Young, fresh, ambitious, in massive debt

[GePap]

http://www.villagevoice.com/issues/0411/fkoerner.php

A minor summary for the lazy: Young people in the US leave college with an average debt of 20k, and are likely never to be out of debt again once they get low paying beginning jobs, a mortage, health care costs and so forth.

[Japher]

I am not in debt, have a high paying job that covers my helath care and I can't even get a mortgage! What's up with that?!

Anyway, your point?

[GePap]

Read the damned article you!

[Spiffor]

I don't see the US love of mortgages, and debt in general. Can't you guys buy things with your own money?

[GePap]

Originally posted by Spiffor
I don't see the US love of mortgages, and debt in general. Can't you guys buy things with your own money?

What money?

[Jamski]

Rent then like we do. (Bloody property obsession???)

-Jam

[Spiffor]

If you don't have money, don't cripple yourself by buying a house (rent a fricking low-rent flat), don't cripple yourself by buying a car (use the fricking public transportation), and generally don't cripple yourself with paying a terrible private education (go to a fricking public university).


Well, forget it, you're in the US. Such basic services don't exist

[Lawrence of Arabia]

wrong.

0

[Richelieu]

Still on the campaign trail there, Spiffor?

[Spiffor]

Well, I happen to believe it

I strongly dislike the extreme individualism in the US, where property is such a be-all end-all. It makes the US terrible when it comes to public service, things as basic as a decent public transportation for those who can't afford a car, decent public housing for the very many people who can't afford a house (this includes plenty of middle class people who have to be indebted for the rest of their lives), and a decent public education that is as good as private ed.

[Japher]

Whatever.

The problem isn't the system, it's those who are in the system just don't know how to work it, and the system doesn't teach you that. In general, most people know nothing about money. That's no big suprise.

Everything you get in life will cost you time or money. You just have to learn to maximize the backend returns.

Getting and education and going $20,000 into debt is not that bad when you look at the whole spreadsheet and not just one column. Student loans sit aroun 4%, which is awesome, so most graduates take their time in paying it off even though they make $52,000/year!

$52,000/year is a lot of money, and can get you a lot of things. However, ppl would rather get a BMW over a Honda, go out to dinner instead of cook it, buy their dream home instead of a rental, take lavish vacations instead of just laying around the house. Most people get a sticker shock at what they are making, and the money is ussually out of their pocket before it is even in... This, is called a liability.

I really don't like articles that complain about ppl not being able to handle money and take an air that "it's not fair". What's not fair? That ppl are stupid? No it's not fair, but everyone has the same chance (mostly), and that is the only way to make it fair.

I had a college loan, it's gone, and has been gone for 2 years now, 3 years after I graduated. I have a car loan, but it's figured into my cash flow. I was $24,000 in debt 5 years ago, and now I am up more than $25,000! If I can do it, anyone can.

Home: Buying your home is a liability. It costs you to live in it. Buying a rental that can create you an income is an asset. Get enough assets, your home can become one too.

Credit Cards: Why have one? To build credit to increase your borrowing power. It is not there to put stuff on that you don't have the money to pay for now. End of story.

Loans: They are there to allow you to gather income producing assets. Not generate debt.

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I strongly dislike the extreme individualism in the US, where property is such a be-all end-all.

I'll agree with your points, but I like it. PT and the likes are something I already pay for, if it sucks than blame the government not the capitalism. For it is capitalism that gives the government so much money to mishandle.

[Gibsie]

Hah, we in the UK will have you beat very soon. In a decade or so, our graduates will have debts of about $50,000. And the first home most people buy will cost around £200,000. Huzzah!

[Jamski]

That's the price the UK must pay for having the lowest unemployment in the developed world.

-Jam

[DinoDoc]

I'm not in debt.

[Asher]

I'm going to graduate university debt-free and with $30,000 in my pocket. Possibly another $40,000-$50,000 if I get an internship position.