Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

A New Plan for the Student Loans

Bailey is behind on her $24,000 in student loans. Dave tells Bailey she needs a new game plan.

QUESTION: Bailey in Nashville is behind on her $24,000 in student loans. She makes between $1,000 and $2,000 a month. Collectors are calling her family.

ANSWER: She has no definitive career plans other than going back to school later. Dave tells Bailey she needs a new game plan.

The collectors are aggravating you and, when you're behind on a bill, that's their job. They want to embarrass you and hurt your feelings and get you angry so that they get attention. They can call other people besides you, but they can't identify themselves as a bill collector and they can't say that you are behind on a bill. As long as they don't, then they have not broken the law.

You are young, and you need a new game plan. You have $24,000 in mess to clean up, and it's tough to do that when you're not even making $2,000 a month. You have to get your income up. If you kept waiting tables and got another job, that would double your income. Then you could address this and be done with these people.

Get more jobs and get your income up. You might babysit or something else. You'll have to pay a price to clean up this mess. You've got a big hole and a small shovel.

I don't blame you for being ticked off at them, and I don't like the fact that they are bullying and shaming you. It's completely out of line and, while it's not illegal, it's really low class. Look at this as a wake-up call to do something, because if you don't, you'll be 26 years old and making these same calls. You have an income problem.