Where is that investment thread? Lots-o-debt question.

I'm talking to my friend who is down on life and after talking a little I found out he owes $108,000 in student loans @6.8% interest. He makes <$27k a year and doesn't know what to do.

Luckily for me, I've always made sure to stay away from debt. That also means I may not be the best for giving advice how to get out of it. I'm telling him sell his truck, move back home,etc and just start dumping cash at this thing. He keeps telling me about this wage-based repayment plan which sounds like a way to get hooked for life racking up interest.

In the investment thread I remember a couple of you guys mentioned a book by Ramsey and it helped you get out of debt. I was thinking of picking that up for him. What was it?

Ps. Search feature stinks here.....definitely need to get that figured out by the next club meeting.

Enyar wrote: I'm telling him sell his truck, move back home,etc and just start dumping cash at this thing. He keeps telling me about this wage-based repayment plan which sounds like a way to get hooked for life racking up interest.

I like your plan.

I just realize this, but hes a member of the local yacht club and sailing center. That can't be cheap!

Another one of my friend's was just complaining to me about how I go on all these cool trips and he would love to go with me but he has no money. This is the same guy who bought a brand new Ford Fusion with all the gizmos 1.1 years ago, and then last week traded it for a new Ram 1500

Sometimes I just feel like knocking people upside their head!

Sucks to be him. There is no legal investment that will reliably beat what he's paying in interest by any compelling margin. Either he finds much, much better paying work or he cuts his expenses to the bone, but that note's got to be paid.

Ramsey is awesome. However, not his first step.

You said he's down on life. He probably didn't rack up $108K in debt in anticipation of a $27K job.

What's he trained at? What are his dreams? How can he get back on track?

You've got to help him refocus. Getting out of debt is wonderful, but first he's got to have a vision and direction for his life. Don't overburden him with the "Get of of Debt" mantra, if his real problem is he's not sure he has a reason to live, or at least something to get excited about.

He may need some professional counseling.

I've got a customer who has over $170,000 worth of student loans and neither him nor his wife have degrees in any field that will pay them much money, but the total payment on all those loans is only about $800 a month.

I was shocked it was so little. They base your payment on income, number in the family, etc. which does guarantee you are in debt for life.

These guys just stayed in college till they were in their mid 30's cause it was easier than joining the real world. Now they're paying for the life of Riley they lead.

I don't have 100k in debt but I do have debt and after a year of employment at below-satisfactory wages I'm back to unemployment.

I know one thing that has got me down is how specialized my professional experience has been since leaving college. I was more employable before college because I had more "hands on" experience, and the jobs I've had since college have been desk job/paper pusher gigs.

That's not to say I couldn't find a job, but I'd leave behind the girlfriend who's got a good paying job herself, and she's ripe for advancement, and I'd also have to pay rent by myself, which is a $12,000 pay cut to any job I've got to move for.

However, although I am considering going back to school, it would be in something completely different than my previous education. Why? More options. I want a fun, good job anywhere I move, not just a job I can get in the city or a job I can only get in the gas fields.

nderwater wrote: Sucks to be him. There is no legal investment that will reliably beat what he's paying in interest by any compelling margin. Either he finds much, much better paying work or he cuts his expenses to the bone, but that note's got to be paid.

That's what I told him.

SVreX wrote: Ramsey is awesome. However, not his first step. You said he's down on life. He probably didn't rack up $108K in debt in anticipation of a $27K job. What's he trained at? What are his dreams? How can he get back on track? You've got to help him refocus. Getting out of debt is wonderful, but first he's got to have a vision and direction for his life. Don't overburden him with the "Get of of Debt" mantra, if his real problem is he's not sure he has a reason to live, or at least something to get excited about. He may need some professional counseling.

I'm not sure what the official deal was. He's a really smart kid. I met him in school and he was pre-med. The issue was he for some reason decided to switch to an out of state school for dental school. That's where he racked up the debt.

I'm keeping a close eye on everything else. He can be a little dramatic at times but I think he's ok mentally.

carguy123 wrote: I've got a customer who has over $170,000 worth of student loans and neither him nor his wife have degrees in any field that will pay them much money, but the total payment on all those loans is only about $800 a month. I was shocked it was so little. They base your payment on income, number in the family, etc. which does guarantee you are in debt for life. These guys just stayed in college till they were in their mid 30's cause it was easier than joining the real world. Now they're paying for the life of Riley they lead.

Scary stuff.

I just ordered him the Ramsey book, should be there on Thursday.

So why isn't he practicing dentistry?

I don't think he ever finished. Not sure if it was a case of away from home blues or what . It was during my period of studying too hard for an exam and regrettably didn't keep in touch with the outside world all that much.

Could also be family things, i know both of his parents aren't in the best of health.

Honestly, his reasons are none of my business.

I'm just saying he needs a better job to carry that debt load, and should be well on his way educationally to getting one.

He's trying for a better job. I always thought something weird was going on but it wasn't until I saw his facebook post about quitting studying for the Series 7 that i figured this all out. Looking but not finding.

I'd think even going into lots of places and saying " I got most of the way through dental school" would at least get you into a hospital or dentists office as an assistant.

That's a tough spot to be in.

I wonder if his best bet might be to go back to school and finish his degree. Paying off that much debt with that little income is going to hurt. Kind of like bailing a ship with a solo cup.

SVreX has hit the nail on the head. Getting him focused moving forward will help a lot. The rest of it will fall into place with a positive attitude.

In the mean time, tell him to keep bailing. Every little bit helps.

If he goes back to school, would that stall his loan payment requirements?

He needs FOCUS. He needs to FINISH school. He needs a REAL job. He paid too much for that education to wallow around feeling sorry for himself. Put it to work.

Until he is ready to do this stuff, Ramsey can't help him.

BTW, he will need focus for Ramsey too.

SVreX wrote: If he goes back to school, would that stall his loan payment requirements?

It should. Most student loans are deferred if they are attending classes.

SVreX wrote: If he goes back to school, would that stall his loan payment requirements? He needs FOCUS. He needs to FINISH school. He needs a REAL job. He paid too much for that education to wallow around feeling sorry for himself. Put it to work. Until he is ready to do this stuff, Ramsey can't help him. BTW, he will need focus for Ramsey too.

This times 11 million...

Although I don't know if i would encourage more debt.. This guy needs to seriously focus on getting his poop in a group. There needs to be a light at the end of this tunnel for him... and a tunnel... meaning a system by which he inserts himself which won't allow him to go off track.

He is going to need to make some major 'sacrifices' to his current way of life which are going to be very hard... The only way this is possible is if you see that you are giving up something less important for something way more valuable down the road.. This is the hardest part.. Once you understand this.. making the needed changes is much easier because you have a goal in mind...

normally my knee jerk would also be Dave Ramsey...

maybe this guy should resort to a classic first...

and if you can't get him in the Bible..

Try "THINK and GROW RICH"

http://www.amazon.com/Think-Grow-Rich-Original-Unedited/dp/193764135X/ref=sr_1_2?ie=UTF8&qid=1363145162&sr=8-2&keywords=think+and+grow+rich+book

by this guy..

http://www.youtube.com/watch?v=PS9c60wVNSA

Enyar wrote: Luckily for me, I've always made sure to stay away from debt. That also means I may not be the best for giving advice how to get out of it. I'm telling him sell his truck, move back home,etc and just start dumping cash at this thing. He keeps telling me about this wage-based repayment plan which sounds like a way to get hooked for life racking up interest. In the investment thread I remember a couple of you guys mentioned a book by Ramsey and it helped you get out of debt. I was thinking of picking that up for him. What was it? Ps. Search feature stinks here.....definitely need to get that figured out by the next club meeting.

1. I am glad that we had an impact and introduced you to Ramsey. It sounds like you have yourself together but help for your friend will be harder. Please do me one favor and that is read Ramsey yourself before giving it away. Though you may not need all the advise, please read it as a way to understand how easy and slippery of a slope it can be to get on the wrong end of the equation. We have you now, and you are in good shape but I would hate to loose you to the wrong side.

2. As for search function...yeah, it sucks.
   Try this tip.
   Open google and put in the following:
   site: grassrootsmotorsports.com Ramsey
   or
   site: grassrootsmotorsports.com debt
   or anything...
   site: grassrootsmotorsports.com Lancia Zagato

This will being you more than the search function ever will.
Club Meeting adjourned

How long ago did he get out of school? Future BIL is in a program that reduces your payment and then forgives the balance after ten years. Basically it was a way to keep the student loan program afloat with all the unemployed recent grads after the govt took it over a few years ago.

All I can think about after reading 'investments' is

I have no useful info otherwise. I wish the best for your friend.

PHeller wrote: I'd think even going into lots of places and saying " I got most of the way through dental school" would at least get you into a hospital or dentists office as an assistant.

He's been looking for finance jobs because of a mutual friend of ours, issue with that is most finance jobs around here are garbage. He said he wants to do medical sales but can't quite find anything. I think he needs to focus more on that.

Toyman01 wrote: That's a tough spot to be in. I wonder if his best bet might be to go back to school and finish his degree. Paying off that much debt with that little income is going to hurt. Kind of like bailing a ship with a solo cup. SVreX has hit the nail on the head. Getting him focused moving forward will help a lot. The rest of it will fall into place with a positive attitude. In the mean time, tell him to keep bailing. Every little bit helps.

I talked to him about finishing his degree and he said it would take another 2 years +100k and 3 years of residency and he has decided he doesn't want to be a Dr.

SVreX wrote: If he goes back to school, would that stall his loan payment requirements? He needs FOCUS. He needs to FINISH school. He needs a REAL job. He paid too much for that education to wallow around feeling sorry for himself. Put it to work. Until he is ready to do this stuff, Ramsey can't help him. BTW, he will need focus for Ramsey too.

He has an undergrad degree in biomedical science. He was on track to be an orthopedic surgeon for foot and ankle medicine when he decided it wasn't for him

ronholm wrote: This times 11 million... Although I don't know if i would encourage more debt.. This guy needs to seriously focus on getting his poop in a group. There needs to be a light at the end of this tunnel for him... and a tunnel... meaning a system by which he inserts himself which won't allow him to go off track. He is going to need to make some major 'sacrifices' to his current way of life which are going to be very hard... The only way this is possible is if you see that you are giving up something less important for something way more valuable down the road.. This is the hardest part.. Once you understand this.. making the needed changes is much easier because you have a goal in mind... normally my knee jerk would also be Dave Ramsey... maybe this guy should resort to a classic first... and if you can't get him in the Bible.. Try "THINK and GROW RICH" http://www.amazon.com/Think-Grow-Rich-Original-Unedited/dp/193764135X/ref=sr_1_2?ie=UTF8&qid=1363145162&sr=8-2&keywords=think+and+grow+rich+book by this guy.. http://www.youtube.com/watch?v=PS9c60wVNSA

I think reaching out to him really made him open his eyes and realize he could beat this. Who knows how long it'll stick but he said he wont renew hew memberships and hes going to move home. He has a weird deal for insurance on his Tahoe where he only pays $400 a year so I don't know if the beater civic would help much. We shall see, the important thing is he sees the light and thinks he can beat it.

What about those jobs that forgive student loans after working for a few years like certain teaching positions etc? Anyone know about those?

JohnRW1621 wrote: 1. I am glad that we had an impact and introduced you to Ramsey. It sounds like you have yourself together but help for your friend will be harder. Please do me one favor and that is read Ramsey yourself before giving it away. Though you may not need all the advise, please read it as a way to understand how easy and slippery of a slope it can be to get on the wrong end of the equation. We have you now, and you are in good shape but I would hate to loose you to the wrong side. 2. As for search function...yeah, it sucks. Try this tip. Open google and put in the following: site: grassrootsmotorsports.com Ramsey or site: grassrootsmotorsports.com debt or anything... site: grassrootsmotorsports.com Lancia Zagato This will being you more than the search function ever will. Club Meeting adjourned

I already bought the book for him off Amazon but I'll pickup another copy for myself. I like to think I am doing pretty good for myself but I am sure I could learn a few things.

Thanks for the search tips!

Strizzo wrote: How long ago did he get out of school? Future BIL is in a program that reduces your payment and then forgives the balance after ten years. Basically it was a way to keep the student loan program afloat with all the unemployed recent grads after the govt took it over a few years ago.

Maybe a year or 2? I guess he has another 6 months before he has to start making payments but it is still racking up interest. Where can I find out more about this BIL?

In reply to Enyar:
Ah, Grasshopper...in fine GRM fashion, pick the book up for yourself at the library. You know, that large building where they have multiple copies they let you use for free.