Friday, May 16, 2014

Facing the numbers

On December 12, 2012 I completed my MSN (master of science in nursing), graduating with a 3.50 GPA from University of Texas at Arlington. I was going to be a Family Nurse Practitioner, pending my certification.  I felt little, if any sense of accomplishment (did not attend the commencement ceremony) as worry over my mounting debt consumed me. I was afraid to calculate the total.  I avoided looking at my checking or savings account.  The savings account was empty, for all intents and purposes,containing less than $20.  I was using my credit cards for groceries, gas,extra expenses and overdraft protection. I was still working but had only been able to manage part time the final semester, as I had to complete 360 hours of supervised practice.
   While I would like to imply that the spending was for education expenses, the truth is I had also spent foolishly, piling up debt for things I did not need. I felt guilty, anxious and embarrassed.  In my eyes, I had failed. One sleepless night, I calculated the total.
Car loan (5% interest) - $6,600
Student Loan 1 (private loan at 9.9%) - $11,500
Student Loan 2 (private loan at 10 %) - $8,500
Student Loan 3 (Stafford Loan at 4%)- $2,300
American Express Credit Card (10 % interest)- $16,500 (limit $17,000)
VISA Gold (9.9% interest) - $10,900 (limit $12,000)
VISA (10% interest) - $9,900 (limit $10,000

A grand total of $66,200 (not including my mortgage) that was quickly growing with interest. 
    I calculated what I would need to pay it down in three years. No, I couldn't do that.  Four years?: still to high.
    I settled on trying to discharge the debt in 5 years, and saw that it would still be extremely difficult.
    I calculated the hours I needed to work to obtain the required income and was immediately discouraged. There was no way I could make even the minimum payments on one full time job.  I needed a second job or consistent overtime.
 I debated loan consolidation but that was unlikely considering the total amount I owed and my declining credit. Just over two years ago, I had credit scores of 775, 750 and 720.  Now, my highest score barely climbed into the 700s. While I had managed to remain "current" with payments, I was drowning in debt.
  

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