, and many many people turn them down if they can. So that funding may still be there. Doesn't hurt to ask! There's a student loans board here on MyFICO - "click here" for it (opens in a new window).

Relationship stuff - not gonna say a word about it here, as I agree this isn't the place. There's board here at MyFICO for discussing those issues. Just click here, on Relationships and Money if/when you're ready. Also opens in a new window.

Congratulations! You've taken the first step, and as the really anxious person I am I say props to you! My very best to you as you work the problem. We're here to help and commiserate!

[Anonymous]

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@BurgeoningHope wrote:

Several people have said "pay 2-3x the minimum" on the interest-free cards, and throw the rest at the one that's charging interest and I concur. There's a non-obvious reason for the 2-3x, and not just the minimum, on the interest-free cards.

Some lenders will view payments of the minimum amount as a sign that you're struggling. They may pull your credit and have a look (you've already given them permission). When they see you maxxed out on everything, they may get nervous, balance-chase you down to a toy limit, or even close the card. You don't want them to look too closely at your finances right now. So pay at least twice the minimum on those 0% interest cards, even if you rack up some extra interest on the other one.

Student loans - they are of the devil, but sometimes it makes sense. If it were another major some might reasonably suggest that you take a semester or even a year off and fix this without student loans. But I know that nursing programs are usually "impacted"; you don't want to leave because you may never get back in. And it may not be too late to see if you qualify for a Federal loan for this term. Loans are offered in nearly everyone's package, and many many people turn them down if they can. So that funding may still be there. Doesn't hurt to ask! There's a student loans board here on MyFICO - "click here" for it (opens in a new window).

Relationship stuff - not gonna say a word about it here, as I agree this isn't the place. There's board here at MyFICO for discussing those issues. Just click here, on Relationships and Money if/when you're ready. Also opens in a new window.

Congratulations! You've taken the first step, and as the really anxious person I am I say props to you! My very best to you as you work the problem. We're here to help and commiserate!

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Agreed! best options above for sure.