A friend of mine is $15,000 in credit card debt. She explained that it doesn’t seem like that much because she makes $85,000 per year. Upon further investigation we determined that at her current lifestyle, she is only left with $400 per month after tax, mortgage/rent, food, insurance, phone, gas, entertainment, clothing, etc etc. When we considered that of that $400, $238 would be interest (19%x $15,000/12), leaving only $122 left to go to principal payments, she was only paying down approximately $1,500 of that credit card debt per year (not including the fees she probably pays to get that lower credit card rate).
That means that in reality, my friends $85k salary amounted to net savings ability of $1,500per year with credit card debt of $15k, it would take something close to 10 years to pay down the debt (a little less due to compounding). This was an eye opener for my friend as she had no idea how long it would actually take to kill her debt even with a relatively high salary. Sh... keep reading on reddit ➡
Sooner rather than later I'd love to be on my own as I've just turned 32. Here are a few of my current issues:
I ((M22) manages to pay off all the credit card debt and last semester of college off today. My parents have never been able to financially help me out significantly so I am proud to say that I did this on my own and am very proud.
Hello guys wow I woke up today and read through all the comments and I really do appreciate all the kind words. I’ll delve a bit deeper into my situation because I do believe I am one of the lucky few mixed in with a bit of hard work. A real American story lol. My parents are first generation immigrants in this country so I do not blame them for their financial situation and we all learned of financial literacy together, in many ways I learned to appreciate the struggle because it gave me an important perspective to money from a young age. College debt is massive financial killer for so many young and old people here so I made a conscious decision to attend my city university where the tuition is pretty low in comparison to the rest of the country i... keep reading on reddit ➡
I got manipulated into attending the University of Phoenix when I first moved to the U.S and didn’t know much about colleges here, and they said they would accredit the undergrad degree I already had from my country, so I took the opportunity to pursue two masters with them. Little did I know this university was not credible and I’ve been trying to pay 100k in student loans for the past 8 years. I can’t land jobs that require degrees even with my masters that were supposed to be promising (MBA and MAED) since most people know the truth behind these for-profit schools and do not take them seriously. I am losing 10% of monthly income to loans, and my salary is already low. I recently heard about how UoP was sued for using misleading information to lure people into their school who don’t know better. These loans ruined my credit and my life has been hell trying to pay them off since moving to the U.S. I wanted to know if anyone could offer me any advice on paying this off since I heard th... keep reading on reddit ➡
My wife and I are early 30’s, have worked hard, caught good breaks, delayed gratification, and have paid off student loans and our mortgage. We are now debt free and own our home outright.
I realized if you want something different than everyone around you, you will have to do things differently. This may lead to people calling you frugal, or saying you shouldn’t pay off your mortgage.
Each choice I have made to attack debt or not take on new debt has led to the next, and once you pay off debt it impacts your decision making moving forward. You really don’t want to take on any more debt. It is too much work to pay it off to go through it again.
I realized after graduation that paying off my student debt in 3 years instead of 15-30 will save $100k +. Lifetime earnings are finite. I turned down my ego, moved in with my parents, worked and worked overtime and put everything I made towards my student loans for 3 years.
Sacrifice: living with parents for 3 years and driving a $3,500... keep reading on reddit ➡
I see a lot of people who go to really competitive private schools that cost 70k+ per year but then complain about their debt afterwards. There are so many options to get a cheaper college education, and almost anyone who’s competitive enough to get into a T50 school can take advantage of them (except maybe international kids). There are state schools, community colleges, cheaper private schools, and other private schools that give general merit aid. When you make the conscious decision to go to a top private school that costs 70k a year (looking at you BU, NYU, UChicago, Ivies) and pass up the cheaper options, I don’t feel bad because that was a decision you made knowing the consequences.
Really wanted to share this despite what's going on right now.
26/M Toronto, had $24,000 OSAP and $30,000 Car Loan in 2018, lived paycheck to paycheck, and evicted because my parents couldn't pay the mortgage.
I started budgeting and saving, work 2 jobs, and had to make a lot of sacrifices to make things work.
Today, I'm finally debt free and I can start building my Financial Freedom, all thanks to you.
Please share your success/progress stories to motivate others to start!
Just the title, it’s been a journey.
Edit: thanks everyone, what a positive community.
A couple of years ago one of my relatives thought he had cancer and instead of going to see a doctor he ran up every credit card he could get approved for and was then diagnosed with something pretty easily treatable. At least that's what he claims. I think it was something else, but either way, here we are. He's about $40k in the hole. Most of these debts are credit card related, with a healthy sprinkling of medical and tax debt. He only makes in the $35k ballpark per year. Has zero assets.
I think the obvious option is to hunker down, get multiple jobs, and live under a rock when not working. The problem is that he is struggling to pay it off but interest is just killing him. Are there any other options here? I keep hearing that bankruptcy might be an option. I know less than Michael Scott about bankruptcy. I have suggested he got to a bank and try to get a debt consolidation loan. He says he has tried but his credit is too far gone for that.
Any suggestions here? Has anyone been... keep reading on reddit ➡
Remember the Republicans shut down the government over an imaginary debt ceiling they just drew on the wall? They literally stopped governing over it. We're $25T in the red now, several times bigger in debt.
I used to struggle with drugs which took me down a path of partying and blowing away my money. I eventually took out a few credit lines and blew it all, about 40k plus credit card debt another 25k. I got anxiety looking at my bank account. I felt embarrassed to tell anyone the truth.
I started reading this subreddit. I read about people working on their spending, slowly chipping away at their debt. I read about people posting they are debt free. I read about people investing. I read about people putting their lives together. This encouraged me to do the same.
I slowly started paying off my debt. Found new healthy hobbies with sports/exercise. 4 years later I am completely debt free, everything I save now will be to invest.
Thank you to all the people that posted about working on their debt and letting me know I am not alone, this really encouraged me and got me going.
To anyone out there who is reading this and scared, you can do it. The hardest part is just starting. If you need e... keep reading on reddit ➡
Hi Reddit, I'm Scott Adkins and I pretend to kick people in the face for a living. I've starred in films such as The Expendables 2, Doctor Strange, Avengement and the Undisputed franchise. My new movie, Debt Collectors is OUT NOW. Ready to answer any of your questions.
LINK TO FILM: http://www.samuelgoldwynfilms.com/debt-collectors/
My wife and I married young, at 23, and now at 27 she’s about to graduate from law school. The issue is she has a ton of student debt, around 195k from both undergrad and now law school.
But over the past year she’s completely changed her mind about law and becoming a lawyer. She now wants to teach and do Teach For America after graduating. She told me this past week. We’ve talked about this at length and she wants to do this because it’s her new dream job (previously it was law).
I’m upset because if she teaches her starting salary will barely clear 35k in the first few years and we live in a really, really expensive city. She has no intention of going back into law later as well as she says law school was a mistake.
Last night we were talking about the future and she mentioned our plans to have kids in a few years and how she’d like to be a stay at home mom in a few years as well. I looked at her and asked how she thinks we’re going to afford that when we’ve got near... keep reading on reddit ➡
Things are tight and I could use the 250 a month on other things but worry about a nest egg.
Takes about me about a year to save $2000 (assuming nothing happens).
I could lower the insurance if I owned it free and clear.
Any other suggestions or things I'm not considering, would really appreciated it.
Thank you all for the responses! So many ideas and guidance I hadn't thought of, I'm reading everything, you all are great!
job secure for a year at least
A contributor pointed out that we are in pandemic and with oil and food going wacko, suggested I hold onto my reserves for a while just to see whats going to happen.
Based on all the advice given here, I think I'm going to wait for about 3 months and see what happens with the economy. Then if everything is still functioning, will do a double payment to end the debt early, thereby keeping my reserves *(for if the roof leaks, water heater breaks or furnace
I'm $30K in debt and it will be around 15 more months before I'm debt free. I get stressed out about it so I like to play a game where imagine what I would do with my monthly income if I wasn't in debt. I think I would still remain frugal, probably save most of the money but focus on getting back to travelling the world. What about you guys? Does your mindset change once that debt is gone?
As I understand, HECS Debts were indexed at a rate of 1.80% last financial year. Inflation has since risen to 2.20%.
It is so absurd that we are told not to be concerned about our student debts growing, whilst the interest they are now subject to is almost as high as a god damned mortgage.
This isn’t as much to worry about for people with smaller HECS liability, but for people such as myself with higher HECS ($90k~ after postgrad), it is virtually impossible to make a dent with a graduate salary. In many cases it will grow at a greater rate than it is paid off.
And before anyone uses the “its not really growing, because everything is inflating by 2.20%!” line, i would encourage you to take a look at our country’s wage growth. Both where it is now, and where its forecast to be in the years ahead. For this increase to be fair, wage growth would need to be in line with inflation, and it absolutely is not.
Absolutely cooked. As an employed masters grad in this country, i 100% wish I di... keep reading on reddit ➡
I've been working as a Software Engineer turned ML Engineer for a few years now. I have spoken to many young people in the ML community who are unaware of what technical debt is and how it can be dealt with in a production setting. I have a feeling that there are many talented data scienctists out there who are simply not taught how to use tried-and-tested software engineering practices, either at university or in online courses like Coursera and Udacity. This leads to scattered scripts, notebooks and glue-code in the exploration phase which requires effort in the time of weeks to get into production and/or automate.
I put down my thoughts on the matter, with some practical advice on how teams can avoid accumulation of technical debt as they productionalize their ML pipelines. I'd like to know if this resonates with you, and what your ML teams plan is to balance "proper coding" against quick dirty model iterations. Cheers!
I just need to get this off my chest because I don't really have many options to turn to. I'll be upfront: this is my fault. But I really don't want any of you guys/girls to make the same mistakes I did.
I went to b-school at a top 15 school, coming from an operations background. It was a niche industry and I wanted to learn more about what the world had to offer. Before business school I went with a beautiful girlfriend who is super smart, but we knew we were going to do a little bit of long distance. I got sold from admissions that my life was going to change dramatically after school, that we are all the next thing since slice bread, we're all very ambitious and going to make a lot of money, and we could do whatever we wanted.
Well here's the first thing I did wrong: I did not do on campus recruiting. After learning what investment banking actually was in November, I was told over and over again from career services that I could not do an IB internship because it was too la... keep reading on reddit ➡
I just checked my credit report because my husband and I are talking about buying a house. When I checked my score it was down around 35 points. I checked further and found that there were 2 medical bills from over 2.5 years ago that had gone to collections.
The weird part is I have no memory or record of those medical bills. I had one bill from that hospital and I paid it. I have been called by the collection company before, but I honestly blew it off because I always pay my bills on time and I thought it was a scam. The collection company never sent me any written notice of debt and I don't think I received any bills from this hospital for these amounts. Also the bills are from dates I was not at the hospital and for nice round amounts, which rarely happens with medical bills in my experience.
I am not sure what to do. I have looked online and on the wiki, but I am still so confused. Because the debt is so old, I don't know what rights I have or if I can dispute it. I really want... keep reading on reddit ➡
Congratulations baggies for buying a bankrupt company. Hertz is now asking court’s permission to issue more shares as that’s essentially free money now that all retail fools are buying it.
Source : https://twitter.com/teslacharts/status/1271205620482478081?s=21
DONT LET IT HAPPEN . It’s a massive pump and dump to wipe out debt via RH/WSB baggies who are gambling stimulus money.
DONT LET IT HAPPEN . Show them who we are. WE. ARE. WSB. Short it. Buy puts. Buy some other stonk.
EDIT : Moar proof of blatant bag unloading on poor suckers. https://twitter.com/teslacharts/status/1271227084606713857?s=21
EDIT 2: ZeroHedge wrote and article with more details. Damn these crooks ! https://www.zerohedge.com/markets/most-absurd-moment-history-capital-markets-hertz-plans-sell-1-billion-new-bankrupt-stock