Comments on: Why we chose to let debt-free living wait

By: Why I’m a money multitasker

Why I’m a money multitasker — Mon, 19 Apr 2010 12:06:26 +0000

[…] Karen on April 19, 2010 Last week’s post about holding off on paying down debt sparked a little controversy in the comments. I wanted to clarify some of my views, because there […]

By: patty

patty — Sat, 17 Apr 2010 03:24:10 +0000

I was surpised reading this post to hear about your remaining student loan debt. When I first started following your blog, I loved/envied watching your savings goal categories grow and grow.

I am definitely one of those people who gets a thrill out of sending big checks to pay down student loan debt. I only had about $17K and the idea of paying an extra $5K in interest (I know not a lot in the grand scheme) by paying the minimum bothered me, so I paid it down in a little over a year by seriously cutting back on my love of shopping (i’m a sucker for online promos/sales). I only ended up paying about $500 in interest and that makes me smile!

We all have different thought processes when it comes to paying down debt, and I think a trip to Europe for 3 years of living frugally is totally cool. Thanks for your honesty and sharing your thoughts on student loan debt, priorities, and being young and living life.

By: Derek

Derek — Fri, 16 Apr 2010 16:11:42 +0000

Its kind of like Richard Simmons… he has to decide if he wants to prance around in his short shorts doing aerobics OR go stuff his face. Its a matter or prioritizing. Look I could have a blog titled ‘Living Well While Dieting’ but right now I am going to eat fast food BUT later I am going to start dieting… I mean seriously buckle down on a diet… but would that mean my blog title is representative of my lifestyle? Come on…

All joking aside, we all have to make our own decisions that fit us and kudos to you for doing that… I hope that you can get that debt paid down eventually (as I hope that for everyone carrying debt!!!) and truly experience a new freedom. Sorry for the rant but there is another blog that I have read off and on for yours (like I have of yours) and I just decided to get my soapbox out. If you saved $10,000 for a Europe trip but INSTEAD chose to put it to debt reduction, that would payoff 20% of your student loan debt… wow! that is a big dent…

I guess for my family, we really buckled down to payoff a similar amount of debt. For a period of several years we lived very tight but we still lived well. We visited with friends, took local trips, learned to cook new things, etc. We postponed things that were ‘dreams’ or things ‘we deserved’ and realized that we were living very well (on less) while accomplishing OUR financial goals.

http://www.daveramsey.com/ For those not familiar with it, check it out, apply it, experience freedom.

By: joanna

joanna — Thu, 15 Apr 2010 23:25:17 +0000

Responsible personal finance isn't about following a formula- it's about doing what works for you and letting your spending and saving match your priorities in a sustainable, living-within-your-means sort of way. You guys are doing with your money what works for you, you have a plan to pay off debt, and you're being very, very responsible. Saving for a vacation while keeping up with other payments and planning for Real Life is totally acceptable, if it's what's most important to you. For us, we saved for a down payment for a house before we had our student loans paid off. It's not what Dave Ramsey would have wanted, but it's what lined up with our priorities in our stage of life. After buying the house, we focused on finishing off the debt. Then we- gasp- saved for a vacation to Hawaii, rather than paying down the mortgage to get rid of PMI. Our priorities, within our means, dictate how we spend and save. It can be done, and you're on the right road. Keep it up- and I'm excited you're moving to Indiana! .-= joanna´s last blog ..What's growing =-.

By: Kacie

Kacie — Thu, 15 Apr 2010 23:18:46 +0000

Derek, I think Karen is really good with her money. It's either go to Europe now, or wait 20 years. Seriously. There is no middle ground. Why is that a bad thing, to go travel when you have saved up the money and won't be taking on new debt? The money spent on the Europe trip would make a small dent in her debt, but not a lot. Cuz for real, a trip to a lake does not = London, Paris and Amsterdam. Never never. We all have different financial priorities. Don't be turdy. .-= Kacie´s last blog ..A Keeper and $100 =-.

By: Karen

Karen — Thu, 15 Apr 2010 22:50:20 +0000

In reply to Derek.

Derek – My choices in no way contradict the title of my website. I’ve always been clear about the fact that my philosophy is that you have to enjoy the money you save. I’ve been saving for this trip for 3 years by living frugally. How is that not delayed gratification? I’m not increasing my debt; I have spent the last three years spending smart to save for a specific goal.

I’m not going to Europe to make myself “proud.” I’m going to Europe because it’s a life-long dream, and I’d like to do it before I have children. That debt will be waiting for me when I get home, and I’m not losing any sleep over it. We’ll pay it down on our own schedule.

If paying down debt is your priority, then great. It’s not my top priority right now. Frankly I don’t see how my decision to delay paying down our debt for a few years affects you at all. You go ahead and do what works for you. Trust me, I’m doing fine.

By: Derek

Derek — Thu, 15 Apr 2010 22:19:41 +0000

I think this is absolutely ridiculous and asanine. Everyone has to make their own choice but galavanting around Europe while you have a large sum of debt back home(other than a mortgage) seems to contradict the title of this website. If you need a vacation, go to the lake or coast for a long weekend and then buckle back down on paying off debt. Then again I subscribe more to the Dave Ramsey school of thought. I think everyone that I know would be prouder of paying of a large sum of debt than making a trip to Europe (and probably sleep better at night). Delayed gratification is a concept to consider and apply. Living on Less equates to practicality and reason. Europe equates to delaying the responsibility of paying off debt and is not Living on Less… its Living on Less Later On. Just one man’s thoughts…

By: Ronnie

Ronnie — Wed, 14 Apr 2010 03:48:18 +0000

You have to do what’s right for you. My boyfriend and I have a combined student loan debt that’s 10 times yours (yes, you read that right :D). Even with higher incomes, do you have any idea how long it’ll take to pay that off? Seriously, at our current salary, it would take close to 15 years. I’ll be 45 in 15 years. So they’re not primary on our list either. We make extra payments on them twice a year, but we still like to go on vacation, want to get married, start a family, buy a house. We’ll have a few years of serious repayment, but after that the foot has to come off of the pedal. This makes us sleep better at night and reminds us of why we have the intense moments, so that we can better enjoy the more leisurely ones.

By: Kacie

Kacie — Tue, 13 Apr 2010 19:11:53 +0000

I think you guys are doing what works best for you, and that's what matters! Like other people said, you aren't taking on new debt. Student loans are a special kinda debt, I think. It's not like a credit card. And, eventually, it WILL be paid off (unlike some credit cards!). I don't think it would be reasonable for you guys to forgo some of these big things, and also to be renters forever or whatnot. Ya know? Happy medium, here. .-= Kacie´s last blog ..A Keeper and $100 =-.

By: Abigail

Abigail — Tue, 13 Apr 2010 02:02:41 +0000

This is a very personal choice, and I think you have clearly made the right one for you. It’s something a lot of us struggle with, based on our respective income and debt.

There are people who can buckle down, maybe get a part-time job in addition to their other one, and pay everything off in a year or so. Most of us, though, will be working on it for awhile. Tim’s and my debt fluctuated over the last four years with various medical bills, as our income waxed and waned, etc.

We’re closer to the light at the end of the tunnel (which, for once, isn’t an oncoming train) but along the way Tim has saved our sanity more than once by reminding me that we have to have a little fun now and again.

So I think it’s good that you figured out what matters to you, and that you’re not putting off life until the debt is paid down. I think too many of us get caught up in looking ahead and forget to look at the here and now. Then, once we do arrive at our goal, we have absolutely no idea how to cope with this brand new lifestyle.
.-= Abigail´s last blog ..Should I get AAA? =-.