DW and I met at Michigan State University. I was a junior, she was a sophomore. We both come form rural communities in Michigan. We both have frugal parents. DW's 1,500 acre - 160 dairy cow family farm is debt free. My folks have had their home mortgage paid off for for more than 10 years. They are 60 and 62. But we're from a different generation, aren't we?
I got my first credit card when I was 22. I "had" to get one, you see. I was getting married. It all started when I was buying the engagement ring. I was a college student. I bought it for $1,000 - no financing for 12 months. The salesman said "at the end of the 12 months, just slap your balance onto another card". Yeah, right! I'll have it paid off by then. Well, I didn't. I'm not sure what the interest rate would have been on the ring, if I had kept it financed with the jeweler, but I was enticed to open up a credit card at that point. I don't even remember how much of the ring balance was left to transfer, but it seems like it was around $300. What I do remember very clearly was that the minimum due on my first bill was $20. $20! You've got to be kidding me. I know I paid more than the $20, but I sure didn't pay it off the first (or 13th) month, whichever way you want to look at it.
I also started to accrue Student Loan debt in this same period. My first two years of college, I managed to pay as I went. Between what I had saved up in high school, what my parents gave me, and different student jobs I worked, I kept up with the tuition, books, housing and beer money. Then, when I was a junior, I was tapped out. Mom and Dad still helped. I still worked. But I had to borrow some money. Over the next two and a half years (I graduated in 4 1/2 years) I borrowed a total of $8,000 in subsidized student loans. Not bad and not all that great either.
DW had a grand total of $0.00 in SL debt. She got a full-ride scholarship to MSU.
Then comes the wedding. This was 1996. You hear about weddings that cost $11,000 or $20,000. Not us. We spent more around $3,500. It was a nice wedding. It was at my in-laws farm. We rented a tent and roasted a pig. Parents picked up a chunk of the bill, but a large chunk on - you guessed it - credit cards.
When it was all said and done, we started married life out with about $11 or $12K in debt, including credit cards and student loans. Our assets consisted of two beat up cars and two college educations. No worries - we're about to hit the job market. We'll have these bills paid in no time!
How we got here: Chapter 1, The Early Years
April 21st, 2011 at 12:47 pm
April 21st, 2011 at 01:02 pm 1303390955
Interesting! DH's family grandparents/uncle had a dairy farm in the upper penninsula Michigan - Crystal Falls, and my great uncle has a dairy farm in McBain.
April 21st, 2011 at 01:48 pm 1303393723
April 21st, 2011 at 03:30 pm 1303399858
April 21st, 2011 at 04:12 pm 1303402329
I started married life at age 21 in 1988 with about 12k of consumer debt (which I didn't know about until later) all financed at 20+%, a paid for car (mine), a financed truck (his), a few sticks of paid for furniture (mine), a couple grand in the bank (mine), an overdrawn checking account (his), and 60 or so college credits (mine). He paid the minister with a check which bounced. Good times!
April 22nd, 2011 at 03:01 am 1303441312