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miamidc

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Can credit card debt be consolidated with private loans. I have heard yes and no. Can someone in the know please clear this up. My impression is that if they are willing to consolidate $200,000+, they wouldn't mind having more interest to charge us if they just throw in the $20,000 Credit card debt. Am I wrong, is this not how they do business. Fact is Banks trust MDs more than almost any other proffesion, when it comes to loan repayment, prob due to job security. Anyways, anyone know???
 

tlew12778

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Are you referring to student loan consolidation or just regular loan consolidation? BC both types of loans exist.

If you are talking about student loan consolidation then no. I have never heard of this happening and I manage a debt forum on another board. When you apply for a student loan consolidation, it's just that... to consolidate your STUDENT LOANS. When you apply for the consolidation, they will ask you to list your lenders and your interest rates (I think most people only have a couple lenders in general) and they will cut a check to those lenders for the payoff amount on the day they cut the check. At least that is how Sallie Mae did mine (all my original loans were through CSLF).

If you are talking about regular loan consolidation that any old bank will offer you, sure, they'll consolidate your cc debt. But my question would be, why bother going through them? You can do it yourself by BTing your debt to a card with a higher limit and at 0% if you find the right deal. I haven't paid interest on my credit cards in 3 years and my credit score is over 700. Just tell the new bank that you want to BT $20k in debt over to them and see if they will give you a sufficient limit. Most do if your credit score is good.
 

miamidc

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Hey thanks for the reply. The reason I would like to consolidate, is because you can not claim hardship and deferment for CC debt, as far as the Credit card companies are concerned. However, if my monthly payments are over a certain percentage of my monthy income than I can claim hardship for 3 years, correct. Then I could clain forbearance for another 3. So if I take what you are saying, that means that I could place my CC debt into a consolidation program through a bank, and then I wouldn't have to pay for it until I have enough income, correct? If I totaled it all, it would be over $250,000. Am I right about all this? If I go through the CC 0% interest route, I still have to pay monthly payments, and this is substancial if I am only making like 38-40,000. Thanks for any further input
 

tlew12778

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Typically minimum CC payments are roughly 2-3% of your total debt. So on $20k that would be about $600/month. You can totally do that on $40k if you budget right.

You're right, you cannot declare economic hardship on your CC debt (well not for more than 1 month at least), but consider that even if you declare that on your student loan debt, you are still accruing interest. So basically even if you could roll it all into a student loan consolidation, you would be paying say 2-3% on that $20k of CC debt vs the $600/month you could be paying down on it if you BT it to a 0% card.

What I would do, if you find that you are really having problems paying, is:
1) cut up those [email protected] cards and never use them again
2) put your loans on forbearance or deferment (whichever better suits your needs). There are special deferments for drs while doing their residencies. I just read this on the Sallie Mae website.
3) pay as much as you can towards your CCs until you can manage both a CC payment AND a student loan payment. Ideally you could get rid of that CC debt before having to start repayment on the student loans. If you could pay $600 a month with 0% interest, you would have $20k paid of in 34 months.

The bottom line is that you have to suffer the consequences for having used the CC (this isn't a judgement, since I am jsut as guilty of having used mine, it's just the facts) which means paying them back when the banks want their money. Whatever you do, DO NOT miss your payments on them bc that will trash your credit report/score and you could have trouble consolidating your student loans down the line. Do whatever you have to do to get them paid off as soon as humanly possible then worry about the student loans (although don't just ignore them... you need to delay the payments in a legal manner since missing those payments will trash your score as much as missing the CC payments).

If you find that you really cannot make it, then you could try credit counseling but this will hurt your credit score/report for the next 7-10 years and honestly, I don't think it's worth it if you are in an ok position right now (meaning you have not been late or missed payments yet). Same goes with bankruptcy. But I wouldn't go that route until I found that I could not feed myself basically.
 

miamidc

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tlew12778 said:
Typically minimum CC payments are roughly 2-3% of your total debt. So on $20k that would be about $600/month. You can totally do that on $40k if you budget right.

You're right, you cannot declare economic hardship on your CC debt (well not for more than 1 month at least), but consider that even if you declare that on your student loan debt, you are still accruing interest. So basically even if you could roll it all into a student loan consolidation, you would be paying say 2-3% on that $20k of CC debt vs the $600/month you could be paying down on it if you BT it to a 0% card.

What I would do, if you find that you are really having problems paying, is:
1) cut up those [email protected] cards and never use them again
2) put your loans on forbearance or deferment (whichever better suits your needs). There are special deferments for drs while doing their residencies. I just read this on the Sallie Mae website.
3) pay as much as you can towards your CCs until you can manage both a CC payment AND a student loan payment. Ideally you could get rid of that CC debt before having to start repayment on the student loans. If you could pay $600 a month with 0% interest, you would have $20k paid of in 34 months.

The bottom line is that you have to suffer the consequences for having used the CC (this isn't a judgement, since I am jsut as guilty of having used mine, it's just the facts) which means paying them back when the banks want their money. Whatever you do, DO NOT miss your payments on them bc that will trash your credit report/score and you could have trouble consolidating your student loans down the line. Do whatever you have to do to get them paid off as soon as humanly possible then worry about the student loans (although don't just ignore them... you need to delay the payments in a legal manner since missing those payments will trash your score as much as missing the CC payments).

If you find that you really cannot make it, then you could try credit counseling but this will hurt your credit score/report for the next 7-10 years and honestly, I don't think it's worth it if you are in an ok position right now (meaning you have not been late or missed payments yet). Same goes with bankruptcy. But I wouldn't go that route until I found that I could not feed myself basically.


I agree with everything that you are saying. But I think that those extra $6,000 a year will really help me. Tell me if what I want to do is feasable: Lump $180,000 in student loans, $60-70,000 private loans, $20,000 in CC into ONE. Have this at like 2-3% and claim derrerment for 3 years and forebearance for 3 years. I will hopefully be doping ORTHO soon and will be done roughly 6 years post med school, at which time I'll pay all my god damn debt , I could care less about interest. Is this possible, because this is really what I am trying to do. Thanks for all your input man, really appreciate it.
 

mpp

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You won't be able to defer the credit card debt. Consolidation companies that take non-student loans will not let you defer or forbear. Deferment/forbearance is a government program for government student loans, not credit card debt.
 

miamidc

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mpp said:
You won't be able to defer the credit card debt. Consolidation companies that take non-student loans will not let you defer or forbear. Deferment/forbearance is a government program for government student loans, not credit card debt.

Who knows of good relocation loans???
 

miamidc

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mpp said:
You won't be able to defer the credit card debt. Consolidation companies that take non-student loans will not let you defer or forbear. Deferment/forbearance is a government program for government student loans, not credit card debt.

Anyone know of any good relocation loans??I quess.??
 

tlew12778

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Never heard of a relo loan myself so I can't help you there.

I really don't think there is a way you can get out of paying your CCs for 2-3 years. Otherwise A LOT of med students/residents would be doing that.
 
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