Consumer Debt – Recent College Grad

Hey everyone,

I’m new to the group and was hoping you all could lend some advice on my situation. I graduated from college last spring (’05) with around $50k in student loan debt currently being repaid at $400/mo. I also ran up a credit card balance of $9k due to a few job changes, emergencies, and getting settled into being on my own (furniture etc..).

The $9k is on a credit card at roughly %11 apr. Would it be worth taking a consumer loan and paying this off? I have no idea what consumer loan rates are at right now.

I currently make $2500/mo after taxes, and after all my fixed expenses(rent, student loans, utilities etc.) are taken out I am left with around $1k/mo.

What do you all think I should do?

Pay down the debt as soon as possible, then start to set up a savings plan. You want to be a saver not a debter and it starts early in life. If you are disciplined you could pay off the credit card debt pretty fast without much financial restructuring. The school debt is likely at much lower rates due to federal initiatives. Again, pay down the consumer debt as soon as possible. It gets your career going on the right foot!