[USER]

I am looking for some guidance. I have about $20,000 total in credit card debt, spread across 6 different cards, most with interest rates around 25% (awful I know).

Is it smarter to consolidate them into a loan with a lower interest rate?

I do not currently qualify for any balance transfer accounts as I’ve done it a couple times & my credit score is mid-600s now.

Used to be upper 700s.

I am in grad school and will have over $100,000 in government student loans by the time I’m done in a year.

I may be getting a divorce as well so that’s fun!

If so, I will be fighting for him to fork over half of the debt as I solely financially supported us over 75% of our relationship.

No car payment, currently renting an apartment. Help.

[Kelly]

It would be smart to consolidate but at what rate with your credit score?

Also- if the debt is joint- you may want to leave it or have a paper trail so you can use it in the divorce negotiations- but that reimbursement could take awhile

[Tony]

-Do you still have these credit cards?

-When was the last time you used any of them?

-Are you done using them, for good? Are you willing to cut them up and close the accounts, without saying; “but….my credit score!”

First, the spending has to stop.

Then, and only then, can the new habit and paying them off start.

If you’re at this point, then you also need to slash your budget mercilessly.

If it doesn’t hurt, you’re not doing it right.

And, most are not willing to do this.

[Lexi]

You might have to just do debt avalanche and suck up the interest in the meantime.

Maybe see if there’s a credit union or something that will give you a private student loan but it’s likely to be 8-11% right now and you probably need a co-signer.

I think the max you can get is the difference between your federal loans and the expected cost of attendance #.

[Erin]

Will your graduate school increase your earning potential? If not, quit school and get 2 jobs.

[Christopher]

I generally, refinancing to a lower rate is an improvement, as long as there aren’t additional costs incurred (closing costs, origination fees, etc).

You can also consolidate only the highest interest cards, if the refinance rate ends up higher than some of the current debt’s interest rate (unlikely in this situation).

[Jeff]

It depends on what you can get for consolidation loans and if you’re trying to increase your monthly disposal cash.

[Author]

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