Managing my debt...

[Sodium Duck]

Anyone here good with managing debt? I guess my question is:
How should I pay these down in the smartest way possible?

(A) Direct Stafford Unsubsidized Student Loans at 2.48%
$1,313.00
$1,312.00
$1,313.00
$1,312.00

(B) Non-Direct Stafford Unsubsidized Student Loan at 6.80%
$3,500.00

(C) Non-Direct Stafford Subsidized Student Loans at 6.80%
$3,911.00
$1,589.00

(D) Non-Direct Stafford Subsidized Student Loan at 6.80%
$3,026.00

(E) Non-Direct Stafford Subsidized Student Loan at 6.00%
$4,474.00 at 6.00%

(F) Parent PLUS Student Loan at 8.50%
$14,500.00

(G) MEFA Undergraduate Student Loan at 6.99%
$10,389.61 at 6.99%

(H) MEFA Undergraduate Student Loan at 6.89%
$11,282.05 at 6.89%

(I) Parent PLUS Student Loan at 8.40%
$12,530.000


Should I focus on paying down the highest interest rate loans first? Or I could pay off in full a few of the small Stafford loans and apply the freed up money to the higher interest rate loans? ...Or I could just pay the minimums every month and not have a life until 2019... :frown:

[AzNguy]

Pay highest interest rate then the ones that are unsubsidized. I don't see how you got interest rates on a subsidized loan because I have 0% on my subsidized stafford loan. :) Good luck anyways.

[Altitude]

Pay highest interest rate then the ones that are unsubsidized. I don't see how you got interest rates on a subsidized loan because I have 0% on my subsidized stafford loan. :) Good luck anyways.

+1 And damn that's a lot of debt.

[yaris-me]

Try and see if you can consolidate the loans with interest greater than 6.00% to a loan with 6.00% or lower. If not, pay the highest interest rate off first. Many hospitals belong to credit unions. With direct deposit of your pay check they might be willing to consolidate your loans.

[mr9865]

+1 And damn that's a lot of debt.

But at least he has a yaris!

[nemelek]

$71,000 in debt is a lot. At 7% for 10 years that is $824/month and in the end you will pay $28,000 in interest. Could be worse. My doctor has loans over $200,000. The best thing to do is not take on any new loans. No credit cards or new cars. Use extra money from tax returns, overtime, bonuses, etc to pay the high the highest rates first. As suggested, consolidate if possible. Live as cheaply as you can. Get a roomate, bring your lunch to work, no dinners out, no mods to your car and shop at thrift stores. Marry some one with money.

[2+2]

Try and see if you can consolidate the loans with interest greater than 6.00% to a loan with 6.00% or lower.

I had to climb out of debt starting 3 years ago and at first did what all the "experts" tell you to do. I concentrated on the highest interest debt first. The problem I had was managing that many bills when I really just wanted to concentrate on my job and living frugally (takes time to prepare meals to take-with etc).

My debt was credit cards so it was different but something here might help you. I concentrated on the smallest debts first but also the ones that were the biggest headache to deal with. For instance, I owed Lowes a few hundred and I didn't like their website payment thingy. So I paid them off pronto and had one less headache. Next was Home Depot and so on.

Once I got the debt down to the 3 biggest credit cards I switched tactics and concentrated on the highest interest card. I get paid weekly and every week I made a payment on the card. Also, I used the card for all my purchases through the week. It's a nice incentive to spend less at the grocery store etc when you've handed pretty much your whole paycheck over to the credit card company and you're not making as much progress as you'd like. Can you say off-brand veggies taste great? I thought you could. lol

Consolidating as much of the debt as possible would make managing it a lot easier!

[IllusionX]

I hope you know you are paying interesting on all of these separately, each month right?

i would HIGHLY suggest contacting your bank and verify if it is (i'm probably sure it is) better for you to consolidate your debt. My rough calculation is 60k. You will be then doing only ONE payment a month, instead of having deadlines for 9 different debts.

I tell you, it is much easier to manage 1 debt, than 9 different ones. You may, or may not pay less in interest rates, but you will hate yourself so much for having so many different debts.



BTW, i don't know how it works in USA, but in Canada, student loans are made at the bank (gov't cheque) and deposited in a student loan account. At end of the full time studies, the bank will request for payments, without any required minimum monthly payment.

[Sodium Duck]

I do online banking and have setup the minimum monthly payments to come out of my account automatically. It's not that complicated, even if I didn't. Even if I consolidate, I would still be paying a weighted average of interest on the loans, so that's not going to help much except to "simplify" making payments. It usually costs more because I would probably end up paying more interest if I consolidate -- the whole point is to average the interest and pay one person, which means more money over the long run and a "cheaper" monthly payment. I'm refinancing one of the loans, still inquiring about others.

Dude, Canada is confusing. Here, you can take out some small federal loans; the rest you have to come up with yourself. So I had to take out personal loans (the MEFA and Parent PLUS). I wish that's how it was here...

[Altitude]

Consolidation is a good idea but it is highly unlikely a bank would be willing to take on the whole sum with nothing for collateral. 60K unsecured credit isn't granted to very many people.

[yaris-me]

I do online banking and have setup the minimum monthly payments to come out of my account automatically. It's not that complicated, even if I didn't. Even if I consolidate, I would still be paying a weighted average of interest on the loans, so that's not going to help much except to "simplify" making payments. It usually costs more because I would probably end up paying more interest if I consolidate -- the whole point is to average the interest and pay one person, which means more money over the long run and a "cheaper" monthly payment. I'm refinancing one of the loans, still inquiring about others.

Dude, Canada is confusing. Here, you can take out some small federal loans; the rest you have to come up with yourself. So I had to take out personal loans (the MEFA and Parent PLUS). I wish that's how it was here...

If you're not going to try, why post? Sympathy?:iono:

[Sodium Duck]

I was looking for some help in which loans to pay down first so I pay the least in interest over time. I think if I pay that 14.5K PLUS loan of really fast (I already have about 10K saved up to take a huge chunk out of it), and at least refinance that stupid 12.5K PLUS loan -- that would help some.

Maybe I can refinance the loans that I am aggressively paying down? Since Altitude said it would be hard to get that much cash at once? Like refinance the PLUS loans, and pay them off. Refinance the MEFA's, and pay them off, etc.?

Also, does anyone know if it will hurt my credit to pay them off so fast? I've heard that doing things like not carrying a balance on a credit card, and just paying the bill off every month aren't good for your credit score. (I don't have credit cards, but my credit score is pretty good as of right now)

[rningonfumes]

No, paying off your credit cards (read unsecured debt) each month is best. It's when somone with a total of say 50k combined credit limit over 5 cards, they have at least used up 5k in each card but one and they decided to cancel the one they don't use. They just effed- up their debt to credit ratio by canceling that last good one.

Paying off student loans without any defaults, payment misses, early pay-offs will only make you look better.

You're able to pay monthly with little trouble, you just want input on the most efficient way to go about it?

[yaris-me]

Also, does anyone know if it will hurt my credit to pay them off so fast? I've heard that doing things like not carrying a balance on a credit card, and just paying the bill off every month aren't good for your credit score. (I don't have credit cards, but my credit score is pretty good as of right now)

What hurts your credit is late payments.

[supmet]

..Or I could just pay the minimums every month and not have a life until 2019... :frown:

No, the proper American Dream is to not have a life ever again. Be sure to get under a mountain of debt with a mortgage before you pay any of this off. Ideally you should never be able to pay off what you owe by the time you are 25, that way you'll be stuck paying interest and taxes for the rest of your life.

[2+2]

I don't understand this thread even a little.

If managing the debt is not an issue why ask which loan to pay off first? Isn't the one with the highest interest rate the one that charges the most interest? I'm feeling extra dumb.

[Bob Dog]

Work your ass off (1 1/2 or 2 jobs, or one many hour job)for about 4 years or be in debt forever. Live an absloute minimal lifestyle as every dollar you spend now will ultimately cost you many compounded dollars later on. I worked as I went to school and lived very cheaply, without a vehicle, and with just minimum possessions and very cheap housing. I took 6 years to get my 4 year degree and graduated debt free. I recommend it.

[nemelek]

Work your ass off (1 1/2 or 2 jobs, or one many hour job)for about 4 years or be in debt forever. Live an absloute minimal lifestyle as every dollar you spend now will ultimately cost you many compounded dollars later on. I worked as I went to school and lived very cheaply, without a vehicle, and with just minimum possessions and very cheap housing. I took 6 years to get my 4 year degree and graduated debt free. I recommend it.

Great for you! Many kids from high school never worked going into or while at college. The loan money piles up and the thought that one killer job will erase the debt in no time. The reality is that the entry level jobs for graduates will pay for basic living expences and not much else.

[Sodium Duck]

You're able to pay monthly with little trouble, you just want input on the most efficient way to go about it?

Exactly. I will have about $1,700.00 extra each month to apply to the loans plus about $7,500.00 I've saved up since I started working. None of these loans are in repayment yet -- I'm just starting to gear up and get my game plan down for what to do.

I don't understand this thread even a little.

I'm trying to figure out how to best manage the payment of them. If there are any tricks/tips to doing this most effectively.

[JumpmanYaris]

We have a saying in Puerto Rico, It might not make much sence in English but it does in Spanish and to ppl who knows they prob. get it,
"La ultima cuenta la paga el diablo"
"The devil will pay for the last bill (account)"
they normaly say that when ur spending money that u aint got (creditcards) lol

[rningonfumes]

http://www.forbes.com/2009/04/15/student-loans-moneybuilder-personal-finance-consolidate.html

Here is a very good read for getting a gist of what to do.

Some Cliffs notes are

1)fed loans consolidation doesn't help much but it does make it easier in that you are paying just one payment
2)Can't mix fed and private loans
3) Consolidation will help you get your parents off as the cosignors.
4) Longer payments will help, but you may end up paying more in the end because of the extended time.
5) Your credit score does help you get consolidation rates.
...there's more, read it, the article isn't that long.

I say you knock off the small ones, as someone has already meantioned, it will help give you nice milestones to be proud of. Consolidate what you can and just hit them hard since (I'm assuming) you don't have family and children and you have a nice job (the RN I'm assuming again).

[JBougie]

No, the proper American Dream is to not have a life ever again. Be sure to get under a mountain of debt with a mortgage before you pay any of this off. Ideally you should never be able to pay off what you owe by the time you are 25, that way you'll be stuck paying interest and taxes for the rest of your life.

.....you forgot to add 'you can't really afford in the first place' after 'Be sure to get under a mountain of debt with a mortgage..'

:biggrin:

[Bob Dog]

Perhaps a good place to start might be to do a spread sheet that told you the monthly and yearly total amount of interest due, and then you would know how much of your payments would be going to reduce your principle. You could then take the interest amount and play with it against different payment amounts to figure what percentage was going toward interest and what was going toward pay off. Compound interest tables are always useful in finding payoff period. Just off the top of my head I would pay only interest on the lower interest loans to keep the debt from mounting and concentrate on paying of the higher interest loans, sequentially in descending order based on their rates of interest.

[127.0.0.1]

get a job that pays the big bucks and pay those off.

if you are properly motivated you can pay those off quite fast.

it depends on you,
not any external factors.

[goku87]

...Marry some one with money.

No, the proper American Dream is to not have a life ever again. Be sure to get under a mountain of debt with a mortgage before you pay any of this off. Ideally you should never be able to pay off what you owe by the time you are 25, that way you'll be stuck paying interest and taxes for the rest of your life.

:laughabove::laughabove::laughabove::laughabove:

Don't forget, eat lots and lots of ramen.

[DandiDani]

wow. we have $6000 worth in hospital/credit cards and i thought that was a lot. if u have the extra time i would get a part time job to help u pay those off faster.