Serious Question, For Serious Adults, who do Serious Things

[BillyZaned]

Quick questions for my fellow hypsters who own their own place.... have credit cards, and have student loans...

my question is... I'm sick and tired of having multiple thing to pay each month

I have

(2) Credt Cards
(1) Mortgage
(1) Car Payment
(1) Student Loan Payment

Has anyone here done consolidation? I've heard you can save some serious coin by combining multiple loans together....

Between my car, student loan, and credit cards, it's about 630 a month....
My mortgage is through Wells Fargo... is it worth going to them? Just curious as to how to save money...

My student loan is through Sallie Mae, and they offer NOTHING as far as consildating anything, or lowering my monthly payment... it's either pay it... or else... lovely coming from a place that was most likely bailed out with our tax money...

any advice would be lovely...

thanks
Nick

 

[StrainedEyes]

I'm in the middle of dealing with my student loan situation. I have an absurd amount of loans and Sallie Mae is basically asking for my entire paycheck every month, and I'm coming out of grace very soon.

Sallie Mae does offer extended repayment plans, and interest only (for a few years) payment plans. I'm calling them soon to ask about it, but they are a very disorganized place and I'm not looking forward to the call.

But yes, consolidation does save money, it's just been a confusing mess trying to do it for me so far, though. I hope you have an easier time figuring it out.

 

[Majic Walrus]

Consolidation is great for right now but balls for later on from what I've heard. I've thought about it because I have medical expenses from over a year ago that I'm still trying to get rid of, but from what I've found it isn't worth it unless you are 50K+ in credit debt.

 

[BillyZaned]

the thing for me is... I just need a little relief untill April of next year.... then I can pay off my credit cards, student loan, and car within 4 months.... like, pay off everything I owe...

just talked to my mom, who has some loans through them... she told me just to call, and tell them my situation, and they will work out something...

 

[BillyZaned]

I'm in the middle of dealing with my student loan situation. I have an absurd amount of loans and Sallie Mae is basically asking for my entire paycheck every month, and I'm coming out of grace very soon.

Sallie Mae does offer extended repayment plans, and interest only (for a few years) payment plans. I'm calling them soon to ask about it, but they are a very disorganized place and I'm not looking forward to the call.

But yes, consolidation does save money, it's just been a confusing mess trying to do it for me so far, though. I hope you have an easier time figuring it out.

I did do a considation through them like over 2 years ago... I had 6 loans at the time... and it was made into 2 loans... one of which I paid off....

but now it's like... either apply for deferment, or forebarence..... and they have it so, the least you can pay is 4% of your total monthly income a month.... which for me is like 300 a month... and my loan is less then that....

maybe I should just file Banckrupcy... not that I can't pay these things, because I can... I just don't want to anymore...lol

 

[Ahura Mazda]

There is no easy or magic solution and do not think there is. Any consolidation agreement has to be analysed very carefully.

 

[RdeemingRainbow]

Debt Consolidation is very risky and can be worse in the long run. Here's a good article pointing out some of the dangers:

http://moneycentral.msn.com/content/Savinganddebt/Managedebt/P36230.asp

Second, for credit card debt you can actually settle for about 80-84% of the balance on your cards (you have to speak to each company and come to an agreement with them each individually, but it's easier than you think, especially if they think you are likely to default and declare bankruptcy).

Third, for your mortgage, you should look into some of the federal financial assistance currently being offered due to the overall mortgage situation. This is the hardest one, though, because there are less options to help deal with your mortgage.

For your car payment, one option would be to look into refinancing if that's possible. While in the long-term you'll end up paying more in interest, your monthly payments can be brought down this way. Depending on where you live and how bad the financial situation is getting, you might also honestly ask yourself how much you need the car, whether public transit might be a better, cheaper option (yeah, it might suck, but I'm assuming your money situation is serious or you wouldn't be considering debt consolidation). If there is any way you can get by without a car, put it in the paper for sale -- and ask that someone just take over payments plus pay a very tiny amount to you for it as well, say perhaps $500 or $1000 at most. That's a bit of cash to help with the other debts (make a single lump-sum payment to the debt where the lump sum will cover the most number of months' payments in a row). Asking for a low amount up front and that the buyer only take over payments will help you sell it a lot faster, which is the goal in this situation for you.

Student loans are usually not as hard to get a deal on -- there are deferments you can take, for example, that allow you to temporarily stop making payments for a little while (not long, just a few months at a time, and I think you can only do it a couple of times). Most people take the deferments up-front to postpone the start of making payments, but if you didn't use up your deferments yet then you might have some left that you don't know about.

Here, from Sallie Mae's own site:
http://www.salliemae.com/after_graduation/manage_your_loans/postpone/deferment.htm

And here is some helpful information for you (especially nearer the bottom of the article, about lawsuits against Sallie Mae and new laws governing repayment of student loans):
http://www.consumerwarningnetwork.com/2009/09/04/student-loans-the-next-mortgage-meltdown/

But Majic Walrus is right, debt consolidation is really something you don't want to do unless you're talking about a seriously huge debt problem and you really are on the verge of going bankrupt or losing your home or something extreme.

Hope some of this helps.

 

[BillyZaned]

I'm not in serious debt or anything... I still bank about 3 grand every month...

I'm just REALLY cheap...

 

[Erzengel]

Just pay off your bills and don't bank as much.

You're paying more in interest than you are in any type of savings account.

You just like the security of having so much money in the bank.

 

[BillyZaned]

Just pay off your bills and don't bank as much.

You're paying more in interest than you are in any type of savings account.

You just like the security of having so much money in the bank.

there's something about having money in my account...

I was laid off earlier this year... and saw my bank account of 10k go down to about 800 before I got a job again... the security is important to me... and maybe that sheds some light on why I work every hour I can...

I've worked 32 hours in the last 40 hours.....

 

[StrainedEyes]

maybe I should just file Banckrupcy... not that I can't pay these things, because I can... I just don't want to anymore...lol

Even if you tried, Student Loans do not go away if you file bankruptcy.

 

[BillyZaned]

****... Sallie Mae is like the ****ing mafia

 

[Erzengel]

there's something about having money in my account...

I was laid off earlier this year... and saw my bank account of 10k go down to about 800 before I got a job again... the security is important to me... and maybe that sheds some light on why I work every hour I can...

I've worked 32 hours in the last 40 hours.....

Well if that happens again, you'll have a big bank account and the same interest and debt as opposed to having a smaller bank account and little to no debt.

Instead of banking the usual 3k, why not just bank 1.5k almost a compromise.

 

[BillyZaned]

I know I should.... by account right now is sitting at 22grand...

 

[Aesop Rocks]

y so srs?

 

[Erzengel]

I know I should.... by account right now is sitting at 22grand...

Then why don't you get to 25k, and then pay off everything?

 

[LouFerignoDemon]

I'm not in serious debt or anything... I still bank about 3 grand every month...

I'm just REALLY cheap...

That's the problem there, and nothing we can do will fix your situation.

 

[BillyZaned]

my car, I owe 19k
Credit Cards, around 5k
Student Loan, around 10k left

 

[BillyZaned]

That's the problem there, and nothing we can do will fix your situation.

you HAVE no idea...

I once made my wife return some groceries that I felt weren't needed.....

 

[LouFerignoDemon]

you HAVE no idea...

I once made my return some groceries that I felt weren't needed.....

I actually figured you did that.


You're totally gonna die of an aneurism.

 

[BillyZaned]

I actually figured you did that.


You're totally gonna die of an aneurism.

I'm lossing hair too... I had a nice full thick head of hair... now it's thinning out... damn stress

 

[LouFerignoDemon]

Yeah, just don't be such a stickler about money, and you'll see better results.

 

[BillyZaned]

Yeah, just don't be such a stickler about money, and you'll see better results.

Once I get a house....

 

[LouFerignoDemon]

Screw a house, apartment-life is way cooler. Not that I've ever been in one, but I imagine.

A house is only good for isolation.

Maybe if I ever get over my anxieties, I'll rent an apartment.

 

[BillyZaned]

I own a 1600 sq ft condo right now... I just want a yard... and no ****ing condo fee every month... they increased it next year by 10%... again....