Tuesday, May 15, 2007

Debt - good or bad?

Having just finished my MBA (I love saying that), I read with interest an article in the local paper about the average debt for a college graduate. Turns out that in my state (SC) the average is around $18,000 for graduates from state sponsored colleges.

Being an avid Dave Ramsey fan (who believes all debt is bad) and starting my new summer reading book Maxed Out, I began to wonder, how much debt is good and how much is bad.

So, here are my questions:
1) Education is seen as the answer to all of life's problems. Should debt be considered a viable way to get the education?
2) How much debt is acceptable? Or does this even matter?
3) Is debt an option for other areas? House? Car? Medical? Major lifeevents (ranging from car repair, home improvement, children, etc).Groceries?
4) When is debt acceptable? Always, sometimes, never?

I'm planning to finish my newest book (should take a couple weeks) and then report back with my ideas... For now, I'm still gathering information.

4 comments:

John Kaiser said...

"Turns out that in my state (SC) the average is around $18,000 for graduates from state sponsored colleges."

I wish.

Heck, mine is over 100 grand between undergrad, law school, and my masters program.

Randy Barnett said...

The numbers quoted are just for undergrad work.

Did you plan out the 100 grand in loans or did it just happen over time?

David said...

Congrats on your MBA.

Randy Barnett said...

David,

Thanks...