My dad advised me to ignore all my credit card/student loan debt?

last night i told my parents i was in $13,000 credit card debt, and about another $15,000 student loan debt. my job sucks right now and can barely pay. my dad advised me to just ignore everything till they sue me

but I dont really wanna be doing that, not until it comes to last resort and Im out of ideas. but right now, If I work overtime, I am sure I can make $2000 per month, and will be able to save about $500-$700 every month, going towards the payments. and if I keep doing that, a little bit over a year I'd be out of the $13,000 credit card hole.

as for the student loan, I think I can live with it for a while, $280 per month isnt too stressful just yet. but all i wanna do is get out of the credit card hole right now, and i think i can do that if I work hard i can get rid of it in less than 2 years.

the main reason why i dont wanna just ignore the debt is because I plan on getting a nice apartment one day, i dont wanna be renting basement suites for the rest of my life, and i plan on getting a car someday too.
Additional Details
consolidate how do I do that i cant get any more credit as it is im maxed out

I hate to say this to anybody, and you sound like a nice intelligent kid who just made some poor choices, but your father is a fool. You are on the right track. Pay the bills, do NOT destroy your credit and as Dave Ramsey says "Don't ask for financial advice from a broke person".
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another. The holidays are coming and there will be plenty of temporary jobs available. It is better to have a no fun year or two than a no fun decade.
C.Whatever you do, DO NOT do a loan consolidation. It goes on your credit report like a bankruptcy, you end up owing more than when you started, and it takes you longer to pay it all off.

Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.

2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.

3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment

Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment

Debt #1: paid off
Debt #2: paid off
Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.

5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.

5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.

You can do it and it isn't as hard as you think. Just follow the plan.

Your plan is a good one. I don't want to bad-mouth your father but his advice is the worst you could get. It would ruin your credit for years and years to come.

Trust your instincts. They are good ones.

Your "dad" is the last person to give you advise. He sounds like he has practice as that - running from his debts.

Make your payments. See if the companies will close your accounts and set you up on a payment plan that is reasonable.

Your dad's advise will hose you for years and cost you way more in money and credit.

Your dad is an idiot!
Pay your bills and keep your credit score intact!
Try a credit counseller, but use one that is a non-profit; they will make arrangements you can live with and also satisfy your creditors.
Good luck.

What you have to do is try to not spend any money on anything that is unnecessary, like junk food or movie tickets.
Then, you start poking around for a better paying job that you can live with. Once you find a really good offer, apply and wait for an answer.
If you've got the job, quit the one you have now and work on the better paying one.
Then, you work out a plan on how you can pay off bits of your dept.

With the money and job you have now, you can try paying perhaps ten dollars extra every month than you do now, and that will help you get out a little faster.

Never just give up. That won't help anything. YOU have to work hard if you want to succeed. I hope everything works out.

Your dad is wrong. DO NOT ignore the debt, especially the studen loan debt. It will not go away under any circumstances. Call your studen loan company and see about getting a lower payment or a different type of payment plan. And you are on the right track with paying the credit cards. Just work and pay them off. I admire that you want to be accountable for what you owe. That is a good quality to have.

psalms- Just keep doing what you've been doing. If you listen to your dad you will just dig yourself a further hole. Keep it up and one day you can look back and say "Nice Job", I did it all by myself. It will be very rewarding.

As a person who had a little bit of trouble with student loans I'd recommend that you defer them. I did mine online and it only took a minute or so for a pre-approval and then another day or two to tell me for sure. I've applied for 2 so by the time it's over... I'll have had a year of no payments.

As for the credit card debt.... *sigh* lol idk why everyone insists on giving us credit cards when we're so young. What you need to do is transfer your balances to a lower interest. We're in such a period of financial crisis right now, more and more things are being forgiven.

So perhaps you want to just defer the student loans by claiming financial hardship.... and concentrate on getting that credit card balance down. If the debt is old you also have the option of coming up with a payment that's much less than you owe. Say for instance you had a 10,000 dollar debt that was old... you could contact the company and say hey...I really don't have 10,000 but I'd like to work with you on getting this resolved. Maybe we can come up with a payment plan. I did this once for a card that I had when i was 18. It had grown to about 1200 and I ended up paying 500 dollars to have it settled.

I guess the main thing is to just contact your debtors and seeing what available options you have. Good luck.

Ignore you dad's Advise. Failure to make payments on credit card debt and student loans is irresponsible and have dire consequences. Not only will failure to pay you debt on time negatively impact your credit history and score, it may also affect your ability to secure certain jobs. If you intend on purchasing or leasing either a car or apartment it is important that you maintain a good credit history and score. Your credit score/history will affect your ability to secure a mortgage, a decent interest rate and financing to purchase a car.

In addition to a criminal background checks, employers are now checking potential employees credit report/history. Hence you may be denied a job because you fail to buy your bills, which led to you having bad credit.

Student loans are loans that are almost impossible to erase. In order to rid yourself of student loans, you simply have to pay it off. Student loans will not be discharged in bankruptcy.

It sounds like with a bit of hard work and determination you can rid yourself of debt. It best to to pay off you loans. If it is to burdensome to pay both you credit card debit and your student loans simultaneously, then a you can request a forebearance from your student loan company. You may also want to contact your credit card company to request a lower interest rate. Additionally you may want to pay your bills each time you get paid instead of once a month. Also you want to check out financial advise Suze Orman, books and TV show.

Sorry dad, but poor advice. You'll be screwed for years to come. Your debt will feel like a boulder strapped to your back until you pay it off. If I were you, I'd work overtime, second job, something, and get the debt paid off.

~~The student loans need to be paid off as you can not ever get out of that responsibility. The credit card needs to be paid maybe only the minimum till the student loans are paid off. You will incur huge charges getting behind on the loan payment. You are on right track with overtime and everything else you can think of to earn extra money and pay it towards your debt. Anytime you are late on debt payments you will be scored accordingly and this stuff stays on your record for 7 years! Do everything you can, budget your life so everything you earn beyond living expense goes towards these debts. You don't want to start life with bad credit, life is hard enough why make it really difficult. Keep a paper posted where you can really watch your debt totals reducing, this will give you a visual of your progress! Sure makes it easier to stay on target then. Great credit is the best gift you can give yourself, so do not let anything get in your way, just keep hacking away at it, it will reduce (quicker than you think) and stay out of debt unless it's a life or death reason. Your young and energetic with a bright future, don't make a mistake now that will negatively affect you for years to come. You can do it!!

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