All posts filed under: debt

10 Reasons Why You Should Get Rid of Your Student Loan Debt Quickly

It’s funny the things you remember when you are younger, which at the time you feel have no significance. I remember sitting in my Grade 12 calculus class, it was the final semester before high school graduation. By then, everyone had picked out their schools and had either been accepted or not. The feeling of independence, a sense of accomplishment and the eagerness to experience college/university life had filled the classroom. I then distinctly remember my teacher talking about how we would all probably need to get a student loan to attend post-secondary, how he just finished paying off his student loan last month and how it took him over 12 years to pay off. Although I did not have any understanding about personal finance back then, there was something really depressing about his comment. Granted he wasn’t an old teacher. He was probably in his early 40’s but when you are 17-18 years old….that’s old. I remember thinking to myself, 12 years to pay off a student loan, that’s crazy. He never told us…

How to Deal with Debt Without Ruining Your Relationship

Originally posted on Millennials making cents of money:
Relationships can be hard enough, add money to the mix and it can be disastrous. Today, many millennials have student debt, credit card debt, auto loans, etc.  For the few that don’t, the odds are against you for finding a partner who doesn’t have any debt.  That doesn’t mean it’s impossible or that you shouldn’t date someone with debt. It just means you need to figure out how to talk about/manage debt before it becomes a problem to the relationship. Toni Coleman, a psychotherapist and relationship coach in McLean, Virginia, says she frequently sees couples dealing with problems such as hiding debt from each other, blaming each other for their dual debt and “an attitude of ‘yours’ and ‘mine,’ which keeps the couple from working together on a solution.” As a couple, you must work through the debt together. Here are steps to help you with this process: Be honest. Some people feel they need to be ashamed of this debt, but let’s be real, college costs a…

3 Steps to Getting Out of Debt that Actually Work

A big reason why many people struggle with changing money habits is like other behavioral habits, they are ingrained in us. Whether you are a saver or a spender or somewhere in between, we all struggle with changing habits, including how we view and spend our money. Stanford Professor and Psychologist BJ Fogg has some great literature on changing tiny habits over time to create lasting changes. Many of the overall concepts he talks about I have used in this post to highlight some of my experiences and changes in behavior with money. So how does someone set financial goals and actually stick to them? Why do we set some goals, have the best intentions of following through with them, and then never quite seem to reach them? We may genuinely want to make a change in our lives, but what stops us? Well, I based on my own experience and learning from others, here is what I think: We are too general with our goals. For example: many of us want to “get out…

5 Things You Should Know About Student Loan Debt

When I think back to when I was in Grade 12 gearing up for university, it seems so long ago. Who knew the decisions I made then regarding my finances (and some that where inevitable due to my circumstances) would continue to impact and shape me as the person I am today. To save future post-secondary students or current ones from getting into more student debt than they need to, I have compiled a short list of what I learned from incurring so much student debt. If you have to take out ‘more’ student loan to complete your undergraduate degree outside of your hometown, it’s probably a bad idea. I understand that some students would like to go to a school outside of their city because it’s well known for the program they want to take. Others may just want to leave the nest egg. However, in most cases the added debt needed to finance this decision exceeds the economic benefit they actually get once their out of school. This was not an option for…

Why I choose to rent…for now at least

Ever since my husband and I became debt free, most people in our circle of friends and family keep asking us when we are going to buy a house. It’s a very reasonable question as most people our age (early 30’s) are getting married, buying homes and making babies. The truthful answer to this is, I don’t know and I am in no rush. After grinding away for 2.5 years to pay off $120,000 of debt, the last thing on my mind right now is to get into more debt. Now I know the argument that mortgage debt is good debt, but that is beside the point. Where I stand personally in my life right now, debt is debt. Yes, I agree good debt (if there is such a thing) provides you with a better interest rate and increases your long term assets (sometimes), but your still on the hook to pay it back and that’s what I want to avoid right now. The feeling of owing anyone, anything. I know this feeling will probably…

Just Get Rid of the Debt Already…

I know of so many people that refuse to tackle their student loan debt because they don’t feel that it’s their responsibility to do so. Some of the reasons, include: “I never got to work in the field that I studied so why should I pay back the debt?” (you and 70% of the population…welcome to LIFE) “They should have never lent me that much money. Nobody told me it would be this hard. So why should I pay it back?” (you are an adult so start acting like one) “I’ll just earn the bare minimum so the government can pay for my interest while I reduce my principal.” (so you’re going to let student loans dictate your career plans as well…) “I’ll just wait 6 or 7 years then apply for bankruptcy.” (bankruptcy is not your answer, work is) I know I am coming off as snarky but it bugs me when capable, able people are not taking responsibility for their own past decisions. When did our society become so entitled? Having a lot…

Am I Too Young To Be So Bitter?

Originally posted on Am I Thirty Yet:
A few weeks ago I went to my friend’s graduation. I’m one of those people who tends to cry at everything. I can’t even watch 95% of the commercials they air these days without a box of tissues on hand. So I warned my friend that I’m probably going to tear up at some point during the ceremony. Graduations can be an emotional thing and I just knew one of those speeches was going to get to me. I couldn’t have been more wrong. Sadness was the last thing on my mind. If I was going to tear up, it would have been from laughing so hard. I laughed at most of the speeches. It was either I laugh or scream with rage. Anger. That’s the emotion I felt the most during the graduation ceremony. I graduated from college over four years ago. I owe a ton of money from student loans that I haven’t made a dent in. I am incredibly underemployed. It turns out I am way too…