Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm in my early 30s and am making around $30,000. I currently have $3000 in credit card debt, 16 months left on a car loan, $120/month for loan on my mobile home (I know, not a good investment but I have my reasons) and a student loan. I should be able to pay off everything within 4 to 5 years. I am planning to go back to school to change careers. The schooling will take about 5 years, the first 2 of which I can do in the evening while I'm still working full time. If I went now, I would need wouldn't be able to pay for tuition and books without loans. The anticipated starting salary for the new career is around $40,000.
So my question is; should I wait until everything is paid off and try to not to take out any loans for school? Just when I think I've decided to do that, then I wonder about the additional $10,000 I won't be earning each year I wait. I feel strongly that I'd like to get started ASAP, but I've been stupid with my finances in the past and don't want to repeat that mistake.
Last edited by kansas sky; 07-29-2009 at 02:27 PM..
How much debt would you have to get into to start school now? How secure is the current job? Any hope of having an employer in the new career field pick up part of the schooling tab?
Could you trade down to a cheaper car?
Would your current student loan go back into abeyance (quit accruing interest) if you went back to school?
How important will it be to kick off the new career before you turn 40?
Most intangible but very important - how much better do you think you will like the new career?
How much debt would you have to get into to start school now? The program I was looking into to finish my bachelor's would run about $17,000. The Master's degree program would be around $45,000.
How secure is the current job? I'm pretty confident that I'll have it as long as I want it.
Any hope of having an employer in the new career field pick up part of the schooling tab? Possibly. One of the options for the new career is in the military. If I go that route the Army has a $20,000 signing bonus plus $10,000 tuition repayment. I'm not sure if those will still be there by the time I've finished school though.
Could you trade down to a cheaper car? Possibly. I'll have to check and see if it's worth anything close to what I still owe. And it has been extremely reliable, I'd hate to lose that.
Would your current student loan go back into abeyance (quit accruing interest) if you went back to school? Yes.
How important will it be to kick off the new career before you turn 40? Not extremely. It would be beneficial if I were to go into the military, though the Army's age limit is 42.
Most intangible but very important - how much better do you think you will like the new career? That's another thing. I actually enjoy what I do now very much. But I've been fighting off a call to ministry since I was a teenager. I'm not unhappy where I am now, but I will be much more at peace with myself once I have started down the path I should have been on a long time ago. On the other hand I don't think it's wrong to try and be a responsible steward of the resources I have. Ultimately I think I'll end up in military or health care chaplaincy.
Frankly, I would go back to school. The longer you wait, the harder it is. The longer you put it off, the less likely it becomes that you'll ever go back. Inevitably something happens - family illness, personal issues, kids, roof falls in, there's always something. Just tighten your belt (financially) as much as possible, and do it.
Frankly, I would go back to school. The longer you wait, the harder it is. The longer you put it off, the less likely it becomes that you'll ever go back. Inevitably something happens - family illness, personal issues, kids, roof falls in, there's always something. Just tighten your belt (financially) as much as possible, and do it.
Thank you for the perspective. Problem is, my belt is already as tight as it will go, and I worry about having an unmanageable amount of debt when I get done. Sorry, I probably sound argumentative and horribly indecisive. I've been having this argument with myself for months, maybe years.
I'm in my early 30s and am making around $30,000. I currently have $3000 in credit card debt, 16 months left on a car loan, $120/month for loan on my mobile home (I know, not a good investment but I have my reasons) and a student loan. I should be able to pay off everything within 4 to 5 years. I am planning to go back to school to change careers. The schooling will take about 5 years, the first 2 of which I can do in the evening while I'm still working full time. If I went now, I would need wouldn't be able to pay for tuition and books without loans. The anticipated starting salary for the new career is around $40,000.
So my question is; should I wait until everything is paid off and try to not to take out any loans for school? Just when I think I've decided to do that, then I wonder about the additional $10,000 I won't be earning each year I wait. I feel strongly that I'd like to get started ASAP, but I've been stupid with my finances in the past and don't want to repeat that mistake.
If you make $30,000 a year now (assuming you work 40 hrs/wk), why not pick up a second job? You'll make that extra $10,000/yr you're hoping for right away, and you'll be able to start paying down the debt you already have.
If you make $30,000 a year now (assuming you work 40 hrs/wk), why not pick up a second job? You'll make that extra $10,000/yr you're hoping for right away, and you'll be able to start paying down the debt you already have.
David, I keep running into your posts all over city-data. I'm always impressed with your common sense and wise advice.
Remember that an increase in wages to 40K from 30K involves taxes. That expected $10K becomes about $8K, and when you start figuring in inflation, the actual gain may be less than that.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
