PostHeaderIcon strategy for getting out of debt?

please no judgement, just effective strategies.

I have 70k in private student loans with a variable student interest rate of 6-12% (private student loan consolidation is no longer an option).

I have 120k in federal student loans with 4-6% interest rates.

5000 on a 19% credit card

5000 on a 0% credit card (for twelve more months)

and 4,000 on a 23% credit card.

I finally secured a government job, I bring home 2,600 for 26 paychecks a year and next year i’ll bring home 3,000 for 26 pay checks a year. I have my monthly house hold bills under 1000 and contribute 5% of my salary to a TSP (gov ret program).

6 Responses to “strategy for getting out of debt?”

  • Spock (rhp) says:

    step one — you need a credit card that you pay off in full every month. all charges go onto this card and this card only. then you pay it off. each and every month. the point of this is to stop paying interest on the things you buy on a credit card.

    step two — pay minimum amounts on all bills except the one you’re focusing on paying off now. the order of these for you should be

    a. the 4k on the 23% card
    b. the 5k on the 19% card
    c. then the most expensive of your private student loans
    d. [somewhere in there your zero percent card becomes an expensive card — pay it off when it does]
    e. etc.
    f. federal student loans last.


  • Abrielle says:

    Put the student loans on deferment if you can. Cut up the credit cards. Pay the most on the 23% Second most on the 19% Third most on the zero. Those credit cards are just taking money from you. Get rid of them. It’s great that you are putting something away. But think about it. That’s paying you 5% while the credit cards are taking away 23 plus 19 is what? That’s what it’s taking away from you. You would be wiser to get rid of those interest fees. Can I knock on your door every month and say, give me a hundred bucks? Come on! The student loans are a secondary thing. They need to be paid back, yes. But it’s the credit cards that are killing you. Just pay and pay on them until they are gone. Good luck!

  • Let me steer you says:

    You could declare bankruptcy and get rid of $84,000 of the debt. Federally subsidized student loans are not forgiven in a bankruptcy; private student loans are.

    If you take home that kind of money, you will only qualify for a chapter 13, which is a repayment plan. Your attorney can show you how to pay most of the money back to yourself, so that you pay very little back to the unsecured loans.

    There are no other strategies except to pay off the credit cards as fast as you possibly can. Hopefully you got a great degree and will be making megabucks soon. Otherwise, that $190,000 college education was not a good investment.

    Unfortunately, when kids start college, nobody counsels them about their education being an investment. You have to make a good return on your investment or you’re better off not going to college. Medical doctors generally have a very good return on their educational investment. English teachers generally do not.

  • Choices says:

    1. 5000 on a 0% credit card (for twelve more months)
    2. 5000 on a 19% credit card
    3. 4,000 on a 23% credit card
    4. 70k in private student loans
    5. 120k in federal student loans

    In this order.
    Bills 2,3,4,5 make the minimum payment
    Bill No 1 pay as much as you can afford until it is paid off.

    Then make the minimum payment on bills 3,4,5
    Bill no 2 pay as much as possible until it is paid off

    Do this until all your bills are paid off

    The 19% and 23% credit card cut them up and return them to the credit agency.

  • Joy says:

    Seriously, I thought I’d never get out of debt and I was very skeptical about getting help from any debt consolidation companies that I had around me. But a good friend told me I should try out .. and once I finally conceded that a company like this could definitely be of great help I began to notice how much easier it was to budget my money and pay off those bills with a bit of professional advice and a bit more help from the pros.

  • drucy kleiner says:

    I was in the exact same difficulty not long ago. I was able to find help here:

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