really young and in debt...help!
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| Tue, 01-10-2006 - 6:17am |
I hope someone might be able to offer me some advice as I can't sleep at all at night and constantly worry that I am going to receive a threatening phone call from a creditor.I'm 22 years old and I am currently almost $50,000 in debt (canadian dollars that is).
I moved to England with my family in August. I lied to them that I had enough money to come over because I was worried they would make me stay and I desperately wanted to go with them. Big mistake. So, I already had $40,000 in student debt (my parents are cosigners on it) going in but I have now accumulated almost $10,000 in overdraft and credit card debt because I haven't been able to find work over here (besides a few temp positions) and have been living off of credit. It's the most horrible year of my life and I don't know how I will get out of this. I have been lying to my parents about it and have had to borrow money from my best friend just to meet the minimum payments. I refuse to ask for any more money, so I have now stopped paying the minimum payments. I was always good about paying the minimum payment until now.
Does anyone have any suggestions for what I can do? I am so young and can't believe that I've started my life lying and in debt.

well i was in a similar situation at 20 yo.
I was in college and I was dumb and took every credit card offer that was thrown at me.
I was only working maybe 16 hrs. a week if that so I could not afford having 5 or 6 credit cards, and I would charge everything on it. I didnt want to tell my parents either out of embarrasment but I fessed up to my dad and of course I got lectured, he HELPED me pay SOME of them to save my credit but I offered to help him with errands, and with my younger brothers.
I took a semester off to get FT job to pay the rest of what i owed then went back to school. I learned a big lesson not only about credit cards & debt but that no matter what age I am my parents would always be there for me, that is what they are there for.
As hard as I know it will be, you really need to tell your parents. They're going to find out eventually, since they are the co-signers on your loan. Also, by not telling them and allowing them to help you with your payments, you could be ruining their credit and financial future as they enter their retirement years.
Your parents may be able to help you find work through their friends/connections, etc. Think of it this way: It can't possibly get worse once your parents know about it. It can only get better with their help.
Hugs,
Pat :-D
You will be ok! I would rather be in debt at 22 and work out of it and learn and never go back. Think about this - you could be 32 or 42 or 52 and be in debt and with a family of your own and kids to raise. You are young which means you have more time to get out of debt and start saving and investing. You'll get a job with a 401k and once your debt is paid down, you'll have more time to save and invest and have all that compound and work more in your favor because of time prior to retirement.
Don't stress too much over the student loans. Get a deferment. Then pay what you can. Student loans are a low interest rate and think of them as a "sunk cost". I'd rather be in debt with student loans than without my education and debt free. :)
I understand because right after college at 22 was when my finanical world caved in. I am 29 and plan to be debt free (with exception of car loan and student loan) by the end of this year and I bet it will take you less than the 6 years its taken me. Keep your head up and be honest with your family. You'll be ok.