Dear Bruce: I signed for my daughter's college loans with the PLUS program. Unfortunately, with her salary as a schoolteacher and having a child, her family cannot afford to make any payments, so we are making them.
My name is on the loan, so I am responsible. The interest rates are just under 8 percent. I have been paying on them for two years, but most of it goes toward interest. The loans’ principles have only gone down $1,600 from the $30,000 they started with. What is the best way to pay off these loans? Should we consolidate? — S.L.
Dear S.L.: There are any number of programs available where you can renegotiate loans such as the PLUS loans or simply money that was borrowed to pay tuition and other expenses. The interest rates are not unreasonable, but you can do better with proper research.
The first place to start is at the schools where the money was borrowed. They have the resources to direct you where to apply and what can be done to reduce the payment. Certainly, you should look into consolidation.
Dear Bruce: I filed bankruptcy in 2009 and since then have paid all my bills on time. In the last couple of years, I've paid them in full to not incur any interest. I am using only 11 percent of my total credit available, and all of my debt, other than my mortgage, is on 0 percent cards. My credit score has gone from the high 500s to just over 700.
My dilemma is that I seem to be able to get credit from just about any company other than airline credit cards. They say I’ve opened too many accounts in the last two years. What should I do? — A.V.
Dear A.V.: It seems to me that your dilemma isn't really a dilemma. Since you filed for bankruptcy, you have paid all your bills and done everything that was necessary to regain your former credit standing. You're only using a modest amount of your total credit available, and that's to your benefit. I wouldn't worry that you can't get credit cards from an airline company. What difference does it make? I have never had an airline credit card, and I get along very well.
Be selective among the cards you are opening, especially with the interest rates. That is the most important thing. It might be possible that you have opened too many accounts, but I wouldn’t worry about it now. You did a great job recovering from bankruptcy. Enjoy that accomplishment.
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