Comments on: When your debt feels like your arm http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm/ Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Sun, 21 Mar 2010 11:47:10 -0700 http://wordpress.org/?v=abc hourly 1 By: Eric Monse http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm/comment-page-1/#comment-37634 Eric Monse Mon, 15 Oct 2007 21:06:46 +0000 http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm#comment-37634 Debt is the worst. Nice article. Debt is the worst. Nice article.

]]> By: I Will Teach You To Be Rich » Excellent comment about debt http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm/comment-page-1/#comment-26916 I Will Teach You To Be Rich » Excellent comment about debt Thu, 19 Jul 2007 16:44:07 +0000 http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm#comment-26916 [...] Million Paths leaves this excellent comment on my recent post, When your debt feels like your arm. I was going to say something about how I agree and how debt is bad and blah, blah, but something [...] [...] Million Paths leaves this excellent comment on my recent post, When your debt feels like your arm. I was going to say something about how I agree and how debt is bad and blah, blah, but something [...]

]]> By: A Million Paths http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm/comment-page-1/#comment-26877 A Million Paths Thu, 19 Jul 2007 05:10:03 +0000 http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm#comment-26877 I was going to say something about how I agree and how debt is bad and blah, blah, but something really bugs me about everyone's comments. Debt is the new fat. It's just one more thing to be ashamed about and carry guilt about., and for other people to be pious about and to lord over other people about. I have a ton of student loan debt (no credit card debt), but I spent seven months living and teaching English in France. Maybe I should have stayed behind earning a bigger paycheck working to pay my debt. But I'd been working real jobs for three years and the debt was still there, and I was still struggling to get by, and I wasn't going on vacations or anything, and the debt could possibly be with me until I'm 40 if I do all the "right" things and by then I'd be too old to participate in the program! I have a friend who now has as much student loan debt as I do (she got her MBA) and a mortgage and a husband and right now she's miserable. She's spent her entire life post-college, and doing everything "right" and while she's probably in better financial shape than I am she's infinitely more trapped. Not just because of the debt, but because of the mindset that comes with thinking that finances can dictate her life instead of the other way around. Your life dictates your finances. If you want something badly enough you can find a way to afford it that doesn't involve getting into hock up to your ears. We're not taught that. I think careless consumer debt is dangerous mostly because it stops people from living the lives that they really want to lead. But I think the opposite is true too. there's such a thing as being too cautious too. Of waiting to do everything "the right way" and ending up dying and not having done anything. Money is not an end in and of itself, it's a means to an end. I was going to say something about how I agree and how debt is bad and blah, blah, but something really bugs me about everyone’s comments.

Debt is the new fat. It’s just one more thing to be ashamed about and carry guilt about., and for other people to be pious about and to lord over other people about.

I have a ton of student loan debt (no credit card debt), but I spent seven months living and teaching English in France. Maybe I should have stayed behind earning a bigger paycheck working to pay my debt. But I’d been working real jobs for three years and the debt was still there, and I was still struggling to get by, and I wasn’t going on vacations or anything, and the debt could possibly be with me until I’m 40 if I do all the “right” things and by then I’d be too old to participate in the program!

I have a friend who now has as much student loan debt as I do (she got her MBA) and a mortgage and a husband and right now she’s miserable. She’s spent her entire life post-college, and doing everything “right” and while she’s probably in better financial shape than I am she’s infinitely more trapped. Not just because of the debt, but because of the mindset that comes with thinking that finances can dictate her life instead of the other way around. Your life dictates your finances. If you want something badly enough you can find a way to afford it that doesn’t involve getting into hock up to your ears.

We’re not taught that.

I think careless consumer debt is dangerous mostly because it stops people from living the lives that they really want to lead. But I think the opposite is true too. there’s such a thing as being too cautious too. Of waiting to do everything “the right way” and ending up dying and not having done anything.

Money is not an end in and of itself, it’s a means to an end.

]]> By: Dal http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm/comment-page-1/#comment-26777 Dal Wed, 18 Jul 2007 03:06:32 +0000 http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm#comment-26777 This runs along the same idea as "dying with debt is good". If you can extend the debt out far enough, it may never catch up with you if controlled. This runs along the same idea as “dying with debt is good”.
If you can extend the debt out far enough, it may never catch up with you if controlled.

]]> By: quadszilla http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm/comment-page-1/#comment-26471 quadszilla Sun, 15 Jul 2007 05:23:51 +0000 http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm#comment-26471 I empathize with where your friend is coming from. In fact, I had a similar attitude when I was in college. "What difference does it make if I have $3,000 or $10,000 in credit card debt - I'm going to make so much money in the future that it simply won't matter." Fortunately for me I was right. Although it did take me a little longer than I anticipated. . . Getting rich and debt free is easy - all you have to do is make a hell of a lot more than you spend. :) I empathize with where your friend is coming from. In fact, I had a similar attitude when I was in college. “What difference does it make if I have $3,000 or $10,000 in credit card debt – I’m going to make so much money in the future that it simply won’t matter.”

Fortunately for me I was right. Although it did take me a little longer than I anticipated. . .

Getting rich and debt free is easy – all you have to do is make a hell of a lot more than you spend. :)

]]> By: charlene http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm/comment-page-1/#comment-26459 charlene Sun, 15 Jul 2007 03:28:54 +0000 http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm#comment-26459 I understand this perspective all too well. In general, of course it's totally appalling, but I was in appalling circumstances. I had credit card debts that were in collections, no, beyond collections. They were in the hands of lawyers who laughed at me when I made the suggestion of paying them back on a monthly schedule. So to reduce the amount of humiliation I faced when dealing with such debt collectors, I chose for several months to not communicate with them until I had enough saved up to pay them in full and hoped that I could get a significant reduction of the debt through a settlement. Which is exactly what happened with all 3 of the debts that I paid off. Had I been able to pay them earlier, I would have had even more leverage and would have gotten better deal. Either way, I am glad to be done with them. Now, of course, this doesn't take into account the damage this does to credit scores. It's just a way of coping. Now I guess my story is a bit different because I made the effort and sacrifice to actually get rid of the debts. But that was only able to happen when I thought about the future. I think the mindset here is "ignore it and it will go away eventually". Yes it will, but at a significant cost. I understand this perspective all too well. In general, of course it’s totally appalling, but I was in appalling circumstances. I had credit card debts that were in collections, no, beyond collections. They were in the hands of lawyers who laughed at me when I made the suggestion of paying them back on a monthly schedule.

So to reduce the amount of humiliation I faced when dealing with such debt collectors, I chose for several months to not communicate with them until I had enough saved up to pay them in full and hoped that I could get a significant reduction of the debt through a settlement. Which is exactly what happened with all 3 of the debts that I paid off. Had I been able to pay them earlier, I would have had even more leverage and would have gotten better deal. Either way, I am glad to be done with them. Now, of course, this doesn’t take into account the damage this does to credit scores. It’s just a way of coping.

Now I guess my story is a bit different because I made the effort and sacrifice to actually get rid of the debts. But that was only able to happen when I thought about the future. I think the mindset here is “ignore it and it will go away eventually”. Yes it will, but at a significant cost.

]]> By: April D http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm/comment-page-1/#comment-26048 April D Thu, 12 Jul 2007 18:48:01 +0000 http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm#comment-26048 "Life is short and I'd much rather see the world than drive a BMW or have expensive clothes." This has become my mantra. I am finally starting to control my impulse buys because after being in Italy, all the crap I spent money on seems dumb. I look at huge expenses and really think long and hard now because every dollar I save gets me closer to going back to Europe (or to Peru, or to any of the other places I long to go). “Life is short and I’d much rather see the world than drive a BMW or have expensive clothes.”

This has become my mantra. I am finally starting to control my impulse buys because after being in Italy, all the crap I spent money on seems dumb. I look at huge expenses and really think long and hard now because every dollar I save gets me closer to going back to Europe (or to Peru, or to any of the other places I long to go).

]]> By: April D http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm/comment-page-1/#comment-26047 April D Thu, 12 Jul 2007 18:37:09 +0000 http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm#comment-26047 Woody--I totally agree about keeping zero balances. My fiance and I are aggresively paying off any debt we have (by most standards, it's not all that much) and we plan to build up a big emergency cushion before we buy a house so that we will never have to rely on credit cards again. Sara--I would love to find out more about your trip if you don't mind. We are planning to do Greece and Italy in October '09 (we went to Italy in October last year, and I really liked going at that time of year, too). We also like the budget travel route--seems you are closer to the culture that way. Three weeks at $2500 is really great... Woody–I totally agree about keeping zero balances. My fiance and I are aggresively paying off any debt we have (by most standards, it’s not all that much) and we plan to build up a big emergency cushion before we buy a house so that we will never have to rely on credit cards again.

Sara–I would love to find out more about your trip if you don’t mind. We are planning to do Greece and Italy in October ‘09 (we went to Italy in October last year, and I really liked going at that time of year, too). We also like the budget travel route–seems you are closer to the culture that way. Three weeks at $2500 is really great…

]]> By: Spectralshift http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm/comment-page-1/#comment-26034 Spectralshift Thu, 12 Jul 2007 16:38:39 +0000 http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm#comment-26034 By the same logic, it doesn't really matter if you go on a trip in October or March, right? Except that it'll cost you less to do it in March, if only from the interest you'd save. Not to mention that it won't really matter if you pay it off in March or August, right? Or August or December or 2020...? If you can't discipline your spending habits to pay off your debt in the present, chances are you won't be able to do it in the future either. By the same logic, it doesn’t really matter if you go on a trip in October or March, right? Except that it’ll cost you less to do it in March, if only from the interest you’d save.

Not to mention that it won’t really matter if you pay it off in March or August, right? Or August or December or 2020…? If you can’t discipline your spending habits to pay off your debt in the present, chances are you won’t be able to do it in the future either.

]]> By: Sara http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm/comment-page-1/#comment-26004 Sara Thu, 12 Jul 2007 13:14:52 +0000 http://www.iwillteachyoutoberich.com/blog/when-your-debt-feels-like-your-arm#comment-26004 If you want a less expensive Mediterranean vacation, try the Greek islands in the off-season. I went to Italy and Greece in October last year (great for both!) and had the best time. The weather was warm enough for swimming/beach/hiking/outdoor stuff, but everything was less expensive, cooler than the summer, and a bit less flooded with tourists. I found hotels (simple ones, via hostel websites, but still actual hotels) on the beach in Greece for 18 euros per night (that was in Naxos, but Santorini wasn't much more). I also found that if you go with friends who you don't mind sharing beds/hotels with, you can still stay in a hotel and pay less per person than in a hostel most of the time (Ideal # would be 3 - 4 people) - this is true in both Italy and Greece. I spent three weeks total in both places and spent about $2500 including my plane ticket. Not cheap, but definitely worth it (and paid for in cash), especially considering Europe is one of the most expensive places you can go these days if you're earning your money in US dollars. For me, travel is one of the few things worth spending money on. Life is short and I'd much rather see the world than drive a BMW or have expensive clothes. If you want a less expensive Mediterranean vacation, try the Greek islands in the off-season. I went to Italy and Greece in October last year (great for both!) and had the best time. The weather was warm enough for swimming/beach/hiking/outdoor stuff, but everything was less expensive, cooler than the summer, and a bit less flooded with tourists. I found hotels (simple ones, via hostel websites, but still actual hotels) on the beach in Greece for 18 euros per night (that was in Naxos, but Santorini wasn’t much more). I also found that if you go with friends who you don’t mind sharing beds/hotels with, you can still stay in a hotel and pay less per person than in a hostel most of the time (Ideal # would be 3 – 4 people) – this is true in both Italy and Greece. I spent three weeks total in both places and spent about $2500 including my plane ticket. Not cheap, but definitely worth it (and paid for in cash), especially considering Europe is one of the most expensive places you can go these days if you’re earning your money in US dollars. For me, travel is one of the few things worth spending money on. Life is short and I’d much rather see the world than drive a BMW or have expensive clothes.

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