As a college student, what is too much debt?

[ptownTSI]

Ok so I'm a college student and I'm contemplating selling the E30 and all my parts i've collected for it.

i have $10,000 in credit card debt. I graduate May 08 and will be able to start paying it down. I should not need to add to this debt any longer while I am in school as I am working part time now, and will be getting a better part time job at a restaurant.

my question is: should I sell the E30 and all the crap i have? or wait.

two sets of 14" weaves in near mint shape
all parts are brand new:
front LCA's
M3 cabs
Z4 2.5 shift kit/shifter rebuild parts
guibo
tie rods
e12 motor mounts
stock subframe mounts
stock rear control arm bushings
rear wheel bearings
all parts to rebuild the ebrakes
oil pan gasket
stainless lines (bimmerworld)
bimmerworld clutch stop
a/c panel
e36 metal shifter
AKG delrin rear diff bushing
2 black sport seats in great shape (only 3 small tears on drivers) but nice and dark and black.

the car is a salvage title, drives straight, aligned. it wobbles under braking because of bad CABS most likely, and I broke the # 1 intake rocker, so it would need that fixed to sell it.

on the car I have replaced the timing belt, water pump, ignition (plugs, cap, rotor, coil), rsm's (repair shop style), 1 front wheel bearing, slave cylinder, rebuilt driveshaft, low mileage 5 speed installed.

[Emre]

i have $10,000 in credit card debt. I graduate May 08 and will be able to start paying it down.

Is that $10K on top of your student loans? Honestly, $10K of credit card debt is a LOT. To put things in perspective, I'm a medical doctor (graduated from college in 1995; graduated med school in 2000; finished my residency training in 2005). I had around $6K of credit card debt last year and, seriously, it was HARD to pay it all off.

I should not need to add to this debt any longer while I am in school as I am working part time now, and will be getting a better part time job at a restaurant.

Stop running up your debt now. Once you get out of school, your expenses just get bigger. You'll have to start paying off your student loans, then you've got rent, car payments, insurance, etc. It won't be easy to keep your head above water if you start life with so much debt.

my question is: should I sell the E30 and all the crap i have?

Yeah, I would.

Emre

[rede30]

cant you take out some sort of student loan to pay off the CC debit? Student loan is way better than a CC loan. 10,000 of student loan is not much.

[Digitalwave]

If your E30 is your only mode of transportation I'd reconsider, especially because it's only worth $2-3,000, it won't put a huge dent in your debt.

[FredK]

Do you have another car? It seems like your E30 is in good mechanical shape and will reliably take you where you need to go for good while longer; I wouldn't sell it to jump into another car.

Your car might get you $2500. You'll still have a good amount of debt left.

I'd say, if the interest rate is high, attempt to reduce it by transferring a balance to a low interest credit card. However do this VERY carefully to make sure you don't get screwed. Don't BT to a card with a teaser rate good for 3 months, etc. Or if at all possible, use a part of a student loan, as the payoff terms are a lot more favorable.

What kind of job do you plan on getting when you are out of school? Paying 10K down won't be easy if you have a lot of other expenses (housing, bills, student loan payments that will kick in ~6 mo after graduation, etc.), even with a decent paying job.

Run a few calculations to make sure you will be able to pay this shit down. I have a buddy who ran up a lot on his credit cards, and it'll still take him a while to pay them down even though he's a lawyer and is making good money.

[Turf1600]

Debt snowball. Easy. FYI any debt is too much. If you cant afford shit don't buy it - PERIOD. Unless it is a house. Bottom line is you need to change your lifestyle. Part of that may include selling stuff - but not your car.

[Jean]

Paying off debt is something you should concentrate on or it will only get bigger... imho

if you decide to sell your weaves and / or seats I might be interested depending on price. I am local.

[Ryan Stewart]

cant you take out some sort of student loan to pay off the CC debit? Student loan is way better than a CC loan. 10,000 of student loan is not much.

Although I hate to agree because if you were irresponsible to rack up 10k on a card you will likely do it again because of the availablilty I think this might be an alternative.

Cut up the cards and, if possible, see if you can get some form of lower rate loan. Shit, CCs are up there. To the point where you will probably be paying mostly the interest for a long time.

[T.Dot_E30]

+ for turning it into a lower rate loan.

CC debt is stupid.

If you have to, get your parents to co-sign on a loan for you, but keeping the CC is stupid.

[JK_E30]

This is the kind of thing that makes me not want to get a credit card, I dont want this to happen to me. Yet, I have to start building credit so I have decided to make a deal with myself that I will only use it for gas. That way it is easy to keep track of and I will build my credit. Wont be much of a bill since I usually only fill up 2 or maybe 3 times a month, depeding on my activities (meets, cruises).

Hopefully you figure out a good way to pay it off! I would do what everyone else suggested, get a loan, cc debt is the hardest to get out of.

[VacMan]

Debt snowball. Easy. FYI any debt is too much. If you cant afford shit don't buy it - PERIOD. Unless it is a house. Bottom line is you need to change your lifestyle. Part of that may include selling stuff - but not your car.

Perfect advice, IMO. Well, except for Gazelle Dude. You younger guys need to realize just how important credit is to your future and how much more you will pay in life if you don't manage it well now. Get rid of the CC debt and live a cash lifestyle. That doesn't mean you can't use the card, but you should be able to pay it in full every month or you're living a negative cash flow lifestyle. It is only when you want to buy that first house or E46M3 or whatever down the road and you look back at how jacked up your credit is that you will realize how important it is.

For those without a card, get one and start working on your credit now (if you're old enough.) Get a small credit line, use it and resist the temptation to up it at any time. Treat your credit like gold.

Tim

[equate975]

I hate debt....

I down 2k right now and I am pissed. I cut up my CC and am working on trying to pay this all off.

It sucks being poor :(

[Turf1600]

Perfect advice, IMO. Well, except for Gazelle Dude. You younger guys need to realize just how important credit is to your future and how much more you will pay in life if you don't manage it well now. Get rid of the CC debt and live a cash lifestyle. That doesn't mean you can't use the card, but you should be able to pay it in full every month or you're living a negative cash flow lifestyle. It is only when you want to buy that first house or E46M3 or whatever down the road and you look back at how jacked up your credit is that you will realize how important it is.

For those without a card, get one and start working on your credit now (if you're old enough.) Get a small credit line, use it and resist the temptation to up it at any time. Treat your credit like gold.

Tim

FYI Dave Ramsey always says to get gazelle intense about debt. I combined that statement with tony little and made a masterpiece. I'm 22 - just bought a house - and my credit score is now over 740. 3 years ago it was 506.

[Jean]

Where you badly in debt with 506 or was just starting to build your credit ? Just curious..

[Turf1600]

Both? At one point I had ~12 in debt - including a car.