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Subject:  I'm a Newbie & I need advice on CC Debt Date:  10/17/2005  4:30 PM
Author:  Fool1Day Number:  212728 of 313069

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."

**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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