PLEASE ADVISE --- how to handle massive credit card debt

[PhiMuAmberkins]

I thought I was in bad shape with my $4,000.  That sucks man...but like everyone said, if deferring is not an option, pay over the minimum, try to get it consolidated...and...CUT UP THE CARDS!!!

[baytostay]

The more I think about it, the bigger mess you are in. 20K is a huge amount of consumer debt to have. Unless you charged an emergency surgury, it's likely that you got youself into this mess my ignoring reality (and your real income) and kind of hoping that this debt would go away/take care of itself.  Clearly, you have not been self-disciplined with your finances.  To think that you will be able to start law school and magically become responsible about living within your means, be a good student, and simultaneously be able to dig yourself out of this mess financially is probably delusional. 

You say you can't/won't defer, but I think you have to. If you can't defer, you have to withdraw and reapply later. Saying "it's out of my hands, I have to go to law school this year" is bunk, and it's probably the type of ignoring reality and self-indulgence that got you in to this debt in the first place.  The bottom line is, you can't afford to go now, you need to get your life in order, and you can't keep defering taking responsibility for your debt until "later".  Also, while you have such bad financial management skills, it is probably not wise to be taking out student loans, because you will probably rack up more than you need and be waaay worse off after law school.

[aerynn]

I've had massive CC debt before.  You have to take time out to pay it off.  If you can't defer, don't go at all and reapply in 2 years when it is paid down. 

It may be against the terms of your student loan to pay CC debt using aid money.  Check with your lender before considering that an option.  Student loans are for educational expenses.

[dreamsdeferred]

Take 2 years off to pay off $20k??

THAT'S CRAZY!!  FOR GOD'S SAKE DON'T LISTEN TO THAT HORRIBLE ADVICE!!

You're going to Columbia for God's sake.  $20k is tiny compared to what you'll likely be making after law school.  Every year you take off is a year you won't be earning a lawyer's salary (about $135k/yr).

Do what the other poster said.  Use $4k of financial aid money to make the payments during the next 10 months.  Work your ass off during your 1L and 2L summers and pay as much of it off as possible.  JUST MAKE IT THROUGH LAW SCHOOL.

I've had massive CC debt before.  You have to take time out to pay it off.  If you can't defer, don't go at all and reapply in 2 years when it is paid down. 

It may be against the terms of your student loan to pay CC debt using aid money.  Check with your lender before considering that an option.  Student loans are for educational expenses.

[aerynn]

My loans said they specifically couldn't be used to pay for a car, for example.  I would consider a car a much more justifiable living expense (espeically at some schools) than existing credit card debt.  I don't know if all loans have these terms or just some, but I would advise checking before counting on it.  If he can, then great, pay off the cards with the student loans.  But I wouldn't advise assuming you could do that.

[Kittyl30]

i dont see how you CAN use student loans to pay off debts...they dont give you enough with the tsrict budget they lay out for textbooks,housing and stuff. i guess maybe ifyou live REALLY cheaply but im finding it hard to live on the little amount they are giving us..

[bass]

You may be able to find the right kind of additional personal loans to pay off the debt, but student loans are NOT for consumer debt.  Defer or withdraw and reapply.  Sure, you'll be putting off $135 for a year, but you'll also be avoiding about 15K in interest.  Note that, when you graduate, you'd have 35K in cc debt, plus probably 100K in law school debt.  AND NO CREDIT!  That much debt + that little credit sucks ass.  Big time. To get the big timejobs, you'll have to be in a city with big time expenses (NY). To live in an apartment even, people are gonna want to run a credit check.  You may have trouble finding a place to live because you decided deferring wasn't an option.

[shaz]

how much can a 1L summer associate make?  what about a 2L?  (yeah, yeah, yeah, there's no gurantee this individual gets a summer associate gig. ...but they are attending columbia.)  it seems like a risk, but the op seems prepared to risk it. 

[aerynn]

But if he risks it and fails, he will have big debt and possibly no ability to continue at Columbia.  Don't you have to reapply for student loans every year?  If you tank your credit would that jeopardize future loans for 2L or 3L year?  There are even jobs and state Bars that won't allow lawyers with bad credit because lawyers are in such a position to be bribed or to steal.  Someone with bad credit is a higher risk for that.

Again, not saying it is impossible, just that there are some angles people haven't been thinking of.

[cesco]

There are lots of "what if" posts on here, but doesnt it really come down to dollars and cents?

Financial Aid minus tution minus expected living costs.

Any money left?? 

If so, will it cover your cc monthly payments? 

If the budget doesnt work you will have to look at a private loan. And if you can't get a private loan you may be SOL.

Everyone keeps talking about summer gigs to pay it down, but first and foremost he has to get through 1L month to month expenses while also paying the monthly minimums.
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The math...
Regardless of interest rate, most credit cards require a minimum monthly payment of around 2%.  This would be a $400 a month payment.  If you have payed attention to the news lately you would have seen stories about many credit card companies increasing their minumum monthly payment to 4%.  This is $800 a month!!

Obviously a 0% interest rate will make this scenerio much prettier after a year, but still, those are HUGE monthly payments to consider!