As an early millennial- as someone who graduated HS in the early 2000's and then graduated college right around the time Obama became president- I am well aware of the reality of living with more debt than income. Borrowing $30-40k a year for 4 years of college put me behind the curve, since it's pretty hard for a full time college student to hold down a full time job. I worked numerous odd jobs and held a part time one, but I also had limited savings and money I made was quickly and easily spent on everyday living (necessity or not). Mom and Dad didn't provide much financial aid outside the academic necessities- books, food, health/car insurance.
Even though I started looking about midway through my last semester, upon graduation I realized that I needed a full time job quickly- the loan companies had already let me know that repayment began 6 months after graduation and that they were in the process of calculating my monthly amounts😖. I looked as far away as Australia, as close as Central NJ, and all the in betweens such as California, Kentucky, and Florida.
I landed my first 'real world' job in June, approx 30 days after graduation. Approx 25 days after the loan companies sent me a "Congratulations on graduating, here's your repayment amounts and start dates" letter. "Thanks guys!" I said to the loan companies, while giving them the middle finger with both hands, a gesture they would never see nor know about. $102,000 in debt.
That was just about 9 years ago.
The average student loan debt takes 15 years to pay off. The average college graduate then has to take on more debt to make it in the world. Credit cards, car payments, rental housing arrangements. There is rarely enough money made to live on AND be able to have all the things you need. If this were a reality, most people would walk around with the cash in their pockets. Now-a-days, debit cards are considered the new cash- but how many people actually select "DEBIT" when swiping? I would bet some hard earned and already pledged elsewhere money that the majority of us swipe "CREDIT" more often than DEBIT.
When I was 23 years old: my truck was a jalopy in need of repairs or replacement, I was living with my parents to save money(but not saving any headache), I was working 3 jobs and still managing (somehow) to have a relatively lively social life. When my truck got hit by an ambulance (I thought they were supposed to rescue injured people, not try to injure people?!) and was in pretty bad but driveable shape, I decided enough was enough. Student loan debt be damned- I needed a safe, reliable, and not dead-on-its-feet mode of transportation. I started looking at new and used vehicles. The search took about 2 months. I sat in dealerships and pleaded for a deal... they laughed when they ran my credit report and saw debt piled on top of debt. Finally I went crying to my parents and asked them to sign over my childhood UTMA account (a trust account for minors that is legally available to be signed over to said minor on their 18th birthday but that my parents held out on me in fears I'd squander it...) so I could pay down my credit card debt and maybe have enough to make a down payment. Well, they agreed. I owed them some 'rent money', but afterwards I paid down my credit card and lowered my available line of credit, and tried again. I scratched the idea of a new vehicle, and the idea of leasing a vehicle- I've never been partial to this option or not really owning something you probably can't afford anyway. I found a used, just-back-from-a-lease truck with low mileage and shiny orange paint. I drove 100 miles into east bumblefuck PA to sign the papers and bring that baby home. And I did it, miraculously, without a cosigner. My first big purchase! Unfortunately, that added $22,000 in debt to my staggering numbers, but I was pretty set!!
Here I am 9 years later.
I am married.
I have paid off my truck- 6 months early. I still own that beautiful beast.
I own a house. Yup, added about $350,000 to our combined debt...
I paid off -in entirety my federal student loans- 2 years early. (*not to be confused with private student loans*)
I'm anxiously awaiting the September 2018 arrival of my first child.
Today I calculated my personal debt.
$49,368.34
That is more than I, personally, make in a taxable year.
And, in America, that's a perfectly healthy and normal amount of debt for one person to carry.
I have an exceptional FICO credit score.
My credit card company asks me monthly if I'd like to increase my limit.
My family and friends ask me when I'm going to upgrade my truck to something newer. They also ask when I'm going to make upgrades on my house.
People ask me why I don't yet own my own horse. Or buy my own farm.
People seem to have no notion of having real, tangible assets. They still seem to think money just grows on trees. They think that just because banks hand out loans and credit cards that that's how life works, and that it's perfectly normal.
It's perfectly normal to owe more money than yo'll make in an entire year. For the rest of your life.
All that I can say from pondering on this for a little while is..... WOW.
Even though I started looking about midway through my last semester, upon graduation I realized that I needed a full time job quickly- the loan companies had already let me know that repayment began 6 months after graduation and that they were in the process of calculating my monthly amounts😖. I looked as far away as Australia, as close as Central NJ, and all the in betweens such as California, Kentucky, and Florida.
I landed my first 'real world' job in June, approx 30 days after graduation. Approx 25 days after the loan companies sent me a "Congratulations on graduating, here's your repayment amounts and start dates" letter. "Thanks guys!" I said to the loan companies, while giving them the middle finger with both hands, a gesture they would never see nor know about. $102,000 in debt.
That was just about 9 years ago.
The average student loan debt takes 15 years to pay off. The average college graduate then has to take on more debt to make it in the world. Credit cards, car payments, rental housing arrangements. There is rarely enough money made to live on AND be able to have all the things you need. If this were a reality, most people would walk around with the cash in their pockets. Now-a-days, debit cards are considered the new cash- but how many people actually select "DEBIT" when swiping? I would bet some hard earned and already pledged elsewhere money that the majority of us swipe "CREDIT" more often than DEBIT.
When I was 23 years old: my truck was a jalopy in need of repairs or replacement, I was living with my parents to save money(but not saving any headache), I was working 3 jobs and still managing (somehow) to have a relatively lively social life. When my truck got hit by an ambulance (I thought they were supposed to rescue injured people, not try to injure people?!) and was in pretty bad but driveable shape, I decided enough was enough. Student loan debt be damned- I needed a safe, reliable, and not dead-on-its-feet mode of transportation. I started looking at new and used vehicles. The search took about 2 months. I sat in dealerships and pleaded for a deal... they laughed when they ran my credit report and saw debt piled on top of debt. Finally I went crying to my parents and asked them to sign over my childhood UTMA account (a trust account for minors that is legally available to be signed over to said minor on their 18th birthday but that my parents held out on me in fears I'd squander it...) so I could pay down my credit card debt and maybe have enough to make a down payment. Well, they agreed. I owed them some 'rent money', but afterwards I paid down my credit card and lowered my available line of credit, and tried again. I scratched the idea of a new vehicle, and the idea of leasing a vehicle- I've never been partial to this option or not really owning something you probably can't afford anyway. I found a used, just-back-from-a-lease truck with low mileage and shiny orange paint. I drove 100 miles into east bumblefuck PA to sign the papers and bring that baby home. And I did it, miraculously, without a cosigner. My first big purchase! Unfortunately, that added $22,000 in debt to my staggering numbers, but I was pretty set!!
Here I am 9 years later.
I am married.
I have paid off my truck- 6 months early. I still own that beautiful beast.
I own a house. Yup, added about $350,000 to our combined debt...
I paid off -in entirety my federal student loans- 2 years early. (*not to be confused with private student loans*)
I'm anxiously awaiting the September 2018 arrival of my first child.
Today I calculated my personal debt.
$49,368.34
That is more than I, personally, make in a taxable year.
And, in America, that's a perfectly healthy and normal amount of debt for one person to carry.
I have an exceptional FICO credit score.
My credit card company asks me monthly if I'd like to increase my limit.
My family and friends ask me when I'm going to upgrade my truck to something newer. They also ask when I'm going to make upgrades on my house.
People ask me why I don't yet own my own horse. Or buy my own farm.
People seem to have no notion of having real, tangible assets. They still seem to think money just grows on trees. They think that just because banks hand out loans and credit cards that that's how life works, and that it's perfectly normal.
It's perfectly normal to owe more money than yo'll make in an entire year. For the rest of your life.
All that I can say from pondering on this for a little while is..... WOW.
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