Advise me on my debt problem.

[usregimechange]

I am in debt up to my nostrils. My family has about 75,000 dollars in student loans and about 15,000 in credit card debt. The good thing is that we both have good professional jobs and can pay our bills for the first time in our lives. I would just like to have one payment to all of my sources of debt. Just the ability to not have to track and pay 25 places a month would be wonderful. I have thought about consolidation and getting a bank loan. Any experiences with this? Pros and cons?

Thank you!

[NewJeffCT]

1. I'd recommend a home equity loan or similar

If you have a home... the interest is tax deductible.

[usregimechange]

2. We rent. Sounds good though.

[Lydia Leftcoast]

3. Cons

of a consolidation loan: the tendency to run up more debt on your now freed up credit cards. Besides, home equity loans are dangerous: You could lose your house if one of you loses their job.

One method that seems to work for me is to pay off the smallest debt first as fast as you can, making only the minimum on the larger ones. As each debt is paid down, add what you've been paying on it per month to the next largest debt and pay it down. Etc.

e.g. Debt 1: $1000
Debt 2: $5,000 (minimum payment $60)
Debt 3: $10,000 (minimum payment $120)

Pay down Debt 1 in two $500 installments while paying the minimums on 2 and 3

When Debt 1 is gone, start paying $560 a month on Debt 2.

When Debt 2 is gone, start paying $680 a month on Debt 3.

(Some people suggest paying off the one with the highest interest rate first, but either way, concentrate on one debt at a time instead of making minimums on all of them. I saw a presentation that showed how making only minimum payments on a $3000 debt could stretch it out over 20 years.)

etc. etc.

The important thing is that you can't run up any more debt, which can be hard when you feel like a Third World country, rich in resources but burdened with debt.

[Hugin]

6. ...

I learned the method you describe years ago in 'Cosmo' of all places.

It's a great plan. Too bad our 'Leaders' aren't hip to it... :rofl:

:thumbsup:

[lizziegrace]

15. You read Cosmo??

:P

:)

[Hugin]

18. Nah, I only look at the pictures...

:rofl:

Seriously, there is some good information in there among the sidebars.

:)

[lizziegrace]

25. Heh

I'll take your word for it. ;)

[Hugin]

27. I also read the "Weekly World News"...

"America's most reliable newspaper."

:7

It's sad how low the Corporate Media has taken information in this country.

:D

[lizziegrace]

7. I've read about this method too

Mary Hunter from "Cheapskate Monthly" used it. The logic for paying the smallest debt is immediate gratification and the feeling of conquering some of your debt right away.

Now that I'll be on a payroll full-time with benefits (right now it's temp to hire) on May 1st, I plan to use this method to get my debt paid off.

All the best. :)

[Cobalt-60]

45. A clean debt kill removes it from your life forever

Just remember to slay the card and cancel the associated account so it can't start bloating again.

[NewJeffCT]

9. good idea

I've heard it mentioned as well.

I would also suggest that you & your s.o. make a budget, even if for 1 or 2 months. Get an idea of the minimum amount you need each month to survive - rent, food, transportation, insurance (auto, renter's insurance, etc) and your debt payments.

Hopefully, after taxes are taken out of your paycheck you have a positive cash flow and money left over. Take most of the left over money & put it towards one of your debts, and only one (usually the highest interest rate one - but, the advice on the small one first is good, too)

And, then it is just a matter of staying disciplined enough each month to pay off your debts steadily over time.

[sendero]

36. That's a good plan..

... but the highest effectiveness would come from paying off the highest interest-rate debt first rather than the smallest balance. Yes, you don't get the psychological benefit of marking that one off the list as fast, but overall you will pay them faster that way :)

[Bunny]

4. Check out Dave Ramsey - he's an author and radio host.

He is also a fundie wingnut, but he has very good advice about getting out of debt and staying out of debt.

http://www.daveramsey.com/

[NewJeffCT]

10. Clark Howard is also good

http://clarkhoward.com/

I don't think he's a liberal, but he does often rail against the monopolistic practices of certain big businesses (phone & internet companies especially) and participates in habitat for humanity every year.

[Lost-in-FL]

38. EWWW!!!

I just checked about his FPU (Financial Peace University) and all their classes are taught in CHURCH!!!! :puke:

[lizziegrace]

39. Hold on a minute

not everything that happens in a church is controlling and evil.

Most AA meetings are held in churches. Does that warrant an EWWW!!! too?

:shrug:

[Lost-in-FL]

40. I don't trust them...

To me this is like going to one of those "Time-share" meetings. You get there for the 90 minutes promotion but then they keep you there for 6 hours.

I can see them preaching me for 5 hours and telling me to pray to God and he will get rid of my debt.

[lizziegrace]

41. I can appreciate that

The churches that rub me raw are the ones that outright say that if you're wealthy, God wants you to be. What does that make the rest of us?

I attend a very, very welcoming and forward thinking Methodist Church. Anything taught regarding money would be to help, not convert. But like with people, there are good and bad ones.

:hug:

[Bunny]

49. Well, you couldn't be more wrong, but I guess that's your problem.

[Hugin]

5. From what I understand... The 'gotcha' with consolidating student loans...

is that it gives lenders an opportunity to increase interest rates. (sometimes dramatically)

There may be some company out there who'd give you a reasonable deal, but, be extremely
careful!

<rant>
Now, if my wild-eyed-liberal-utopia ever came into existence... Which seems unlikely. I'd
think that it would be in our National best interest to drop this stupid and
counterproductive 'up-from-the-bootstraps' mentality and stop handicapping our new professionals
with debt and start forgiving these so-called 'loans'. Especially, for successful students.
I mean, hey, they forgave Enron billions... Why not someone who deserves it?
<rant\>

[lizziegrace]

8. I'd wait on the student loans

I've heard rumbles that the Democratic congress is planning to reduce student loan interest rates. I would think lenders would be anxious to lock in loans at the higher rates...rather predatory, don't you think?

Also, any loans you hold now personally will be discharged if you die, as will your spouses if he/she dies. If you consolidate and combine both your loans, that goes away. They now become jointly held loans and if one of you dies, the other will have to pay every dime remaining.

If I were to do things differently, I would have consolidated just my own loans. Now that my husband is my ex, it makes things very, very complicated. I had a requrement for life insurance $$ with me as beneficiary put in our divorce decree should he die before these loans are paid since 75% of them are his.

[Hugin]

13. "rather predatory" -- Definition of lending practices across the U.S.

:rofl:

"the Democratic congress is planning to reduce student loan interest rates." I say
BULLY! Bully for them! It's a great start... The next step should be bringing back
grants in a big way and going back and retroactively eliminating the damage already
done.

"any loans you hold now personally will be discharged if you die, as will your spouses if he/she dies."
So, the resurgence of Indentured Servitude and Debtor's Prisons the Republican Oligarchy has
been working so hard to bring about will be averted. Sounds like Constitutional Ideals
are once again walking the halls of Congress. :thumbsup:

:hi: lizziegrace.

"If I were to do things differently, I would have consolidated just my own loans."
Ack...
Well, we live and we learn. Hopefully, if you remain vigilant eventually that tangle will
work itself out. :)

[lizziegrace]

14. Hi Prag!

I'm still waiting for the proof he has the life insurance and I'm actually the beneficiary. Student loans aren't discharged in bankruptcy and if he croaks, I'm stuck with $60k in new debt.

:(

Yep, live and learn. Some may believe they'll be together forever but reality says otherwise.

Remember Prag, I'm the master at stating the obvious. ;)

[Lydia Leftcoast]

30. That used to be possible

When I was in college in the late 1960s, early 1970s, graduates who taught school for five years could get half their student loans forgiven. If they tuaght in a designated poverty area for five years, they could get ALL their loans forgiven.
I think they did the same for the Peace Corps and a couple of other humanitarian programs.

[dropkickpa]

35. I consolidated mine before the big interest rate hike

and one of them, which was a ridiculous 8%, was dropped down, along with the others, to a very much better 3.75%. Right now the interest rate is really high, so I'd wait on consolidating the student loans.

*edited to add - I see a poster further down has also suggested waiting - I really should read a whole thread before responding!

[Xipe Totec]

11. Pick the one with the highest interest rate

and focus on eliminating it first.

The best way to consolidate debt is to have none at all.

The second best choice to to eliminate the most expensive debt first.

Another thing to look for is steady cash flow drains like unecessary subscriptions to magazines, newsapers, cable TV...

Good luck.

[Cobalt-60]

47. When it became apparent that I was financially doomed

memberships and subscriptions were the first to go.
Ironically it was Consumer Reports I didn't renew first on their own advice to read mags at the library.

[Courtesy Flush]

67. Or transfer the balance

Better to get out from under that high interest rate, and not pay it. We once got a credit card offer with 0% interest on balance transfers for a year. We only owed $10k on our mortgage at the time, so we transfered the balance, and paid no interest for the last year of the mortgage. (but if you're late with even one payment, the deal is off, and you have to pay interest).

Either get a lower interest loan, or transfer it to a better deal, but avoid paying that interest.

[Le Taz Hot]

12. They can be a life-saver

IF you find the right one. Make sure it's non-profit and that you can keep out one credit card for emergencies. My husband and I went through one and they were successful in cutting the interest rates on all credit cards (except SEARS!). Our monthly outlay was reduced by about 40% and they only charged $35.00 a month.

The most important thing here is to do your homework because there are a lot of scam artists out there.

[BlackVelvet04]

23. One more point

"that you can keep out one credit card for emergencies."

Define in writing what constitutes an emergency. It's amazing how many things we can justify as emergencies!

[Le Taz Hot]

31. How about when my husband

lost the funding for his business which threw us BOTH out of work. I had to find something fast and was stuck doing clerical work which pays a fraction of what I'm used to making and my husband had zero income for 14 months. We used the credit card to PAY FOR GROCERIES. Then, when the pipes busted in one of our bathrooms, which threw BOTH bathrooms out, we had to use the one outstanding credit card to replace the pluming. That emergency enough for ya, sunshine or you want to try and insinuate something further?

[BlackVelvet04]

32. What's your problem?

I said "It's amazing how many things WE can justify as emergencies!" We being inclusive. And yes, sunshine, I would consider those things you mentioned as emergencies as they obviously are.

I wasn't insinuating anything about you and you are the one with the problem if you read it that way.

[lizziegrace]

42. Your desperate times

required you do what you could to survive. I'm sorry you and your husband had to suffer through that. I've been there, one too many times.

:hug:

I could justify a new dress to attend a function as an emergency and I believe that's what the poster was saying. There are expenses relating to survival and those relating to feeding other needs that aren't critical.

[Maineiac]

16. We ended up doing debt management

but we were up to our eyeballs. 90 grand in consumer debt and no house. We eventually went Chapter 13. Best thing we ever did.

[BlackVelvet04]

17. I agree with those who say

pay off the smallest debt first....do it as quickly as you possibly can. While it actually makes more sense to pay off the highest interest rate loan first, paying off the smallest quickly gives you an emotional jump start. It worked for me.

After paying off the smallest debt go to the highest interest rate debt. Pay as much as you possibly can each month BUT I recommend you give yourself a month every 4 - 6 months where you pay minimum and reward yourself with the difference of the minimum and what you had been paying. We all need a break from scrimping and saving occasionally. Just be sure you go back to paying as much as possible the next month.

The last piece of advise is WRITE YOUR PLAN DOWN. I don't know why it is but putting the plan in writing and tracking your progress every month makes the plan work better. I did that when we knew we wanted to buy a house. I made a plan as to what needed to be done to accomplish that goal and crossed each thing off as it progressed. Withing 18 months we purchased our home and I thought it was going to take 3 years.

I need to take my own advice about writing things down....I have some things I need to accomplish and making a written plan is the best way to do it.

[Common Sense Party]

19. Forget consolidation. It's a waste of time and money.

First, make sure you have an emergency fund--start with $1000 for life's unexpected crap. Then build up about 3 months' pay/ And make sure you're insured.

Next: Attack the debts.

Line 'em up, smallest to largest (NOT, as some will tell you, highest interest rate to lowest). Pay off the smallest balance first while paying the minimum on all the others. Then take the whole payment you were putting on Debt #1, and add it to what you're paying on Debt #2. You'll be amazed how fast you knock that one off. Then take all that monthly amount, and attack Debt #3, etc.

And don't ever run up a credit card balance again.

[BlackVelvet04]

22. Good point on the savings...

if you don't have that then it's too easy to put something on the credit card because it's an emergency.

[PeterPuck]

48. what terrible advice... what is wrong with you people?

I can't believe how many people here are advising
"Line 'em up, smallest to largest (NOT, as some will tell you, highest interest rate to lowest"

Use some common sense and not the 'what feels best' attitude that got you into the financial trouble in the first place.

It is pretty simple math. Pay the highest rate off first.

Paying off $5000 on high-interest department store credit (28%) vs an 8% loan could save you a thousand dollars in interest payments in a year. Take that $1000 and pay off that higher interest debt even faster. Compounding interest is going to keep you in debt if you don't get rid of those high interest payments.

On top of reducing interest payments. Get rid of any cards that are charging you an annual fee and reduce any other banking fees

[Common Sense Party]

50. Actually nothing is wrong with me. I have done it my way

and it works. The thing you need when getting out of debt is momentum, and a sense of accomplishing something.

By paying off Debt 1 and then snowballing the payments over to Debt 2, you will SEE progress and be more motivated to continue.

Mathematically, paying off the highest interest rate first makes sense, but it doesn't inspire, and it may take forever to get out of debt.

Most people that try it your way never get out of debt because they don't feel like anything is changing.

[PeterPuck]

53. but at what cost...

See my answer below. Your momentum is actually being offset by the remaining high interest rate which is eating away at any progress you are making.

Fine, you need motivation... you need to see progress. Look at the big picture. Don't look at individual loans. Think about the grand total and all the interest that you are paying (throwing out the window). Reduce those interest payments and it is like getting extra money in your pocket.

[lizziegrace]

51. What?

If you're drowning in debt and cannot move forward, is it best to start with the card that will take you years to pay off? If so, it's not likely you can stick with it. If you have the discipline to stick to paying off the largest debt, more power to you. I would hate to tackle all my student loans and never see the smaller card balances go away...

Whatever works and the OP asked for suggestions.

[PeterPuck]

52. I doubt the OP wants bad advice...

First of all, the student loan debt is most likely one of the lower interest rates so it should be one of the last to pay off.

Secondly, it may 'feel' like you are moving forward but a lot of the progress you are making by paying the smaller balance is actually offset by the extra interest you are paying on the higher rate loan.

In my example, paying off a lump sum $5000 in debt in a year. Let's say the OP has the following... (not accounting for the minimum payments)

SEARS card (28%) $7000
Visa (18%) $6000
Car loan (8%) $5000
Student Loan (6.5%) $75000
Total = $93000

You would advise the OP to pay off the car loan so now we have....

SEARS card (28%) $8960
Visa (18%) $7080
Car loan (8%) $0
Student Loan (6.5%) $79875
Total = $95915

But paying off the highest interest loan...
SEARS card (28%) $2560
Visa (18%) $7080
Car loan (8%) $5000
Student Loan (6.5%) $79875
Total = $94515

It will cost the OP $1400 to do things your way. That is an expensive way to fool yourself into thinking you are getting out of debt. With my way the OP could use that extra $1400 to almost get rid of the SEARS card debt altogether.

Yes, the OP asked for suggestions... but I doubt she wanted bad advise. Why don't we just tell the OP to forget about making payments... just go buy thousands of dollars in lottery tickets.

Your way might be fine if you are talking about a few hundred dollars. The cost of "feeling like you are making progress" might be $10-20/year... but if you have a big debt, even a few percent is a huge difference.

The example I used is an extreme. Hopefully nobody is carrying a huge balance on a 28% credit card. Even if the OP paid the visa instead of the car loan he would be ahead $700 which could be used to pay the entire debt load off quicker.

If you could get a raise at your job you could get out of debt quicker... well, think of that extra $700 you are not paying in interest as a raise. A tax free one at that.

[lizziegrace]

55. Please don't patronize me

I'm an accountant. I've been doing this work for 25 years. But I'm also human. I can advise clients to "do the right thing" or do what works. With some people, they are one and the same. I was using the student loans as an example of a debt that seems like a mountain. I could have substituted an example of a car loan for a $40,000 Sport Utility.

I do not choose to get bogged down in details with you or anyone else. Hell, it's what I do all day, every day.

I disagree with you and no amount of hammering me (or anyone else who disagrees with you) is going to change my mind.

[PeterPuck]

56. maybe it is the delivery...

Maybe if you were a little better at explaining "the right thing" it might work.

Student loans/car loans/mortgages are all usually lower interest rates. There is nothing wrong with carrying that debt. They should be the last to pay off.

The point is, don't pay them off until you pay off your higher interest rate credit cards... even if they are huge balances and it will take years.

With advice like that... I am glad you are not a doctor.

[lizziegrace]

61. I do my job very well

I was born with an analytical brain. So I'm not a writer. Never professed to be one.

by the way, welcome to DU.



edited to remove a comment. I won't stoop to your level.

[Common Sense Party]

70. Exactly. Well-stated.

Too many people are math-smart but common-sense-challenged.

Most people deep in debt are lacking in discipline; that's how they got in debt in the first place. Seeing the lower-balance debts fall, one by one, is powerful motivation.

Some posters don't understand what works in the real world with real people.

[PeterPuck]

72. lol

I take it you are saying I am common-sense challenged... do you even know what common sense is?

If paying thousands of extra dollars in high interest rates to a credit card company is what gives you a sense of motivation, makes you feel like you are making progress... then keep at it. I am sure those companies will be very happy to keep collecting your interest payments.

But understand that the money you wasted on interest payments could have been going to a downpayment on a house or savings for your retirement. While everyone else is building equity at least you will feel like you are making progress.

There are other ways to get motivated or see the progress which will not cost you extra money. Paying off low interest loans before high interest rate loans is a very bad financial plan and will end up costing you lots of money and keep you in debt longer.

[Gormy Cuss]

64. Your advice is bad.

Well no, it really isn't, but your delivery of the message is. "What is wrong with you people?" YOU PEOPLE? Why nothing is wrong with these people. They're just approaching the problem from a different perspective.

Paying off the highest interest rate accounts first is the best strategy from a financial point of view. There is no question about that. The problem for some however is that when the stack of bills is high it feels like a Sisyphian task to get out of debt. The OP specifically mentioned wanting to have less than 25 checks to write each month.

Looking at just the 15K credit card debt, say that there are some accounts with high interest rates and balances, some with high rates and low balances, and some with lower rates. Knocking off the ones with high rate/low balances and putting away the card would be sensible and a step in the right direction. As some said up thread, after paying off one small debt, tackle the one with the highest interest rate next.
At that time it also would make sense to look for a way to roll the debt over to lower cost credit cards too.

The school loans, if they are at low student loan rates, may be lower cost now but if the OP is successful at lowering the cc interest rate sufficiently then the student loan debt may become the highest cost debt and target of the paying down.

[PeterPuck]

69. Fine. It may have been harsh...

But hopefully the OP noticed the post and at least sees a different POV. I could not believe how many people were encouraging to keep those high interest rate loans and pay off the lower rate ones.

I agree with you completely that if the OP has two accounts with the same interest rate it makes sense to pay one off completely instead of paying both off at the same pace. Get things under control by reducing the number of accounts that are in use.

Paying the smallest balance first makes sense... but not if it means carrying a higher interest rate loan. I would not be surprised if there was some misunderstanding as to what the author being quoted here was advising.

[lizziegrace]

20. As if I haven't said enough already

:shrug:

Check your withholdings and be sure you're not giving the government too much of your money to hold during the year. If you adjust your withholdings (and some may disagree here), take that $$ and pay yourself every single paycheck by putting it in savings. While paying off debt, you should try to get some money stashed away for emergencies or planned expenses like replacing an appliance or a major car repair. You could throw it at the debt, but if a crisis came up, you'd go into debt again. "Found" money like tax refunds and gifts could be split between debt and savings and like the BlackVelvet said, reward yourselves occasionally in ways that won't increase your debt load.


Edited to add link

http://www.cheapskatemonthly.com/member_tools_rdrpdemo.asp

"Rapid Debt Repayment Plan" calculator

[BlackVelvet04]

21. Great point

about the withholding. That's "found" money to apply to debt.

[lizziegrace]

24. Unfortunately

Life has been such a disaster for me the past two years that I was not able to follow my own advice. I just adjusted my withholding now that I have a full-time permanent job and have been tracking expenses since January in Quicken. Once I get handle on where the money goes, I will put all this advice to good use. :)

Next step is to have a small amount directed to savings since my car believes I have money and continues to do very strange things that require repairs. ;)

:hi:

[BlackVelvet04]

29. Automobiles can really

throw us financial curve balls. I had hoped that my LeBaron would last until my husband's truck was paid off....but NOOOOOOOO. Fortunately my brother is a car salesman and got me a great deal on a car but I really didn't have that extra payment in the budget. We made it and now the truck is paid off and my car is under warranty. But it was tight for a year making two payments on vehicles.

[PeterPuck]

59. please stop....

So you also recommend sticking money in savings instead of paying off a credit card? Carry a balance that is costing you 18% so that you can get a 1-2% in savings?

Why not pay off the credit card and save the interest. You will always have the credit card in case of emergency?

[lizziegrace]

62. Who are you?

you've posted 50 times in two years. Let's all move on. I'm sure the OP has.

:eyes:

[PeterPuck]

63. I get it now...

You are allowed to give bad advice because you have been here longer. Are you going to send the viking kitties after me?

[Common Sense Party]

74. What the hell are viking kitties? n/t

[PeterPuck]

75. reference to FR

Pointing out someone else's join date when losing a debate is something a freeper would do. Instead of countinuing the discussion she resorted to pointing out my posting history.

[carly denise pt deux]

26. I have just had to tackle my cc debt one card at a time

I have been riding the 0% apr for 1 year train on various cards for a few years, which helped me tremendously in saving on interest, but my credit score kept dropping because of the multiple applications for credit over the year. So I am off that track, and just making very large payments on the smallest balance first, when that is gone, take the $$ I would have put to card #1 and put on card 2, by that time usually card #1 will give me a good interest rate on balance transfers, so I takes balances off of cards 2 and 3 and put back on card 1 for a lower interst....it's very time consuming, but it is well worth it in the long run....I have a calendar that I put all my cards due and how much, and I cross off when they are paid.

[Hugin]

28. Congratulations on developing a plan and sticking to it!

:D

[Generic Brad]

33. Make sure you control your spending

It sounds like you are off to a good start on reducing your debt and formulating a workable plan. But regardless of the situations we find ourselves in it is important to stop the bleeding first. The key component in reducing debt in any plan is to stop adding to the damage already done.

[trof]

34. $75,000 in STUDENT LOANS?

Jesus, how does THAT happen?

[usregimechange]

44. two degrees and one post grad degree

[frankenforpres]

46. im down $70K in student loans too

but big deal, it is like an $800 dollar a month payment. i had to pay for school and living expenses myself. but now, i get to be a college professor instead of a carpenter (im not disparaging carpenters, that is really what i would do. probably make more money too, but it is a far different lifestyle)

[northzax]

58. $75 grand is nothing

my neighbor is in the hole for $150,000 down from $200,000 a couple of years ago. Sure, she makes sick money, but still, carry some from undergrad, go to an ivy for law and b-school, and it adds up quick.

I carry $20,000 and am glad it is so little (for grad school only)

[Eurobabe]

73. I owe $53K, part undergrad, rest grad school

It's not uncommon. I'll be paying until I am about 60. Seriously.

[fudge stripe cookays]

37. I agree with those who say pay off the smallest first.

While the one with the highest interest rate may hurt the most in the long term, by paying off the smaller ones, you're making small dents that turn out to help you down the road when you can take that money and use it toward the higher interest rate one.

ALSO-- something we did, but you have to have lots of discipline, is to take out one of the limited 0% interest cards, and transfer as much of your balance as you can onto it.

The minute it expires, take the card and switch it to another limited time 0% one. We managed to make short work of $30,000 worth of debt we had when we got married. But you have to watch those deadlines like a hawk and get ready to move it before you end up paying 20% or more.

Good luck!

[Lost-in-FL]

43. I think...

Discover Card has that promotion. 0% interest for a 18 months or a year on balance transfers. You just need to transfer before that time.


BEWARE of some credit card companies that charge you a small interest fee on the transfers!!!

[Wcross]

54. Transferring debt doesn't solve the problem.

I understand the student loan debt but 15,000 on credit cards????????? Unless you change your spending habits there is a good chance it will be run up again. You don't need another loan, you need a payoff plan. The easiest way is to pay them off one at a time from smallest to largest. Pay the minimum on the largest debts and throw everything possible at the smallest. After that debt is paid throw it all at the next smallest.
I did it just that way and dug out of debt. There is no feeling in the world like owing NOBODY! There is a real sense of freedom about it.

[MissMillie]

60. Maybe I misunderstood the OP

but my understanding was that even though his/her debt is high, they are able to pay their bills. The "problem" is that the OP only wants to write one check....

[Wcross]

65. No, you understood correctly. (I was elaborating)

It is my theory though that if you owe on credit cards you are living above your means. If the OP frees up the available credit on the cards there is a good chance they will be run up again.
Do you know what Chase did when I finally paid them off? They sent me some "convenience checks" so I could dig myself back in the hole I just crawled out of.

[MissMillie]

68. I hear ya

I am debt-free (except for my car loan) for the first time in 20 years. Now that my credit is stellar, everybody is offering me a credit card.

I find that now that I'm not paying out so much in credit card payments every month, I have more cash to spend.... so I don't need the credit card.

(I do have one card that is only accepted by my veterinarian... in case the kitties need something out of my range... right now it's at zero balance.)

[northzax]

57. you can consolidate the credit cards

I would hold off on refi for the student loans simply because the interest on them is currently tax deductible. Why lose that?

can you set up auto payments for them? you might look into doing what I did, which was establish a 'debt service' checking account. I calculated my monthly payments (slightly over the minumum on some, on track to be done by DEcember of this year after 5 years) and have a checking account simply to auto-pay bills. Every credit card company will allow you to auto-pay, usually without a fee if you set them up for six months or so. Then, every payday, I have a chunk of my check direct deposited into that account. the auto-pay takes care of it, and I simply review the monthly statements. I feel like I only pay twice a month, but the debt is serviced that way.

[Courtesy Flush]

66. Prosper.com

Prosper is a social lending site. A potentially profitable place to lend money, and a good place to borrow, if you can demonstrate an ability to re-pay. Here's an article about them:

http://lifehacker.com/software/money/how-to-lower-your-credit-card-interest-rate-with-a-loan-from-prosper-245282.php

[Common Sense Party]

71. Okay, you've gotten tons of advice (much of it contradictory).

Whatcha gonna do?

Wrap up this thread by telling us what steps you are going to take to get out of debt.