what is the best way to consolidate credit card before school?

[TX2thDR]

I have about $20,000 in credit card debt. I start in the fall and would like to consolidate this before I begin. What do you all suggest? I've applied for a CitiAssist private medical loan (still waiting). Was denied for not having a co-signer at Chase and at Wells Fargo and I'm afraid the same might happen at Citi. I'm currently working full time to pay it down as much as I can for the summer, but it won't be enough. Oh, I filled out the FAFSA but I am still waiting. I'm new to all this, so any help is appreciated. What is the fastest way to consolidate this mess without having to kill myself for the next 20 years of my life? Thanks in advance!

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[heech]

I have about $20,000 in credit card debt. I start in the fall and would like to consolidate this before I begin. What do you all suggest? I've applied for a CitiAssist private medical loan (still waiting). Was denied for not having a co-signer at Chase and at Wells Fargo and I'm afraid the same might happen at Citi. I'm currently working full time to pay it down as much as I can for the summer, but it won't be enough. Oh, I filled out the FAFSA but I am still waiting. I'm new to all this, so any help is appreciated. What is the fastest way to consolidate this mess without having to kill myself for the next 20 years of my life? Thanks in advance!

Hi there,

I think you're already evaluating all the options possible for deferring that debt. That is, maxing out your subsidized/sponsored loans allowed under your educaiton budget... and then turning to the private loans.

But if the private loans aren't available for you because of credit reasons, and you're willing to tighten your belt-loops, I'd definitely you to look at prosper.com (see my previous posts + blog in .sig) as an option.

You can pay off at least part of your credit cards with a fixed-rate, loan that amortizes over 3 years. $10k at 12% amortized over 3 years is going to translate into ~$330 monthly, which might be less than what you're paying to your credit card companies today... *and* it's not revolving. In 3 years or so, you'll have the debt wiped away.

Just a thought. Credit can be a serious issue, so it's great you're looking into it now. If you have questions, please don't hesistate to message or email.

 

[sweetmelody]

I have about 5,000 in credit card debt that i want to knock down. By the summer I will probably be able to take care of half of that, but I dont want to have to carry this through med school with me. What are my options as to loans. I have good credit ( i am pulling my score later) so I dont think that gettin a good rate would be a problem if i got a consolidation loan. What are some of my options? thanks

 

[heech]

sweetmelody,

If you're looking for a $2.5k loan and your credit is in the 720+ range, I think Prosper could easily fund that for you (no other paperwork, just need a verified bank account) in a week and a half at fixed ~8% or so, 3-year installment.

That translates into about $79 a month for 3 years, with no prepayment penalty in case you want to pay any of it off any earlier. If you want to talk specifics, drop me a message later and let me know what your scores come across as.

 

[-Goose-]

I am also looking at having ~4-5k in cc debt by the time school starts. This may be a dumb question, but is there any reason why cant I take out the amountwith stafford student loans to pay off this debt [edit: i was just informed of a scholarship, so i have no out-of-pocket costs to attend my state school]. Is this legal? Advisable?

 

[hunter1077]

I am also looking at having ~4-5k in cc debt by the time school starts. This may be a dumb question, but is there any reason why cant I take out the amountwith stafford student loans to pay off this debt [edit: i was just informed of a scholarship, so i have no out-of-pocket costs to attend my state school]. Is this legal? Advisable?

Wow a full ride scholarship! Congrats!

 

[mshheaddoc]

I am also looking at having ~4-5k in cc debt by the time school starts. This may be a dumb question, but is there any reason why cant I take out the amountwith stafford student loans to pay off this debt [edit: i was just informed of a scholarship, so i have no out-of-pocket costs to attend my state school]. Is this legal? Advisable?

I would do it and I have done it. ALTHOUGH if you have a full ride you might not be eligible for federal loans. You can still get a private loan for about 7.5%.

For grad school I used my part of my federal monies to pay off some of the debt I was in.

As for those of you in debt, I would highly suggest finding a co-signer. Some programs allow that if you make 48 payments the cosigner will be dropped. I know nelnet does this which is why I'm going with them. Just an idea.

 

[strawberryfield]

I would do it and I have done it. ALTHOUGH if you have a full ride you might not be eligible for federal loans. You can still get a private loan for about 7.5%.

For grad school I used my part of my federal monies to pay off some of the debt I was in.

As for those of you in debt, I would highly suggest finding a co-signer. Some programs allow that if you make 48 payments the cosigner will be dropped. I know nelnet does this which is why I'm going with them. Just an idea.

Did you just take out maximum (cost of attendance) and use the extra to pay down debt? That is what I was thinking of doing...

 

[mshheaddoc]

Yep, I took out max and paid the rest off.

Its so much better in the long run to just consolidate your debt. For me the hassle alone is fantastic.

 

[strawberryfield]

Yep, I took out max and paid the rest off.

Its so much better in the long run to just consolidate your debt. For me the hassle alone is fantastic.

yeah, I am sure student loan interest is A LOT less than cc interest!
thank you!

 

[hunter1077]

Yep, I took out max and paid the rest off.

Its so much better in the long run to just consolidate your debt. For me the hassle alone is fantastic.

Not to be nosy but....so you took out the max federal and some private loans too?

 

[mshheaddoc]

No in grad school I just took out federal, didn't need private. Although to consolidate in med school you will probably need some private loans.

 

[almost_there]

Yep, I took out max and paid the rest off.

Its so much better in the long run to just consolidate your debt. For me the hassle alone is fantastic.

I'm a little confused. How does this work? Did you end up living below your determined student budget?

For example, say the student budget is $60K, and you get $20K in scholarship/grants, so you are eligible to borrow up to $40K in loans. But borrowing the maximum only gets you up to the already determined student budget! In terms of cash flow, the only way I can see that you can afford to pay down cc debt is by living below the set student budget and using those savings to pay it down.

What am I missing?