graduating, debt, and stuff

Corbin Dallas · #1 04-13-2002, 10:34 AM

well,i'm graduating memorial day weekend and within the next couple of weeks, i should officially be 6 figures in debt. about a month ago, i bought a 2000 jeep wrangler, hafta start paying on that this month. this week, i've been on my spring break (had quarter break in feb/march and went to PCB), and have been looking at houses. i found one i want to buy, and the bank told me i should qualify for the loan. it's almost brand new, and is fully furnished for 65k. and by fully furnished, i mean it, king size bed, dresser, tv, couch, chairs, kitchen table, stove, fridge, washer, and dryer, along with a lot of other stuff. i couldn't pass it up. anyway, anyone else in a similar boat?

btw, i DO have a job, and i start it a week after graduation, it's for the marine corp., at the local naval base doing communications stuff.

James · #2 04-13-2002, 10:57 AM

Do you want to lock yourself in place so easly in life with a house? It is cheaper to buy than to rent usually. But generally a house kind of makes it hard to relocate geographically . . . unless its just your mission in life to settle down and you have a partner already picked out.

Corbin Dallas · #3 04-13-2002, 02:54 PM

Well, I plan on being where I'm at for at least 5 years probably. I have to stay there a year to get to keep all of my signing bonus, plus I hope to get in the grad. program and get a free master's degree, which will take a few years while working full time. Plus, I do have a steady girlfriend that I've been dating for a few years now, and we're most likely going to get married and all that. I do see what you mean as far as being locked down though. If I was to decide to relocate, it would be tough, unless it was several years down the road, where I could afford to buy a new place, and keep this one until it sold.

aephi alum · #4 04-13-2002, 03:36 PM

If you know you're going to be there a few years, it might pay to get this house (it comes fully furnished, which will save you some $ - and it is a sweet deal) and finance it with an ARM or balloon mortgage rather than a straight 15 or 30 year fixed one. You'll get a lower interest rate for the first few years, and by the time the "balloon" kicks in, you may very well want to move anyway. You'll also get a nice break on your taxes, since you can deduct mortgage interest. The tradeoff, though, as James mentioned, is that you're somewhat locked down geographically for at least a few years.

Peaches-n-Cream · #5 04-14-2002, 01:26 AM

Congratulations on your upcoming graduation, your new job, Jeep, and home. That is a lot for a young man to take on immediately after college. I am tremendously impressed!

This type of debt can be overwhelming. My sister bought her first car last week and freaked out a little over the thought of having to pay so much money every month for the next five years. The next day, when she felt better, she said, "I felt like I was digging myself into a hole until I realized that most of America is in the same hole." I think that she might be onto something.
It's a real challenge to build a life for yourself after college, but I think that you are so far ahead of the rest of the pack. Most guys I know moved back in with their families after college and remained there for several years.

Just make your payments on time so you build good credit. Good luck!

justamom · #6 04-14-2002, 06:44 AM

Several of the young graduates (lawyers mostly) who came back to town the same time as Hubby bought small houses. (Think doll house) They were cautious concerning location and fixed them up and gave them personality. They then turned them into rentals when they were ready to move up. It was successful for all except one who put way too much money into the project for the location. Can be a very good move.

aggieAXO · #7 04-14-2002, 07:12 AM

I can completely understand your situation.. I graduated 5 years ago with a huge loan debt, had bought a car 1 year earlier which my mom was nice enough to pay off and I pay her every month (last car payment will be next month-woohoo!!!!!) and bought a condo. My mother had to pay my rent for first 2 months as I was renting until condo deal went through and she also had to pay my car insurance for a year-she is the most awesome mom and didn't require me to pay her back. I had absolutely no money and for almost 8 years of education was getting paid crap. I could not get a loan b/c of my huge school debt, mom had to cosign(that is great that you do not have to have a cosigner!!!). I am finally climbing out of debt and it feels sooooooo good. I keep getting nice raises every year and invest monthly so I can retire in 10-15 years. There is a huge shortage for vets thank goodness!!!

Hang in there. I know it is very stressful at first but just make a budget and use your money wisely. As I said in another thread I think that buying property is one of the best investments you can make. Plus, it helped me adjust better-knowing the place was mine and I didn't have to rent or move anytime soon. I don't handle change well and absolutely hate to move.