SavingsTalk.com

Mike · 12-13-2006, 12:17 AM

Just wanted to introduce myself, particuarly in more of a "savingstalk" light since some of you may know me from hondaswap (bl6crx over there).

I'm currently in my last year of college at UCLA. I'm majoring in Business Economics and minoring in Accounting. I'll be breaking into the working world in next September. I have recently accepted an offer with PricewaterhouseCooopers. The pay is decent, starts off at about 50k, but increases very quickly. If I stick with it, I'll definitly hit the 6 figure mark before 30, likely closer to 27, but I'll have to see if it continues to be my career of choice.

I haven't paid as close attention as I should, but I think I am going to finish college with about 20k worth of debt (not too bad considering my parents don't pay for anything). I've worked various jobs since I was a sophomore in highschool so that has definitly helped out.

I've been meaning to make my way over here but I've been busy with school/recruiting. I just got done with finals and recruitng is over so I plan spending some more time kicking around here.

EDIT: OPPS sorry, I didn't realize that there was a separate fourm for intros. I am obviously a NOOB.

briansol · 12-13-2006, 10:42 AM

Moved for you

Welcome to the site

20k of debt isn't bad at all. Is that school loan style debt, or bills/credit card debt?

Mike · 12-13-2006, 01:46 PM

Its all Stafford/Perkins loans. No interest accurues while I'm in school and after I get out the Perkins is 5% annual and the Stafford is tied in some way to the T-bill rate. I think its at like 8 percent or something.

briansol · 12-13-2006, 11:06 PM

that's not bad at all. shouldn't take you more than 2 years to pay it off.

titan22 · 12-15-2006, 12:57 AM

welcome...

pay off your loans as fast as possible. especially make payments in the first 6 months while you are still in the 0% grace period.

Mike · 12-16-2006, 09:07 PM

Why do you recommend as fast as possible? Especially for the 5%, I was thinking the opposite. Let alone other possible investments, my savings account is yielding 4.5%

briansol · 12-17-2006, 01:38 AM

debt is still debt, regardless of the rate.

It will effect other things coming up in life, namely, the purchase of your own home. If your debt to income ratio is a certain amount, you will get tagged a full percentage point higher on your mortgage interest rate.

titan22 · 12-17-2006, 03:53 PM

a lot of it depends on how comfortable you are holding your debt. in this situation we need more of a background on your lifestyle. there is a big difference in a solution on what you should do based on a lot of factors.

right now, since you are 21, i would pay it off as fast as possible. i don't have an interest calculator handy, but 5% on 20k in loans if you are making the minimum monthly payment will result in thousands of dollars in interest. pay it off now, and when you go to get a house when you are 26 you will be free of debt and have more disposable income available.

if you were a 30 year old homeowner with no other debt, i would suggest investing the rest. but you are young, pay it off now and it will save you money in the long run.

Mike · 12-24-2006, 02:43 PM

Quote:

Originally Posted by briansol

debt is still debt, regardless of the rate.
It will effect other things coming up in life, namely, the purchase of your own home. If your debt to income ratio is a certain amount, you will get tagged a full percentage point higher on your mortgage interest rate.

That’s a good point I didn't think about. Last quarter I had an econometrics class and we did a case study to see if race affected the likelihood of being denied a mortgage. It did, but the D/I ratio was the largest determinant so I am sure it has a large effect on the interest rate as well.

I’m pretty disciplined when it comes to money. I still see myself trying to leverage these funds after college.

12-13-2006, 12:17 AM	#1
Mike Greenhorn Join Date: Sep 2006 Location: Los Angeles Age: 27 Posts: 10 Rep Power: 0	Hello Savingstalk! Just wanted to introduce myself, particuarly in more of a "savingstalk" light since some of you may know me from hondaswap (bl6crx over there). I'm currently in my last year of college at UCLA. I'm majoring in Business Economics and minoring in Accounting. I'll be breaking into the working world in next September. I have recently accepted an offer with PricewaterhouseCooopers. The pay is decent, starts off at about 50k, but increases very quickly. If I stick with it, I'll definitly hit the 6 figure mark before 30, likely closer to 27, but I'll have to see if it continues to be my career of choice. I haven't paid as close attention as I should, but I think I am going to finish college with about 20k worth of debt (not too bad considering my parents don't pay for anything). I've worked various jobs since I was a sophomore in highschool so that has definitly helped out. I've been meaning to make my way over here but I've been busy with school/recruiting. I just got done with finals and recruitng is over so I plan spending some more time kicking around here. EDIT: OPPS sorry, I didn't realize that there was a separate fourm for intros. I am obviously a NOOB. Last edited by Mike; 12-13-2006 at 12:38 AM.

12-13-2006, 10:42 AM	#2
briansol Savings Advisor Join Date: Aug 2006 Location: Central CT Age: 32 Posts: 761 Rep Power: 7	Moved for you Welcome to the site 20k of debt isn't bad at all. Is that school loan style debt, or bills/credit card debt?

12-13-2006, 01:46 PM	#3
Mike Greenhorn Join Date: Sep 2006 Location: Los Angeles Age: 27 Posts: 10 Rep Power: 0	Its all Stafford/Perkins loans. No interest accurues while I'm in school and after I get out the Perkins is 5% annual and the Stafford is tied in some way to the T-bill rate. I think its at like 8 percent or something.

12-13-2006, 11:06 PM	#4
briansol Savings Advisor Join Date: Aug 2006 Location: Central CT Age: 32 Posts: 761 Rep Power: 7	that's not bad at all. shouldn't take you more than 2 years to pay it off.

12-15-2006, 12:57 AM	#5
titan22 Super Moderator Join Date: Aug 2006 Location: West Coast Posts: 773 Rep Power: 7	welcome... pay off your loans as fast as possible. especially make payments in the first 6 months while you are still in the 0% grace period.

12-16-2006, 09:07 PM	#6
Mike Greenhorn Join Date: Sep 2006 Location: Los Angeles Age: 27 Posts: 10 Rep Power: 0	Why do you recommend as fast as possible? Especially for the 5%, I was thinking the opposite. Let alone other possible investments, my savings account is yielding 4.5%

12-17-2006, 01:38 AM	#7
briansol Savings Advisor Join Date: Aug 2006 Location: Central CT Age: 32 Posts: 761 Rep Power: 7	debt is still debt, regardless of the rate. It will effect other things coming up in life, namely, the purchase of your own home. If your debt to income ratio is a certain amount, you will get tagged a full percentage point higher on your mortgage interest rate.

12-17-2006, 03:53 PM	#8
titan22 Super Moderator Join Date: Aug 2006 Location: West Coast Posts: 773 Rep Power: 7	a lot of it depends on how comfortable you are holding your debt. in this situation we need more of a background on your lifestyle. there is a big difference in a solution on what you should do based on a lot of factors. right now, since you are 21, i would pay it off as fast as possible. i don't have an interest calculator handy, but 5% on 20k in loans if you are making the minimum monthly payment will result in thousands of dollars in interest. pay it off now, and when you go to get a house when you are 26 you will be free of debt and have more disposable income available. if you were a 30 year old homeowner with no other debt, i would suggest investing the rest. but you are young, pay it off now and it will save you money in the long run.

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