bankruptcy

[AOII Angel]

Originally Posted by aggieAXO

I guess it depends on how you feel about debt. I hate it and pay for eveything in cash or if I use credit will pay it off quickly. To me debt=stress, I literally would have anxiety atttacks thinking about my loans. I felt like I was in prison.

The cost of my debt is a drop in the bucket each month. It would cause me more stress trying to pay it off quickly, which is also dumb since it is the lowest financed rate debt you can get. I'd pay off one of my two mortgages before I'd even consider touching my student loan debt. My debt to income level is minuscule anyway. Having debt is not the end of the world. I do agree about the credit cards, though. You should use them to increase you credit rating but pay them off. We use ones with top rated rewards programs (currently Chase Sapphire.)

[aggieAXO]

Originally Posted by AOII Angel

The cost of my debt is a drop in the bucket each month. It would cause me more stress trying to pay it off quickly, which is also dumb since it is the lowest financed rate debt you can get. I'd pay off one of my two mortgages before I'd even consider touching my student loan debt. My debt to income level is minuscule anyway. Having debt is not the end of the world. I do agree about the credit cards, though. You should use them to increase you credit rating but pay them off. We use ones with top rated rewards programs (currently Chase Sapphire.)

Interest rates are better these days-I have a friend that only has a 2.1% interest on her school loans and has no plans on paying it off any time soon (she graduated in 2002). I had an 8.9% interest rate (went to 7.9% after 4 years of automatic deduction with no missed payments). After paying on my debt for 8.5 years I had paid 60,000$ total with only 10,000 of that going towards the principal. I felt like I was getting no where. One of my collegaues that graduated a few years before me had an interest rate of over 11%.

I can say that my life has changed completely since I got rid of the debt-I am a much happier person and will be able to go part time in a few years.

ETA I was on the 30 year Sallie Mae plan. I hate Sallie Mae.

[AOII Angel]

Originally Posted by aggieAXO

Interest rates are better these days-I have a friend that only has a 2.1% interest on her school loans and has no plans on paying it off any time soon (she graduated in 2002). I had an 8.9% interest rate (went to 7.9% after 4 years of automatic deduction with no missed payments). After paying on my debt for 8.5 years I had paid 60,000$ total with only 10,000 of that going towards the principal. I felt like I was getting no where. One of my collegaues that graduated a few years before me had an interest rate of over 11%.

I can say that my life has changed completely since I got rid of the debt-I am a much happier person and will be able to go part time in a few years.

ETA I was on the 30 year Sallie Mae plan. I hate Sallie Mae.

If obsessed over it, I'd be happier having it paid off too. Those loans don't even factor into my thoughts on a monthly basis. It comes out automatically from my checking account. It's part of life as much as paying for water, gas and electricity. I don't think about those things either. I can't see how my life would change one iota if I paid off my debt. My credit score wouldn't change. I already have enough money to spend and save for retirement. That money is my education payment and a heck of a cheap one at that.

P.S. And I pay two of them every month since my husband has an equal amount of debt. Debt is just a number if you have greater potential. If you let the fear of debt, like the fear of anything else in life, take over your life, it can become irrational. Money doesn't make you happy.

[aggieAXO]

No money doesn't bring you happiness but it sure does help give you more choices. I no longer feel trapped and can pursue other opportunities in the near future-knowing that I have a choice makes me very happy.

[Munchkin03]

I find it funny that a bankruptcy thread has segued into a discussion about student loans--the one type of debt that can't be discharged in bankruptcy.

[adpimiz]

Originally Posted by aggieAXO

No money doesn't bring you happiness but it sure does help give you more choices. I no longer feel trapped and can pursue other opportunities in the near future-knowing that I have a choice makes me very happy.

My saying is: Of course, money does not bring happiness. But you're gonna be a lot happier with a roof over your head and a car to drive to work everyday than you would be living on the streets.

[AOII Angel]

Originally Posted by adpimiz

My saying is: Of course, money does not bring happiness. But you're gonna be a lot happier with a roof over your head and a car to drive to work everyday than you would be living on the streets.

That, of course, is not the level we are discussing. It's the level of extra money in hand. The idea of debt just can't be handled by some people. I'm not sure what opportunities you might miss out on bc you have student loan debt, but I imagine it's largely self inflicted due to anxiety over debt in general. Student loan debt isn't used to calculate you debt level for mortgages, etc. I can understand saying you just didn't like having debt, but really what opportunities are opened up by discharging that debt?

[adpimiz]

Originally Posted by AOII Angel

That, of course, is not the level we are discussing.

Ha, I know. It was a joke