I am 26 and a single mom living with my parents. Im not receiving child support but might be soon. I graduated from college but not before a huge mix up had me owing my school 5000 dollars. This money was due a year ago and I’ve been trying to make small payments when I can but its only added up to a little over a hundred dollars and the school added about 70 dollars more every month.
They said I couldn’t work out a payment plan and they plan to turn me in to a collector soon. I have two school loans that I’ve gotten deferred but the third was a private loan from Sallie Mae that im having all kinds of trouble with. I make about a thousand a month due to taking care of my son full time. I have two credit cards pretty much maxed out to limit of 1000, a car loan, phone bill, insurance, and a furniture loan. My bills (not counting the school money or Sallie Mae) and groceries are just below what I make. Im trying to pull my self out of the whole I dug a few years ago but with a baby it isn’t easy.
My question to you is what do you think is my best option?
I talked to ClearPoint and they think they can reduce payments by 200 a month which seems pretty nice. Of course they can’t do anything about the school loans. Is this my best option or should I look into debt consolidation or bankruptcy? Im pretty bad off credit wise and don’t want to make the wrong choice.
What is my best option?
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