In debt... To be or not to be?

[faredce]

so im a student who spent awhile trying to save money to buy my first bike.

i ended up getting a loan from the bank to help out now im in debt and i hate it. its the first time iv been in debt and now i second guessing that decision.
its a $5 grand loan and i wondering if i should keep the bike and spend my money on getting out which for me could take a while or if i should just sell it and pay it off.

i love my bike and i figure that once its gone il be reali disapointed that iv lost it.
its an aprilia rs 125 awsome bike its got a bit of fairing damage but runs beautifully and even if i did want to sell it im not sure how to go about it.

so heres the question.....do i stay in debt and enjoy my first bike or sell it, hopefully get out of my debt but be bikeless for god knows how long??

what do u guys reakon?

[magicfairy]

You only live once, enjoy the bike.

[smokeyging]

i think you should keep your bike, you'd loose too much on it anyway i'd imagine. 5 grand is really nothing, just make sure you don't put yourself under more financial stress.

[RC1]

keep it ,you will kick your self for months if you sell it and arent able to get out on the road

[Disco Dan]

Sounds like your still pretty young yeah? Well it will do your credit rating good to pay the loan off quick smart, but selling your 'asset' to do so does not sound like the best way.

Be careful, it is very easy to get into a viscous circle with loan turning into loans then consolidation and then before you know it you cant pay and you have over $50,000 worth of debt...... and no choice but bankruptcy.... which is pretty much what happened to me - you do not want that to happen!!!

My advice, is pay your existing loan off as soon as possible - then you can begin saving, before you know it your ready for another bike and you can then sell your current ride add your savings... and your a cash buyer.

[rie]

it will do your credit rating good to pay the loan off quick smart, but selling your 'asset' to do so does not sound like the best way. .

i agree with discodan on this point. you really need to crack down on your spending and make sure you pay off that 5g asap. make extra payments everytime you got 20 bucks spare instead of thinking 'sweet i can have a few more beers in the weekend'.

in the meantime you can use your rs125 to learn to ride properly. you won't regret it and you are going to have the time of your life

[Ixion]

In general, I go by the principle that if you can't pay for it, don't have it.

But, principles must always be adapted to reality. In your case, the amount is not large (I know that $5k seems a lot to you, but in the world's context it is a small sum); and the purpose is sensible. You need transport. If you didn't have the bike, you'd be paying out on bus fares and such like. And social mobility is worth a good deal.

And the bike you have chosen is an eminently sensible one for a student, which speaks well for your prudence and commonsense. SO I do not think that the loan will lead you down the slippery slope of fiscal imprudence.

I'd say keep the bike. But, make it an absolute rule not to incur any more debt (except student loans) until this one is paid off. If you must needs owe money, let it be only for one thing at a time.

Can you not arrange a wee fiddle and put the sum into a student loan? I hardly consider student loans as debt, they incur no interest and hardly even need to be repaid (or at any rate not until you are making so much money that it is no hardship)

[HornetBoy]

Hold on to the bike,but make sure you keep it in good nick so once you upgrade you don't lose too much money ,and if your really good you can sell it for more than you brought it for and actually make money

You could use the $1000 "course related costs" to put an advance down and lower the amount of interest on your bank loan.

[mashman]

Don't sell the bike, transport will open more doors for you and give you more time by going to and from where you want to be... having said that a part time job/second job might be worth it to pay it off earlier... earn your toys, they seem much sweeter after that... trust me... (7 years and lots of hard work for this... and worth every minute)

[McJim]

I took out a $5K loan for my first bike. Luckily I was able to pay it off within 2 years and still have a bike.

I stopped smoking the day I bought the bike because the amount I spent every week on smokes was more or less equal to the amount I would be spending on the repayments. Promised myself I would sell the bike and repay the loan if I was ever weak enouh to start smoking again (the desire to keep the bike was strong!)

[hang0ver]

I sold my last bike a couple of months back due to debt, and I'm still kicking myself about it now...

Especially when I split with my girlfriend a couple of weeks later! Suddenly all this time & no bike... Then my dog ran away (cue sad, sad country song).

Hold onto it long as you can & like Hornet Boy said, keep it running well so you can get its worth back.

_-H-_

[kevfromcoro]

AS stated in this thread...keep the bike.....if you sell it ..you are still going to use public transport.....probably a lot dearer than the repayments on the bike......add it up...5k isnt a lot of money.....

[Bren]

as they said...

It is easy to dig yourself in a financial hole with too many loans, and today it is dead easy to get loans. Keep the bike, keep your loans down to a minumum, but is always good to have a credit history so that when you need a big loan the credit companies have something to judge yo by...keep the bike, pay your debts weekly before anything else, and then budget accordingly...

[Toaster]

Well, can you afford to keep the loan as well as fuel the bike, insure it and maintain it as well as live (food, rent, lapdances and other essentials etc etc).

Life is a real balancing act mate. Sometimes you have to borrow... just don't get too far in debt that you can't afford to repay it.

[FROSTY:Me]

I'll go against the trend here. Sell the lil 125. Great fun bike no question but eventually its gonna need a top end rebuild that you by the sounds of things can't afford.
But don't be bikeless. Sell the RS pay the loan off then with what you have left buy something you can afford.
THEN carry on "paying off" the loan.
The money you are saving will mean you'll have the money for another RS really quick