Debt Support Group

I just finished graduate school. Combined both undergrad and graduate degrees came to a whopping 94,000.00. I have a credit card debt of 4800.00. Luckily i was able to get a job right out of graduate school.

Today was the day that most of my loans came out of forbearance/deferment.

The following are rough estimates of some of these obnoxious loans i decided to involve myself with.

1. Federal loan Staff - 40,000.00
2. Private student loan - 40,000.00
3. grad loan - 10,000.00
4. grad loan - 3.899.00

Aside from this train wreck i have a credit card debt of 4000.00

I wanted to know if this was a good idea.

I decided to put three of the four loans in forbearance and focus on paying off this credit and small loan.

I make enough to ::tear:: put 1k of my paycheck into my whopping debt.

Is this a good idea or not? let me know.

I need support, this is like the first time I'm actually writing about debt.

thoughts? concerns?

Hi there!

I would check to see what the interest rates are on all the loans. In Canada interest on a government student loan is tax deductible, and therefore is generally the last debt to be paid off. If its the same in the US then leave them till the end. CC's are generally high interest and should be the first.

I would probably focus on the CC first (its likely the highest interest and you could have it taken care of rather quickly). Then I would tackle the student loans in order of highest interest rate.

Good luck!

Bex -

"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."

I would pay off the credit card first. Then focus on the lowest grad loan, then the next grad loan. Then the private loan and keep the undergrad government loan for last.

stacy

I would take care of the CCs first. Stay focused and you can do this. Good luck.

If you havent consolidated your stafford loans, do that now. If any of your grad loans qualify to be included into the consolidation, add them too. A consolidation loan will spread your payments out to 20 years, and give you a lower interest rate. Not that you want to take 20 years, but it will give you breathing room by lowering the minimum payment.

I agree with pp - pay off your credit cards first, then the private loans, then the federal. Do you qualify for a forbearance? If you have $1000/month for debt repayment you might not be able to put them into forbearance anyway. I would avoid forbearance, b/c for me, it would be too easy to spend that extra money rather than put it toward debt like I should. And honestly, that's essentially what DH and I did - paid the minimums on all our loans, and never made it a priority to get out of debt. If you can pay min on everything, and still have $100-$200 extra to throw on to the priority loan (CC, private, then fed) I think that would be better than putting loans into forbearance.

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