A debt perspective

[jamesqf]

Originally Posted by Old Mechanic

Some techs are 3-4 years in the profession and own $50k in tools, probably owe over 75% of that and the interest rates are unbelievable.

But do you really need $50K worth of tools to do a decent job? Or even $5K? Otherwise it's just money wasted for show, like people who buy new cars when they can barely handle the payments.

[Frank Lee]

Still have my S-K socket set my folks gave me as a teen. To this day it it the most frequently used toolset I have. It stays nice and oily because of that!

I had some Snap-Ons but they got stolen before I ever used them. Reason #748 why I hate people.

[johnnywheels]

Originally Posted by redpoint5

Debt, like most things, can be used responsibly or irresponsibly. Starting a business or buying a home often requires debt. When utilized wisely, the burden of paying off the debt is more than offset by profits or reduced expenditures.

Think of it this way; if you were to begin earning an income as an Uber driver, you could rent a car with cash on hand without going into debt, but pay more in the long run. Or, you could take out an auto loan, which has a high upfront cost, but in the long run is the cheaper option.

Debt becomes irresponsible when it's used to pay for nonessential goods such as flat-screen TVs or trendy clothing.

Completely agree, I think a lot of people who struggle with debt also struggle with the difference between "needs" and "wants"...

[samwichse]

Originally Posted by Old Mechanic

US national debt.

1928-$28,000,000,000
1945-$250,000,000,000
1971-$1,000,000,000,000
Today-$19,000,000,000,000

US national debt in constant (2016) dollars, OM's figures.
1928-$382,760,000,000
1945-$3,320,000,000,000
1971-$5,940,000,000,000
2016-$19,000,000,000,000

US national debt in constant (2016) dollars, US Treasury Direct (https://www.treasurydirect.gov/govt/...t/histdebt.htm)
1928-$240,685,286,096
1945-$3,437,348,560,513
1971-$5,290,316,730,749
2015-$18,283,016,527,242

I would think the conservative viewpoint (and mine, as a balanced budget hawk) would be geared towards paying down the debt as quickly as possible. Cut some spending, raise some taxes. That's the way I'm working on my mortgage. My wife and I scrimp a bit to double our principle payment, and income from extra odd jobs I work goes to principle as well.
But people lose their **** when they hear tax increase. And they lose their **** when they hear program cuts. So here we are.

[Xist]

You know, when I first saw this thread I thought it would get out of control, and wondered if that was why we lost Mech. Now it is obvious that I simply did not do enough push-ups.

I lost my job thirteen months ago and charged up my credit card. I am still establishing my new job, but my credit card is down to $350, only until my next paycheck. I have a bit more than that in my checking account, but I do not to only have my credit card in case of an emergencies, some places only accept debit.

Student loans, though, but when I can earn as much in one year as I owe, it should not take me too long to pay.

The confusing part is that the GI bill paid for my second degree and the housing allowance permitted me to focus more on school.

I need all of the help I can get!

I am also in the National Guard and that was a little more each month.

However, I found it necessary to take more student loans.

I graduated and spent a year and a half figuring out where I was going. I earned eleven thousand dollars last year, almost exactly what I received in student loans in twelve months

Why did I spend so much more money while in college?!

[MobilOne]

Student loans should be at the same interest rate as t-bills.

[oil pan 4]

Guys I work with were talking about refinancing from like 6.5% to 6.2% give or take 0.05% depending on the person.
Took everything thing I had to stay quiet and only smile like a fool.
One guy had been paying down 6.7% for 12 years and restarted his 30 years over again at 6.2% to get the payments lower.

I pity the fools who are on the verge of starting to win the unwinnable and they restart the whole process of the a nearly unwinnable game over again.
Well someone has to make sure that the rich keep getting richer. Sure as heck isn't going to be me.

[jamesqf]

Originally Posted by oil pan 4

Well someone has to make sure that the rich keep getting richer. Sure as heck isn't going to be me.

But use the same process, and you can wind up going from poor to at least moderately rich.

[freebeard]

The playing field is uneven so money runs uphill. You'll never be part of the 0.0001%.

[redpoint5]

Originally Posted by freebeard

The playing field is uneven so money runs uphill. You'll never be part of the 0.0001%.

By definition, being part of 0.0001% of anything is unlikely. That's one in a million.