Dec 18

single mom in serious debt searching for answers, and a way out?

Published by admin at 9:39 pm under Credit

Courtney S asked:


AHH, ive gotten myself into quite the hole, but at the young age of 24 I just know there MUST be a way out. I went to college for 3 years, and while i was there I got a few (3) store credit cards that I racked up a small amount of debt on (under 200) and NEVER PAID. It got to the point that I didnt realize how it was effecting my credit and before I knew it, my student loans were not given for my final year as a result. I left school, and started working as a waitress w/ hopes of making enough money togo back. Well one year off turned into 3, and then I ended up w/ a BEAUTIFUL baby. In the meantime, I neglected to pay my student loans, and found myself in default. Add on top of that my debt from childbirth that was not covered thru insurance (around 7 Grand), and finally, my car was totalled a month ago, leaving me with 3,000 left to pay off. (I had a loan with a 20.2% interest rate that I DID pay on tiem) I am so deep in debt and as a single mom, I need a way out. Help!
I should add, the student loans are federal and private, totally around 80,000. I am a bright girl and I know I could and should have a good future, I just dont know how to start. As a single mom its hard enough getting clothes on the girl, food on the table and rent paid. At the end of the month I have literally no savings….

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3 Responses to “single mom in serious debt searching for answers, and a way out?”

  1. # lisa won 21 Dec 2005 at 3:15 am

    Sue your child’s father for child support.
    Contact your student loan company and ask for a deferment based on your child’s birth and the fact that you currently make less than the minimum wage…

    PULL YOUR CREDIT REPORT and see how much damage there is (free to use this one)

    If you can arrange for payment plans (10 bucks or so a month for the old credit cards), after your deferment, you might be able to get your student loans in rehab but you have to contact them and see what you need to do

  2. # bob sharkon 21 Dec 2005 at 5:22 pm

    Talk to a debt counsellor
    Bankruptcy is a definite option for you.

  3. # Calebon 23 Dec 2005 at 10:32 am

    You can categorize your debts as credit card debts, student loan and other debts. I have a source where you can resolve all your debts. Now talking about credit card debts, there is a Credit Card Counseling Agency who works for you in terms of getting yourself out of credit card debt.

    They also provide student loan consolidation. Following are the general benefits of student loan consolidation.

    # Consolidating student loans can reduce monthly payments by up to 54 percent.
    # You typically have 10 years to repay student loans, but, depending on the amount you’re consolidating, you can extend your repayment plan all the way up to 30 years.

    You can consolidate your loans together(u and ur husband), but it is not a good idea for a couple reasons:
    # Both of you will always be responsible to repay the loan, even if you later separate or divorce
    # If you need to defer payment on the loan, both of you will have to meet the deferment criteria .

    Lastly you can clear you remaining debts through the Debt Management Plan provided by the agencies after talking to your creditors, where you can either get a loan at lower rate to consolidate your debts or you can pay a fixed monthly installment.

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