I'm depressed --- I have so much debt (college loans) and I'm only 23.... =(?

Question

I'm $40,000 in debt for college loans and I make $38/year. I feel like I'll be trapped in my parents house until I'm 40 and it's depressing me.. How can I get out of this debt fast???

Answer 1

Congratrulation,
You are on the 1st step on a seemingly endless journey. it is not.
u owe 40 , u make 38 . u live at home ?
pay ur folks 500$ mth rent.
drive a cash car. get second pt/tm job.
u should be able to knock off 18 -25thousand dollars a yr. really.
Pay it off in two yrs. THEN it is OVER
visit daveramsey.com to learn ur hard lesson from others mistakes.
understand most millionaires start where ur at , they didn't stay/
visit thinkrightnow.com to get a fresh out look on ur viewpoint.

Answer 2

Hey, if it'll make you feel better, you're not alone. Many Americans are in a similar situation. You should be glad that you have a job, and that your debt is a student loan (low interest rate) and not credit card debt (which is higher interest rate).

You will get out on your own, if that's what you want. You can and will find better paying jobs and other opportunities if you're willing to look for them. You're still young, and still have many years ahead of you. You have time on your side. Be grateful for what you have - you have a place to live, you have a job, and you have a college education, and you have youth (which is priceless).

Here are some things you can do to get out of debt quickly:

1) Don't spend more than you make. That will get you in more debt.
2) Sharpen your skills, especially communications skills. People who communicate well get ahead faster.
3) Be more out-going and network. Networking will allow you to find possible future opportunities.
4) Set a budget, save money, and stay within your budget.
5) Try to find $150 to $200 more to pay for the college loans every month, and pay twice a week instead of once a month. This will pay off your student loan faster.

That's all I can say. If you want a more detailed plan, you need to provide me with more detailed information, such as:
Your take-home pay, your monthly expenses (line by line), and your monthly student loan payment amount.

Answer 3

If you really make a commitment to paying off your student loans fast, you can do it.

If your parents will let you live at home for a little while, that's great. You won't have to pay rent anywhere.

Since your living costs will be low, you should be able to make pretty aggressive payments toward your loans. Don't spend a lot of money on entertainment or clothes. Pay as much as you can toward your loans, not just the minimum payments. Include a note with each payment stating that the money above the minimum should be applied toward your principle balance. Some places will try to cheat you if you don't specifically say what the extra amount is for.

You could even try to get a second job in the evenings.

If you do these things you could actually pay off your loans pretty quickly (2 years).

Good luck!

Answer 4

I am 25 now and getting ready for Grad school. I will owe well over $50,000 when I'm done.

I think if you got a good job then keep it. Cut down on unnecessary spending and come up with a plan for your money (budget).

Live tighter and pay a little extra on the school loan bill every month.

Don't do anything crazy for money and avoid taking out any new loans. Only buy what you need and save up for things that you want. This is the only way to get out of debt.

Answer 5

When I got out of school, like you, I lived in my parents place for a few of years (rent free). I had a job, but didn't make as much as you. I set a goal to pay more then the minimum. I paid $400 a month and got rid of Sallie Mae in about a year and a half.

My suggestion is every month you get paid, set aside how much you want to pay each month and stick with it. If you can afford to pay $500 each month, then do it. You should still have enough money to buy some things, but don't go overboard.

You are not alone, there are a lot of people in your age that have college debt like you. In fact their are a lot of people who are still paying off the college debt. You decide, do you want this to hang around for a long time? I chose not too have Sallie Mae when I'm 40.

Answer 6

If you make $38 K a year (which is what I think you meant, not $38 you can do it. Try to work out a better payment plan for paying it back. I couldn't pay on my loan for a few years because I was supporting my son and myself on just my paycheck (still am, better job now). So, I called up citibank where I got my loan and told them that I needed a better way to pay it back. They made the payments lower for me and even deferred it a few months until I got on my feet. A college loan isn't the end of the world, just be very careful with getting other credit items, such as loans or credit cards. Get a part time job to help pay off the balance. You are only 23. I know plenty of people still living at home in CT at 26, and it's not because they are paying on loans. Keep your chin up and your eyes on the prize. You can do it!

Answer 7

What your feeling is so common. You will be OK if your willing to work at this. If I can give any advice it would be that if you are trapped to living at home use it as a tool to dig yourself out of debt. Devise a budget of your expenses and you have to save money and really stick to it. Look where you could save in any way . The mistake young adults living at home make is that their living expenses are free. Then they find themselves spending money that they theoretically shouldn't have. If you are able to save any bit of money for rent do it! Use that extra money to chip at your debt it will add up.

Typically student loans have different types of payoff options. You probably qualify for the income sensitive repayment plan where you pay less for a longer period of time.

you should consider opening up a interest earning savings account and come up with a amount that you would spend as "rent" every month and put it away towards savings or paying your student loans in advance which will make the future payments smaller and possibly further apart.

You can do this!

Answer 8

I hope you meant $38,000 per year!

Regardless, most people with college loans are in debt at your age. The trick is to budget your finances properly. You're already saving a bundle on rent or mortgage by living with your parents (you might not be crazy about it, but that's a different problem!).

Good luck!

Answer 9

not if you use your creative juices to to create some way of marketing yourself for extra money. if you have the time, you could explore things or projects to do like: silk screening - after you've learned, it could be applied to anything, or even bead stringing for necklace and bracelets. the ymca teaches this craft, it is simply a rewarding field. if you stop and think about how people arrived at these decisions, usually their ideas were birth out of some type of position that made them quite uncomfortable. if so happens that your current activities are dominating your free time, see if you can get a loan consolidation providing it doesn't effect the loan in any negative way. this will help to aleviate any pressure that may be upseting your life. most importantly, while you are paying whatever bills you may have, don't forget to pay yourself also.

Answer 10

$40,000 is nothing. You're living in you're parents house?? Why? I think that sucks more than being in debt. Debt is not a problem, there are many ways to make money. Grow up, get your own place, and pay the minimum on the student loan until you make more money. It's really nothing to be depressed about if it was worth it.