How meaningful is debt to income for recent graduates?

How meaningful is debt to income for recent graduates?

A discouraging part of being married to a dentist with a strong interest in personal finance is that I come across articles from time to time about the massive debt and resulting hopelessness for many new grads. When reviewing the statistics, the outlook can look pretty bleak and the opinions rather sensational. Dental school is nearly impossible to pay off. Without income driven repayment options, default rates for dentists will balloon. We know firsthand the sticker shock when it comes…

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Prioritizing Debt vs. Investing

Prioritizing Debt vs. Investing

It’s been three years since my wife and I began our path to financial freedom. In that time we’ve paid off $130,000 of debt, but at last count we still owe over $388,000. So how can a couple so deep in debt title a post about prioritizing debt vs. investing? Is it really a discussion? It’s an easy decision to throw every spare cent at our debt to pay down that balance and worry about investing later. Right? It would…

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January 2017 Net Worth

January 2017 Net Worth

We’re already a month into this journey we’re calling Debt Ascent, and it’s time for our second installment of updating our monthly net worth. In a welcome surprise, we were fortunately able to improve our NW by a shade over $16k in January, bringing up our total from just over -$147.5k last month to -$131.5k. While we only paid down our debt principle by $2.2k in January, market gains and contributions to both our investment accounts and savings resulted in the rest…

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How we’re paying off over $500,000 of student loan debt

How we’re paying off over $500,000 of student loan debt

While a majority of students today graduate with some level of student loan debt, we happened to be well above the normal distribution with a sum of over $500,000 between the two of us following an eight year stretch from 2005 to 2013 in which my wife and I financed the majority of our educations. The bulk of this balance coming in the later years while my wife pursued a degree in dentistry. While it came at a significant cost,…

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What Debt Teaches Us

What Debt Teaches Us

We’ve been tracking our net worth closely for the last few years. In fact, we’ve gone back and tracked it since our earliest loans in the fall of 2005. We’re diligent about it to ensure we stay on course as best we can. When times are hard and we aren’t able to make as much progress as we’d like in a given month, we take a second to evaluate the big picture. When we see this, it reminds us that…

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December 2016 Net Worth

December 2016 Net Worth

As mentioned in the introduction, we have A LOT of debt. This naturally corresponds to a large number of loans. Currently sixteen of them to be exact, averaging out to more than $24,400 per loan. Thankfully we don’t have sixteen different payments, as a number of these loans are grouped together with a single lender. While it would drive some folks crazy to have so many different loans, we like to have things broken down as much as possible. We’ve intentionally…

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Introduction

Introduction

Our path to financial independence didn’t get off to the best start. By any definition, we are drowning in debt. After sixteen years of post-secondary education between the two of us, rock bottom was February 20th, 2014, our outstanding debt reaching: -$521,741 How could this be? What disastrous decisions had we made to find ourselves in such a crushing situation? The truth is, we signed up for it. We knew we would find ourselves here. We did it anyway. My…

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