Uturn challenge
Community Forum
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Willis and Adria
04.08.09 8:37am
OUR DEBT IS LIKE A NORTH WIND THAT BLOWS ON US FROM ALL DIRECTIONS
Given our prior blogs, it's not a secret that debt casts a shadow over all aspects of life. Both Adria and I paid (and worked) our way through undergrad and graduate studies while parenting our two boys - we received little, to no, aid from our extended families. I don't regret my education, but the consequential debt is a bitter chill wind that, no matter the direction, it relentlessly blows on my face. Thus, given cost of higher education, most of our debt is in two areas, college loans and a home mortgage (coupled with an equity loan in the second position). While we no longer have a car loan, we will need one in the next few years - our Toyota Camry is getting up in miles, but continues to be reliable so far. Finally, we have credit card debt that is of a concern, but have been strategically attacking that debt for awhile now, and are on track to liquidate most of it within the next year or twp.
In one sense, I am relented to the fact that a mortgage and school loans will accompany me to the end. Perhaps I'm being pessimistic, but the amounts are so large, it doesn't appear practical to wipe them out any time soon. So, am I seeing things properly?
In the next post, I plan to talk about how we are strategically wiping out our short term credit card depts. And why, if successful, this strategy could be a factor in rapidly reducing our school debt after all. (Writing this last sentence gave me Goosebumps... I think that is a good sign.)
Sarah Katreen
05.01.09 9:27am
Willis, I know exactly what you mean about those student loans being the cold north wind. I have felt that myself. Though it is my only debt, it is certainly a formidable one and I think I may be retiring by the time I get it paid off. Still, knowing how my education has made me grow and transformed my thinking, and me as a person, I would still make the same choice. (Though I would work more hours while going through school). Stressful, indeed yes! But as I am sure you and Adria would agree, totally worth it.
Ryan_FEO
04.09.09 1:42pm
Willis, you and Adria are hardly alone when it comes to a mountain of student debt. A countless number of my friends and family will be attempting to chip away at it for years to come. Our Eugene household Julia and Danny have a good deal of student debt as well. The cost of higher education certainly is daunting.
When Financial Advisors sit down and help people try to plan for such expenses for their children or grandchildren, (should they be so lucky) Advisors commonly build into the equation an estimate of what college costs will be down the road. This assumption can range anywhere between 2-8 percent per year, and can easily outpace the rate of inflation. To help reduce costs, some students/parents are looking to attend community or junior colleges for a couple years then transfer to a 4-year or more expensive school for completion. Of course, this too has its risks. A great article on the topic can be found here.