Debt and saving?

I'm 28 yrs old. I have about 6,000 dollars in Credit card debt. I recently decided to go back to Grad school which will end up creating 50000 in debt probably. I'm already 28 years old and have no savings. My job doesn't offer 401 or anything. I make 34000 which in NYC is not much at all. I work with senior citizens so it has opened my eyes to the truth of aging with no money plan. I am so nervous that i'll never be able to save for the future with this debt accruing. i figured going back to school is a good investment, it just makes concerns me. Was I wrong? will i ever be able to save? should I start putting little away now? should i switch jobs?

Start saving now... but make the credit cards your priority.

Grad shool is only a good idea if it fits within a good financial plan. Don't enter grad school with credit card debt... it will only get worse. You are right, 34K is not much in NY, but it is about average for the US. You might be able to switch jobs or location to get yourself financially right...

What degree do you have? What Grad plan are you considering? What are the employment prospects for you after you graduate? Can you find an employer who will pay for your graduate degree?

No way to answer your question authoritatively. If going to grad school will enable you to get a higher-paying job, and you'll earn that $50K tuition cost back through higher wages over 3-5 years, it's probably the right thing to do. If grad school isn't going to open the door to a better job, then it's not a good idea to take on $50K of debt for no return.

Can you get another job now that will pay for your grad school? Can you go to grad school at a cheaper university so it won't cost so much? Can you work at the college so your tuition is free or discounted? Can you marry someone who works at the college to get free tuition? (well, that might be a little extreme ;) ) Would relocating somewhere else make any of those things possible? I would try hard to explore any options that could get you through grad school without having to pay the full $50K yourself.

I agree that $34K in NYC is not very much. You might want to consider looking for a better job in a different location, or a job in a different field.

The reason you're nervous about the future is that you have probably never sat down and made a plan. What will that $50K of tuition actually cost you when it's time to repay it? Is it a very low-cost loan? Is there any way to start knocking down that credit card debt? Owing over two months' salary on credit cards is pretty high. Look at some "frugal" sites to get creative ideas on how to reduce your cost of living and use that savings to pay off the credit cards.

Do you have any savings at all? If not, you should address that at once. Can you find a way to save even $20 a week? That will get you a $1,000 savings account in a year. If you have no savings, do that first before knocking down the credit card balances. Once you work out a plan, you'll feel a lot better. It may show you that you need to make some changes in order to reach your goals, but at least you won't be nervous about the unknown any more.

It's important to do something you enjoy, but I have to say if you cannot make a decent living at your job, it might be time to look at a different career, especially if the $50K grad school debt won't even pay off decently. Good luck to you!

You must always be careful with credit cards, car loans, mortgages and debt consolidation. Persoanlly, I was in debt of over $100,000 at one point in time, roughly 4 years ago. I am proud to say I am now DEBT FREE. It is very confusing on what to pay first how to chop down your debt, but there is a lot of good content out there to help. I have also started my own blog to help people out by talking about what I think is important. Check it out sometime!

http://credit-and-loans.blogspot.com/