I’m Currently Reading Your Book How to Eliminate Debt Like a Pro and Have a Question. – Julie

“Dear Steve,

Hello. I am currently reading one of your books eliminate your debt like a pro. Here is my situation. I have debt mostly school debt. I ended up being sick in the hosptial half way through college with bipolar. I went to school in order to get health insurance. Now I have tons of debt that I owe back. I owe nelnet student loan services 7687.00. I owe lansing community college directly 3712.00. I owe 455.00 on a credit card from my credit union, and I owe 3200.00 on a loan to my credit union.

This loan was taken out to pay the difference to a person I sold my leased car to. I was paying 315.00 a month but no longer have the car and am using my bf’s car. My income is 1040 after taxes.

My minimum payments are 25 dollars on lcc loan, 97.50 on nelnet, 73.00 on credit union loan, and 12.00 on credit card. Please tell me what I should pay first off. Also my Job is not very secure as the person I care for is very sick. I wish I could go on disability for my bipolar disorder but I cannot afford to.

My expenses with rent for an apartment run about 540 a month. My job is kind of secure but kind of not. I hate being in this situation every day. I am angry, depressed and have bought numerous lottery tickets to try to get myself out of this mess. But I stopped doing that- and that’s a good thing.

What should I pay off first???


Dear Julie,

I’m glad you are reading my book Eliminate Your Debt Like a Pro and hope you find benefit from it. Others can download it for free by following the link.

Student loan debts are a priority debt. Falling behind on those debts can create a big issue for you so of the debts you cited, that would be my priority.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

I’m not certain if the loan to the community college would be classified as a student loan or that is a loan between you and the college.

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The problem is that the underlying issue is that while you have relatively low balance debt, it really doesn’t matter since the debt is more than you can handle.

As far as future medical debt goes, you might want to find out if you are eligible for Medicaid in your state, based on your income.

However, if you find that you may be latter sued for the balance of the car loan if the car was repossessed then bankruptcy may be an appropriate solution. In fact now bankruptcy might be an appropriate solution if you wish to close the door on the old debt and focus on the student loan debt. If you would like to look into getting rid of your unsecured debt then click here to find a local bankruptcy attorney.

I understand the desire to purchase the lottery tickets as a magical way out of the situation but the odds are not in your favor that you will strike it rich. Just something to think about.

Please update me on your progress by

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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