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Author: Fool1Day Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308881  
Subject: I'm a Newbie & I need advice on CC Debt Date: 10/17/2005 4:30 PM
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May need to sharpen your pencils!

Need advice on how to best tackle CC debt and prepare for retirement at the same time. Presently no funds in retirement & 20-25 years is maximum time left before I "officially" retire.

Due to industry-wide downsizing two/three years ago, I have been under-employed and I currently work 2-3 jobs "to try and keep my head above water." During this same time, I experienced additional financial hardship due to medical bills. Please note, these credit cards were not used for "shopping sprees" or big-ticket items. Only medical bills and emergency type items were charged on the cards.

GOOD NEWS is I've been offered a full-time job which includes health insurance, 401K company match, and other benefits. We are still negotiating salary/bonus structure; however, the base should run in the 70's with potential earnings of 100K.

Here are the numbers:

MBNA CC: $14,770.00 @ 8.9% (Closed by MBNA)
Visa CC: $ 6,000.00 @ 8.9%
Discover: 10,145.00 @ 24.99% Universal: 9,000.00 @ 15.99%
Office Depot: $685.00 @ 22.00%
BFC: $4,400.00 @ 24.00%
Student Ln: 1,098.00 @ 9:00% Deferment ends 11/05; Balance: $123,530.00

QUESTION: Can I realistically eliminate my CC debt and student loans in a reasonable amount of time, plus prepare for retirement with the above mentioned earnings?

Selling my house and should make $60,000 from the sale. Thought this money should be applied to Student Loan in one lump-sum payment. Comments/feedback?

Is there any hope for me to enjoy a Foolish Financial Future?

I don't want to declare bankruptcy, as was suggested by a reputable consumer counseling agency. It is my moral obligation to pay these debts, no matter if the circumstances surrounding these events were unfortunate or "ill-timed."

Notes:
**Discover: Closed by Discover after successfully completing reduced payment plan. Even though my payments continue to be on-time and above minimum, the Supervisors will NOT negotiate for lower rate.

***Universal: Successfully completed a one-year reduced payment plan; however, they closed the account.

Your assistance and insight will be greatly appreciated. Please accept my thanks in advance.

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