Hello, here's my debt story..(nightmare)
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| Mon, 05-05-2003 - 10:30pm |
I'm new to the boards and happened to stummble upon them while searching for debt management websites. My story might be a little different from many here on the boards because I am single, childless, & I don't own a house (or have a mortage). The bulk of my debt is comes from credit cards, a car loan and the major "debt" is a result of student loans. The c/c debt is high- $15,000 -but it is on two cards which I am not paying interest on, it will accrue in 6 months if the cards aren't paid off. My tactic has been to open up new credit cards and transfer the balances. I can't do this forever. I plan on paying one c/c off this summer and about $8,000 and transfer the rest. So far this has worked for me. The car loan I've got one more year. Very bad decision to buy a new car when there is a student loan hanging overhead.
And my biggest problem is the student loan for several reasons: The first is I not only sunk $35,000 into a career I am both unhappy with and currently unemployed at. But the worst of it is that no matter how much money I pay back the interest rate is compounding daily. I must have paid back over $9,000 and only managed to whittle it down to $33,000. That's after 5 years of paying these loans. I even went ahead and consolidated my loans w/a gov't program to lower the interest rate. I am in deferrement (the gov't pays a certain amount of interest for me) because I am jobless going on 6 months. I can't collect unemployment because I was self-employed so I'm dipping into my (small, but life saving)- life savings to make ends meet.
The whole situation is depressing me and I feel the weight of the world on my shoulders. I recently went for a job interview and was turned down. The thing is I have a master's and two bacchelor degrees which is supposedly a key to success. I am trying to keep my spirits up but it is so difficult. I'm trying to make a viable plan to turn things around so that I can get out from under the red. But it is hard to think I can't make a dent in the loans. Well, that's my story. Or at least the beginning of it. I hope I can find some encouraging words here and I hope to be able to offer the same as we manage and then become totally free of all finanical debt. It is possible right? :-)
Thanks,
Kali
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The economy's tough right now so don't be too hard on yourself or your field.
Even so you might take a closer look at why you didn't get the job.
Do you have a detail oriented and honest friend who could take a look
at your resume or even run you through a mock interview? I'm not saying
that it's all in your hands, they might have already had someone in mind,
but it never hurts to brush up on your skills.
You might also think about the jobs you're applying for. Are you overqualified?
Underqualified? Is there experience that you're lacking? How about a (hopefully paid)
internship or something else to make you more competitive?
Your story isn't all that different. I think there are people here from every
walk of life and in every situation. Keep your chin up. It won't happen overnight
but you'll find a job eventually and then you can start to seriously work your debt.
Once you're stable you can start putting larger payments toward it and
you'll start to see a difference. Hang in there! Stay positive about things
and something will come your way.
I agree with Zaboz - the economy is tough right now. I'm sorry you're feeling so strangled by your student loans. I felt like that at first too. The sad thing is that in the beginning, you're paying SO MUCH interest (which may be tax deductible, btw). I swear it's LIKE having a mortgage! As the years pass, you'll be hitting more and more of your principle. I had $15K in student loans in 1994 - I deferred a couple of times - I didn't pay for a few months - things were rough when I first graduated. I've been paying regularly since about 1995 now, and the debt is now under $5K. I don't know what I've paid in interest - I don't care. The student loans have helped you achieve 3 degrees, they're not "bad" debt. Right now just keep doing what you're doing - there will come a time when you can throw much more money at the debt, and that will help eliminate them.
I totally agree with you about the new car loan. I enjoy my car completely - but I know I definitely should have purchased a used car rather than a new car. Congrats on having just one year to go. Once the car is paid off, the trick will be to maintain the heck out of it and drive it until it runs itself into the ground :) Got to get as much "free" milage out of it as you can!
I would focus on the cc debt WHEN you can. You've got a lot going on at once right now - it's tough. I think Zaboz had a good suggestion about running your resume past an objective person. Have you considered temping until you can find something permanent? Any money that you can bring IN so that you're not dipping into your savings would be a good thing - even if it's not in your field.
We are all here for you - vent away! We're all in various stages of repayment and frustration. You're not alone!
All my best,
Danni
All my best,
Danni