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Author Topic: How much debt is too much?  (Read 5685 times)

Garbled

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Re: How much debt is too much?
« Reply #50 on: November 25, 2004, 02:05:03 PM »
Oh my goodness!!!!!!! :o  I just did the math on a hypothetical $250,000 in student loans. I am hypothetically going to say that my boyfriend and I will owe $250k in student loans by the time I finnish law school and he finnishes his residency (this is a rough estimate...I'm thinking of our current loans plus the ones I will take out in law school plus the interest that will acrue on my unsub. loans while I am in school and the interest that will acrue on his loans while he is in his 4 to 5 year residency). Say we take 10 years to pay it off at 3% interest. That is $75,000 in interest. So our total is now $325,000. That amounts to monthly payments of $2,708!!!!!!! Now I now my figuring is off because we won't be paying interest on the full amount for all of those years...but even if we pay $50,000 in interest...that still amounts to payments of $2,500 a month!  Wowzers!!!

Now, I'm trying to figure out how much this will effect us.  Say he makes $175,000 and I make $75,000 and we have a combined income of $250,000.  If we pay 40% in taxes, that will leave us $150,000. (I know nothing about taxes so I am just estimating). Say my boyfriend has to pay another $25k in medical malpractice insurance. That leaves us with $125,000. That $30,000+ a year in loans will consume 25% of our household income!  That is alot!

Are my estimates even in the ball park on this thing?  If they are, I think I better look into freezing my eggs because it looks like I won't behaving kids until I am 50!!!

Take a look at it this way: the remaining 75% of your income will probably still put in the top 20% in terms of income earners in the United States. I mean, come on, by your figures If you can't raise a family on that there is something seriously wrong!

My brother finished his residency 4 years ago with piles of debt, but he just moved from a condo into a half-million dollar house, kept the condo, and has 6 weeks of vacation a year.

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Re: How much debt is too much?
« Reply #51 on: November 25, 2004, 02:08:18 PM »
yeah, it is a lot of money but it is better than working at mcdonald's for the rest of your life.

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ElizaB

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Re: How much debt is too much?
« Reply #52 on: November 26, 2004, 09:40:16 AM »
Thanks for all of the info.  Especially about keeping debt seperate.  That is probably a good idea since I owe a lot less than my partner.  I have already been paying the unsub. interest on my student loans (even though I am still in school) just so interest will not acure on the interest and he is just letting the interest acrue on his unsub. interest until he starts his resid.
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desmo

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Re: How much debt is too much?
« Reply #53 on: November 27, 2004, 06:54:22 AM »
yeah, it is a lot of money but it is better than working at mcdonald's for the rest of your life.

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but their new CEO started as a manager trainee - not bad for working for mickey d's all your life.