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Originally Posted by TheAlchemist  BTW in the future you will even be more glad of your smart decision 60k at 12% apr when you are making 20k/year is no picnic |
Actually... it's almost exactly like a picnic... cause you'll be eating lot's of peanut butter and jelly sandwiches!!
Using the 20k/year argument got old several years ago. You are absolutely right that paying off high interest debt can be a challenge... no argument there. But to say that someone is going into that much debt for a 20k/year job is nothing more than a scare tactic.
Within the next 3 years... I could be pulling in almost $100,000/yr. if I decide to move to a major. That's not a bad ROI over those years... Here's how I can see it panning out.
Year 1: $25000
Year 2: $38000
Year 3: $60000 (Upgrade)
Year 4: $60000+
Year 5: $44000 (Major 1st year, Delta)
Year 6: $70000 - $94000 (MD-88FO - 777FO @ 85 hours not including per-diem)
Year 7+... it keeps going... up.
Captain upgrade at a major within 5+ years: $120000-$170000+ depending on airline, aircraft, etc.
The extra year to two years at the top of the payscale that one get's by going a faster route is worth the interest on the debt alone.
Yes... it's a sacrifice... for now. And yes... folks will be scrimping by. But... if they manage their finances accordingly... then it's not a problem at all... and there won't be that many PB&J meals.
Anyway... after all is said and done... to be fair and honest... my arguement could be shot to he|| if the industry cracks up again.
However... that's the gamble. Whether we go the "quick" interest bearing route... or the longer "personal time" sacrificing route... we all stand to lose... or win.
Bob