I kind of did that after I got the balance on my wife's below 10k. The problem with that approach is the psychology. Really easy to tap that account for something else, like a remodel. Just pay it and get it gone. It's a non-asset debt just like credit cards and personal loans.
Student Loan/house remodel advice
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Last: 1 day ago by harrierdoc
Right. He did a good thing to save the money up. Now wife is looking at this pile of cash and also longingly at her kitchen that she microwaves dinner in while scrolling pinterest.Sea Speed said:
He mentioned he could pay lump sum if the interest is going to start again. As far as course of action goes, he probably took the smartest route. Save your payments in a separate account while there no interest and no payments due in the event the are forgiven. Can throw all that at the loan if payments and interest are announced to start up again.
Wife is known for not being good with money.
Sees pile of money.
Plots a course of action that is not good for the pile of money.
OP asks our opinion.
Texags' opinion is that it remains undefeated.
I believe were all done here.
OP, enjoy your two weeks of doubling up on the sexy times before your wife wants the rest of the house updated and the kitchen isn't enough. Married ***** is the most expensive ***** out there.
I guess you are making the argument that the economy being overheated magically only impacts and absolutely benefits people with student loans?
500,000ags said:
I guess you are making the argument that the economy being overheated magically only impacts and absolutely benefits people with student loans?
No….I'm saying the student loan repayment freeze made sense in 2020, just like the PPP loans. Since then, it hasn't. With unemployment so low, common sense would tell me most college grads have jobs. Common sense also tells me that with unemployment so low, wages are growing. If they have jobs they should be able to repay loans.
It hasn't been "needed" as an effort to help people from Covid lockdowns since 2021. It's just been a political tool since then.
I agree that its a political tool at this point for both sides, but I disagree on just about everything else. An overheated economy impacts more than just jobs and wage growth as all positive on net basis.
As far as this thread, I consider it absolute cherry-picking when it comes to shaming anyone who exercised their right to not repay their student loans, when no one else that benefited repaid anything.
As far as this thread, I consider it absolute cherry-picking when it comes to shaming anyone who exercised their right to not repay their student loans, when no one else that benefited repaid anything.
FWIW, I'm not shaming OP for not paying student loans. I think what they did was a really reasonable approach. That being said, they're obviously falling into the trap of we have money so we have to spend it now.500,000ags said:
I agree that its a political tool at this point for both sides, but I disagree on just about everything else. An overheated economy impacts more than just jobs and wage growth as all positive on net basis.
As far as this thread, I consider it absolute cherry-picking when it comes to shaming anyone who exercised their right to not repay their student loans, when no one else that benefited repaid anything.
And saving $50k on top of paying all their debts is a little different than saving $50k because their debts were paused....
I mainly joined the discussion because I do agree with the poster who originally said they missed the boat by not consolidating/refinancing when they had the chance. I did this a couple years out of college. A lot of people told me I was dumb, adding a lot of risk by refinancing my federal loans, still talk of forgiveness (though not as strong) even back then, etc.. Well getting them paid off and that burden off my back plus the $$$ saved on not paying interest for 30 years was worth it 1,000 fold.....
Yeah, I'm not gonna fault someone for being ready to legally benefit from the idiocy of our govt even though the whole thing turns my stomach.
But I absolutely believe the temptation of the cash and bad money discipline from the wife are a dangerous combo here. Again, I'd bring the kitchen up on the relative cheap and hang onto most of that cash. It can look really nice for so much less.
But I absolutely believe the temptation of the cash and bad money discipline from the wife are a dangerous combo here. Again, I'd bring the kitchen up on the relative cheap and hang onto most of that cash. It can look really nice for so much less.
Someone earlier also raised a great point. Unless the rest of the house is updated and looking sharp, as soon as that kitchen is updated to be top-notch, the temptation to keep going will be strong. Especially in an open concept scenario
And then once all that remodeling has been done, they'll look at the house being more valuable (OP has already quoted appraisals showing 100k increase in last three years) and decide it's too small so move up to a bigger house, which by the way will need a new kitchen….rinse, repeat. All savings will be seen as a pile of cash to spend. Yes, I know that's a lot of speculation, but OP has never once responded with comments about doing DIY or toning down the kitchen amount.DannyDuberstein said:
Someone earlier also raised a great point. Unless the rest of the house is updated and looking sharp, as soon as that kitchen is updated to be top-notch, the temptation to keep going will be strong. Especially in an open concept scenario
I guess I'll echo similar thoughts in this thread.
1) I believe you need to expect to pay off your full loan amount. I'm not sure the Libs really want to pay off loans, but are using the talking point as a political tool.
2) It would seem like the kitchen remodel can be scaled back some to make it more affordable. While costs have gone up, $50k still seems top of the line. Maybe cut that expenditure down to $30k, then put $20k towards loans and make it a point to pay off remaining balance within next year or two before any other large expenditures.
I graduated in '08 with $26k in loan debt. Paid every bit of it off within 2 years and never looked back. More young people need to make it a priority to pay off their debts before jumping into additional debts.
1) I believe you need to expect to pay off your full loan amount. I'm not sure the Libs really want to pay off loans, but are using the talking point as a political tool.
2) It would seem like the kitchen remodel can be scaled back some to make it more affordable. While costs have gone up, $50k still seems top of the line. Maybe cut that expenditure down to $30k, then put $20k towards loans and make it a point to pay off remaining balance within next year or two before any other large expenditures.
I graduated in '08 with $26k in loan debt. Paid every bit of it off within 2 years and never looked back. More young people need to make it a priority to pay off their debts before jumping into additional debts.
Good thing I'm not a republican.
I have not suggested it was wrong to hold off on payback while paused. I am, however, suggesting that waiting for loan forgiveness is wrong if you can pay for the debt she willingly and, without coercion, accepted. That is no longer a loan, but instead, a handout/welfare. We've plenty of Americans that need a helping hand, but someone with$50000 in cash wanting to spend it on a kitchen remodel instead of a debt that will potentially be covered by others tax dollars isn't one of them, in my opinion. Of course, I'm not running for office.
I have not suggested it was wrong to hold off on payback while paused. I am, however, suggesting that waiting for loan forgiveness is wrong if you can pay for the debt she willingly and, without coercion, accepted. That is no longer a loan, but instead, a handout/welfare. We've plenty of Americans that need a helping hand, but someone with$50000 in cash wanting to spend it on a kitchen remodel instead of a debt that will potentially be covered by others tax dollars isn't one of them, in my opinion. Of course, I'm not running for office.
jwoodmd said:
Yes, I know that's a lot of speculation, but OP has never once responded with comments about doing DIY or toning down the kitchen amount.
There's no doubt that if you attend his Christmas party this December you'll see a $50k kitchen
$75k....there will be unexpected costs, why trim down planned items when you can get a loan?!?!Deputy Travis Junior said:jwoodmd said:
Yes, I know that's a lot of speculation, but OP has never once responded with comments about doing DIY or toning down the kitchen amount.
There's no doubt that if you attend his Christmas party this December you'll see a $50k kitchen
I wouldn't say it's a foregone conclusion. A lot can happen, and any EO will be challenged in court again.Keeper of The Spirits said:
i'm not saying it's right or wrong, just that's it's going to happen. just like the tax credits you get for having kids too many people benefit
directly and more of those people are created with every loan given.
sorry for the derail, but my point is pay the student loans last atleast for the next year or four, if attitudes change about forgiveness then maybe start paying but it feels like a foregone conclusion at this point either through another EO or act of Congress
Yep, they've been talking about forgiving student loan debt since I graduated it seems like.
OP has further eroded my confidence in the people of this country.
I wish he'd come back and give us the rest of their financial info so we can be even more judgemental
This exactly! The OP referenced one, just one, quote and it came in exactly at the magical 50k. Anyone bet they told the contractor "we have a budget of 50k" and the contractor is thinking about all the upgrades, hidden problems, to up the final costs.htxag09 said:$75k....there will be unexpected costs, why trim down planned items when you can get a loan?!?!Deputy Travis Junior said:jwoodmd said:
Yes, I know that's a lot of speculation, but OP has never once responded with comments about doing DIY or toning down the kitchen amount.
There's no doubt that if you attend his Christmas party this December you'll see a $50k kitchen
And if the kitchen is in such poor shape, bet the entire house could use upgrades. And they'll kick the can of debt down the road to keep doing upgrades.
I appreciate all the judge mental comments and speculation about my life.
Decided to open up three credit cards and pull from our retirement and savings to do a few more remodels. I'm sure our great president will bail us out if something happens.
Decided to open up three credit cards and pull from our retirement and savings to do a few more remodels. I'm sure our great president will bail us out if something happens.
Enjoy the new kitchen!
That's the good spirit of TexAgs. Heck, if we couldn't be judgmental and give you grief, why else come on the boards.
Hopefully, however, all this discussion has got you and your wife really considering your options.
Regardless, and really, you need to keep her off the home improvement websites. They are like Facebook for homeowners.
Hopefully, however, all this discussion has got you and your wife really considering your options.
Regardless, and really, you need to keep her off the home improvement websites. They are like Facebook for homeowners.
Superb troll. At 3 pages, everyone must concede this is
A+ level trolling.
A+ level trolling.
I dunno. There are people who question renovation decisions all the time.David Happymountain said:
Superb troll. At 3 pages, everyone must concede this is
A+ level trolling.
David Happymountain said:
Superb troll. At 3 pages, everyone must concede this is
A+ level trolling.
Agreed. OP is notorious for posting on these boards asking for suggestions. He didn't get the support he wanted on this thread. I'm betting he's told his wife "Proceed with the renovation!"
$30,000 Millionaire said:
There are people in this thread that would tell you to live in a trailer and eat ramen until you paid off all of your debt, and then you could begin to live.
As long as you're not deficit spending and you're saving sufficiently for retirement, do what you want.
Life is about a lot more than just net worth.
This is the advice that is the most helpful, because it's true.
I still have student loan debt and have somehow been able to buy 3 different houses, buy and pay off 4 cars, get married, travel, and have 3 kids with tons of activities, and am still save for retirement.
When I hit my 40s, it occurred to me that I have been out of college for almost 20 years, and coupled with some people I went to HS with passing, it really hit me about how short life really is, because those ~20 years went by in a flash. Maybe it's my mid-life crisis or something…I dunno.
Every since then, I've loosened up a bit with money and will spend on things I wouldn't have 5 years ago. As $30k said, life is more than net worth. I can honestly say I'm a lot happier because I don't stress about squeezing out every nickel I can for a future I may not get.
As to your particular situation, I would get the remodel. You'll get to enjoy the kitchen for longer. It's an improvement on the biggest asset you have, and if you have a life change that makes you put the house on the market, you'll get more for it as well.
If you're still in doubt, talk to friends and relatives who have done remodels on their homes. I guarantee you'll hear "I wish we'd have done it sooner" rather than "I'm glad we waited."
This is all assuming the $50k isn't your entire savings and you still have a nest egg for emergencies on top of your retirement.
harrierdoc said:
I am, by no means a Ramsey follower.
But, it sounds as if the OP's wife is chasing the newest and shiniest thing, rather than following through with the original plan. If this were a health issue, or something that really impacted their healthy living, that is different. This just sounds like someone who cannot stay committed to a pre planned goal.
Granted, all this is just from an internet post. I could be completely off base.
Zero sex life from an unhappy wife is a health issue.
So is a wife that bleeds your finances to bankruptcy and then runs off with another man who makes more money and can buy her more renovations and pretty things all the while leaving you financially in a huge hole.aTm2004 said:harrierdoc said:
I am, by no means a Ramsey follower.
But, it sounds as if the OP's wife is chasing the newest and shiniest thing, rather than following through with the original plan. If this were a health issue, or something that really impacted their healthy living, that is different. This just sounds like someone who cannot stay committed to a pre planned goal.
Granted, all this is just from an internet post. I could be completely off base.
Zero sex life from an unhappy wife is a health issue.
jwoodmd said:So is a wife that bleeds your finances to bankruptcy and then runs off with another man who makes more money and can buy her more renovations and pretty things all the while leaving you financially in a huge hole.aTm2004 said:harrierdoc said:
I am, by no means a Ramsey follower.
But, it sounds as if the OP's wife is chasing the newest and shiniest thing, rather than following through with the original plan. If this were a health issue, or something that really impacted their healthy living, that is different. This just sounds like someone who cannot stay committed to a pre planned goal.
Granted, all this is just from an internet post. I could be completely off base.
Zero sex life from an unhappy wife is a health issue.
Then it sounds like the OP is getting off lite for $50k.
Does your wife work?
Strawman analysis. People aren't telling him to be a tight wad and not spend any money as you and 30k millionaire imply, they're telling him to scale down his renovation plans while he's got $50k of high interest debt on the personal balance sheet (ie don't finance a 50k kitchen / play keeping up with the Joneses at 6.4%)
I think you're missing the tongue in cheek joke about this board...everyone has 7-figure net worths, consistently outperforms the market by 10% or higher, and would invest the $100 if they could get $105 back in a month rather than buy groceries for their parents who were awful with money.
My main point was life is short, and what may be the smart financial is not always what should be done. Student loan debt can be cumbersome for some, but it doesn't seem like it is for OP, and just because you have student loan debt doesn't mean you can't/shouldn't spend money on other things. He's not wondering if they should pay off student loans or go buy boat.
I do agree that their desired outcome could be done cheaper by not doing a full gut job or going high end on appliances, and by doing some of the work themselves. But if they're planning on having kids in the future, do renovations like this before if you're financially stable enough to do so.
And also, we're not guaranteed a tomorrow, so get some enjoyment out of life from time-to-time, especially if they're DINKs. Don't always worry that the money today won't net you $3500 a few years from now. Life is more than numbers and commas in a portfolio.
My main point was life is short, and what may be the smart financial is not always what should be done. Student loan debt can be cumbersome for some, but it doesn't seem like it is for OP, and just because you have student loan debt doesn't mean you can't/shouldn't spend money on other things. He's not wondering if they should pay off student loans or go buy boat.
I do agree that their desired outcome could be done cheaper by not doing a full gut job or going high end on appliances, and by doing some of the work themselves. But if they're planning on having kids in the future, do renovations like this before if you're financially stable enough to do so.
And also, we're not guaranteed a tomorrow, so get some enjoyment out of life from time-to-time, especially if they're DINKs. Don't always worry that the money today won't net you $3500 a few years from now. Life is more than numbers and commas in a portfolio.
All good and well, if he is willing to pay off the debt, regardless of whether or not the government is willing to "forgive" the loan. Let's not pretend that forgiveness of the loan means that it magically goes away, it is just paid by the taxpayers. If he has the money to pay the debt, he should pay the debt rather than pass the bill onto the American taxpayer
I'm not going to disagree with you there.
You sure do have your panties in a wad over student loan payment pause.
You've must've missed the part where I directly commented to you several times in this thread where I mentioned we've continued to "pay" on the loans this entire time since covid started. We've just moved the money each month into savings waiting for payments to begin when we will lump sum whatever is owed at zero percent interest before they start back up with the interest rates.
I've never once stated I'm waiting on Biden to cancel my wife's loans and that I have no intentions to ever repay them.
You've must've missed the part where I directly commented to you several times in this thread where I mentioned we've continued to "pay" on the loans this entire time since covid started. We've just moved the money each month into savings waiting for payments to begin when we will lump sum whatever is owed at zero percent interest before they start back up with the interest rates.
I've never once stated I'm waiting on Biden to cancel my wife's loans and that I have no intentions to ever repay them.
AustinCountyAg said:we stopped paying but moved the same payment amount to savings since the payment pause. Yes it's interest free. Our thought was to wait in case Biden decided to do some type of forgiveness, and if not just paying off the loans completely before the interest kicked back in. Now with the large sum we've saved we are thinking doing the kitchen remodel instead of paying off the loans. Financially I know it's not the Dave Ramsey idea but our kitchen is trash and well you can't take it with you when you go so may as well enjoy our home….htxag09 said:
Did you stop paying your student loans the last few years?
Follow up question because I've generally been curious. If you kept paying your student loans the last few years was it basically all interest free?
Check your third sentence. If I misunderstood that, my bad. It seems like you were waiting for possibility of the taxpayer to cover your debts possibly.
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