Don't know where else to go...

[jalamar]

Here's my specific situation. I am 27 and have been in debt for 9 years. I started off at 18 with about $500 of credit card debt, and sadly it has grown to $24,000. I have since then accumulated $30,000 in college loans that luckily I have been able to forbear since I graduated. But I have never had a job that has paid me more than $30,000 a year and I am currently unemployed. While my unemployment checks pay for the bare necessities, I am left ever-paying my minimum payments on 3 cards. 2 of the cards (Discover and Chase) have about an $11,000 balance and the last card (AMEX) has $2,000. I have worked with Chase to close one of the $11k cards and they enrolled me in a debt liquidation program. The plan has me paying $216 a month for 60 months at a 2% fixed interest. But the other 2 cards... I am only able to make minimum payments and am getting nowhere.

Here's the kicker... I've made sure to never have a late payment in my life. Not even 30 days late. And my credit score averages at about 730. I intend to buy a house soon as well, so I am not sure that deliberately missing payments and settling debt is a solution. I can't stand looking at my $24,000 debt anymore and never seeing it decrease. I even called InCharge debt management and they told me that I am already doing everything that they would normally do for their customers. But I've been treading water for almost 10 years and now in another 60 months, I will have only paid down my debt by half. I'm hopeful that I can be credit card debt free in the next 5 years, but I don't know what else to do. My school loans are a whole different story, and I'm only worried about the big debt gorilla that has been sitting on my chest for a decade. Any advice would be appreciated... even if it is to tell me what I am doing wrong or right.

Thanks in advance,
Justin

[whitestripe]

what did you study at college? are you actively seeking employment at the moment? could you move to find a job in your field that pays well?
at this stage, the only solution i can forsee is that your income MUST increase if you are to pay off your debt.

[happygirl]

If I'm reading this correctly you actually have 54,000 in debt; 24k in cc and 30k in student loan, and you have no actual means of paying this off. If that is correct, I don't think you should even be thinking about buying a house.

Ideally, you should pay off your debt and save at least enough for a 20% down payment on a home (IMO) before you purchase anything. If I were in your shoes, I think I would try to find as much work as possible, even 2 or 3 jobs to pay off the debt. With home ownership comes so many unexpected expenses so before buying you should have an emergency fund to cover those things as well.

You're only 27. Lots of people don't own a home before 30. With determination you can make it though. Good luck!

[maat55]

First you need to stop using your cards if you are still doing so. You then need to find a job paying anything over what you are getting in benefits.

Getting a second job would be very helpful.

You do not need to buy a house for awhile. Concentrate on paying off your CC's first, then build up an EF and good down payment before considering a house. You are young and shuld not be in a hurry to own a home until you are out of debt.

If you are single, try to find a relative or friends to live with so that you can put as much money as possible towards your debts.

Owning a home is an liability and not necessarily an investment. You have plenty of time to own an home outright before you reach retirement.

[creditcardfree]

The others have given great advice, but I wanted to also strongly advise you against purchasing a home until after you have the credit card debt paid off. I would even suggest putting a big dent in the student loans as well. This may require working a second job or overtime.

Just imagine the burden you would feel with mortgage debt, credit card debt and student loan debt. It will only get worse if you were to buy a home.

[red92s]

I don't think you will find a mortgage lender jumping to write a loan for someone that has $50k in debt and zero verifiable income.

You say that you never had a job that paid over $30k per year like it's not possible to live on that type of income. It certainly is possible, and many, many people do it across the country. They may not have new clothes and meals out three times a week, but they get by just fine. It sounds to me like you never adjusted your spending to match your income. Regardless of how you eliminate your debt, this is something that must change or else you will just be back in this situation in short order.

[arthurb999]

What money do you plan on using to buy a home?? you can't even afford your current situation... nevermind throwing a house in the mix.

Get a job, get out of debt, save 20%, then buy a house....