21 years old, full time student, $4000 credit card debt...please give advice!?

Question

Ok so I realize now this was a STUPID thing to do so please no critical comments. I'm working this summer (about 28-35 hrs/wk)and literally putting all my paychecks towards my bills and gas except all I'm doing is paying off high interest and cannot seem to lower my balance on my credit cards. When I start school at the end of August I will only be working 11 hours in between classes on campus so how am I suppose to pull this off other than getting another job?? I have $2900 on a Sears mastercard alone with 23% apr and I wanted to do a 0% balance transfer...i researched it for a while, but when I apply I don't get accepted. I think of how many people have thousands and thousands of debt and think maybe my situation isn't AS BAD as I'm making it out to be. But it is! I'm 21 and stressed about financial issues rather than living my life AND I'm ruining future possibilities for loans, ect by ruining my credit score. All my cc have at least 16% VARIABLE apr. How do i get rid of them asap?

Answer 1

means that you are a student, that is your aliby for consolidating your debts into getting very possibly a lower interest rate therefore allowing you to pay more to principal. You didn't mention that you have school loans already that are maxed...so I'll assume you already saved for that/work pays it/scholarship of some kind... even though you already have the funds somehow for school, you can still take a school loan to pay for school expenses...(which can then be turned right around and used to pay off this balance). often times the interest rate is much lower, cause they know you're in school and will wait to jack up the interest till you've graduated.or even better sometimes it's interest free until you graduate, not likely in your case, but it's a good shot, go for it! 4000$ is "a lot" if you look just at your situation of being stuck, but try to always pay more towards the principal of the balance with the interest rate that is highest...(ex: if you have an extra 100$ one month don't split it between the bills...make minimums or a couple bucks more on all, but think of attacking the one with the biggest interest rate sounds like that sears card...think 2900 2900 pay off asap..then you won't feel as overwhelmed with 4K, it's just 2900, you can do it hope this helps

Answer 2

First, stop charging on all credit cards.

Second, put every penny you can squeeze out of your budget on the highest interest rate card while paying minimums on the rest.  When the highest interest rate card is paid off, move to the next till they are all paid off.

Third, find ways to bring in more cash.  Have a garage sale, collect alum cans, mow lawns, get a second job.  Throw it all at the credit card debt.

Answer 3

Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.I came across this company on NBC News Special Edition.Check it out here:

http://urlhawk.com/29x

Answer 4

There are special program available for student credit card debts known as student credit card debt consolidation.They help you plan to pay off your debts.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference.

Answer 5

The only way to get rid of it is to pay it that means get another job, yeah it sucks but your mess needs to be taken care of now or that 16% interest will kill you later.  Consider taking a semester off and work your butt off to pay back your debt.  You can work 80hrs a week and dump your second paycheck into paying off your credit card.  If you get a second job working 40hrs, in a month at $8 an hour that will bring in over $1000 after withholdings.  In a semester you should have it paid off.  Pay off one at a time and pay minimum on the others.  Once one is paid off go to the next one.  Start with the smallest debt first.

For a second job look into waiting tables tips are an added bonus to your paycheck.  

Look at your spending as well cut out anything that you don't need.  Live on bread and water.

Answer 6

If you are serious about getting out of debt (and you should be) then you need to read and listen to Dave Ramsey.  You can follow his plan (for free) and get out of debt.  Go to the library and pick up his book "The Total Money Makeover".  You can also listen to his radio show and two weeks worth of archives on his website for free.

Answer 7

I would not get another credit card or student loan. When you get a student loan they make you pay 3 times the amount back. I have never been in your situation but I just graduated college a month ago and was never in debt. I suggest you get a better paying job. I hire college students and starting pay is no less than $20 an hour you should e-mail me. If not you should seriously get a better paying job because if you are only in debt 4k with the right job you can pay that off  in a month

Answer 8

I'm not going to criticize you for your issues. Alot of people make mistakes and its a good thing that your trying to fix it now. My advice to you is to get another student loan to pay off your credit card balance. At the most a student loan will be maybe 10% interest. It will be deferred till you graduate. You will never be able to pay off a credit card with a $3k balance at 23% on 11 hours a week. Unless you are making $500 an hour.  Do some research on taking out another student loan.

Answer 9

There are many tips on the internet about this, but I can just suggest you start by getting as much of the debt as possible onto the low interest cards, or even get a lower interest loan and pay off the debts in full with it. This will consolidate your debt, minimize administrative fees, and make sure you pay the lowest possible interest for the entire sum.

Then get your finances into order. Look up how to make a good budget, and then stick to it. It is painful, but it works. Never pay off less than the interest every month, and if you find yourself just paying off the interest then you need to change your budget so you can pay more.

Good luck. With a tight handle on your income you can get on top of this.