20 Something And In Debt

Pay off those school loans now while you are young.... the key: living below your means if you want to get ahead financially.

http://moneycentral.msn.com/content/CollegeandFamily/Moneyinyour20s/P36953.asp
from JoeUser Forums
Of course it is always beter to pay off your student (or any) loan as fast as you can without living like a hermit. Paying your loans in a quickened schedule will save more over time. Plus more of that dollar is going to pay off the actual loan you took out. Considering many who are fresh out of college (and manage to get a 30,000 job) will also have credit card debt as well, considering paying off those things while you can still work 50 hour weeks and before you have o pay for things like a house or worry about kids.

Just have to have that Toyoda Prius? Maybe going to an auto aution would be better. Some autions you can literally drive off the lot with the car (temp plates and everything)

From the article:
By Liz Pulliam Weston

The average college student is now more than $20,000 in debt at graduation. The average salary for a newly minted graduate, meanwhile, is $30,000.

No wonder so many grads say the heck with it and simply take on more debt -- buying new cars, carrying credit-card balances and paying back as little of their student loans as they can get away with.

If you’re smart, though, you’ll make a concerted effort to get out of debt now -- while you’re still young enough to make it count.

Why should you care about debt? Well, for one, every dollar you spend on interest for credit cards and loans is a dollar you don’t have for other, better uses: saving, investing, spending on something fun.


There is more:

* The more debt you have when you’re ready to buy a home, the smaller the mortgage you’re likely to get. That may mean settling for a smaller house in a less desirable neighborhood than you’d like.
* You may not be able to save enough for retirement.
* If you get behind on your payments, you could wind up with a trashed credit rating, which will make your debt even more expensive.


I don't think anybody wants to live paycheck to paycheck while earning 55,000 a year... but you'll be doing it. I personally took a large risk and went into debt to go to graduate school and get a second degree in technology (why? because my first degre is in Architecture and apparently, no one wants to hire a college graduate with a profesional degree if it is in Architecture). Right now I am in limbo because ny health last year went south and I dropped classes and now I have to pay back the school before i can go back on finicial aid. Can't go forward (currently earning 400 dollars a month... no way I can pay back 5000 dollars anytime soon) and I can't go back.

Nevertheless, I knew how I would be living. I would probably live with my Mom even with a full time job just so that I don't have to pay more than 200 dollars a month rent, no car, no major trips... pretty much no everything. Maybe even get a second job just to pay off the debt now and not have to worry about it when I am 40.

The link provides good tips and ideas on what to do.
There is a message forum on finance, credit and morgage


Oher articles by this author on this website:
The worst retirement investment you can make
5 ways to be a tax-smart investor
$10,000 adoption credit has many strings
3,645 views 2 replies
Reply #1 from JoeUser Forums Top
Four hundred dollars a month? Guy, there's got to be a more profitable job out there for you.

Some suggestions:

Discount stores such as Wal-Mart (if you're lucky, they'll pick you up for management, if not, you're still going to make more than double what you are now)

Substitute Teaching (education usually adds to your daily pay, and in fact, some places pay as much as $90 a day)

Military (you would likely receive a bonus upward of $10K which could go a long way for your debt, and your starting pay would be a minimum of $1600 a month plus $250 (tax free) for food once you graduate AIT, with raises each year and with promotions...you could even look into becoming an officer)

Teaching (many places now offer a program where Bachelor's degree recipients take courses during the summer and then start teaching in the fall...taking classes and learning during the first year...the cost of the program is taken from the first year's salary, meaning the first year you would make around $25K, and then every year after that full salary...in some places new teachers make $33K or more)
Reply #2 from JoeUser Forums Top
Please forgive my spelling - my computer is a little slow righ now and I have to go to work. Little_whip is right, I really do have to work on my spelling
----------------
Oh no, don't get me wrong about the job I have. It has beneifits along with it. From discounts on coputers and car rentals to them paying for school. Some schools (Like Gibbs) is free while others they will pay up to 2000 (that is if your school costs 2015, they will pay 2000 of it, not just some number inside 2000 like 300 dollars).

Plus, if I come to work everyday, on time, I can more up. Since I already have a degree, I have many choices as to where I want to move to.

The only problem is that coming everyday is VERY hard. It is a very physical job where your moving at least 1100 boxes an hours (I thought they were joking when they said that during training).

I do complain about only earning 400 dollars a month, but working at UPS (yes, UPS... can you believe this is the same company from 10 years ago?) is pretty good ONLY because, for me, they will pay for me to get back to school and I can move up quickly.


Substitute teacher:
Honestly Texas, I thought of that, but since I was turned down by so many jobs over the years (and could only manage to get a security officer job... and believe me that was the worst company I EVER worked for) that I just lost all confidence to do anything.

So I just thought I wouldn't be a good teacher.
Now I do have a little more self confidence so maybe i will give it a shot. Between UPS and substitue teaching I might be able to make more. I'll be DEAD tired. UPS might be a part time job, but it sure takes a toll on my body. After coming home from work I sleep for more than 9 hours.
lol


Wal-mart is cool, but it amazingly is not UPS. I can move up in managment and work part time (PART TIME) and make 30,000 A YEAR!... plus bonuses for doing well.
DeskScapes - Bring your desktop background to life.