I made the decision already. I actually came here to ask for advice and made the decision while typing up this post. I put a large chunk on the student loans but it was a tough call to make. I had a good deal lined up on a jon boat that would be big enough for my 2 kids and wife yet still fit in the garage. It wasn’t perfect but it would get us out on the water without (me) paddling the canoe. Friends telling me to buy the boat, wife is kinda on board, I’m itching for a boat… It was a tough call to make.
I’m nearly done with these loans. I keep telling myself that I’m a good used boat away from paying these off and it’ll be better to get into the exact boat I want. I guess that means there are gonna be more fish in the water for you guys this year.
You made the right move! Pay off all your loans then start by geting a small boat and as you grow your bank account you can go bigger and be able to sleep at night. Good luck!
I bought my first non-john boat with a student loan back in 1994. An 18’ sea craft. At the time the check for the student loan was made out to you not the school. What a deal. I payed it off the first year after graduating. Only took out 1 loan 1 year. Payed the rest of the way. Good use of funds. I had the boat for almost 10 years. Good times.
I have some student loans left (wife doesn’t thankfully), but went ahead and bought a $5k jon boat with cash 3 years ago. Figured the interest rate is cheaper on my student loans and I get it back during taxes, as opposed to any type of boat loan. But I am working a full time and part time job, plus I don’t have kids. So my situation is a little different! Would not have gotten the boat if we had kids. Mentioned selling the boat jokingly the other day and the wife gave me the death look! Good luck with paying them off and getting on the water!
Keep your debt low and you will be much happier. As for the student loans, good choice. My daughter finished her master’s about a year ago. She was working full time and took out a student loan to pay for the tuition. She only drew out what she needed to pay for each semester and immediately started paying it back with each paycheck. When she finished each semester, the amount borrowed was payed off and she would start the process over. At graduation she was debt free, very proud of that young lady.
I bought my first non-john boat with a student loan back in 1994. An 18’ sea craft. At the time the check for the student loan was made out to you not the school. What a deal. I payed it off the first year after graduating. Only took out 1 loan 1 year. Payed the rest of the way. Good use of funds. I had the boat for almost 10 years. Good times.
They still let you get a lot in student loans to buy what ever you want. My oldest daughter is still paying back. I didn’t know she did that.
Pay off your debt then get the boat! Lot’s of fun stuff to do with the wife and kids without the extra burden. Pack a picnic lunch and go crabbing. I’ve had more fun doing that with my kids than on the boat. Get them into eating seafood early.
I never realised just how easy it is for a young college student to get into debt, until my youngest daughter started asking about some “interest” free loans she was accepted for. I also understand why my oldest has so much student debt now. Her saving grace is after 5 years and sticking with the same school system they will take care of half her student loan.
“If Bruce Jenner can keep his wiener and be called a woman, I can keep my firearms and be considered disarmed.”
The problem with student loans is most students have no clue about personal finance. It should be a required course in high school. To make matters worse, like Fred said, they will give you a lot more than you need because the lender is all about profit. I know kids who have used student loan money to get tattoos, buy guns, take vacations etc. If you have children, one of the best gifts you can ever give them is to teach them financial responsibility. That is taking for granted that you are financially responsible yourself. Many kids don’t really have a chance nowadays.
I appreciate the support guys! I loosely follow the Dave Ramsey plan and it works, I just can’t justify rice and beans every night. The interest rate on student loans argument almost had me sold on the boat and that was coming from a CPA friend. If all goes well, I’ll be in a boat this time next year.
Loans make you a slave to the lender. Pay cash for everything and you sleep better at night. Just remember, the government already has you in deep dodo with debt.
I bought my first non-john boat with a student loan back in 1994. An 18’ sea craft. At the time the check for the student loan was made out to you not the school. What a deal. I payed it off the first year after graduating. Only took out 1 loan 1 year. Payed the rest of the way. Good use of funds. I had the boat for almost 10 years. Good times.
and you feel good about this misuse of government sponsored / guaranteed / subsidized funding ?
I was just in a similar situation. It really was a great boat too. But there was something wrong with the trim and tilt so it wouldn’t hold the motor up. Kinda reminded me that 16 year old engines will have problems no matter how great they look or were cared for. But I’ll likely pay off the last student loan group that is above 4.5% and only have a few thousand left.
I’m 28 and hell bent on trying to get a house by the end of the year. Pushing the boat back ONE MORE YEAR will help me achieve that.