1. And... we're back. You'll notice that all of your images are back as well, as are our beloved emoticons, including the infamous :foo: We have also worked with our server folks and developers to fix the issues that were slowing down the site.

    There is still work to be done - the images in existing sigs are not yet linked, for example, and we are working on a way to get the images to load faster - which will improve the performance of the site, especially on the pages with a ton of images, and we will continue to work diligently on that and keep you updated.

    Cheers,

    Fok on behalf of the entire Styleforum team
    Dismiss Notice

How long will it take me to clear 10k debt?

Discussion in 'Business, Careers & Education' started by 1up, Jul 14, 2010.

  1. Joffrey

    Joffrey Senior member

    Messages:
    11,351
    Joined:
    Jun 18, 2006
    Location:
    Pennsylvania Ave/Connecticut Ave
    I figure now that I'm a full-time worker partying will decrease..[​IMG]

    [​IMG] Not in my experience. Partying has increased exponentially since graduating. Though I'm more responsible (don't black out as often, never get sick). I pray you are in a boring town or a boring person or you're in for a rude awakening.
     
  2. v0rtex

    v0rtex Senior member

    Messages:
    599
    Joined:
    Dec 16, 2004
    Location:
    Orlando, FL
    That is a pretty expensive car. For two cars, one of which is an '09 and the other a gas guzzling 80s Wagoneer our total car expenses are under $700 (including crappy driving record and subprime car loan rate). $1,500 is a decent amount of disposable income though so you'll probably live if a decent car is important to you.

    In the past couple of years my wife and I have paid off mid-$XX,000 of debt using Dave Ramsey's "Debt Snowball" technique (http://www.daveramsey.com/article/ge...nowball-plan/). Just got a few more payments on the '09 car and we'll be debt free.

    1. Divert all your disposable $$ to debt payment, commit to getting everything paid off.
    2. Have an accountability partner; tell someone you're paying off debt and keep them updated, have them keep you on track.
    2. Pay off the smallest debt first, as fast as you can. Make minimum payments on the others. Not mathematically the most rational approach (which would attack the highest interest first) but psychologically motivating as you see debts disappear.
    3. Once each debt is paid off, take the amount you were paying towards it and add it to the minimum payment for the next smallest debt. Still pay the minimum on all the others.
    4. Repeat until you have $0 debt.

    Recommend Ramsey's books and course for this stuff. It's all common sense, but it's well explained and provides systems to work from if you've never formally learned this stuff before.

    Good luck [​IMG]
     
  3. dinted voice

    dinted voice Senior member

    Messages:
    894
    Joined:
    Mar 28, 2008
    Get the cheapest, most reliable car you can.



    This is great advice. My wife and I got expensive cars because we could "afford" them. By "afford" them, we could easily make the payment on them with minimal savings. After two years of this, I finally realized it was crazy. We now have a 2001 Honda Civic for everyday driving to work (we work together) and a S-10 truck for bad weather, etc that we paid under 10k (for both) and will have both paid off within a year.

    Trust me...you will regret the car in 12-18 months.
     
  4. Biscotti

    Biscotti Senior member

    Messages:
    4,075
    Joined:
    Nov 6, 2008
    Isn't much debt at all, I'll probably have $30,000 after school. [​IMG] My sister holds $60,000 in student loan debt.
     
  5. Fuuma

    Fuuma Senior member

    Messages:
    25,818
    Joined:
    Dec 20, 2004
    Dude it's 10K not 150K. Just live frugally for a couple months (not too much, you're moving into a new town you need to work on your social life and the negative on that is more than 12% interest in quality of life decrease) and pay the credit card quickly (give yourself 6-8 months). Then move on to your low interest debt at a much lower pace (say $300/month).
     
  6. bearsfan172

    bearsfan172 Senior member

    Messages:
    169
    Joined:
    May 4, 2010
    Yeah you're not too bad at all. The student loans aren't a huge deal, because the interest is quite low. Additionally, if you are applying for other credit based things, they won't hit you as negatively as standing credit card debt will. Those are less of a concern then the CC debt.

    The CC debt should be paid off as soon as possible. Save every last dime you have and send that right to the credit card company. Don't worry about saving until you aren't in debt. Fortunately 12% interest is quite low for a CC
     
  7. LucasCLarson

    LucasCLarson Senior member

    Messages:
    173
    Joined:
    Apr 9, 2010
    Location:
    Minneapolis
    Isn't much debt at all, I'll probably have $30,000 after school. [​IMG] My sister holds $60,000 in student loan debt.

    Seriously. I'll be somewhere in the ballpark of $50,000 when all is said and done.

    That's an expensive car payment. Sell that and buy something used, cheap and fuel efficient.
     
  8. dtmt

    dtmt Senior member

    Messages:
    2,317
    Joined:
    Nov 15, 2006
    Run the numbers to see the total amount you'll be paying including interest once you've paid it all off. $10k credit card + $20k car loan will amount to well over $5k in interest.
     
  9. Ace Rimmer

    Ace Rimmer Senior member

    Messages:
    757
    Joined:
    Oct 17, 2007
    Location:
    Philadelphia PA
    A late 90s or early 00s Toyota Tacoma will be more reliable than any other truck in that price, will get better fuel economy and will handle the worst roads in stock trim. They can be purchased for under $10k.

    Yep, my parents have a 1999 (?) Tacoma that is still running strong -- and with hard use on our farm. We are not the typical 4WD owner whose "truck" sees nothing but mall parking lots; it gets used hard. US special forces units also use the Tacoma in the big sandbox. You won't be unhappy with a Taco.

    N.B.: If we had to do it over again we would have gotten the Tacoma with the extended cab. We got the one with the standard cab and it has zero cargo space inside the cab.
     
  10. AR_Six

    AR_Six Senior member

    Messages:
    10,770
    Joined:
    Jun 22, 2007
    Depressing when I look at my $40k student debt.

    Though somewhat less when I imagine where I'd be if I lived in the US.
     
  11. 1up

    1up Senior member

    Messages:
    1,096
    Joined:
    Oct 14, 2008
    Location:
    Vancouver
    Depressing when I look at my $40k student debt.

    Though somewhat less when I imagine where I'd be if I lived in the US.


    Stampede + Copious Amounts of Babes outside = Not helping my financial situation
     
  12. AR_Six

    AR_Six Senior member

    Messages:
    10,770
    Joined:
    Jun 22, 2007
    ^Actually that hasn't hurt at all, pretty much everything imaginable is comp'd this week and I managed to not end up in the red at the casino.
     
  13. otc

    otc Senior member

    Messages:
    14,207
    Joined:
    Aug 15, 2008
    That student loan debt is nothing. Thats gonna be what...$100 a month at the standard payment plan?

    The credit card debt is the issue...its not super high (though hell no would I ever willingly take on 4k debt at 12%) but you should be rid of it in months with 1500 in excess cash.
     
  14. Gander

    Gander Member

    Messages:
    6
    Joined:
    Feb 8, 2010
    Live at home for a year. Barring that, minimize your partying/hobby spending and throw it all at the CC and student loans.

    Jodum is right I think. This is the way to do it. It's a painful way to pay down your debts but you'll pay them off faster and you can save on interest this way too. The sooner you pay it off the sooner you will have money to spend on what you like again (assuming you're working). [​IMG]
     
  15. AR_Six

    AR_Six Senior member

    Messages:
    10,770
    Joined:
    Jun 22, 2007
    Jodum is right I think. This is the way to do it. It's a painful way to pay down your debts but you'll pay them off faster and you can save on interest this way too. The sooner you pay it off the sooner you will have money to spend on what you like again aside from those Lanvins you're obviously going to buy from JD later this week because well, why wouldn't you, debt or no debt.
    Ftfy.
     
  16. mondayc

    mondayc Senior member

    Messages:
    319
    Joined:
    Dec 23, 2008
    $850 a month for a car/insurance/gas is pretty steep for a recent grad. My brother graduated and bought a Nissan Sentra for $5,000 (granted he had a lot more than $10,000 debt). I'd put off buying that car for a few months while you use that money to hammer away at the credit card debt.
     
  17. 1up

    1up Senior member

    Messages:
    1,096
    Joined:
    Oct 14, 2008
    Location:
    Vancouver
    Well folks, as luck would have it, my sister (whom is also moving to a different city pretty quick here), decided to get a new car, so I'm getting gifted her 2000 Civic haha! I guess I'll drive that around til October/November when the snow really starts pouring down (and I've hopefully cleared my CC debt), and pick up an SUV which I've hopefully found a good deal on.

    Thanks for all your input in the thread fellow SF'ers...drinks on me? rack up my CC debt to 15k?
     
  18. whiteslashasian

    whiteslashasian Senior member

    Messages:
    11,811
    Joined:
    Aug 20, 2008
    Well folks, as luck would have it, my sister (whom is also moving to a different city pretty quick here), decided to get a new car, so I'm getting gifted her 2000 Civic haha! I guess I'll drive that around til October/November when the snow really starts pouring down (and I've hopefully cleared my CC debt), and pick up an SUV which I've hopefully found a good deal on.

    Thanks for all your input in the thread fellow SF'ers...drinks on me? rack up my CC debt to 15k?


    A civic with winter snow tires (blizzaks or something) should be fine. I drove in upstate NY winters for 4 years with a FWD car on winter tires and never once felt unsafe. The SUV would be nice for hauling people/stuff for trips or whatever though.
     
  19. 1up

    1up Senior member

    Messages:
    1,096
    Joined:
    Oct 14, 2008
    Location:
    Vancouver
    Yeah, I live pretty close to the mountains, so it'd be nicing having an SUV once snowboarding season comes around...but I can't be making these trips until my debt is reduced..so priorities first! (Clothes are a priority too [​IMG] )
     
  20. celery

    celery Senior member

    Messages:
    2,242
    Joined:
    Nov 3, 2007
    Get a used/last years model Subaru impreza hatch/outback then. AWD means you can drive in icy weather, and they're quite spacious.

    But I'm sure you have a million justifications regarding why you want an SUV, it's your money in the end.
     

Share This Page

Styleforum is proudly sponsored by