I feel like I'm going to be in the hole forever.

[pax]

I guess carrying a lot of debt is the American way anymore, but this is ridiculous. I'm carrying student loans, a car loan, and 3 credit cards, and when I went to pay one of my credit card bills today, I damn near cried.

I wish I could sell my car (I can't), or that I could just pay off one of the credit cards and be done with it. One has a pretty small balance that I could probably pay off by the end of the summer if I really wanted to, but one is a complete disaster and the other is rapidly getting worse. I have 2 other department store cards with zero balances (yes, my Victoria's Secret card actually has a zero balance...LOL).

I'm not even spending the money on stupid stuff, like shoes or CDs or something, but moving has really been eating up a lot of money really quickly. I'm not behind on any of the cards, thank God, and I'm not over my limits or anything, but it's just like...sometimes I feel like I'm never going to be debt-free.

Anyone else having this feeling?

 

[LarryMullen's POPAngel]

I've had it ever since I moved out.

I guess the only thing we can really do is pay what we can and try not to spend any more than we have to. I admit, mine wouldn't be half as bad had I not decided to go hog wild and see U2 5 times this year, but it's my bed and now I'll lie in it (don't get me wrong, I'm sure I'll have a great time doing so ).

More 's.

 

[mikal]

my folks were actually gracious enough to let me back in for a year, just to get myself back on my feet.

it's not easy to lose a job, then pay for school, rent, and utilities, and still have money for food or gas.

things will turn around. i personally have a great job now, and what happened 2 years ago seems like a lifetime away. just keep your chin up.

 

[Desert Dog]

hang in there - I am almost 40 and have been dealing with debt issues for the 1st time in my life over the past few years. You just have to manage it the best you can and not let it overwhelm you. And never be afraid to ask for help. There are plenty of organizations out there these days that can help.

 

[joyfulgirl]

There are plenty of organizations out there these days that can help.

But be careful with them--most of them ruin your credit although when you're young it's easy to recover and get your credit back in good standing in a few years. At my age, I cannot afford bad credit.

pax, here are some suggestions from a girl with some experience with this (nothing revelatory, and you might know all of this already, but just in case ):

1. cut up the department store cards right now and cancel the accounts. That's your first step to taking control of your debt. They have zero balances but are just sitting there tempting you.

2. Then call each of the other credit card companies and talk to them about lowering your interest rate. Pay the minimun balance due on the card with the lowest interest rate and then pay as much as you can each month on the one with the highest interest rate.

3. You could also consolidate and transfer balances to a promotional offer card that offers 0% interest for a year but read the fine print, make sure there are no balance transfer fees and find out in advance what the minimum amount due each month would be. Sometimes with 0% deals the monthly payments are higher which is good in that you really can pay the debt down but you don't want it to be more than you can afford. One late payment and your interest rate sky rockets. You don't want to transfer too much because it's also not good for your credit rating but if it would really help you pay it off in the next year, do it.

Good luck! You can do it. And like Desert Dog says, just hang in there. It might feel overwhelming now but it really is temporary.

 

[Sweet Tart]

i know what you mean. i'm not that bad wiht credit card debt. just one U2 ticket and my plane ticket home to see my parents so that's not that bad. but my student loan is a different story all together. my payments are over $400 and after talking to my bank i found out that i'll be paying this debt off til i'm 34. (i'm 27 now)

now that is depressing.

 

[nbcrusader]

I know exactly how you feel. It was one of the most stressful things in my life.

You've got some good advice here.

First, make it hard to use credit. Go "cash only" as much as possible.

Second, start writing this down on paper. Examine your monthly bills to see where you are spending money. Be honest and be thorough. It is the only way you can start making cuts or get control.

 

[joyfulgirl]

tou don't want to transfer too much because it's also not good for your credit

clarification here, I meant you don't want to transfer too often, meaning making a habit out of transferring debt to new accounts.

 

[She Is Raging]

Welcome to my world!

It seems like it's impossible to get out of debt. Luckily, I'm not in bad shape it terms of it... but it would be nice to not have a credit card payment each month, a car payment each month, or a mortgage - but it's just not possible.

What I've done, and it really helps, is using my debit card for EVERYTHING. I have a separate account for my savings, mortgage bills that have to be paid etc... and that has no ATM access whatsoever. I also have a debit account at another bank. Each week I deposit what I have for the week etc in terms of spending money into my debit account- all the rest goes into the other account. If I carry the cash with me - I'm more likely to spend it on things if it's more than $20. This way - if I see something I want and I really cant afford it - I cant buy it. It's really tough sometimes, but it's also taught me to really cut back on unecessary spending. I'll only use my credit card for bigger purchases, like if I fly somewhere etc... Plus - whenever my *one* credit card passes it's intro phase APR, I transfer to another low balance one. I know I'll always have some debt of some sort, this just helps from getting it out of control. Good Luck!

 

[U2democrat]

i feel ya pax.

paying for germany and then going off to college, i feel like my parents and i are being sucked dry.

 

[KhanadaRhodes]

okay. whoah, i'm so glad to hear i'm not the only one. my discover card is maxxed out, as is my brand new card i got to buy my new computer. i've also got a department store card that's maxxed out because i had to buy some clothes. it's not on stupid shit either, i needed to buy these things. my old computer was dying, i needed more work clothes, etc. living on your own is really fucking hard.

this summer i've got to do the most depressing thing i've ever done: when my lease is up, i've got to move back in with my parents. i'm really not looking forward to it. i'm going from an 800 square foot two-story apartment back to my 100 square foot bedroom. oh, and my old bathroom. there's mold on the walls, the showerhead squeaks when you turn it on, and the plumbing likes to back up.

 

[anitram]

I would probably be in your shoes as well were it not for the fact my parents paid every last penny for me to go to college (the most expensive one in the country to boot). That was a huge boost to me and I try to say thank you for it as often as possible.

 

[arw]

I know how you feel. I finally found a good paying job last June. I almost doubled what I was making at my previous job. At 30 and 3 layoffs in a row I was living with my parents. They loved having me around but I felt like I was still 16. So I quickly decided to move. I started buying all sorts of apartment stuff and moved in Dec. I really regret it now. I should have just listened to my first instict which was to stay at home for just a little while longer and start to look in the spring and just work paying off stuff. But I didn't do that and now what I make doesnt' really seem like that much at all due to all of the debt I have to pay on top of rent and everything that goes along with living on my own.

I still make enough to live very comfortably, pay my bills on time, go out to lunch or dinner whenever I want with my friends, buy new clothes when I want to, and travel all over the place to see U2 this year but right now I'd rather be paying off my debt and maybe saving to buy a house instead of living in a loud apartment building that I hate. I have enough debt that if I would have stayed at home and not bought stuff to move out I could have paid it all off in less than a year. I felt like I had won the lottery with this job but then I acted too quickly on what to do with the extra money...

 

[dandy]

this summer i've got to do the most depressing thing i've ever done: when my lease is up, i've got to move back in with my parents. i'm really not looking forward to it. i'm going from an 800 square foot two-story apartment back to my 100 square foot bedroom. oh, and my old bathroom. there's mold on the walls, the showerhead squeaks when you turn it on, and the plumbing likes to back up.

i'm in that boat right now, so i'm feeling your pain. worth it though if it helps you get back on your feet.

credit card debt sucks. been there, done that.

 

[Maggie1]

File for bankruptcy. You need a lawyer but I know a lot of people who have done it and it really helped them get rid of some of their debt.

 

[KhanadaRhodes]

File for bankruptcy. You need a lawyer but I know a lot of people who have done it and it really helped them get rid of some of their debt.

yeah but it should really be a last resort. it really messes with your credit and it stays on there forever. plus, they can then seize your possessions (what they can take depends on what state you live in). my parents had to file for bankruptcy over 10 years ago and it did major damage to their credit. at the time though, it was our only option. my dad had lost his job and couldn't find any work. bills were piling up and of course my mom wasn't making enough to cover everything.

we were thisclose to having to move to bumfuck, wv to move in with my grandparents until my dad got a job in hell - i mean memphis. we had to give up the house, but luckily according to florida law (dunno if it's still the case now) they couldn't take our car. i guess their reasoning was you can't find a job (or it's harder to at least) if you don't have transportation. but hey, they can take your house. because employers are beating down the door to hire people who live in their cars! it was hard for those seven years when it was on their credit report. my mom couldn't even open up a checking account at the bank when we first moved here. luckily she found one, as you kinda need a checking account (remember, this was back before you could pay bills online).

i guess my point for all this was like i said, bankruptcy should only be employed as a last resort. and even then, you better make sure you know what you're doing and that you have no other choice, because for the next seven years, when you want to do anything - buy a car, house, rent an apartment, open a bank account, anything involving a credit check (now sometimes even apply for a job) you're going to have to explain what this huge ugly blemish on your credit score is.

 

[U2_Muse]

I have only a vague idea of how bankruptcy works in the U.S., but I work for a bankruptcy Trustee in Canada, and so I'm just making a (sort of) educated guess here -- probably the reason that they can take your house, but not your car is that you are allowed to have a certain amount of equity in your house. After that, your creditors are entitled to anything above that, so sometimes you will have to sell your house to free up those funds for your creditors. Whereas with a vehicle, usually the resale (auction) value means that it's not worth anything to them anyway. And then there are exemptions, like allowing you to keep certain assets because you need them for work, or just to live at a basic standard of living.

But like I said, it's just a guess.

Have you looked into debtor assistance programs? I Googled them once for a friend with financial difficulties who also lives in the States, and I believe that many states offer some kind of debtor assistance program, where they will help you to establish a feasible repayment schedule with your creditors, so that you aren't quite as overwhelmed by the payments.

As for bankruptcy being a huge blemish on your credit record -- it is. But it's just as damaging to have a poor credit record if you've made partial or late payments or have skipped them entirely.

I wish you luck in getting everything straightened out.

 

[beli]

My suggestion is to visit your bank and consolidate as much of the debt as possible into one low interest loan. The interest rates on credit cards are usually pretty high so theres some "dead" money there.

Cut up your Victoria Secret and the other store credit cards. As soon as you are able, reduce your credit cards to one card, a bank issued one that you can use anywhere in an emergency eg Visa.

 

[pax]

Thanks, everyone, for the suggestions. I should make it clear that my straits are not so dire that I can't pay my bills--i.e. I don't plan on filing bankruptcy. I do make my payments faithfully and on time, which is the one thing I have going for me. I actually have reasonably good credit, considering how much debt I have--when I applied for a car loan a couple of months ago, I got what even my accountant dad said was a good interest rate.

So it's not that. It's just looking at this debt that's there and just feeling like it's going to be tough and time-consuming to pay it off. But for the sake of my future plans, I want to start giving it a more honest and disciplined shot.

Thanks again.

 

[Diemen]

I know how you feel Pax. I always make my payments on time and pretty much always pay more than the minimum, but it never really seems like it goes down that much. In the past 2 years I've cut my debt by at least 1/3rd and maybe even 1/2, but it's still there staring me down every month.

 

[starsforu2]

Thanks, everyone, for the suggestions. I should make it clear that my straits are not so dire that I can't pay my bills--i.e. I don't plan on filing bankruptcy. I do make my payments faithfully and on time, which is the one thing I have going for me. I actually have reasonably good credit, considering how much debt I have--when I applied for a car loan a couple of months ago, I got what even my accountant dad said was a good interest rate.

So it's not that. It's just looking at this debt that's there and just feeling like it's going to be tough and time-consuming to pay it off. But for the sake of my future plans, I want to start giving it a more honest and disciplined shot.

Thanks again.

Just remember, your credit rating is based on how you handle your DEBT, not how you handle money.

Because of a lot of debt that I USED to have, I now have a stellar credit rating!

Good luck! And take the harder path of paying stuff off instead of holding debt forever. I can't tell you how much I spent on interest over the years

 

[LiLJennie]

Would you believe that I am actually looking forward to getting laid off, so my severance pay can pay off my credit card bills? (10 years w/ one company)

You are not alone. I am 32 and I am living with my parents because I can't afford to pay my bills AND live on my own here in the Bay Area at the same time. Pathetic. now I am going to college, and I will have student loans to contend with when I graduate. ARG!!!


Sweetie, I can relate.

 

[melon]

Bankruptcy is no longer a viable option, thanks to Bush & Co. You'll automatically get sent into Chapter 13, meaning you'll be forced into a repayment plan.

So, officially, you all will be in debt forever. Including myself. Aren't we just proud Americans? I look at my Canadian friends, none of whom are saddled with mountains of student loan debt like I have, and they get to go on European vacations. Instead, I can spend myself trapped in jobs I don't like that pay too little and I can work myself to death. Hooray!

Melon

 

[BAW]

Bankruptcy is no longer a viable option, thanks to Bush & Co. You'll automatically get sent into Chapter 13, meaning you'll be forced into a repayment plan.

So, officially, you all will be in debt forever. Including myself. Aren't we just proud Americans? I look at my Canadian friends, none of whom are saddled with mountains of student loan debt like I have, and they get to go on European vacations. Instead, I can spend myself trapped in jobs I don't like that pay too little and I can work myself to death. Hooray!

Melon

True. Been there, done that. And I would rather be saddled with high interest rates and years of repayment directly with the credit card companies rather than live under the thumb of a Chapter 13 bankruptcy trustee. You might as well consolodate your debts and make one monthly payment on your own because that is what the trustee will make you do but with the added restrictions of not being able to buy a house or car, take out a loan over $500, change addresses or fall behind in any other payments. Its not a fun way to live.

 

[yimou]

I know how you all feel.

Last month i finally got rid of the last of my debt. I had been strugling for years to pay all the loans i had. Apartment, car, computer and so on. It really annoyed me that i had all that debt, so i decided to take one year of minimum living. It was hard and i never thought that i could do it, but i simply started to write down what i was buying, and then started to cut away all the silly impulse shopping that i was doing.
I used the money to pay off my debt instead, and here i am now without ANY debt. It did take me years, but the feeling is wonderful.

 

[meegannie]

I don't have any credit card debt (I have an American credit card with a ridiculously low limit, and I don't qualify for a credit card here in the UK), but I owe $30,000 in student loans. I only make £8000 a year, so there is NO WAY I can make any payments at the moment, especially not the $200 a month I'm expected to pay back. The student loan company can't seem to understand that since I don't live in the US, the poverty level in Maryland (the state I last lived in) means nothing to me, and even though £8000 may equal almost $16,000 at the moment, I don't spend in dollars.

I really wish I'd never gone to grad school, since it's done absolutely nothing for my career prospects and I have no idea how I'll ever be able to afford to start repayments on my loans again.

 

[dandy]

I look at my Canadian friends, none of whom are saddled with mountains of student loan debt like I have

me and many of my university friends are working on paying off loans that range from $20 000-$60 000. what's scary is that debt has become the new normal. i'm living at home now doubling up my payments so i can be rid of the bloody thing. ain't life fun?

no european vacations for this canadian.

 

[anitram]

Well, in terms of Canadian students being in debt, it's my experience that after undergrad, most people either had manageable debt or none at all. At least in Ontario, the way OSAP works, you cannot be expected to pay back more than a certain amount/year and the rest is forgiven. Plus, bursaries are "free" money for people on OSAP so tons of students I knew back when I was in school would apply for maximum OSAP (gov't funding), then once they got their bursaries from the school in the fall, they would simply keep the extra OSAP and return it at the end of the year, thus minimizing the loan.

Same goes for grad school, as you are paid a decent amount by the university, and even after tuition, you can manage to live off that money.

Professional programs are a different matter. Med school, law school, pharmacy, dentistry, etc, fees have gone through the roof. It's especially true in Ontario where law school will cost you triple what it will cost you in say, New Brunswick. Nevermind the cost of living being so much higher.

 

[kobayashi]

yeah law school is getting ridiculous in ontario. i went into an mpa instead.

between myself and my girlfriend, we are carrying about $30 000 in student loc's. my french training has forced our collective credit card balances to about $10 000.

all in all, not the end of the world. but it is ridiculous that we will have a combined 6 figure income and cant really consider getting a house until the sloc is significantly reduced.

 

[Zoomerang96]

File for bankruptcy. You need a lawyer but I know a lot of people who have done it and it really helped them get rid of some of their debt.

if you're really bankrupt so be it, but weasling your way out of a tough spot is no way to go about doing things.

i have debt too, but it's not the first time. most of it is for my car that will be paid off in a few years. it's an investment more than anything, and i know that should something go wrong, i could sell it.

not that i have any plans of doing that, but whatever.

still, debt sucks, but it is, indeed, the NORTH american way...