Advice needed for my debt situation

**clintdavis** · 05-19-2011, 11:38 AM

Hi Skives,

Thanks for sharing. But I'm not sure what kind of advice you are looking for. Did you have some specific questions?

What field is your degree in, and what line of work are you currently in?

Thanks again!

**skives** · 05-19-2011, 11:41 AM

I'm looking to see what debt I should pay on and how much. I have a degree in Computer Networks and systems and also took some courses in pursuit of a MBA degree. I currently work in the retail industry. I'm trying to save the most interest and wondering if I need to save more before I move out?

**clintdavis** · 05-19-2011, 12:40 PM

Well, I've gotta tell you, interest is the least of your worries. What you really need to focus on is getting your income up. With a degree in Computer Networks and Systems, you should be making much more than you are in your retail job. Are you currently searching for a position that will allow you to use your degree and make more income?

As for your debt, I would keep attacking the smaller loan until it is paid off. Then, i would move on to the larger one.

**skives** · 05-19-2011, 12:46 PM

Well I graduated in 2006 and looked for a job but never had any luck. I continued to work at my retail job and decided to pursue that and had a few interviews with my companies corporate office in the business field and they said going back to school would help towards getting a job in the corporate office well I went back to school to work on an MBA degree and continued to have a few interviews with corporate but they never panned out so I stop going to school. In all honesty I don't think that was the time for me to go to college but I felt like that was expected of me and I have realized over the years the degree I got wasn't what I wanted to do with my life. I made a mistake and now I am just looking for some advice with my current debt situation.

**maat55** · 05-19-2011, 03:57 PM

Why did you attack the private loan first? I would have attacked the federal loan first due to it is not bankruptable and has a higher rate.

It appears that your spending is low and that you are paying down debt very well for your income.

You say you are getting married in 2012, have you and your SO discussed your personal financial plans? I suggest you read The Total Money Makeover by Dave Ramsey to help you establish a lifestyle with your finances.

**skives** · 05-19-2011, 04:07 PM

I did the private loan first case at the time the interest rate was higher and it's a variable rate so it changes every 3 months based on the 3-month LIBOR. I as far as I know no student is can be forgiven in bankruptcy whether it is federal or private but I may be wrong.

My SO and I have talked about our financial plans and we both agree that our debt comes before everything except food and shelter.

I am just wondering if I should continue to pay on the private loan till it's gone or move my extra money to the federal loan or put the extra money into savings while I can still set aside so much while I am at home.

**jpg7n16** · 05-19-2011, 04:29 PM

If your goal is to get out of debt, then when it comes time to make the payment, just look at the interest rates: pay min on both, then any extra you want to pay goes to the one with the higher interest rate that day.

In the situation you listed above, the Federal costs 5.12 cents per dollar, and the private costs 3.81 cents per dollar. So the Federal loan would get the extra money today.

**skives** · 05-20-2011, 01:25 AM

How does this plan sound? I get both student loans paid off on a five year payoff plan? With that I would be able to save $200 into savings while I'm still living at home and also save some interest on the federal loan. What do you guys think?

**maat55** · 05-20-2011, 03:48 AM

Originally posted by skives View Post

How does this plan sound? I get both student loans paid off on a five year payoff plan? With that I would be able to save $200 into savings while I'm still living at home and also save some interest on the federal loan. What do you guys think?

How much will you earn in savings? I have to side with Dave Ramsey on this, I would keep using the 200.00(it will earn 5%) to pay down debt. Have you and your SO considered living with your parents for a year to get completely out of debt?

**skives** · 05-20-2011, 02:01 PM

yes we considered that but there's no room at her parents and mine said no.

**adstalker** · 07-07-2011, 03:14 AM

do you guys have your own apartment? instead of renting a whole apartment you can also consider subletting a single bedroom for you and your girl. Instead of paying 1000 a month for a 1 bed apartment you could be paying 300-500 for a room. Most of the time the gas electric and cable is already included in the sublet. It might be inconvenient sharing a small space with other people, but you can save a lot of money doing that.

**Eric80** · 10-16-2011, 09:53 AM

Hi there!

You seem to have a little pickle! I just want to re-assure you that you are not the only person who is in this situation - I to was in a load of debt and living way beyond my means! I liked expensive things and thought It was possible to live a celebrity lifestyle with only 1 income! My biggest piece of advice to yo is that before you make any harsh decisions consider going to a company that can help assess your debt and tell you the best way to manage them as they will be able to show you where you can cut down in places - I was advised to consolidate my debt and It was the best thing i did!

I hope this helps! If you want some more advice then please feel free to ask

Advice needed for my debt situation