Money View - Your Personal Finance Manager
So the first question I guess you've got is if you qualify for debt consolidation. Poor credit isn't necessarily a barrier to you getting a loan to consolidate your debt as the companies understand your situation. There does though have to be an explanation when you apply for a loan for debt consolidation.
Was it a problem with your job? Was it down to ill health? You also need to explain what has changed now and how you will be able to meet the new payments. Try not to be over optimistic here. And for goodness sake tell them the truth, if you don't they will almost certainly find out and you'll fail. They're trained to spot lying by applicants.
Of course if you are consolidating bills from credit cards you will probably find that the lower interest rate will make a huge saving in both the monthly repayment and the overall cost of the loan. Just don't make assumption though. Check it out carefully. It's your cash that we are talking about here and no one will take care of it better than you.
That's simply because you're far less likely to panic if you see the price of your stocks fluctuate dramatically. Another basic is something you no doubt heard as a child - "never put all you eggs in one basket". It's as true today as it ever was and will be forever no doubt. Of course we all want to be in at the bottom of the latest, greatest stellar investment but to put all your cash into that one stock isn't investing its gambling.
While in college funds may be tight but the self discipline of providing for yourself in the future will be great way to learn the skills that you will also need in building your career. In fact investing money while in college has so many benefits that it should probably be included on the curriculum.
Here we are unexpectedly in a traumatic situation and we get hit by the double whammy of sudden debt and guilt! If you think it will never happen to you don't be too sure. Think of something as simple as an accident, it doesn't even have to be your fault, and you get hospitalized for a couple of months.