Student with debt.
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Student with debt.
| Thu, 07-09-2009 - 8:47pm |
I currently live in LA, and I am going to be leaving at the end of the month to attend college in San Francisco.
I currently have about $10,000 in credit card debt, which costs me about $300 a month, minimum.
I could manage school with this debt through grants and working, but I was wondering what is the best way to get a new monthly payment on this card?
The $300 a month will definitely make things difficult. :(
Any tips, or advice would be great! Thank you!

After you get a job apply for a different card. On 10,000 the payment should not be more then 200.00
Mary Ann
What is the interest rate on your card? Would it be possible to get a subsidized (interested paid for by government while you are in school) student loan to pay it off? You can open a savings account and put an amount less than $300 in it, and use that to pay down/off the student loan when you are done with school. Otherwise check out credit card from a credit union, alumni association (yes, they often extend the offer to students who are still in school) may have lower interest rates.
One word of caution, regardless of the form of debt (credit card, student loan, person/car loan, etc.), a general rule of thumb is your total debt upon graduation should not exceed the average annual salary of your chosen profession. And of course less is better.
The interest rate is 24%, sadly.
I'm going to call tomorrow, try and speak to a supervisor, explain my situation, and try to get the interest rate lowered.
I could try and get as much student loan money as I can, and use it on the credit card, but I don't think I am eligible for a very big loan, and I still have to use money for living expensive.
Transferring the balance is a good idea! I might give that a try once I find a job.
Thanks guys! :)
I don't think any financial planners would say to exchange credit card debt for student loan debt.
The rules on student loans have changed.
http://blogs.consumerreports.org/money/2009/07/student-loan-payment-linked-to-income-salary-family-size-25-years-unpaid-forgiven-10-years-public-se.html
Besides, while I am all for thinking ahead, considering what can and cannot be discharged upon bankruptcy is promoting irresponsibility in my book. I am not criticizing those who filed, but one should not "plan" on it - it is only a last resort.
Marie, you yourself stuck it out, work multiple jobs and make cuts here and there to pay off debt and some are not even yours (ex-husband's). Please give others the dignity to take the same journey.