advice on debt for a single mom
Hi Terry! I am a 52 year old single mom with 3 kids (23, 19, and 17) One has finished college with a MBA the other is in college and going to apply to grad schools for PT in the next year and another is a senior in high school going to do JUCO/sonography program. They all have jobs and contribute the best they can. I have supported these kids (for the most part) on my own for the last 10 years since I divorced.
I am a SLP and work in school making around 80K. I have managed my finances pretty well until the last couple years and now I find myself with 18,000 in credit card debt and a 20,000 parent plus loan. I own a home and a car that I make payments on but otherwise I do pretty well. Do you have any suggestions on what I can do to get my credit card paid off?
I seem to be only able to make the min payments as life keeps taking the rest week to week (ie: car maintenance, house maintenance, kids college fees, etc.) I looked into a home equity loan (Newrez) but they won’t loan me any less than 50K which I don’t need that much. I will retire in 8 years with TRS and a good 403B but I need to get a handle on this debt! Any advice would be great. I did get the PSLF on my first parent plus loan for my son so I don’t think i would qualify again (I should have waited and combined them all but I didn’t know at the time I would need more 4 years later. Thank you!
Terry Says
First of all, could I just say congratulations on all your accomplishments — reflected in three great kids! The burden would have sunk other women. You’ve done a lot!
OK — now some suggestions.
1. Contact Rae Kaplan the attorney expert on Student Loans. Use my name when you call, and just ask whether the other Parent Plus loans can now be reduced. (Please write back and let me know what she says, but based on our discussions, I am hopeful that you would qualify.
2. I could give you the name of Consumer Credit Counseling — 800-388-2227 — But I think you might be able to pull this off on your own, since you sound so organized. Go to www.SoFI.com and inquire about the terms of a personal loan to pay off your debt. The rates will certainly be lower than credit card rates. Then tell them you want to make more than the minimum monthly payment each month.
I have a good feeling that if the interest rate is lowered significantly, you can pull this off. Just be careful not to use those old cards again once they are paid off! Keep your oldest card, as it contributes to your credit score. But you don’t need a handful of them.
Again, please let me know what happens. I smell a great success story!
