Student loan debts are becoming major problem

Quote from drsteph:

Now, in fairness, while I commend the writer on their ability to defer gratification, you need to think about this -

Option #1 - purchase a $300 27" regular TV, use it for 3 years, and throw it away. Then, when you have "made it" , buy a $1000 HDTV flatscreen.

Option #2 - purchase a $600 HDTV LCD 27" TV, use it for 6-9 years, and then purchase the $1000 upgrade TV. Finance the $300 extra on a credit card at 15% interest for a year for $45 in interest. Total cost $645.

I would argue that option #2 is actually more cost effective, even thought the initial outlay is slightly more expensive. However, at the end of 3 years you have spent $1300 with option #1 and $645 with option #2. Since you are starting out, option #2 actually makes more sense. Of course, you need to be disciplined in your purchases and make good decisions.

I remember when my sister bought a $300 Coach purse while in college. While I wondered what she was thinking, she tried to justify it to me as an"investment." I laughed to myself and thought about how anyone could consider a consumer good consumable as an "investment." Particularly one that is likely to be stylish, and require replacement in 2-3 years. By the way, she leads a high-consumption lifestyle and I don't let her advise me on my portfolio.
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You have a good point regarding the choice of TVs, though I also deliberately exaggerated the high-end example somewhat. My point was mostly that many people seem to live far, far beyond their means, whether we're talking about TVs, cars or toasters (my girlfriend told me about something she saw on Oprah where people were buying $2,000 toasters...).

I've actually been considering buying a low-end HDTV instead of a traditional tube TV, but I should say that I've been thoroughly unimpressed with the majority of lower end LCD TVs that I've seen. The image quality on some of the cheaper LCD TVs is just terrible in my opinion, I haven't seen anything going for less than $1300 CND or so that piqued my interest.
 
Here is another site packed full of info on this country and it's debt . http://mwhodges.home.att.net/ . I left my job back in 2001 to cash in my stock and paid off our house and all debts we had. Granted we don't live in a huge mansion and drive new cars or motorhomes etc. but we have security in that if my wife and I both lost our jobs we would be fine for 10+ years. I started my own business and now work for myself part time hours. My wife is an RN and also works part time. We're not rich but we have plenty of time to enjoy our lives not being saddle by debt and having to work our arses off to pay for it. I watch people in my neighborhood constantly buy new toys but they work so much they can't play with them or enjoy their kids or anything. To me its just not worth it. I personally won't go into debt ever again if at all possible. Just my little rant.

T
 
Quote from trkarl:

Here is another site packed full of info on this country and it's debt . http://mwhodges.home.att.net/ . I left my job back in 2001 to cash in my stock and paid off our house and all debts we had. Granted we don't live in a huge mansion and drive new cars or motorhomes etc. but we have security in that if my wife and I both lost our jobs we would be fine for 10+ years. I started my own business and now work for myself part time hours. My wife is an RN and also works part time. We're not rich but we have plenty of time to enjoy our lives not being saddle by debt and having to work our arses off to pay for it. I watch people in my neighborhood constantly buy new toys but they work so much they can't play with them or enjoy their kids or anything. To me its just not worth it. I personally won't go into debt ever again if at all possible. Just my little rant.

T
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Sounds like a very intelligent way to go, I hope to do the same for myself someday.
 
Yes, college is expensive and getting even more so. But the people who are willing to pay the "price" go to college. Poor kids who work their butt off and get full ride scholarships, those who work all through college to pay, and those fighting in Iraq right now to have a chance at college when otherwise not financially feasable.

This is without mentioning the many possible grants, and no-interest until you graduate loans the government offers.
 
Quote from trkarl:

Here is another site packed full of info on this country and it's debt . http://mwhodges.home.att.net/ . I left my job back in 2001 to cash in my stock and paid off our house and all debts we had. Granted we don't live in a huge mansion and drive new cars or motorhomes etc. but we have security in that if my wife and I both lost our jobs we would be fine for 10+ years. I started my own business and now work for myself part time hours. My wife is an RN and also works part time. We're not rich but we have plenty of time to enjoy our lives not being saddle by debt and having to work our arses off to pay for it. I watch people in my neighborhood constantly buy new toys but they work so much they can't play with them or enjoy their kids or anything. To me its just not worth it. I personally won't go into debt ever again if at all possible. Just my little rant.

T
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That awesome. I have just my mortgage, which I could pay off, but my fixed rate is low, and I like the measley deduction. You must have read Millionair Next Door. Ironically though, if more folks were like us the US economy might collapse, because consumer spending is such a big part of GDP.
 
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