Cycle of Debt: What are my options?

[Statutory]

Get good at poker, debt free in 1 month?

Otherwise stop spending money you don't have, get student loans at less than 15% interest.

[latefordinner]

12k is NOT counting student loans which I would guess are at least $30k? (right or wrong) if you haven't maxed out your student loans take out more and pay off all the cards - easy.

also, keep a purchase diary for a month. you might be surprised at what you are actually spending a lot of money on that you won't even miss - try to cut 25% of your optional spending - it's pretty easy to do and not even miss it

[bav]

[ QUOTE ]
In principle I agree with you both, but law school is a somewhat unique situation. 1/2 way through most students have a pretty good idea - based on class position and the clerkships and jobs that students a year and two ahead of them are getting - what their salary range will be when they take a job after they graduate.

[/ QUOTE ]
His chickens have not hatched. What fraction of law school graduates are still practicing law 5 years after graduating? One I know pretty well never did practice--he graduated, passed the bar, and decided law sucks so he's now a Unix sysadmin. This is a pretty common theme on 2+2.

Live within your means and life is easier. But you may have to watch normal extended cable on a 20" tube and may have to do without 17 channels of ShowtimeHBOCinemaxStarzEncore in HD recorded on your HD TiVo viewed on your 45" plasma from the comfort of your $1200 LaZBoy surrounded by your $2000 sound system.

[Mr. Now]

Reduce consumption; reduce interest rate. Do both till you get rid of the balance.

0. Start eating ALPO for lunch and stop taking trips you cannot afford. Ride your bike. Stop using a dryer. Hang your clothes on the line. Get militant about dumbing down consumption.

1. Take advantage of a 6-month low-rate transfer of balance new credit card deal, keep cascading every 6 months so the current balance you carry is below 5%.

2. Invstigate or use Simmons Bank's credit card to reduce your interest rate.

http://www.simmonsfirst.com/creditcards/

See also:
http://www.sacklunch.net/poorrichard..._is_Slave.html
http://www.commondreams.org/views05/0331-33.htm
http://www.daveramsey.com/the_truth_..._3036.html.cfm

[Jdanz]

I have friends going into finance in NYC, they go to one of the top rated undergrad business programs, depending on their year they either know what job they're getting or know that they'll be getting a job. It's somewhat different and you do have to make some pretty accurate long term predictions, but there most certainly is a point to not just deferring gratification for its own sake.

If you were at a top five program this is a no brainer just do whatever you want within reason and it'll take care of itself, if you're at 100 and whatever the situation is much different.

I know my roommate has like no money and bought a 3k tv which he and everyone else loves, he's accruing debt on the purchase, but it's so much more baller to buy the 3k tv in college when it's so cool rather than in a year when it's totally standard.

The general advice is good, but remember you should be aiming for life EV not bank EV, although the two are very often related with the latter as a limiting factor.

[MatthewRyan]

IMO the best idea is to get a student loan and payoff the cards. You will have a lower average rate and you will not have to pay $250 a month, which is a lot of money now for you. Once you graduate you can begin paying off the 12k student loan, which at that point will not feel like a giant weight on your shoulders.

I think this route will aliviate your stress and probably even be better financialy.