LoveToGod

Poll: What is your view about using Credit?

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It isn't necessary to wait...I didn't and I wasn't suggesting that a person has to do so...the concepts mentioned really do work and they work regardless of when you start.

Again, I encourage to read some of the threads on this board about student loans...I guarantee you every single person who has posted a horror story about them thought EXACTLY the way you did...the only thing worse than owing the the DOE is owing the IRS.

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If you look, you'll notice I've posted in Student Loans quite a bit. I've already dealt with a few horror stories of my own - lesson learned. I rehab'ed 2 loans. I stopped posting thre for a while because some of the experts there were less than polite so it became a waste of time.

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It's all a matter of how much you're willing to do in order to come out of school debt free. It's not an easy thing to do. You choose to minimize expenses and work full time, but borrow some money. It's your choice, and there's nothing wrong with doing what you think is best, but that doesn't mean it's impossible to do otherwise.

You don't have a whole summer to write essays, but you have free time, or you wouldn't be on the internet, so you do have time to write them. I'm not saying there's any shame at all in not wanting to give up your limited free time, because there isn't, I'm just saying that it's still possible if it was something you were determined to do. Financing is ongoing. At this point you'd be trying for scholarships for the fall semester next year or, possibly, summer semester if you're going through the summer.

I posted what I did because you disagreed with the notion that anyone can get through school debt free by claiming that you couldn't wait on money. I gave ways to get money, even now. The fact that you chose to take on a debt doesn't change the fact that anyone can get through without it, and it doesn't change the fact that, even at this point, you could get through the rest of school without any further debt. I wasn't attacking your choice. I was refuting the idea that it's not possible for everyone.

Higher education is never an unexpected emergency situation that just has to be started by next week. It just isn't.

Graduate school too. Those aren't the only two resources out there. It was just two that I knew off the top of my head. There is a LOT of college money out there for someone determined to get it.

Point taken... I guess. I never used the work "attack", but okay. I also never implied that starting school was an emergency situation - in my case I simply wanted to get going right away. In addition, I never said it wasn't possible to get through school without debt - common sense would refute that idea on its own. I didn't disagree with a notion, I disagreed that it was the best thing route for me. I didn't want to wait - that's really all there was to that. And, as I mentioned, I will be using the resources you showed me. That should have sufficiently suggested that I had no prior knowledge of them before you posted them for me. This is all sort of a non-argument that became one...

Again, thank you, and point taken, and let's move on. ;)

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Point taken... I guess. I never used the work "attack", but okay. I also never implied that starting school was an emergency situation - in my case I simply wanted to get going right away. In addition, I never said it wasn't possible to get through school without debt - common sense would refute that idea on its own. I didn't disagree with a notion, I disagreed that it was the best thing route for me. I didn't want to wait - that's really all there was to that. And, as I mentioned, I will be using the resources you showed me. That should have sufficiently suggested that I had no prior knowledge of them before you posted them for me. This is all sort of a non-argument that became one...

Again, thank you, and point taken, and let's move on. ;)

What is your major?

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only thing worse than owing the the DOE is owing the IRS.

As someone who has owed both, let me tell you. They are equally the same! Only difference is, everyone has to deal with the IRS. Not everyone has to deal with the DOE...but if you do and you try to screw with them, they will screw right back the same way the IRS can (cause they're both Federal).

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If you look, you'll notice I've posted in Student Loans quite a bit. I've already dealt with a few horror stories of my own - lesson learned. I rehab'ed 2 loans. I stopped posting thre for a while because some of the experts there were less than polite so it became a waste of time.

I took an infraction on the board (took one on the chin) because those experts were being less than polite to folks who didn't know better. I could have just left when I was done rehabing but I felt so bad for folks who would come after me wanting the same information and then having to hear crap that folks undoubtedably were painfully aware....

I mean really, why should I or anyone else be made to feel like crap when I should not have to. And it seems to be allowed and ok....I pretty much said I am not taking any further abuse.

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I really want to add that this really is a great thread. Even though I lean toward a certain way because of programming, it really is a good thread to get other ideas on how to deal with credit/debt. I thank all of you for the participation in this exercise as it certainly gives me ideas on both sides of the fence.

As long as no one busts out insults about the other's mother...I don't see how this could turn uncivil. :D

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What is your major?

As soon as I'm finsished with Massage, it will be Chiropractic/Naturopathy. And maybe some Poli-Sci classes because I love that, too. :)

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As someone who has owed both, let me tell you. They are equally the same! Only difference is, everyone has to deal with the IRS. Not everyone has to deal with the DOE...but if you do and you try to screw with them, they will screw right back the same way the IRS can (cause they're both Federal).

I believe there is one very big difference you failed to consider; only one of these can put in jail.

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As soon as I'm finsished with Massage, it will be Chiropractic/Naturopathy. And maybe some Poli-Sci classes because I love that, too. :)

I would say if you know that you are going to make a lot of money with that major, and that you could pay off excess students loans in first year or two of employment go for it. Some majors just don't pay, but with others you can make a pretty good living.

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I would say if you know that you are going to make a lot of money with that major, and that you could pay off excess students loans in first year or two of employment go for it. Some majors just don't pay, but with others you can make a pretty good living.

The problem with that reasoning is that no one knows they are "going to make a lot of money" with any one degree/major over another...there are plenty of MDs who, when finally entering practive, make VERY good money but keep student loans around as if they are some sort of pet.

The more student loans you take, the more you have to limit your lifestyle after graduation to get them paid off quickly which begs the question, "If you are willing to do it "then" why not essentially do the same thing now and not need to borrow in the first place?

It's also a risky assumption that one will finish their program...a student loan that looked like a great thing and a "good investment" can be a real millstone if you don't finish the program or can't get the job you assumed you would get.

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That is true if you don't find a job in your field right away. It becomes an annoying pet that you have to feed, but fortunately in the worst case senario they do have deferments and forbearances that can be used and other options if one can't pay that month. They are the easiest people in the world to work with as long as you keep in touch with them and don't let it slide.

I have NEVER had a late payment on a student loan or any of these problems. I don't understand why some are battling with garnishments, defaults, and other nasty things, when all they to do is keep in touch with them. I feel sorry for them.

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I have NEVER had a late payment on a student loan or any of these problems. I don't understand why some are battling with garnishments, defaults, and other nasty things, when all they to do is keep in touch with them. I feel sorry for them.

(Sigh.....)

I won't speak for anybody else, but in my case, I was stupid. I don't apologize for it, I screwed myself and allowed the problems that not paying back a student loan does. When I stopped being stupid (and mind you this was about last year), I decided to look into rehab and now I have successfully completed it. If I ever go back to school, I am NEVER getting a student loan NOR allow my kid when I have one (or two...).

All I ask is that you please reserve judgement like that in the future. Student loans are just another form of debt that people screw up on.

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I believe there is one very big difference you failed to consider; only one of these can put in jail.

I really didn't think the IRS would ever put me in jail for me not paying $4k in back taxes. Now $40000, $400000, $4000000 that's a different story.

Looking back on it though...I suppose they could have prosecuted me for it and I did remember getting scared that I could go to jail when I made the call to the IRS to set up a $600 a month payment plan for 7 months. So I can concede that point to you...

Barring jail time though, BOTH are debts an American simply cannot evade.

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(Sigh.....)

I won't speak for anybody else, but in my case, I was stupid. I don't apologize for it, I screwed myself and allowed the problems that not paying back a student loan does. When I stopped being stupid (and mind you this was about last year), I decided to look into rehab and now I have successfully completed it. If I ever go back to school, I am NEVER getting a student loan NOR allow my kid when I have one (or two...).

All I ask is that you please reserve judgement like that in the future. Student loans are just another form of debt that people screw up on.

It was not my intention to judge you or anyone else. I was just trying to support the idea that it can be okay to have a student loan.

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It was not my intention to judge you or anyone else. I was just trying to support the idea that it can be okay to have a student loan.
Its more a question of the opportunity cost of the money. If you can fund a Roth or buy an investment where you earn 8-10% long term, but instead you pay off a 5% tax deductible student loan, then that is foolish.

When I graduate in a year, I'll have close to 85k in student loans. Roughly at 5%. I'll also own 3 properties and have over $60k in my 401k that I otherwise would not own. Yes, I could have paid my tuition, but instead I funded my 401k to the max, bought a primary residence, a rental property, and gearing up for another. I fully plan on milking my student loan payments over the next 20 years. It is cheap money. I'd be a fool to pay them off and forego other opportunities. On balance, I think its a better financial move.

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Its more a question of the opportunity cost of the money. If you can fund a Roth or buy an investment where you earn 8-10% long term, but instead you pay off a 5% tax deductible student loan, then that is foolish.

When I graduate in a year, I'll have close to 85k in student loans. Roughly at 5%. I'll also own 3 properties and have over $60k in my 401k that I otherwise would not own. Yes, I could have paid my tuition, but instead I funded my 401k to the max, bought a primary residence, a rental property, and gearing up for another. I fully plan on milking my student loan payments over the next 20 years. It is cheap money. I'd be a fool to pay them off and forego other opportunities. On balance, I think its a better financial move.

Okay, so then one could get the loans to get through school, get a good job and then shift gears and invest right? You can kind of do both at once.

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I guess I would fall into 7 now.

I feel credit is ok to buy a house (the common person can't shell out the cash for a home and if you rent you are just making someone else's payment anyways.

It's ok to buy a car on credit as long as you don't "go all out" just get yourself something reliable that isn't going to stretch you to the limit.

Otherwise, only buy stuff on your cc that you can afford to pay off at the first of the month.

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