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Originally posted by Steve
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Originally posted by OUGrad05
It's entirely possible to pay for a college education today. It takes sacrifice, in otherwords, you aren't partying your donkey off all the time but it can be done. I did it. It took 5 years but I did it by working full time while I was in school. Total outlay by my parents was less than a thousand bucks as my dad helped with books. I also paid my mom 450/mo rent while in school...so it can be done, just takes sacrifice.
What a refreshing story. I am of your parent's generation, but have a similar story. I graduated from TU with my bachelors degree in 1979, totally debt free. Got my MBA in 1983, going back to night classes and taking advantage of employer continuing education benefits.
I decided years ago, that for me, any type of debt was "bad debt." Be it credit card, mortgage, or whatever. For the past 6 years, I have lived my life debt-free after paying off my home mortgage 13 years early. I have continued since then to live "pay as you go." It is great, not having monthly credit card statements and such, knowing that you are living within your means. My thinking is that if I can't pay cash, I can't afford it, and that has served me well for many years.
I should qualify my previous post; mortgage debt can be good, as long as you don't take on more debt and terms than you can really afford. Witness the recent "sub-prime" fiasco. I blame that more on greedy borrowers than I do on preditory lenders, people wanting much more house and ammenities than they can realistically afford. And, there are tax advantages for young borrowers with mortgage debt.
Credit card debt is 100% bad, IMO. I have credit cards, but for years I have never charged more that I could not completely payoff each month. To carry a balance, you wind up paying twice as much for the goods and services. Bad.
I have never financed a new car. I have always paid cash + trade-in for every new car I have owned. That may soon change, as new cars today are so expensive. I currently drive a 15 year old Oldsmobile 98 that I ordered brand new in 1993, and she still has only 53,800 miles on her. Very well maintained and still looking brand new, hopefully it will last me for at least another 10 years.