Bad Decision -- Huge Amount of Debt, Need Advice

Nascar nurse, ASN, RN · May 25, 2011

35K is only about $16/hr. Are you sure this is all the starting pay is? How about overtime hours or even a part time second job?

cogath · May 25, 2011

Oh I guess I meant $31/hour. Which is about $64,000 without taxes removed. That makes things seem a lot better. I am hoping to have a BSN by the way next May (if all things go as planned).

I live on about $5k a year with my parents covering my insurance (car, health, dental). I pay for rent, utilities, food, and everything else, and I have a supportive boyfriend who makes about $40k a year but is (understandably) unwilling to assume partial responsibility for my debt.

Florence NightinFAIL, BSN, RN · May 25, 2011

This will be hard but it can be done:

I don't know if you live near your parents - but I would move back home and live with them for the next 1-3 years if they are ok with it. This is no time for pride - you don't want interest to collect on that which would take you years. Live back home if possible and put every cent of your paycheck towards paying off the loan. No vacations, no shopping, no eating out, no expensive holiday gifts, etc. etc. If you have a cellphone - I would even get rid of that and just use the home phone.

Tighten your belt for 1-3 years and you can be debt free forever (if you continue to spend within you means).

Here is a system I found really helpful:

http://www.daveramsey.com/home/

Here are some tools you could start with incl. budgeting

http://www.daveramsey.com/category/tools/

I know some people might find it too extreme but that is what I am doing. I want to enjoy the rest of my working years without worrying about debt or incurring crazy interest. Furthermore I am single so if you are married/have kids I know this is not realistic.

P.S. That does not mean that you have no life - trust me there are hundreds of fun things you can do for free - picnics, biking, visiting library, going to the beach, visiting the free landmarks/attractions of the place you live, playing board games, inviting friends over for a movie on the tv, having potluck etc.

33762FL · May 25, 2011

Live with your parents if you can, spend as little money as possible. Eat a lot of ramen if that's what you have to do to pay down the debt. If you make $64K/year and really can live in $5K/year with your parents, you should be able to pay off your debt in a few years. Then you can take things from there...

cogath · May 25, 2011

Thank you very much for your excellent links Florence and your advice 33762FL. My boyfriend and I live together in a small apartment and share rent and utilities. I'm not sure I will be able to move back home, but I will toss the idea around in my head for a while. My parents live about 30 minutes from the major city with lots of hospitals and my car is very old and on it's last legs. With the price of gas nowadays it may be better for me to live near my work.

Florence NightinFAIL, BSN, RN · May 25, 2011

I really recommend the book by Dave Ramsey - Total Money Makeover. In the spirit of saving money - don't buy it but borrow it from the library!

Start an excel spreadsheet and track where your money goes each month.

Hey also has an iphone/ipod touch app if you have one of those. It's important to surround yourself with reminders about your financial/debt plan.

canchaser, BSN, RN · May 25, 2011

Op, stop beating your self up. I know lots of BSN students that have $60000 in debt. My self included. I have a friend that was bullied by a 4 year school and "flunked" clinical cause of a stuttering issue. Then completed at a 2 yr school and was 60 Grand in debt. U can make it on what u will end up making. Its a struggle but hang in there.I just want you to understand you are not the only one to make a "stupid" mistake. My story is something like yours.

cogath · May 25, 2011

I don't have any technology, not even a smart phone. I have a 5 year old laptop and a $20 phone and that's it, not even a television :) I don't believe I have a right to own a television or fancy gadgets because of this debt. I really do need to start budgeting, though, and will look for spreadsheets on the web. I do go out too much, and we have a chronically ill pet, but I'm a little nervous/embarassed to see where my money is going.

RedChair, ADN, RN · May 25, 2011

I have to second the advise on Dave ramsey. Even if you don't go "Gazelle Intense" you can make a LOT of headway by following the basic principles.

Good luck to you honey. Stay focused. :clown: You can do it!

cogath · May 25, 2011

Thank you for the reassurance Canchaser. I just get nervous. What are you planning to do once you graduate? How do you feel about your debt?

The only real "unnecessary expense" that I have is my chronically ill pet. We rescued her when she was older, and should have never taken her on, but she is part of my life now and I adore her. However she has a chronic, progressive illness that we discovered after rescuing her, the vet bills are expensive but I can't help but feel I have a sense of responsibility for her and don't want to just abandon her. However her lifespan is projected to be shortened by this illness.

allnurses Guide · May 25, 2011

Cogath,

Have you looked into the National Health Service Corp or other loan repayment programs? Basically, you have to work with an underserved population for a couple of years and they give you money towards your loans. I did that when I got my NP and was $72,000 in debt. I work in a community health center and NHSC gave me $50,000 in return for a 2 year commitment. I'm not sure what the deal is for RNs, but you can check out their website for info (Google National Health Service Corp). Good luck!!