So I owe a lot of money....
08-14-2006, 01:49 PM
#21
Gets Weekends Off
Joined APC: Jul 2005
Posts: 2,242
Originally Posted by avanti
You know what, I live in Japan, and from what I've heard CFI-ing in China is NOT a bad idea at all. There are tons of students! And they have to learn English too, so you get two jobs in one. Oh, and PS, what I have learned about debt from living in Japan is *always pay for everything in cash* It really works great!! I take it you are beyond being able to do this now, but it is something to keep in mind for the future. It makes a huge difference.
_LAFF
08-15-2006, 09:05 AM
#22
Gets Weekends Off
Joined APC: Oct 2005
Position: Any seat that pays
Posts: 219
You are in a tight situation and going through what I call excessive loan with drawl. You are stuck in limbo right now. I have a couple tips/comments which you can take or leave.
Do not defer your loans. Defering is a temporary way to avoid the enevitable and the banks are counting on you to do so. If you defer for six months to a year- you will add thousands and the back end to your current loan.
Every bank has policies for adjusting monthly payments when your fresh out of flight training and fresh out of cash. Some will allow you to pay just towards the interest (similar to an interest only loan on real estate.) That way you will have a more affordable monthly payment and not acrue the tremendous amount of interest you'd acrue during deferment. But keep in mind - these interest only periods will only last a year or 2 and then you will have to pay interest plus princible. Also keep in mind that interests rates on on the rise.
As far as a way to cut down on the princible of your loan. When you make a payment write a seperate check soley towards princible its only has to be 20-30 bucks and that will surprisinly make a dent.
For private loans such as key bank consolidation is out of the question as probably is stated in the fine print. Cosolidation is more for credit cards and mortgages and government loans like stafford. Now if you own a house and have equity you can take another loan out using the house (equity) as corlateral and essentially throwing your school loans on top of you home loans with a lower fixed rate.
As far as bankrupcy. You can file all you want- but your co-signers will have to pick up the slack. A co-signer is stuck to repay the loan if the primary skips town. Many times parents or relatives co-sign without thinking of the possible weight that might be thrown on their back. New Bankrupcy laws are making it harder and harder to file. They are not letting people rack up tremendous debt and wash their hands of it.
What you have to do is sit down with a pen and paper and budget. Right down all your individual bills. Rent, Car, Utilites, Food etc. And figure out ways to drop monthly bills. Example- Cable bills high- drop the cable. Don't go out and spend money if you don't need to. Keep in mind nice cars and dinners are not an option anymore. Niether are a lot of other things you're acustom to.
Now this is not an attack on you. You are in shock right now and that's normal. As much as you worry, complain, have sleepless nights, fight with friends and family and get depressed over it- the BILLS WILL STILL BE THERE. Its like treding water with a ton of bricks.
When people take out very large loans the last thing they think about is the repayment policy. You say your loans are 1300 per month. Is this a surprise? No. This is just reality smacking you in the face.
There are no easy answers or silver bullets that will get to thru this. You just have to live cheap and struggle for a while. Just take it as a life lesson grint your teath and bare it.
Do not defer your loans. Defering is a temporary way to avoid the enevitable and the banks are counting on you to do so. If you defer for six months to a year- you will add thousands and the back end to your current loan.
Every bank has policies for adjusting monthly payments when your fresh out of flight training and fresh out of cash. Some will allow you to pay just towards the interest (similar to an interest only loan on real estate.) That way you will have a more affordable monthly payment and not acrue the tremendous amount of interest you'd acrue during deferment. But keep in mind - these interest only periods will only last a year or 2 and then you will have to pay interest plus princible. Also keep in mind that interests rates on on the rise.
As far as a way to cut down on the princible of your loan. When you make a payment write a seperate check soley towards princible its only has to be 20-30 bucks and that will surprisinly make a dent.
For private loans such as key bank consolidation is out of the question as probably is stated in the fine print. Cosolidation is more for credit cards and mortgages and government loans like stafford. Now if you own a house and have equity you can take another loan out using the house (equity) as corlateral and essentially throwing your school loans on top of you home loans with a lower fixed rate.
As far as bankrupcy. You can file all you want- but your co-signers will have to pick up the slack. A co-signer is stuck to repay the loan if the primary skips town. Many times parents or relatives co-sign without thinking of the possible weight that might be thrown on their back. New Bankrupcy laws are making it harder and harder to file. They are not letting people rack up tremendous debt and wash their hands of it.
What you have to do is sit down with a pen and paper and budget. Right down all your individual bills. Rent, Car, Utilites, Food etc. And figure out ways to drop monthly bills. Example- Cable bills high- drop the cable. Don't go out and spend money if you don't need to. Keep in mind nice cars and dinners are not an option anymore. Niether are a lot of other things you're acustom to.
Now this is not an attack on you. You are in shock right now and that's normal. As much as you worry, complain, have sleepless nights, fight with friends and family and get depressed over it- the BILLS WILL STILL BE THERE. Its like treding water with a ton of bricks.
When people take out very large loans the last thing they think about is the repayment policy. You say your loans are 1300 per month. Is this a surprise? No. This is just reality smacking you in the face.
There are no easy answers or silver bullets that will get to thru this. You just have to live cheap and struggle for a while. Just take it as a life lesson grint your teath and bare it.
09-19-2006, 07:54 AM
#23
Gets Weekends Off
Joined APC: Aug 2006
Posts: 111
Yeah, I'm going to agree it is always good to pay for everything with cash. Keep your debit and credit cards at home, because when you run out of cash you will be tempted to use ur cards and the by keeping them at home, you may end up starving for a while, but it will help you to learn to better budget ur money. When I got a debit card, I ended up spending way more than I would have normally spent without one. Also get rid of ur cell phone if you have one because that will help you save quite a bit in the long run..and if ur job is far from your house, get a closer one to save on gas expenses. Bankrupcy is a horrible idea for all the reasons mentioned above, and besides that, it's dishonest and it affects all the hard working ppl who do pay off their bills because they have to make up for the money companies are losing when ppl don't pay them back. Good luck, though
09-19-2006, 05:37 PM
#24
Gets Weekends Off
Joined APC: Jan 2006
Posts: 305
I'm no lawyer but I do work at the law library here and was discussing student loans (which I have) with several law students who are also in debt. I always wondered what kept new grads from telling the bank to **** themsleves and declare bankruptcy. Well it turns out that you can declare bankruptcy but your student loans will still stay with you; you wouldn't gain much if anything by filing for bankruptcy. According to one of the law students there is only one federal circuit court that has let student loans be dissolved (he never said which one), but even there it sounded like it is quite uncommon. Hope this helps, good luck.
09-20-2006, 07:48 PM
#25
On Reserve
Joined APC: Aug 2006
Posts: 10
I know this sounds a little redundant, but you should not file for bankruptcy. It could prevent you from getting a job. Some employers do credit checks, to check to see if you are responsible. It would be a black cloud that haunts you for awhile.
09-22-2006, 02:35 PM
#26
New Hire
Joined APC: Jan 2006
Position: DHC8 F/O
Posts: 7
Bills, Bills, Bills.....
Do not file Bankruptcy....I have done it and would advise against it.....the laws have changed and you probably wont qualify anyway....
Cut up all credit cards ---trust me you will never need them again....once you are debt free, and working.....you will be amazed at how fast you accumulate cash......another thing....stop worrying about your beacon score....i know it sounds bad....but we are conditioned to base our lives on the beacon score....the beacon score is based on debt....NOT HOW WELL YOU MANAGE CASH.....
go to www.daveramsey.com if you dont believe what i am saying...he has changed my life and will change yours....
and before you do anything else.....establish a baby emergency fund of $1000
pay the student loans first.....they can garnish your pay swift ease.....get them paid first.....once you are debt free...establish a 3-6 month living expense fund....then start working on saving for retirement...
When you say your lease is "manageable"....what do you mean? Your rent/mortgage should NEVER be more than 1/4 of your monthly take home...and the total value of automobiles should NEVER be more than 50% of your annual salary....the theory being that if you have anymore in automobiles than that ...its too much money tied up in a depreciating asset. And never buy a NEW car again....once your on your feet, buy a newer used car that someone has already taken a majority of the depreciation on...
I moved into the smallest place that I could find....i would sell the car and get a $2K beater to drive until you are debt free....
I put myself on a strict budget with the maximum amount going towards paying off debt.....I used envelopes and allowed myself x amount of dollars for groceries, gas and personal spending....when it was gone...it was gone....you have to get INSANE and put ALL of your money to get the debt (student loans paid off)
We paid off 60K of debt in 20 months with an income of 75K.
Again: get rid of the credit cards
use the debit card as a last resort. initially pay for as much as you can with cash.....i helped me realize that i was acutally spending money --instead of just swiping a card.....$50 cash is a lot more painful than a $50 swipe......
Finally.....if you have XM radio listen to Dave Ramsey (channel 165 daily at 3 pm EST)......get his book (its $20) ......read it and LIVE IT.......he has helped me and tons of others tremendously......also go to www.daveramsey.com-------you can also call his staff during radio times for free advise......
When you start this it will be very painfull and a HUGE lifestyle change.....I would also adivse that you get another part-time job to expedite the debt free process. Your friends will laugh and make fun....you will not be able to attend a lot of social functions...until you ARE debt free you cannot imaging how different your life WILL be when you are debt free.
We are working towards paying cash for our next house...so a "beacon" score wont even matter......
Finally----I left professional aviation 6 years ago.....if you are just entering aviation now....the chances of you making a living wage with a stable airline
are very challenged.....you might also want to consider another career path to ensure that you will achieve the financial success you deserve....
I am 44 now and will be retired by the time I am 55....i will then work because I want to...not because I have to....
Cut up all credit cards ---trust me you will never need them again....once you are debt free, and working.....you will be amazed at how fast you accumulate cash......another thing....stop worrying about your beacon score....i know it sounds bad....but we are conditioned to base our lives on the beacon score....the beacon score is based on debt....NOT HOW WELL YOU MANAGE CASH.....
go to www.daveramsey.com if you dont believe what i am saying...he has changed my life and will change yours....
and before you do anything else.....establish a baby emergency fund of $1000
pay the student loans first.....they can garnish your pay swift ease.....get them paid first.....once you are debt free...establish a 3-6 month living expense fund....then start working on saving for retirement...
When you say your lease is "manageable"....what do you mean? Your rent/mortgage should NEVER be more than 1/4 of your monthly take home...and the total value of automobiles should NEVER be more than 50% of your annual salary....the theory being that if you have anymore in automobiles than that ...its too much money tied up in a depreciating asset. And never buy a NEW car again....once your on your feet, buy a newer used car that someone has already taken a majority of the depreciation on...
I moved into the smallest place that I could find....i would sell the car and get a $2K beater to drive until you are debt free....
I put myself on a strict budget with the maximum amount going towards paying off debt.....I used envelopes and allowed myself x amount of dollars for groceries, gas and personal spending....when it was gone...it was gone....you have to get INSANE and put ALL of your money to get the debt (student loans paid off)
We paid off 60K of debt in 20 months with an income of 75K.
Again: get rid of the credit cards
use the debit card as a last resort. initially pay for as much as you can with cash.....i helped me realize that i was acutally spending money --instead of just swiping a card.....$50 cash is a lot more painful than a $50 swipe......
Finally.....if you have XM radio listen to Dave Ramsey (channel 165 daily at 3 pm EST)......get his book (its $20) ......read it and LIVE IT.......he has helped me and tons of others tremendously......also go to www.daveramsey.com-------you can also call his staff during radio times for free advise......
When you start this it will be very painfull and a HUGE lifestyle change.....I would also adivse that you get another part-time job to expedite the debt free process. Your friends will laugh and make fun....you will not be able to attend a lot of social functions...until you ARE debt free you cannot imaging how different your life WILL be when you are debt free.
We are working towards paying cash for our next house...so a "beacon" score wont even matter......
Finally----I left professional aviation 6 years ago.....if you are just entering aviation now....the chances of you making a living wage with a stable airline
are very challenged.....you might also want to consider another career path to ensure that you will achieve the financial success you deserve....
I am 44 now and will be retired by the time I am 55....i will then work because I want to...not because I have to....
09-26-2006, 02:26 PM
#27
On Reserve
Joined APC: Jan 2006
Position: In the Man Cave
Posts: 16
loans suck
I feel your pain.
Only through an INSANE method of tackling student loan debt, was I able to pay them off.
everything posted is great advice.
I only have 1 tip:
If you're trying to live way beneath your means, and stay on a budget, it makes it very difficult if your friends are not on the same plan... aka. they're going out to eat for lunch every day... and then going to the clubs at night. If you can form a group of friends that are going throught the same battle as you are it will make the process easier to manage.
Once you start living beneath your means, and you pay off your debt, the habit usually stays and you continue to save money for your future/retirement. It can be done without having a 6 figure income too.
I wish you luck. Know that there are others in the same boat as you.
500and2
Only through an INSANE method of tackling student loan debt, was I able to pay them off.
everything posted is great advice.
I only have 1 tip:
If you're trying to live way beneath your means, and stay on a budget, it makes it very difficult if your friends are not on the same plan... aka. they're going out to eat for lunch every day... and then going to the clubs at night. If you can form a group of friends that are going throught the same battle as you are it will make the process easier to manage.
Once you start living beneath your means, and you pay off your debt, the habit usually stays and you continue to save money for your future/retirement. It can be done without having a 6 figure income too.
I wish you luck. Know that there are others in the same boat as you.
500and2
09-28-2006, 06:49 PM
#28
Gets Weekends Off
Joined APC: Aug 2006
Posts: 111
Originally Posted by 500and2
I only have 1 tip:
If you're trying to live way beneath your means, and stay on a budget, it makes it very difficult if your friends are not on the same plan... aka. they're going out to eat for lunch every day... and then going to the clubs at night. If you can form a group of friends that are going throught the same battle as you are it will make the process easier to manage.
500and2
11-09-2006, 06:42 AM
#29
Line Holder
Joined APC: Nov 2006
Posts: 36
I feel your pain man, I just graduated college recently and I'm getting hit with all the student loan bills now. I'm paying about $700 a month just in the student loans. I really screwed myself over by living with my gf after finishing college and getting a ****ty paying job so I had to pour all my money into that instead of my personal bills so my credit is really in the ****ter right now. I would definitely suggest not counting on women to help you out with bills haha! and also try to live with someone for free a friend, parents house because that saves you a ton of money and you can focus on your loans more. Luckily my parents let me live with them again rent free, so that's a huge relief. Get a job where you can make at least $ 500 a week take home you can easily do that working for fed ex as a courier full time which is what I'm doing. Make more than the minimum payments on your bills, I try to double mine every month so I can cut the repayment time in half. LIVE BELOW YOUR MEANS yeah it really sucks, but think of how much better off you would be when you can pay off your bills alot faster since you have nothing else to sink your money into. Always balance your checkbook because overdraft fees really hurt believe me I've been there plenty of times because I relied on my online banking statements to give me an accurate balance haha not! I just started doing all of this and it's working pretty good so far I hope to get my credit back on track again so I can go get my CFI and finally build the flying hours I so desperately need. Hope that helps, good luck
11-09-2006, 07:25 AM
#30
Gets Weekends Off
Joined APC: Jul 2005
Posts: 2,242
Debt free or not - one should always live below their means. I don't know about you, but I have no one to impress.
If you need to impress people to get them to like you. I'd consider finding new people to spend time with.
Anyway, my wife likes me for my big brain and small d!@# not the cars / watches / bling...
-LAFF
If you need to impress people to get them to like you. I'd consider finding new people to spend time with.
Anyway, my wife likes me for my big brain and small d!@# not the cars / watches / bling...
-LAFF
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