When unpaid student debt leads to a smaller Social Security check

[bluebooger]

didn't know where to post this so I put in in off topic

interesting article
interesting video

Social Security checks cut for 173,000 Americans because of unpaid student loans - Dec. 30, 2016

For more than a year, Jamie Chastain had $177 withheld from his Social Security check each month because of an unpaid student loan from three decades ago.

The 68-year-old has been struggling to pay off his debt since 1982 when he borrowed about $12,500 to get a Master's degree in Liberal Arts from the University of Southern Florida.

...

[yb1]

If only he had traveled in the future and picked up Dave Ramsey's book - The Total Money Makeovrr and applied the key principles he would not be in debt.

For example Ramsey says "hey dude don't take out a loan, wait until you have the cash and than consider buying it."

"Oh but Ramsey I really want it"

"Listen Youngblood if you take out this loan your potential Return on Investment will be less than your monthly interest rates making you a slave to the debt collector, do you want to be a slave?"

"Okay I understand I'll work 2 jobs, and not have a social life, and I'll spend my money at Aldis, I will meal prep and prepare all my weekly meals. I'll be debt free, and in two years when I save up 10,000 in my emergency fund and an additional 12,000 I'll be able to go get my masters degree."

"Yes and spend your money at my seminars, and buy my next book that will repeat the same thing over again."

"Wait what is debt?"

Anyway I'm being facetious, debt and interest is a serious matter but this article has made me realize that I should probably not invest in a masters unless it's free or it's free.

Maybe I'll hit the jackpot and Stanford will call me and say hey YB1 congratulations we need you to become a teachers assistant, and will pay for your own apartment, and give you a stipend, oh and btw we will give you free access to the gym and the cafeteria 3-5 meals a day.

Oh and if that's enough to entice you let us know because we have the option of plan b. I can't disclose what plan b is but it is entirely different

- sent from phone

[dfrecore]

If only he had traveled in the future and picked up Dave Ramsey's book - The Total Money Makeovrr and applied the key principles he would not be in debt.

For example Ramsey says "hey dude don't take out a loan, wait until you have the cash and than consider buying it."

"Oh but Ramsey I really want it"

"Listen Youngblood if you take out this loan your potential Return on Investment will be less than your monthly interest rates making you a slave to the debt collector, do you want to be a slave?"

"Okay I understand I'll work 2 jobs, and not have a social life, and I'll spend my money at Aldis, I will meal prep and prepare all my weekly meals. I'll be debt free, and in two years when I save up 10,000 in my emergency fund and an additional 12,000 I'll be able to go get my masters degree."

"Yes and spend your money at my seminars, and buy my next book that will repeat the same thing over again."

"Wait what is debt?"

Anyway I'm being facetious, debt and interest is a serious matter but this article has made me realize that I should probably not invest in a masters unless it's free or it's free.

Maybe I'll hit the jackpot and Stanford will call me and say hey YB1 congratulations we need you to become a teachers assistant, and will pay for your own apartment, and give you a stipend, oh and btw we will give you free access to the gym and the cafeteria 3-5 meals a day.

Oh and if that's enough to entice you let us know because we have the option of plan b. I can't disclose what plan b is but it is entirely different

- sent from phone

Actually, this is pretty good advice. If the dude is still making payments out of his SS check 30 years later, obviously that degree was not the best use of his money. And if he had saved up for 3-4 years to pay for the degree, he'd still be a lot better off than he is now. People act like waiting for a little while to save money and pay for things is some kind of wacky thing that no one could POSSIBLY do. It's what got people into the trillion dollar student loan crisis that we have now, or the housing bubble that burst because everyone wanted a no-money-down loan on a house. Sometimes patience is a very good thing.

And, I've been to a Dave Ramsey seminar, it was a whopping $49. It's not like he's telling you to spend thousands of dollars on a seminar, he's putting them on for cheap, and you don't HAVE to go to one, or buy his book (they have them at the library and you can get them free on Amazon once in a while). Or you can just listen to his show for free whenever you want to.

[cookderosa]

I'm a huge Dave Ramsey fan, a very loyal one.... but he might hate me or love me as a fan because I've never sent / spent a dime. I listen to his show on my computer every day for free and checked his books out from my library for free. The Dave Ramsey Show - daveramsey.com - daveramsey.com We are not extreme, we didn't pay cash for our home, and I took a student loan - but it's all in your mindset. Having 1 dollar in debt *to me* means my house is on fire, it's an emergency.

[yb1]

And, I've been to a Dave Ramsey seminar, it was a whopping $49. It's not like he's telling you to spend thousands of dollars on a seminar, he's putting them on for cheap, and you don't HAVE to go to one, or buy his book (they have them at the library and you can get them free on Amazon once in a while). Or you can just listen to his show for free whenever you want to.

hilarious hilarious my old boss was a big fan of the Ramsey so I have been to one of his seminars in DC and even got access to his lunch. I was expecting some decent food but got a turkey and mayonnaise sandwich, Oreo, and Doritos. I had access to his online class, I own the total money makeover. All of this free for me and paid for my by boss. Yes I was typing that up in a silly way but its true if you follow his principles you will lower your debt or not get in debt to begin with.

I still use every dollar on my phone to track my spending.

Interestingly enough in that particular job, I was out in the field often going to peoples homes. I met at least 10-15 couples who had a Dave Ramsey story of how they had massed a bunch of debt and applied the baby steps and are now debt free.

Things I don't necessarily like about Ramsey is the man is so rich telling us how to save money. It is much easier said than done but yeah that is a very nit picky thing. Also between his class, the total money makeover and the seminar that I attended he said the exact same thing.


I am still on the baby steps working on an emergency fund, but I am also debt free now. Is there a correlation? maybe? I also go on reddit frugal and try to make sure anything that I buy has value and I am not buying anything just to because I want it.
for example, I'd rather buy a drill with a lifetime warranty for 50 dollars more then buy a cheap drill from Walmart that may break in the next 2-5 years.

[cookderosa]

Things I don't necessarily like about Ramsey is the man is so rich telling us how to save money.

.

He's a rich man TODAY. Live like no one else so later you can live like no one else. If he were broke, that wouldn't substantiate what he's teaching. The richer he is, the more I care about what he teaches!

[dfrecore]

Things I don't necessarily like about Ramsey is the man is so rich telling us how to save money. It is much easier said than done but yeah that is a very nit picky thing. Also between his class, the total money makeover and the seminar that I attended he said the exact same thing.

First, he didn't start being rich, he started out being broke, and is showing people how he got out of that and into a system where he eventually got rich. He's speaking from experience. And, if he wasn't rich, I wouldn't be interested in hearing his story! I want to hear that you can start from nothing and amass wealth.

He also says that you don't have to go to his seminars or read all of his books, because he's "boring, and predictable." Yes, he says that himself. He says the same stuff over and over again, because that's what has worked.

So, I wouldn't suggest to people that they read all of his books. Or go to a bunch of seminars (I went to SmartMoney to listen to OTHER speakers there, rather than just Dave). Or listen to his radio show daily. But if you're interested in getting out of debt with a step-by-step plan, pick one of these methods and then go for it.

[jsd]

I also go on reddit frugal and try to make sure anything that I buy has value and I am not buying anything just to because I want it.

/r/frugal is great!