posted
I'm doing some thinking out loud here and would appreciate any insights/advice. Mr. Opera has been very depressed lately over our financial situation. We have plenty of money to pay our bills, but he's concerned that we're not saving enough because we have an icky load of credit card debt. We're working on paying this off, but it's not going fast enough to suit him.
For the last several years I have been a full-time student. I have about 27 hours left until I get my degree. I don't work over the summers because we figure our kiddos deserve a summer at home instead of at daycare. I've asked Mr. Opera if he would like me to go to work, and he says that's completely my decision. So, I could go to work as something like a teacher's aide this fall, putting all of my earnings toward credit card debt. However, we both like having a parent at home. Things tend to flow easier, there's more family time, and the house isn't messy. And of course there will be the headache of what to do when one of the kids is sick, etc. Also, several months ago we had decided that I would go to school less than full-time b/c we liked having me at home so much.
So I'm torn here. I'm already a 5-th year senior. I really don't want it to take another few years to finish my degree. And, I like being home for my kids when they need me. But, money towards debt every month would be great. How do you make this kind of decision?
posted
When's the soonest you could finish school? And when you do, would you be able to get a higher-paying job than what you could get now?
Posts: 14745 | Registered: Dec 1999
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posted
I would finish your degree asap. Go back full time and work hard to complete it in a year (should be doable with 27 hours left). To appease Mr. Opera, come up with some financial goals for the year after that. Perhaps if he sees what progress you can make in a year, it won't seem so bad to not be making as much progress as he'd like now.
Ultimately, it is a personal decision, though, and the two of you need to discuss what you are comfortable with financially and emotionally. Money is a tricky issue and everyone has a different comfort level. However, it would be a shame to see your degree suffer. Explain to him how important it is to you and help him to see its benefits.
Edit: I would make this type of decision by listing what is important to you and where you see yourselves in the future. Chart out your finances for the different circumstances and see if they fit your comfort level.
We're having this trouble now that we're having a child of our own. Is it worth it for me to stay home? Work part time? Is not having our child in daycare worth the strain for me staying at home? Would we save any money if I just worked part time? How much will we lose from our "cushion" and how long do we expect to drain or maintain it rather than building it as we're used to. There are no easy answers to these types of questions but hopefully you come up with something that you both are comfortable with.
posted
Long term beat out short term every time. If you can make the payments on time, then you should finish the degree first, IMO.
I never made any plans for my future until 3 years ago. I have a very bad family medical history, and until a few years ago all the research I had read told me that I wouldn't live very long.....to 40 would be doing well. So I never planned for any future, what was the point. I got into debt and defaulted, and left collage. Why bother with a degree when you don't care about it, and you don't plan on living long enough for it to matter.
Turns out that the research was wrong, and I do have a future. So I wasted all those years, and all that effort. I should have cared more, one way or another.
Short term was always my priority, and now here I am. I have a lousy job that pays crap, and I am married to a wonderful woman. I have lousy credit, although it is a lot better than it was when I was younger, so a house is out of the question for the foreseeable future.
And kids are expensive, but something we both want.
Not that I feel sorry for myself; I have no one to blame but myself, and my life is better now than ever before. It's just that now I have to worry not just about my future for the first time, but hers as well.
So remember the payoff for long term plans are much greater than for short term plans. Unless the financial burden is so bad that you are in danger of messing up the future that way I would finish school. Graduates make substantially more than non-graduates, trust me.
I think both getting out of debt and having a parent home are very good things. But debt has interest, and working to pay off debt is temporary. I hate paying interest on anything. We have to do it on our mortgage, but that is life. We try to avoid it whenever possible.
But I don't know your situation. If you work, I assume you will have to do childcare? After that expense, how much will you bring home? How fast will this pay off the debt? How does that compare with finishing school quickly, getting a higher paying job and paying it off? Tough decision.
Posts: 7050 | Registered: Feb 2004
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Can you get a low interest federal student loan or grant? One of these would have much lower interest than the credit cards and part of the money could go in that direction (since they usually give you much more than you need for tuition and books).
Are there any courses you can clep out of with credit by examination and reduce that magical number (27)?
Can you take only morning classes and find a job where you only work for three or four hours in the afternoon? 15 or 20 hours a week may not seem like much money, but it is still at least $300 to $400 dollars a month (which would get the creditors off your back).
Remember, tuition rates are not going to get lower. Also, the longer you stay away the harder it will be to go back.
I would personally knuckle down and try to finish the degree this year.
Posts: 279 | Registered: May 2004
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posted
May I be devil's advocate here? Credit card debt is best paid off as quickly as possible. Look att he monthly finance charge each month, and imagine what you could do with that money, not to mention what you're putting toward the principle.
If you have a good emergency fund (3-6 months, depending on your confidence in Mr. Opera's job), you should not be increasing non-retirement savings until you're credit card is paid off. Ignoring earnings and interest cost, paying a dollar to the credit card principal effects your net worth exactly the same as saving that dollar. So pay it down. Add in the interest costs and likely earnings, and you're way better off paying down the debt first.
Education is a good thing, and I'd be hard pressed to say put it off, even to pay the credit card off. But any additional income will have a dramatic effect on the credit card payoff.
The low interest loan thing is a good idea, even if you use it to pay off the credit card. But it's better not to go into more debt if possible.
posted
I would finish school ASAP. You should also do everything you can to reduce your credit card debt...don't charge things...maybe go to a credit counselor. Sometimes they can figure out ways to get lower rates and such. The interest on credit cards can really kill you over time.
Posts: 1901 | Registered: May 2004
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posted
Be careful with the counsellor. If you haven't hurt your credit rating, and you think you can handle it, don't go. What they do can stay on your record and hurt later credit reports.
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Wow, I really appreciate all of the thoughtful insights. If I work hard, I could have my degree by next May. That would mean taking about 12-13 credit hours a semester, which is less than I usually take.
To answer Mack's question, I don't honestly know if I would make any more money after I get my degree. I'm an english major, and my long-term goal has always been to get my master's (and eventually phD) so that I can teach at a university. However, I do know that starting salaries for english majors are generally not all that high. The good news is that I've already received about $50,000 of my education for free. I had an all-expenses scholarship to a private college.
We will not have to pay for daycare as long as I find a job during the kids' school hours - that's why I was thinking about an aide position. I know that I couldn't go to school full-time and work an almost full-time job. Combined with being a mom and wife it would be too stressful, and plus a have an extremely high GPA (3.9) and don't want it to suffer. Maybe looking into part-time work could be an idea, though.
Sorry to whine about this to everyone. I just hate Mr. Opera being upset about our finances. It makes me feel very guilty b/c before we got married he was completely debt-free.
posted
You mean, he was debt free when he was single, and using his paycheck to cover only himself and his needs? And, now that he has three other people to support on pretty much the same paycheck, he's got some debt?
Surely it must have occured to him before he married you that having kids would be a financial burden, especially if having a parent at home with them is a high priority.
I mean, it's not great to be in debt and all, but you shouldn't feel guilty about it!
(and I agree about completing your degree! if you don't do it now, chances are you never will.... )
Posts: 1681 | Registered: Jun 2004
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posted
When I became a single parent (when my kids were young), the first job I immediately considered was teacher's aide -- because I'd be at the same school my kids were, I would have the same schedule/days off they did, and it was really like they would still have access to me 24/7.
If you have to take a job, that would be the perfect one.
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