How much debt has college tuition put you in?

tigershoops31 · 02-02-2007, 03:08 PM

Originally Posted by CyGal

I called one of my cards to try to reduce the rate. When I started it was a fixed 12.9% interest rate, but has since switched to variable, after a company buy out, and it's running about 22% right about now. They flat out refused to do anything. Said they didn't have any offers to give, so they couldn't reduce it. Thing is, I've been with this company since '97 or '98, and that's how they treat me? I've never been late with a payment, typcially pay more than the minimum, and run enough of a balance that they should be making nice money off my interest payments, and they wouldn't do jack for me.

That is ridiculous when they pull that garbage. I have had the same thing happen myself. When they do that, just wait until you receive an offer to do a 0% balance transfer to a new credit card and you'll be better off. I was actually able to transfer all of my old credit cards (1/2 of which weren't even active any more) to a new account with a 0% balance transfer and I got 0% on all purchases for like a year +. It was great cause I got out of all my debt within that year once they quit tacking on all kinds of fees and charges. Besides that, I got it all on one so it was a lot easier to make payments to just one company. I'd recommend looking around, I think you can at least do a 0% balance transfer to a lower rate a lot of the time!

DaddyMac · 02-02-2007, 03:28 PM

Originally Posted by tigershoops31

I'd recommend looking around, I think you can at least do a 0% balance transfer to a lower rate a lot of the time!

Keep an eye on those transfer fees, however. Some can really ding you, and make it not worth tranferring in the first place. Usually it's a percentage and most have a minimun and a cap. But some don't.

247cy · 02-02-2007, 03:28 PM

Originally Posted by tigershoops31

That is ridiculous when they pull that garbage. I have had the same thing happen myself. When they do that, just wait until you receive an offer to do a 0% balance transfer to a new credit card and you'll be better off. I was actually able to transfer all of my old credit cards (1/2 of which weren't even active any more) to a new account with a 0% balance transfer and I got 0% on all purchases for like a year +. It was great cause I got out of all my debt within that year once they quit tacking on all kinds of fees and charges. Besides that, I got it all on one so it was a lot easier to make payments to just one company. I'd recommend looking around, I think you can at least do a 0% balance transfer to a lower rate a lot of the time!

That's a good idea. You have to read the fine print on some 0% offers though, they don't apply to some transfers, or they only work on the first 'x' dollars, etc. Doing that can give you some breathing room on balances, but be serious about paying it down, because after the 6 to 12 month 0% window, you're back to the double-digit interest rate. You can start to get turned down for the 0% offers if you try to move balances several times - it can also damage your credit score as well.

Another option would be to see if you can get a consolidation loan from a bank. You may need something for collateral, like a car, but you can usually get a decent single digit interest rate similar to a car loan rate.

Interest paid on student loans are often tax deductible. They're "good debt" in that regard if there is such a thing.

Bwalk · 02-02-2007, 03:32 PM

Credit card debt can be a vicious cycle. Especially when you drink too much and don't leave your credit card in your wallet. Then you start playing the game and transfer balances around but then you use up the limit on both cards so you get more cards and transfer more balances and it goes 'round and 'round. Now I at least have all my balances on cards that are like 3.99% for the life of the balance. It all boils down to self-control and common sense. I was short on both during the drunken college days.

rd4isu · 02-02-2007, 03:43 PM

Originally Posted by CyGal

I graduated in '03 (2 yrs DMAAC, 2 yrs ISU) with a total of $3500 in student loans. Paid only $1000 out of pocket, and only a $500 scholarship from DMACC. Thank you to my grandpa's spinster sister! She made my education possible!

I also had a MIS teacher who had an interesting theory on credit cards. He buys cars on his cards, and gets cash back bonuses. Pretty nice when you spend $40K on a car. However, he apparently did well in the stock market, and had the cash to pay for the car to begin with, just liked the cash back bonus. Can't blame him. If I had that kind of money, I'd do that too!

Haha! Sounds like a Prof. Choobineh(sp?) story to me. I remember how a couple of students who sat by me in his class would go on and on about how wealthy this guy was and how he created a software program that guaranteed him an obscene return on his stock market investments. Totally off topic but brought back the memories