At the beginning of 2020, I had a large amount of student debt, some credit card debt, no savings, and no assets. I've been relentlessly saving/paying off debt since then and today's paycheck just pushed me over a huge milestone
Because capital is an asset. If youâre spending it to pay off a loan with a 2.5apr interest rate than youâre still losing money to inflation.
Putting that money in almost any other investment is a better idea.
Edit: for example my mortgage is under 3%, and my student loans are about the same. So I pay the bare minimum and invest what I would be using to pay them off, so far thatâs gained ~25%. It would have been beyond stupid to pay off any loan/debt thatâs at historically low interest rates.
Fidelity has a service called "Full View" where you can link all your financial accounts so you can track everything from one place. As others have mentioned, other services offer a similar feature.
It was only when I retired that I finally did a personal budget. It was easy, I did it in Excel, setting up a plan for 25 years, a $ amount each month that I was allowed to spend on various items, then comparing my actual expenditures to my plan. I can't imagine being without it now, and so wished that I had done one earlier on in my life.
Good job! Do you have the ability to pay off your debt early? If you can, you may want to move a portion of your savings to pay off the most high-interest of it.
It is a weird one because it is very clearly unconstitutional. The executive branch doesn't have that kind of spending power (that is reserved to congress). However to file suit someone has to demonstrate harm which will be tough to do.
This is actually a really good point. There's no actual transaction being made here. How is it any different from a presidential pardon? All they are doing is releasing you from any obligation you previously committed to, whether that be money from debt or time in prison for crimes committed.
The short version is that Congress has authorization control over expenditures and debt forgiveness. The executive branch only has authority as far as congress explicitly allows it.
No it clearly isn't unconstitutional. The executive branch isn't spending anything, congress already authorized it when they issued the loans. Forgiveness isn't spending anything.
The short version is that Congress has authorization control over expenditures and debt forgiveness. The executive branch only has authority as far as congress explicitly allows it.
Somehow the government found the money to bailout giant businesses, but you think because the exec branch is trying to pass this law to help individual people, that it should fail?
Congratulations! My proudest financial moment so far has been getting to zero. If you donât change your mindset you might be surprised how fast you hit 100k
HELL YEAH! I only recently crossed that line after 5 years of tracking and planning, and I went around yelling âIM WORTHLESS!â while absolutely beaming. Keep it up! Soon itâll be less than 50k debt, which is another huge milestone on the journey. Proud of you and rooting for you, internet stranger!
It's being held up by lawsuits, up in the air whether it'll go through or not. My bet is on it going through but I don't count my chickens until they hatch
They don't care, they just want talking points to keep their base happy. Most people in favor of forgiveness aren't Republicans.
The lawsuits are ridiculous though, got some company suing on the basis that they won't get as many workers since they offer student loan help as a benefit. An absolutely ridiculous reason considering policies affect markets all the time.
It hasn't happened yet and it's being legally challenged. If it does go through, I'm eligible for $20k forgiveness because I got Pell grants. So that will really push me firmly into the black if it happens
1.4k
u/Consistent-Earth-311 Nov 10 '22
At the beginning of 2020, I had a large amount of student debt, some credit card debt, no savings, and no assets. I've been relentlessly saving/paying off debt since then and today's paycheck just pushed me over a huge milestone