debt advice - Debt advice from the counselors

Debt advice from the counselors

Before Hibbert Hill left for a study-abroad program in Australia last spring, he signed up for another credit card. One more wouldn't hurt, thought Hill, then a sophomore at Iowa State University. "I didn't plan on using [the card]," says Hill. "But Australia was a blast." The price tag? Over $10,000.

Luckily for Hill and others in his predicament--the average college student carries $2,327 in credit card debt--some schools are providing credit counseling to their students. Montana State University in Bozeman, for example, operates Student Advocates for Financial Education. During a typical session at the busy office, counselors help students map out a budget, track expenditures, and find ways to cut back on expenses. "Tuition has gone up, the cost of living has gone up, and student wages have not kept pace," says Deborah Haynes, an associate professor at the school who oversees the program.

Payback. Students up to their ears in debt can also turn to nonprofit credit counseling firms. These organizations can work out repayment plans directly with creditors or consolidate bills into one monthly statement, something on-campus centers may not be able to do. But be wary of scams. Counseling should be free or nearly so, and debt-management plans shouldn't cost more than $50 to set up and $35 in monthly charges, says Travis Plunkett, legislative director with the Consumer Federation of America.

Back at Iowa State, Hill struggled to make ends meet, barely affording the monthly minimum charge on four credit cards and a line of credit. He went to the Financial Counseling Clinic at Iowa State, which offers to work with creditors to lower interest rates, but quickly realized he needed a more disciplined approach. He left school to move in with his parents in Minnesota and is now taking classes at a local community college. And he signed up with Lutheran Social Services, a nonprofit group in Duluth, Minn., that offers credit counseling and debt management.

Hill is now on a tight budget. Two thirds of what he earns each month working at a bank goes toward his credit card debt: He pays $65 to Lutheran Social Services each month--the organization keeps $5 and disperses the rest to two credit card companies--and coughs up an additional $420 to pay off his other cards and the line of credit. "It's a big burden," he says. "But it's going to be solved."

Related articles for debt advice
1. Facts about debt consolidation loans
2. Can a debt consolidation personal loan benefit me?
3. Using caution with consumer debt consolidation loan
4. Free Information About Consolidating Debt
5. Debt consolidation - More Options for Reducing Credit Card Costs

Editors picks: debt advice
6. The best strategy to erase credit card debt
7. Debt Consolidation Advice from the pros
8. Debt Consolidators
9. Tell tale signs you need debt consolidation and bill consolidation
10. All you want to know about Debt Consolidation Mortgage Loan 101

Premium articles: debt advice
11. The Case for nonprofit Debt Consolidation
12. Guide to business debt consolidation loans
13. How to get a Debt Consolidation Loan
14. Debt Consolidation Loan Calculators
15. Three Debt Consolidation Options - Think twice

Recommended Reading : debt advice
21. Understanding debt consolidation program
22. Debt consolidation companies and the resulting confusion
23. Debt consolidation agencies and how to choose them
24. Cheapest debt consolidation loans till payday - Using Cash Advance Loans in an Emergency
25. Debt advice from the counselors

Related books for debt advice: N/A

Related resources for debt advice: N/A

Related free information for debt advice: N/A

Related tips for debt advice: N/A

Related forums for debt advice: N/A
Wyoming, Wisconsin, West Virginia, Washington DC, Washington and Virginia, Vermont, Utah, Texas, Tennessee, South Dakota, South Carolina, Rhode Island, Pennsylvania, Oregon, Oklahoma, Ohio, North Dakota, North Carolina, New York, New Mexico, New Jersey, New Hampshire, Nevada, Nebraska, Montana, Missouri, Mississippi, Minnesota, Michigan, Massachusetts, Maryland, Maine, Louisiana, Kentucky, Kansas, Iowa, Indiana, Illinois, Idaho, Hawaii, Georgia, Florida, Delaware, Connecticut, Colorado, California, Arkansas, Arizona, Alaska, Alabama.