Student Loans vs. Credit Cards
| Credit 911 has been helping many of you to settle those student loans and leave them behind you. Unfortunately, we have been contacted with a host of consumers that have subsidized loans that were insured by the Federal Government and therefore cannot be settled.
We have written recently on how to determine if your student loan is in fact subsidized or not, click here, to take a look at that article and determine where you stand.
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So WHAT SHOULD YOU DO you ask? We quickly realized that many of the consumers that were contacting Credit 911 about their student loans also had significant credit card debt that they were trying to keep up with.
Trying to keep with both their student loan payments and the excessive interest on their outstanding credit card debt has placed many of these folks in harms way. The funny thing is neither of the debts have decreased significantly for all of their hard work and suffering. What many consumers don’t realize is that the CREDIT CARD DEBT IS YOUR FIRST, WORST ENEMY. Take a look at the following chart provided by CNN money (click on it to get a better look):
 | This chart represents what you the consumer would pay in principle and interest, and the length of time involved to pay off a card if you make minimum payments only. With $15,000.00 in credit card debt a consumer making minimum payments would pay $55,370.41 over 48 years, 11 months. That’s probably as much money as many student loans! A $30,000.00 credit card debt turns into $112,651.77 paid over 59 years. As much as many mortgages. So, what consumers are not recognizing, and what we are here to tell you is that if you have subsidized student loans that you can’t settle, take an IMMIEDIATE look at your credit card debt. |
Most consumers that we have spoken to, indicated to us that they would be able to make the payments on their subsidized loans if it was not for the exorbitant payments they were making on their credit cards. A recent call that we received, had an individual with approximately $60,000.00 in credit card debt that had a monthly minimum of approximately $2,000.00 in payments. With an enrolled 48 month program with Credit 911 that payment turned into approximately $750.00 per month. Nearly one third! If we take a look at our chart that debt would have cost $227,214.61 and taken 69 years to repay!
| We wanted to remind our readers and all consumers that they need to take another look at their monthly bills. Simply because some of those loans are subsidized does not mean that there is no answer.
Often that answer is right in front of you. If you would be able to make your payments but for your credit card debt, then you are suffering a hardship and Credit 911 can help. That payment may be cut by as much as two thirds, and the entire debt will be behind you in 3 or 4 years (depending on the plan you choose). Just think, you would save 64 years of payments if you were in the situation above! |  |
We urge you to take a look at some of the settlement work we have done and give us a call if that credit card debt is causing you to drown, whether it’s the student loan we can settle or the credit cards so that you have room in your budget to pay those subsidized loans, isn’t it time you gave us a call?
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