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A common theme I saw across the examples, AND A CAR PAYMENT. If you're in debt, then the last thing you should be acquiring is another depreciating asset that c

A common theme I saw across the examples, AND A CAR PAYMENT. If you're in debt, then the last thing you should be acquiring is another depreciating asset that costs money. Not only do you have car payments and insurance, but you also have maintenance, and everything else that goes along with a car. Also, how many of these same people have tv's with cable? Cell phones with data plans? Go out for diners, drinks with friends, and so on? When I graduated I spent 3-4 years paying down my debt as quickly as possible. I believe I got my first car, and it was for under $1000, when I was in my late 20's. I just couldn't afford one. I also noticed at least one example of someone also buying a home with a $100,000+ debt. That to me is just a bad financial decision. Anything happens and your in trouble. Also I did notice a lot of the examples showed degrees where getting a job would be tougher, or that it wouldn't pay that well compared to the cost of the debt. I hate to say this, but not all degrees are created equal, and in today's world you need to evaluate the cost to benefit. Unfortunately for some degrees, you can only really acquire them if you have disposable income because there's no way you can make a profit. In any case, the most common theme I noticed was that they couldn't afford the debt with their other expenses. But the author rarely discussed what they were. For me a car is a luxury. Tv is a luxury. Anything beyond the most basic $20/mth cell is a luxury. Going out for drinks and suppers is a luxury. Just saying... ;)

rayiner 14y ago
When you're $100k in debt, a TV or going out for drinks might be a luxury, but forgoing those things is also unlikely to make any real difference on the bottom line.
- FollowSteph3 14y ago
  They can add up. I've known people who spend more than $1000/month on these types of things. That's easily your payment. I strongly recommend anyone to watch at least a few epsiodes of Til Debt Do Us Part: http://www.slice.ca/shows/showspage.aspx?title_id=93097 http://www.slice.ca/shows/showspage.aspx?title_id=93097 Many people don't realize just how much they are spending on luxuries. It can add up much more quickly than you think.
  - mfringel 14y ago
    I know people who don't spend $1000/mo on those type of things. Anecdotes cancel. The reason that there are TV shows about that kind of thing is because the occurrences are far enough out on the bell curve that people can get the entertainment from "watching the stupid people", combined with the frisson of moral-superiority-combined-with-just-enough-fear-for-their-own-situations. If it was typical, the TV show wouldn't exist.
    - FollowSteph3 14y ago
      I disagree completely. It's the same thing too with many people who are overweight due to lack of exercise and bad eating habits. Are you saying those shows are outside of the norm or that it's more fun to just watch rather than do it ourselves? How many of us can say we eat properly and get the right amount of exercise on a monthly basis? Yet these types of shows are very popular. And I can guarantee you that the average person is nowhere close to living a healthy lifestyle!!
eric_bullington 14y ago
Are you saying a car is a luxury for everyone? If so, you must have never lived outside a large city. At least in many suburbs across the US, and in rural areas, having a car is most definitely not a luxury if you have a job outside the home, or if you have kids that have to go to school. I've lived in metropolitan areas in which I didn't have to have a car. I loved it. I hate the maintenance and care that a car requires. But a car is absolutely necessary if you live in the country or in many suburbs, where the nearest public transportation is many, many miles away.
- kaonashi 14y ago
  There are cars that don't require monthly payments. They don't look as nice, but they still get you from point A to point B.
  - omni 14y ago
    You're making an assumption that a person has a base level of net worth with which they can buy a car outright. Someone who is "in debt" by definition has a negative net worth, so even a very cheap car ($500 or so?) would be difficult to pay for with cash. Additionally, cars that cheap usually end up costing way more when you account for hidden maintenance costs, etc., so a decent car is probably going to run you $1500 at least.
- FollowSteph3 14y ago
  I know of many families that live off of one car that costs no more than $3000-$5000 that are many years old. Notice the author never once mentioned what kind of car, so it's definitely possible to live off of a very cheap car. Btw, living in the country and working in the city is a luxury. And in terms of the suburbs to save money, you can usually find employment that's closer or find a decent solution that can simplify communiting. People do it everyday ;)
mfringel 14y ago
Why do they even need a $20/mo cellphone? They can just get basic metered service on a landline for $7-8/mo from the local telco. Of course, having a phone number is a luxury, too. There's certainly no mandate to have one, but let's say that $7-8/mo is allowable. They're in debt. They can get an answering machine from somewhere and take the calls at home. With that $12 they save, and directly applied as payments to principal, they should be able to save half a payment off a 20 year student loan. Not bad.

rayiner 14y ago

When you're $100k in debt, a TV or going out for drinks might be a luxury, but forgoing those things is also unlikely to make any real difference on the bottom line.

FollowSteph3 14y ago
They can add up. I've known people who spend more than $1000/month on these types of things. That's easily your payment. I strongly recommend anyone to watch at least a few epsiodes of Til Debt Do Us Part: http://www.slice.ca/shows/showspage.aspx?title_id=93097 http://www.slice.ca/shows/showspage.aspx?title_id=93097 Many people don't realize just how much they are spending on luxuries. It can add up much more quickly than you think.
- mfringel 14y ago
  I know people who don't spend $1000/mo on those type of things. Anecdotes cancel. The reason that there are TV shows about that kind of thing is because the occurrences are far enough out on the bell curve that people can get the entertainment from "watching the stupid people", combined with the frisson of moral-superiority-combined-with-just-enough-fear-for-their-own-situations. If it was typical, the TV show wouldn't exist.
  - FollowSteph3 14y ago
    I disagree completely. It's the same thing too with many people who are overweight due to lack of exercise and bad eating habits. Are you saying those shows are outside of the norm or that it's more fun to just watch rather than do it ourselves? How many of us can say we eat properly and get the right amount of exercise on a monthly basis? Yet these types of shows are very popular. And I can guarantee you that the average person is nowhere close to living a healthy lifestyle!!

eric_bullington 14y ago

Are you saying a car is a luxury for everyone? If so, you must have never lived outside a large city. At least in many suburbs across the US, and in rural areas, having a car is most definitely not a luxury if you have a job outside the home, or if you have kids that have to go to school. I've lived in metropolitan areas in which I didn't have to have a car. I loved it. I hate the maintenance and care that a car requires. But a car is absolutely necessary if you live in the country or in many suburbs, where the nearest public transportation is many, many miles away.

kaonashi 14y ago
There are cars that don't require monthly payments. They don't look as nice, but they still get you from point A to point B.
- omni 14y ago
  You're making an assumption that a person has a base level of net worth with which they can buy a car outright. Someone who is "in debt" by definition has a negative net worth, so even a very cheap car ($500 or so?) would be difficult to pay for with cash. Additionally, cars that cheap usually end up costing way more when you account for hidden maintenance costs, etc., so a decent car is probably going to run you $1500 at least.
FollowSteph3 14y ago
I know of many families that live off of one car that costs no more than $3000-$5000 that are many years old. Notice the author never once mentioned what kind of car, so it's definitely possible to live off of a very cheap car. Btw, living in the country and working in the city is a luxury. And in terms of the suburbs to save money, you can usually find employment that's closer or find a decent solution that can simplify communiting. People do it everyday ;)

mfringel 14y ago

Why do they even need a $20/mo cellphone? They can just get basic metered service on a landline for $7-8/mo from the local telco. Of course, having a phone number is a luxury, too. There's certainly no mandate to have one, but let's say that $7-8/mo is allowable. They're in debt. They can get an answering machine from somewhere and take the calls at home. With that $12 they save, and directly applied as payments to principal, they should be able to save half a payment off a 20 year student loan. Not bad.