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Found this on reddit:https://www.reddit.com/r/personalfinance/comments/3mamox/big_debt_problems_didnt_think_i_could_lose_my_job/ posted:So I bought a new car because my old one died on me and I drive ALOT (40 miles a day, Monday - Friday for school and 200 miles nearly every weekend to visit my girlfriend who lives in a different state). I bought this car 2 months ago, and I just lost my job so things are looking bad. Oooh, there's an even better one: https://www.reddit.com/r/personalfinance/comments/3mak7d/i_purchased_a_walmart_money_card_and_filled_it/ posted:I have just recently moved to the BigCity(tm) and started a new job. My old bank has no branches here and I haven't opened an account at a new bank yet because I'm a broke college grad. Today was my 1st paycheck and I thought it would be smart to go to Walmart and put it on a prepaid card so I don't just have ~$400 in my wallet and can pay for Spotify, etc...
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Sep 25, 2015 12:56
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quote:My old bank has no branches here and I haven't opened an account at a new bank yet because I'm a broke college grad. Today was my 1st paycheck and I thought it would be smart to go to Walmart and put it on a prepaid card so I don't just have ~$400 in my wallet and can pay for Spotify, etc... oh my god
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Sep 25, 2015 20:03
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quote:pay for spotify lmao
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Sep 25, 2015 20:23
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Well, what are my options? I am a recent grad without money! I could set up direct deposit for my existing bank account and then find an ATM? Naah I could set up a free checking account with one of a dozen retail banks that have branches and ATMs everywhere? Naah I could put it on a WalMart card and then not have any cash? BEST OPTION
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Sep 25, 2015 21:38
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I pay for spotify premium, but we also are putting over $3100 into tax-advantaged accounts each month, so whatever
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Sep 25, 2015 21:42
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Nail Rat posted:I pay for spotify premium 
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Sep 25, 2015 22:12
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No one is allowed to have any luxuries ever. Eat lentils. Ride a bike. Listen to the radio with commercials. Don't buy a radio. Listen to radio in a store. Maybe have a clock radio.
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Sep 25, 2015 22:13
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You buy video games, so, pot, kettle, etc.
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Sep 25, 2015 22:35
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Guys I think it is a joke guuuuys 
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Sep 25, 2015 22:51
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Tigntink posted:No one is allowed to have any luxuries ever. Eat lentils. Ride a bike. Listen to the radio with commercials. Don't buy a radio. Listen to radio in a store. Maybe have a clock radio. Who needs a clock when you have the Sun
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Sep 25, 2015 23:32
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Nail Rat posted:I pay for spotify premium, but we also are putting over $3100 into tax-advantaged accounts each month, so whatever Don't do this. Driveby humblebragging is the fastest way to make this thread really lovely.
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Sep 26, 2015 00:13
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We've reached Peak Reddit. https://www.reddit.com/r/personalfinance/comments/3me1wc/250k_in_debt_dismissed_3rd_year_med_student/quote:Hello Personal Finance!
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Sep 26, 2015 00:43
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That guy needs to flee the country and work as a witch doctor in the jungle somewhere.
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Sep 26, 2015 00:48
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Yep, time to get the gently caress out of dodge. I'd rather have to start anew as an illegal immigrant than have to work for the literal rest of my life to pay down that debt.
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Sep 26, 2015 00:55
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Someone recommended he buy a house in Cali, get some home equity, pay off the loans with an equity loan and then walk away from the house. The gently caress?
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Sep 26, 2015 01:03
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The Mandingo posted:That guy needs to flee the country and work as a witch doctor in the jungle somewhere. Arise chicken!
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Sep 26, 2015 01:07
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Virigoth posted:Someone recommended he buy a house in Cali, get some home equity, pay off the loans with an equity loan and then walk away from the house. The gently caress? What do you think the over/under on the recommender being a sovereign citizen is?
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Sep 26, 2015 01:16
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bartlebyshop posted:What do you think the over/under on the recommender being a sovereign citizen is? High 90th percentile. He probably deserved to walk away from his house just like this guy should.
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Sep 26, 2015 01:21
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Virigoth posted:Someone recommended he buy a house in Cali, get some home equity, pay off the loans with an equity loan and then walk away from the house. The gently caress? One of those debts can be discharged in bankruptcy, the other is hell debt that will follow you to your grave. Of course the trick would be getting the home loans necessary.
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Sep 26, 2015 04:32
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The other trick would be convincing the bankruptcy court to discharge the debt after it's completely obvious what you did. Edit: to clarify, I mean after the house scamminess. Dr. Eldarion fucked around with this message at 06:26 on Sep 26, 2015 |
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Sep 26, 2015 04:36
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He actually stands a chance of a bankruptcy discharge. The debt doesn't sound like it was incurred fraudulently, but paying that off after your failed career may pass the test for substantial hardship. It probably should, considering his best income we'll be as a lab tech somewhere for 35k/yr.
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Sep 26, 2015 05:00
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that's a good plan if it works
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Sep 26, 2015 05:18
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Comrade Flynn posted:Arise chicken!
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Sep 26, 2015 11:38
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How the hell do you get anyone to even underwrite a student loan for 250k? Who would take that kind of lending risk?
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Sep 26, 2015 16:39
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BigDave posted:How the hell do you get anyone to even underwrite a student loan for 250k? Who would take that kind of lending risk? Medicine is different from other fields. You can get Stafford loans for 40k+ a year without even a cosigner. And I think it's just a little more paperwork to get gradplus over that. e: The reason why is very few people fail out, and if you become a doctor and finish residency (which almost everyone does), you can very reliably pay those loans back. That's a pretty standard post-med-school loan burden. Amara fucked around with this message at 16:46 on Sep 26, 2015 |
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Sep 26, 2015 16:43
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And from the reddit comments, it's extremely hard to fail residency itself. So basically OP's friend really wasn't cut out for med school, but is too stubborn to accept it.
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Sep 26, 2015 17:27
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He should consider medical school in Germany. I hear it's free!
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Sep 26, 2015 17:29
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Or St. George's University School of Medicine.
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Sep 26, 2015 17:43
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The Caribbean is not the answer for that guy
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Sep 26, 2015 18:06
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Wickerman posted:The Caribbean is not the answer for that guy I dunno, surviving on coconuts on a remote island might be this guy's best option.
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Sep 26, 2015 18:26
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That guy doesn't have a problem at all if it's stafford/gradplus debt , because all he has to do is just sign up for PAYE and he's fine. He still needs a job but the debt might as well not exist. Hell, he did a really good thing by making sure all his living expenses came from student loan debt. I know dozens of people with 200-300k+ of debt who pay a few hundred on it after partying their way through school, because there's no reason to take out less debt instead of more (as long as it isnt private).
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Sep 26, 2015 19:15
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I'm trying to come up with a reason that those people that max out their public loans with the plan to go for forgiveness are better than tax dodgers but I'm coming up empty I guess they're ostensibly giving back to the community, but jeez, $200-300k is a lot of time-leveraged value
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Sep 27, 2015 15:27
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You could think of the dollar value as being like the points in Whose Line is it Anyway: made up and don't matter. I mean post-secondary education prices aren't really tied to anything that we would traditionally consider cost (besides healthcare lol). The numbers are basically pulled out of thin air. E: VVV clearly you are right and I just didn't think of that BonerGhost fucked around with this message at 16:26 on Sep 27, 2015 |
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Sep 27, 2015 16:12
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Tax dodging is actually good because of the horrendous moral wrongs committed with the money 
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Sep 27, 2015 16:18
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Not a Children posted:I'm trying to come up with a reason that those people that max out their public loans with the plan to go for forgiveness are better than tax dodgers but I'm coming up empty Those programs are set up intentionally to incentivize people to do just that. That is their goal, for better or worse. Do you feel similarly negatively about people who contribute to IRAs and 401ks? You can do a great deal of "tax dodging" with those as well. Governments use tax incentives to mold people's behavior intentionally, I don't think it's wrong to participate in such programs in the intended manner. It's fine to criticize the program but I don't think less of anyone using it. Jeffrey of YOSPOS fucked around with this message at 19:53 on Sep 27, 2015 |
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Sep 27, 2015 19:50
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Not a Children posted:I'm trying to come up with a reason that those people that max out their public loans with the plan to go for forgiveness are better than tax dodgers but I'm coming up empty The only positive is that the money has gone into the local economy when the US needs people to spend money. Giving money to the poor/students is better than gifting large sums to banks (instead of loaning money). By failing residency he has probably saved hundreds of lives. 
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Sep 27, 2015 20:24
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Not a Children posted:I'm trying to come up with a reason that those people that max out their public loans with the plan to go for forgiveness are better than tax dodgers but I'm coming up empty The bonuses paid to financial firms for selling student loan backed securities help stimulate the cocaine and hooker sectors of the economy.
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Sep 27, 2015 22:53
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Jeffrey of YOSPOS posted:Those programs are set up intentionally to incentivize people to do just that. That is their goal, for better or worse. Do you feel similarly negatively about people who contribute to IRAs and 401ks? You can do a great deal of "tax dodging" with those as well. Governments use tax incentives to mold people's behavior intentionally, I don't think it's wrong to participate in such programs in the intended manner. It's fine to criticize the program but I don't think less of anyone using it. Sorry, I don't buy this at all. Filing for bankruptcy to discharge hundreds of thousands of dollars of debt is categorically different than using tax-sheltered accounts to save for retirement. The former is an unintended consequence of the rules and policies of the system. The latter is very much intended, because the government wants to incentivize people to save for retirement so that they don't starve once they stop working.
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Sep 27, 2015 23:00
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enraged_camel posted:Sorry, I don't buy this at all. Filing for bankruptcy to discharge hundreds of thousands of dollars of debt is categorically different than using tax-sheltered accounts to save for retirement. The former is an unintended consequence of the rules and policies of the system. The latter is very much intended, because the government wants to incentivize people to save for retirement so that they don't starve once they stop working. It has nothing to do with bankruptcy - it's an incentive system designed to convince people to work in public service and nonprofit positions that they otherwise wouldn't be willing to work in. After 10 years of (income-based) payments, they forgive your loans if you work in one of the qualifying places. These places largely pay less than equivalent positions in for-profit companies, and many people would pass them up if they weren't also rewarded in forgiveness of student-loan debt. Student loans aren't discharged in bankruptcy, it doesn't apply at all, at least in the US. (Though any lender giving you a loan that is dischargeable knows that it is dischargeable and is giving you the loan anyway - they did the probability calculation and judged it to be profitable, nothing wrong with bankruptcy there either.)
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Sep 27, 2015 23:10
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Jeffrey of YOSPOS posted:Student loans aren't discharged in bankruptcy, it doesn't apply at all, at least in the US. (Though any lender giving you a loan that is dischargeable knows that it is dischargeable and is giving you the loan anyway - they did the probability calculation and judged it to be profitable, nothing wrong with bankruptcy there either.) I've been curious about this: I'm doing my Master's outside the US. I pay my tuition with credit cards I take out to reap signup bonuses each term (uni doesn't charge a processing fee and I've got a high credit score back in the US), which I then immediately pay off out of savings. I feel like I'm getting away with something, although really I'm just making the best out of a not-great situation (can't get loans for my school, so having to drain my savings). What if instead, I'd gone for the credit cards I'd need at first (before my score started to drop due to high utilisation), increased my limits as high as I could, then put my tuition on them for the next two years, and declared bankruptcy at the end? We're talking about US$24k total at the present exchange rate. I could see this not being a viable options for undergrads for a few reasons: lack of credit being #1, and the hit to credit score catching up to them well before graduation, but it seems like a possible loophole in the system for graduate degrees. Do people ever do this, or are bankruptcy laws designed to catch bad-faith applications like that?
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Sep 28, 2015 00:35
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