How much pre-existing credit card debt is manageable entering medical school?

[naway]

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I'm in a really tough spot financially due to a client who signed a contract guaranteeing me, along with a team of about 200 other contractors, a steady workflow for the next few months only to pause the workflow until July at the earliest, citing technical errors that need to be worked out. It's a convoluted mess. I was relying on that gig to pay down my credit cards and afford my expenses in these last few months before beginning medical school, so now I'm just kind of panicking and scrambling to figure out what to do. I don't have any family members who can help. In fact, my father is facing losing his house at the moment, which is just adding to my stress because I was intending to take on more work with the aforementioned client to help him out financially while he continues his own job search.

Anyway, I can go on about how stressed out I am for ages lol, but the bottom line is that I'm likely to have no choice but to rely on my student loans to pay off my credit cards once I start medical school. I'm trying to find work, but time is running out and I'm very unlikely to find anything that will pay as well as the job I was counting on. I currently have about $5000 in credit card debt, a huge chunk of that coming from application expenses and the $1750 seat deposit for a DO school that I won't even be attending after all. It's all on 0% interest cards right now and not accumulating interest, thankfully, but that won't last forever.

I guess what I'm asking is...how screwed am I? I'm imagining all of these doomsday scenarios where I am unable to afford payments with my loans, resulting in my credit score tanking, resulting then in me having to drop out of med school due to inability to qualify for GradPLUS loans.

 

[deleted480308]

Start driving for uber, sell some stuff, eat rice and beans

 

[BuckStrickland]

I'm in a really tough spot financially due to a client who signed a contract guaranteeing me, along with a team of about 200 other contractors, a steady workflow for the next few months only to pause the workflow until July at the earliest, citing technical errors that need to be worked out. It's a convoluted mess. I was relying on that gig to pay down my credit cards and afford my expenses in these last few months before beginning medical school, so now I'm just kind of panicking and scrambling to figure out what to do. I don't have any family members who can help. In fact, my father is facing losing his house at the moment, which is just adding to my stress because I was intending to take on more work with the aforementioned client to help him out financially while he continues his own job search.

Anyway, I can go on about how stressed out I am for ages lol, but the bottom line is that I'm likely to have no choice but to rely on my student loans to pay off my credit cards once I start medical school. I'm trying to find work, but time is running out and I'm very unlikely to find anything that will pay as well as the job I was counting on. I currently have about $5000 in credit card debt, a huge chunk of that coming from application expenses and the $1750 seat deposit for a DO school that I won't even be attending after all. It's all on 0% interest cards right now and not accumulating interest, thankfully, but that won't last forever.

I guess what I'm asking is...how screwed am I? I'm imagining all of these doomsday scenarios where I am unable to afford payments with my loans, resulting in my credit score tanking, resulting then in me having to drop out of med school due to inability to qualify for GradPLUS loans.

Can you ask for the deposit back? $1750 seems a bit excessive

 

[naway]

Can you ask for the deposit back? $1750 seems a bit excessive

Highly doubt it, especially since I will be declining a full-tuition scholarship they offered me to attend another program. $1750 (including an initial $250 deposit followed by a $1500 deposit due April 15th...I was accepted to the other program 15 days later because of course) is a pretty standard, if not low, deposit in the DO world. Some schools have $3000 deposits.

 

[deleted480308]

Highly doubt it, especially since I will be declining a full-tuition scholarship they offered me to attend another program. $1750 (including an initial $250 deposit followed by a $1500 deposit due April 15th...I was accepted to the other program 15 days later because of course) is a pretty standard, if not low, deposit in the DO world. Some schools have $3000 deposits.

If you gave them a deposit on april 15, you can ask but it would be wrong to act like they robbed you.

That’s kind of late to bail

 

[naway]

If you gave them a deposit on april 15, you can ask but it would be wrong to act like they robbed you.

That’s kind of late to bail

Nah, I'm not going to ask. I'm upset about how the timing of the other acceptance played out, but I knew the risk involved and wasn't forced to submit the money.

 

[892002]

I have around $6000 across 5 credit cards. My plan is to just ignore it until I become an attending 🙂

 

[justcuriouser]

$5000 is less than the average American if it makes you feel better. If you pay it off over 18 months is only 200-300 per month. I think you can definitely budget around that plus pay off part of it with something simple like tutoring.

 

[GoCubsGo20]

I have around $6000 across 5 credit cards. My plan is to just ignore it until I become an attending 🙂

 

[ciestar]

I have around $6000 across 5 credit cards. My plan is to just ignore it until I become an attending 🙂

This is a great way to destroy your credit.

 

[dpmd]

Highly doubt it, especially since I will be declining a full-tuition scholarship they offered me to attend another program. $1750 (including an initial $250 deposit followed by a $1500 deposit due April 15th...I was accepted to the other program 15 days later because of course) is a pretty standard, if not low, deposit in the DO world. Some schools have $3000 deposits.

Is this other program also giving you a full scholarship? If not, what made you decide to give up this scholarship?

 

[firsttimer123]

im 80k of debt - 14k at CC, rest student loans, BUT I have 20k of cash/inevstments so 60k debt total. keep some $ at hand

 

[firsttimer123]

This is a great way to destroy your credit.

how? as long as he pays the min payment his credit shouldn't go down

 

[firsttimer123]

also what factors do the schools check for loans? what credit score is too low

 

[justcuriouser]

how? as long as he pays the min payment his credit shouldn't go down

I don’t think it’ll destroy it but it might go steadily down because at a certain point interest exceeds minimum payment.

 

[dpmd]

how? as long as he pays the min payment his credit shouldn't go down

They didn't say they would pay the minimum, they said they were going to ignore it. Now if that isn't what they meant...

 

[SpringsHTTR]

I'm struggling with ~9k in CC debt because of everything in the process. A huge scholarship is my saving grace. If there's any way to take some of your fin aid refund and attack that debt I'd do it. Live as cheap as possible and I'd imagine the federal loan interest rate will feel a lot better than some of the insane rates in the consumer world.

 

[firsttimer123]

They didn't say they would pay the minimum, they said they were going to ignore it. Now if that isn't what they meant...

well i assumed ignoring = paying min payment since the min payment is usually like 20 bucks a month

 

[ciestar]

how? as long as he pays the min payment his credit shouldn't go down

well i assumed ignoring = paying min payment since the min payment is usually like 20 bucks a month

I wasn’t assuming there would be payments at all. I know too many people, unfortunately, where ignoring it literally means that, literally blowing it off pretending it doesn’t exist. Then the creditors come for you. Good times.

 

[naway]

Is this other program also giving you a full scholarship? If not, what made you decide to give up this scholarship?

Better-quality rotations in an affiliated teaching hospital as opposed to spending 3rd and 4th year traveling around like a nomad, dedicated board study time, and the option to pursue an accelerated 3-year track in primary care, among other factors.

 

[firsttimer123]

I wasn’t assuming there would be payments at all. I know too many people, unfortunately, where ignoring it literally means that, literally blowing it off pretending it doesn’t exist. Then the creditors come for you. Good times.

have these people been in med school? what happens and whats their thought process. i never heard anyone doing this unless they go bankrupt

 

[ciestar]

have these people been in med school? what happens and whats their thought process. i never heard anyone doing this unless they go bankrupt

No. It is a careless, selfish thought process. It also happens when you’re poor and dumb enough to run up tons in cc debt and have no way to pay it back. I come from low income, so i guess this makes a difference. Anywayyy, it trashes your credit and the “good luck ever getting a loan” thing comes into play, like buying a car.

And the people I know who did this have high school or less educations.

 

[dpmd]

Better-quality rotations in an affiliated teaching hospital as opposed to spending 3rd and 4th year traveling around like a nomad, dedicated board study time, and the option to pursue an accelerated 3-year track in primary care, among other factors.

It better be a lot better than the other school (like 200k better or however much the difference will be).

But as to your question 5k is probably going to be manageable to pay off but if you get up to 5 figures it will be harder for you. Not sure what job skills you have, but trying to do some intermittent work during first and second year isn't out of the question unless you are struggling and need the time to study. Make sure you are only using credit for necessities. Carefully consider whether helping your dad out financially is possible now that you don't have that extra money coming in (not saying don't do it, just that the math changes a bit when you start getting higher debt loads).

 

[naway]

It better be a lot better than the other school (like 200k better or however much the difference will be).

But as to your question 5k is probably going to be manageable to pay off but if you get up to 5 figures it will be harder for you. Not sure what job skills you have, but trying to do some intermittent work during first and second year isn't out of the question unless you are struggling and need the time to study. Make sure you are only using credit for necessities. Carefully consider whether helping your dad out financially is possible now that you don't have that extra money coming in (not saying don't do it, just that the math changes a bit when you start getting higher debt loads).

Thank you 🙂 I'm glad you think the 5k is likely manageable, and it helps that others in here have mentioned entering medical school with more debt and thinking it will all work out. I'm hoping that I will be able to budget such that I can throw 2K at it the moment I receive my COL money and continue making monthly payments on it throughout the year, then do the same the 2nd year and get it all payed off by the start of 3rd year. Yeah, helping my dad out isn't going to be feasible any longer unless I manage to find an amazing short-term job and quickly. :/ I feel guilty even attending medical school given the circumstances, but he has repeatedly said we "need a doctor in the family" and the absolute last thing he wants me to do is give up my seat because of his hopefully short-term situation (his job of 18 years laid him off when he was just 4 years from retirement).

 

[firsttimer123]

Thank you 🙂 I'm glad you think the 5k is likely manageable, and it helps that others in here have mentioned entering medical school with more debt and thinking it will all work out. I'm hoping that I will be able to budget such that I can throw 2K at it the moment I receive my COL money and continue making monthly payments on it throughout the year, then do the same the 2nd year and get it all payed off by the start of 3rd year. Yeah, helping my dad out isn't going to be feasible any longer unless I manage to find an amazing short-term job and quickly. :/ I feel guilty even attending medical school given the circumstances, but he has repeatedly said we "need a doctor in the family" and the absolute last thing he wants me to do is give up my seat because of his hopefully short-term situation (his job of 18 years laid him off when he was just 4 years from retirement).

did he still get a pension or benefits? I am realizing this is very common - happened to several people i know. It seems as if job loyalty is a made up thing. Employers want employees to be loyal but in the end employers are not loyal at all.

 

[LoveBeingHuman:)]

I have around $6000 across 5 credit cards. My plan is to just ignore it until I become an attending 🙂

Exactly something the real TaySwift would do. Respect.

 

[breachnaked]

I plan to shake the money maker to cover tuition and rent...

 

[naway]

did he still get a pension or benefits? I am realizing this is very common - happened to several people i know. It seems as if job loyalty is a made up thing. Employers want employees to be loyal but in the end employers are not loyal at all.

Pretty much. It's a horrible situation, and I feel so helpless watching him go through it. He was given a severance of about $30K, but that money has been dwindling very quickly over the past few months with all of his bills and expenses. His benefits were terminated. My understanding is that he can retire early and collect his pension now, but he would receive significantly less of it than if he continued to work until age 65. I don't recall the exact figures, but I remember the difference is massive.

 

[firsttimer123]

Pretty much. It's a horrible situation, and I feel so helpless watching him go through it. He was given a severance of about $30K, but that money has been dwindling very quickly over the past few months with all of his bills and expenses. His benefits were terminated. My understanding is that he can retire early and collect his pension now, but he would receive significantly less of it than if he continued to work until age 65. I don't recall the exact figures, but I remember the difference is massive.

that sucks big time. I keep telling myself to give no loyalty to any employers but I never want to be a dick or ruin references. I am currently going to attend an SMP next year if I leave my research job but my PI thinks I am staying longer. I don't know how to tell her I am leaving because the lab counts on me but at the same time I need to look for my own future

 

[naway]

that sucks big time. I keep telling myself to give no loyalty to any employers but I never want to be a dick or ruin references. I am currently going to attend an SMP next year if I leave my research job but my PI thinks I am staying longer. I don't know how to tell her I am leaving because the lab counts on me but at the same time I need to look for my own future

Yeah, I feel you. There's no perfect way to navigate those types of situations, unfortunately. It's not the same exact situation, but I kind of feel like that with turning down my DO scholarship offer. I don't want to burn any bridges and am incredibly grateful for their generosity and belief in my potential. They just...are no longer the best option for my future. That said, I'm sure your PI will be understanding as long as you are honest and tell her enough in advance to allow her to seek out a replacement. People leave research jobs to pursue other opportunities all of the time, so she's probably used to it.

 

[dpmd]

Thank you 🙂 I'm glad you think the 5k is likely manageable, and it helps that others in here have mentioned entering medical school with more debt and thinking it will all work out. I'm hoping that I will be able to budget such that I can throw 2K at it the moment I receive my COL money and continue making monthly payments on it throughout the year, then do the same the 2nd year and get it all payed off by the start of 3rd year. Yeah, helping my dad out isn't going to be feasible any longer unless I manage to find an amazing short-term job and quickly. :/ I feel guilty even attending medical school given the circumstances, but he has repeatedly said we "need a doctor in the family" and the absolute last thing he wants me to do is give up my seat because of his hopefully short-term situation (his job of 18 years laid him off when he was just 4 years from retirement).

It is good your dad understands. Hopefully he can work things out so that he doesn't lose the house.