I started thinking about this when I was on the phone today with a Wells Fargo student loan officer trying to get a new loan for summer school, books, new laptop, and my apartment for the fall. Just how leveraged are you monkeys?
Do you monkeys still have student loan debts? What about your cars and possible mortgages? And how many of you have a lot of debt on credit cards (from all those models and bottles, of course)?
As of right now, I'm pretty leveraged.
- Credit Cards: ~$1000. This includes $300 in textbooks, a GoPro HDHero2, and the past month of nights at the bar.
- Federal Student Loans: I will graduate in December with something like $25,000 in federal loans. My parents will end up with ~$80,000 in federal plus loans. Despite graduating a semester early, paying out-of-state tuition for a name brand state school still kills the wallet.
- Private Student Loans: $12,000. This covered $6500 while I was studying in Europe. About half of the $6500 is for three weekend snowboard trips to the Alps, a weekend in the Pyrenees, and my spring break shredding in Chamonix. The remaining $5500 is the loan I just applied for to cover summer school, fall apartment, and some safety money for after graduation.
Oh and, I only have ~$1000 in the bank.
How deep are you?
0 state school and parents i can get leveraged in my broker acct 10:1 though
j/p 5:1 bc they don't trust me
Current debt load is about 65% of Personal GDP right now.
$0
.
my D:A is around 9 percent right now
$50 in my checking after the rent check clears
$2400 in CC debt
~$12,000 in student loans plus the $35k I'm gonna pay my parents back for the MSF tuition. No CC debt and a 750 credit score.
0, paid for school playing sports and I don't have any other debt to speak of. Might buy a car (even though I live in Hoboken) just to start building credit.
20k for school and 1k CC. About 10% of what I own. Plow everything into my 'F*** you'-fund because I locked in my student loans for 10 years @ 3.79%. No need to pay extra right now before I'm liquid like Aquaman.
~15k left on student loans ~2k on credit cards ~10k my my account
I need a better paying job..
About 2x leveraged although here in the UK we don't have to pay our student loans back like any traditional debt, it just comes out of our income once we earn over x amount per annum so I wouldn't really consider that any pressing form of debt.
0 ... it's been years since I graduated and I haven't bought a house or car.
I'd suggest you pay off that credit card ASAP and never use it again... Never.
Also get rid of your student debt. It doesn't matter how cheap it is to service, it's not worth it to LBO yourself. You're only truly free if you have no debt. The only exception is if you have "non-recourse" debt which is secured on a house or another income producing asset (cars don't count). Even then you should aim to pay down that debt as soon as you can.
~13k in a Roth ~35k in a traditional investment account (thanks Dad)
No car loan, no house (still a student), no CC debt.
0.. parents + state school + don't even have a credit card
Like 5% approximately, all CC. It gets paid off automatically.
About 7:1, all mortgage debt. Just paid off student loans. I leveraged up in 09 in phoenix real estate, best move I ever made.
Just wondering, how much would that property have been worth in '07 and how much less did you pay in '09?
My aunt and uncle did the same thing in Yuma. Moved into larger house, nice backyard, and a casita for visitors. They said the house was approximately 40% less than it would have cost a year or so before. The only downside, right down the street at the next development there are empty lots where it didn't make sense to continue building.
The previous owner paid 254k in 2006 and foreclosed in '08. I paid 85k in may of '09 or about $47/sqft. Plus I got the first time tax credit. I got an fha loan when I bought it from JPM. I then put about 5k into renovations and refinanced in 2011 to a 15yr fixed. It appraised at 130k. I now rent it out for 1300/month which covers my mortgage, property management, taxes, insurance, plus another 500 net profit.
7k for my DUI
3:1
15k car loan. I paid off my student loans last year and never carry forward my cc balance. I plan on buying a house in the next couple of months so the leverage is about to increase substantially. Just trying to live the American dream...
1x. student loans :-/
$35k car loan to build credit--will be my only leverage, leaving me at around 19%.
To the tits bro
how many of you are paying a car loan in NYC, without the car there.
$0: State School+Parents (very little)+Grant Money+Small loan paid off in college $30k in 401k $0 CC (ever, worst debt possible) $20k in the bank and growing for a new casa someday
Burgundy, you need to get a job and a clue.
0 on anything. I only view debt as a tool with which to grow and expand wealth and business not as something to live beyond my means on an ongoing basis. Granted, I had a bunch of ugly car expenses that have drained my accounts but luckily that's behind me. Crossing my fingers though.
I only ever really use 'leverage' in my trading account but even i'd only really want to go 5 or 10 thousand while trading at the moment.
0 student loans.
I put all of my expenses on a credit card for cash back and budgeting purposes, but at my current job revenue
Sorry, forgot to mention that the credit card debt is not a long term. That's just the current balance which will be completely paid off when the bill comes due, paying no interest. Used the credit card to avoid a low bank balance until I got half my summer pay this week.
But yes, I do need a job. Are you hiring come January? I'm graduating early.
MBA on full scholarship + living beneath my means = no debt
$4000 on personal credit cards (revolver paid in full monthly, use them for the reward programs) $20,000 in a brokerage account (2:1 margin financing mostly dividend payers and covered calls) $18,000 1 year lease commitment (worst case sublet should covers 50-75% of remaining lease) No student loans (parents paid) or auto loans (NYC) and obviously no mortgage.
Overall I'm leveraged at ~1x post-tax CF assuming no bonus (conservative).
D to E/A is meaningless since I'm young and most of my assets are in retirement accounts, as I have a generous employer match and have been building a Roth IRA since I started college.
My two cents is to pay off student loans ASAP. You really don't want debt with that kind of super-seniority on your personal balance sheet. If you really want to LBO yourself, buying real estate is a better idea because the only recourse will be to the asset. Also, a balanced portfolio will likely yield in the 4% range over the next couple years.
$0, work and scholarships pay for my education. Would hate to have the feeling of debt hanging over me.
I'm currently levered .5x D/EBITDA.
I traded stocks while in college to help pay off my tuition each semester. When you do that with little capital, your primitive nature of survival kicks in (i.e. the need for money); not only do your hone in on your skills, your resume thrives with capital markets knowledge.
You traded stocks to pay off tuition--with 'little' capital? Even with in-state rates, I don't really see how that's possible barring consistent 100% quarterly gains. Guess it depends what 'little capital' means, what margin requirements are, etc
$25k student loans left.
$225k 30 year-fixed mortgage, 3.75%, just refinanced.
$0 credit card debt, $0 car loan.
Decided to use the low mortgage rates and buy a 1br condo in 2010.
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