# Lifestyles & Discussion > Personal Prosperity >  new car, silver, or dent in college loan?

## Hunter Gatherer

I got into a car accedent two weeks ago and will be getting about 3,000 frn. I could do a couple of things; 

1. Put a down payment on a truck that I really want. Toyota Tacoma.

2. I could put the money into silver.

3. I have around 15k to pay off on my student loan, I could put a dent into that.

My car still runs fine the hood is just dented really bad. It's drivable. I have a good job in the medical field. I'm an orthopedic tech, I put casts on broken limbs. Fun job but I get paid less then 20frns an hour.

I'm leaning towards the silver, what would you do and why. If you have any other options please suggest them.

PS.  car runs but I'm having trany problems I hope it gets me through two more years.

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## eOs

Help spread freedom, destroy the current system by never paying back your school loans. I'd go with the truck. :P

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## rp4prez

Resale on cars suck regardless if they have a dent or not (granted worse resale with a dent).  Do you have an emergency fund?  If not that might be a good spot for your money.  Are your interest rates high on your student loans?  That might be a good place for your money.

So much to consider for sure.  If my truck had damage like yours I would take the 3k (it's worth about that much) and keep driving the hell out of the truck and put the money into something else.

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## rp4prez

> Help spread freedom, destroy the current system by never paying back your school loans. I'd go with the truck. :P


Oh but don't you know the department of education will break down your door!

See... http://www.economicpolicyjournal.com...tion-unit.html
http://www.informationliberation.com/?id=35610

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## Zippyjuan

You can't avoid paying back student loans. Even bankruptsy does not halt that. I would work on paying it (but not put all your money towards it- do you have an emergency fund which could pay your bills for several months to a year should you lose your job for whatever reason?). Rates are probably pretty low so continue to make the regular payments on it.

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## cubical

Id you don't have an IRA open one and buy SLW or CEF.

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## Zippyjuan

An IRA- while not a bad idea- would tie up the money until retirement (unless you pay a penalty).  Fine unless you might need the money before then. With compounding, the earlier you start an IRA or other retirement savings, the better (and less money you have to put away to get the same amount at retirement).

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## psi2941

> I got into a car accedent two weeks ago and will be getting about 3,000 frn. I could do a couple of things; 
> 
> 1. Put a down payment on a truck that I really want. Toyota Tacoma.
> 
> 2. I could put the money into silver.
> 
> 3. I have around 15k to pay off on my student loan, I could put a dent into that.
> 
> My car still runs fine the hood is just dented really bad. It's drivable. I have a good job in the medical field. I'm an orthopedic tech, I put casts on broken limbs. Fun job but I get paid less then 20frns an hour.
> ...


1. i would advise against any gas guzzler. fuel is going to be hard to come by once shtf.

2. before i tell you rather you should pay off your student loan vs silver

what type of student loan is it? Stanford or private?
how much money do you make(full time or part time)? 
are you on the income based program? 
what are the monthly payment? 
So far how many years did you have been paying off the student loan?
Are you classified as a civil servant?
if yes, then your student loans can be discharged after 10 years. if not then 25 years. no matter the balance on it. (applies to Stanford only).

if your student loan is private, ur screw and might as pay it off early. (assuming its variable)

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## ctb619

I would spread the funds between food/supplies, PMs, barterable goods, and your emergency cash reserves, with allocation dependent on what you already have on hand.

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## VanBummel

Since the car still runs, I'd vote student loans, possibly with a bit used for fixing your hood if it bothers you.  Silver is a good investment, and a new truck can wait, but the student loans are just going to grow larger and larger as you wait to pay them off.  Not to mention they gives the government one more reason to bust down your door. as rp4prez pointed out.

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## Hunter Gatherer

1. Stanford

2. Full time with good benefits

3. Not on an income based program.

4. 140.00 frn a month minimum for student loan.

5. Graduated last year.

6. Not sure if I'm a civil servent. I work at a medical clinic.

7. Not a private loan.

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## StilesBC

Financial Planning 101.  Pay down the debt before doing anything else.

The only possible reason to keep any amount of debt while you have cash is to help improve your credit rating.  I'm not sure if student loans count toward that in the US.

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## psi2941

> 1. Stanford
> 
> 2. Full time with good benefits
> 
> 3. Not on an income based program.
> 
> 4. 140.00 frn a month minimum for student loan.
> 
> 5. Graduated last year.
> ...


if the interest is fixed, then don't pay off the student loans (you be insane to pay it off). your monthly payment is really low plus student loans have added protection if you loose your job, student loans can be suspended under "hardship" and then you can sign up for the income based repayment program. (so its a no brainier) 

if its not fixed, its your call. (1 major factor would be based on your job being civil servant 10 year vs 25 year) i would still side with not paying it off because of the added protection of income based repayment and plus if  you loose your job, you can have the payment suspended and not effect your credit score. 


as for silver, by like 1,500 of silver and 1,500 of RMB

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## Tiger35

After seeing all the previous questions.....How much silver do you have? If the answer is none. I would get some shiny.

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## Hunter Gatherer

> if the interest is fixed, then don't pay off the student loans (you be insane to pay it off). your monthly payment is really low plus student loans have added protection if you loose your job, student loans can be suspended under "hardship" and then you can sign up for the income based repayment program. (so its a no brainier) 
> 
> if its not fixed, its your call. (1 major factor would be based on your job being civil servant 10 year vs 25 year) i would still side with not paying it off because of the added protection of income based repayment and plus if  you loose your job, you can have the payment suspended and not effect your credit score. 
> 
> 
> 
> as for silver, by like 1,500 of silver and 1,500 of RMB



RMB? Not sure what that is.

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## Hunter Gatherer

> After seeing all the previous questions.....How much silver do you have? If the answer is none. I would get some shiny.


I have some but I'm not close to my 2,000 goal.

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## Hunter Gatherer

> I would spread the funds between food/supplies, PMs, barterable goods, and your emergency cash reserves, with allocation dependent on what you already have on hand.



I have the supplies and the skills to live through the shtf scenario.

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## AFPVet

> You can't avoid paying back student loans. Even bankruptcy does not halt that. I would work on paying it (but not put all your money towards it- do you have an emergency fund which could pay your bills for several months to a year should you lose your job for whatever reason?). Rates are probably pretty low so continue to make the regular payments on it.


Zippy's right... you can't default on your student loans... get those paid off.

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## ctb619

RMB = Renminbi....Chinese currency

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## psi2941

> RMB? Not sure what that is.


RMB is really hard to get in high numbers but 1500 should be a cake walk

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## cubical

> RMB is really hard to get in high numbers but 1500 should be a cake walk


Other than the Bank of China in NYC, where do you get it? I know Peter Schiff is opening an international bank where you can buy RMB, but that is not up yet.

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## squarepusher

> Zippy's right... you can't default on your student loans... get those paid off.


for now ...

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## AFPVet

> for now ...


Lets hope that our country can get squared away before the FEMA camps (e.g. prisons for debtors, political prisoners, Christians....) are in place.

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## AceNZ

Another vote for paying down your student loans.  It's one less hammer the gov has to hit you over the head with.  If you look around, there are stories of people who accidentally miss student loan payments and get hit with penalties so large that they will never be able to pay them off; basically, indentured servitude.  Good thing to avoid if you can.

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## psi2941

> Other than the Bank of China in NYC, where do you get it? I know Peter Schiff is opening an international bank where you can buy RMB, but that is not up yet.


i was at the airport in "south korea" and they had rmb. so assumed they had it all around the airports.

EDIT: if thats not possible then just convert to the next best thing hong kong dollar

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## Zimobog

Why would you spend so much money on a car? There are plenty of rides for $500.
Get some silver if you don't already have some and try to pay down your debts.

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## Zippyjuan

> if the interest is fixed, then don't pay off the student loans (you be insane to pay it off). your monthly payment is really low plus student loans have added protection if you loose your job, student loans can be suspended under "hardship" and then you can sign up for the income based repayment program. (so its a no brainier) 
> 
> if its not fixed, its your call. (1 major factor would be based on your job being civil servant 10 year vs 25 year) i would still side with not paying it off because of the added protection of income based repayment and plus if  you loose your job, you can have the payment suspended and not effect your credit score. 
> 
> 
> as for silver, by like 1,500 of silver and 1,500 of RMB


You can get payments suspended under certain conditions (depending on the loan and its terms) but during the time payments are suspended, interest is still acruing meaning the balance due will be rising. If you negotiate lower payments (again, it will depend on the loan if you can even do that too), the payments you make may not be enough to reduce the principal so that too would lead to a bigger loan balance. 

As for buying RMB- I would not. It is a controlled currency- its exchange rate with the dollar is basically fixed so it will be impossible for it to apreciate much against the dollar. Add in costs of conversion -use dollars  to buy the RMB and later to sell the RMB for dollars again) and it will be extremely hard to make profits that way. Just my thoughts on that.

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## Blueskies

So much bad advice on this forum, I should make a sticky..

DO NOT PAY OFF YOUR STUDENT LOANS ASAP

You have a low interest rate, and its an ideal form of debt.

Now, if you said, "I have 3k of credit card debt with 20% APR" then yes, pay that off immediately.

But that isn't the case for you.

Either get a new vehicle, or invest the money.

If you are confident that your present vehicle will run decently for some time, then invest it. If you think the thing is about to start breaking down, then go for a new one. When a vehicle starts to go, the repair bills can stack up like crazy--I know, I've been there.

But as someone said before, do you really need a truck? Do you use it in your work, or is a big part of your recreation (hunting, fishing, what have you)? If the answer is no, then I would highly recommend not getting one. Trucks are the most expensive vehicles over their lifetimes, generally speaking.

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## Maximus

Pay off your loan as quickly as possible

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## erowe1

In your financial situation you shouldn't even be considering buying a new car. So scratch that off your list.

Of the other two options it really depends what your preferences are. I personally would make a priority of getting that loan off my back. But that's me.

If you're convinced that there will be significant inflation in the near future, then buying pms would be a better investment than paying off your debt. I would just personally prefer the lower risk option of getting out of debt before doing that.

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## pacelli

I'd vote for 1500 on the loans and the other 1500 for emergency fund.  If/when the transmission blows out, then think about using that 1500 for a downpayment on another inexpensive used car, plus whatever the junked car will scrap for.  You don't need a new truck or the high interest rate it comes with... 

Keep your job at all costs unless you intend on dropping out of the system completely.

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## heavenlyboy34

I say student loans too.

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## Zippyjuan

The key with deciding to pay extra on the loan or keep making regular payments depends on what sort of return you think you can get by putting the money someplace else (again, i would say if you don't have any emergency fund, just hold onto it anyways) vs the interest rate you are paying on the loan.  If it is five percent and you think you can get say seven percent (after all costs and taxes on returns) on another investment, then it makes sense to go with the investment.  If your student loan is say ten percent and you can reasonably expect a five percent return an an investment, then the money should go to the debt. Me, I like the idea of being debt free- that means that all the money I get (yes, after taxes!) is mine. I don't owe it to anybody else.  I have been paying extra on my mortgage and will have it gone in the next two years- less than half the usual 30 year period.  After that, I will have significantly more money every month I can use for other things I may choose to spend it on. 

You don't have to do all or none with the money- you can save some, spend some, buy some metals with some. However you like.

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## nbhadja

Wouldn't it be better investing it in silver in a few months when the price hopefully temporarily drops?

It would make more sense to wait and put off your student loans for as long as possible. For once use inflation on YOUR SIDE. Paying off your student loans only gets easier and easier as inflation hits. 

Remember they don't adjust the loan for inflation- we at least that's what I think I never had a loan before.

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## libertybrewcity

school loans...if you happen to be unemployed they could take everything

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## Justinfrom1776

I would recommend paying down your loan.  I'm sure the interest is fairly low if there is any at all, but any money you can keep out of the pockets of the evil bankers is a +.  That's just my 2 cents, I am not a financial advisor or anything.

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## psi2941

> You can get payments suspended under certain conditions (depending on the loan and its terms) but during the time payments are suspended, interest is still acruing meaning the balance due will be rising. If you negotiate lower payments (again, it will depend on the loan if you can even do that too), the payments you make may not be enough to reduce the principal so that too would lead to a bigger loan balance. 
> 
> 
> As for buying RMB- I would not. It is a controlled currency- its exchange rate with the dollar is basically fixed so it will be impossible for it to apreciate much against the dollar. Add in costs of conversion -use dollars  to buy the RMB and later to sell the RMB for dollars again) and it will be extremely hard to make profits that way. Just my thoughts on that.


 THIS ONLY APPLIES TO STANFORD LOANS. IF HE HAS PRIVATE LOANS HIS SCREWED
yes but there are two factors in play, 1. inflation and 2. the 10 year protection. the loan of the student loan is forgiven no matter what the balance is after 10 years or 25 years depending on the classification of your job.

@ so at current rates, if he gets married and signs up for the income based program, he might come out ahead. but at current rate and being single he makes way to much money according to the government.

as for RMB, yes for now its hard now but i think RMB will be the real big winner. it doesn't have to be RMB there are so much other countries. the RMB was meant for his emergency fund.

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## Hunter Gatherer

Thank you all for your valuable input. I have made a decion. I'm going to purchase more silver. I believe the pos will rise signifegalintly in the next few years. I will continue to pay off my Stanford loan paying the monthly minimum until silver gets to 50 frns, then I'll focus on my loan.

Edit: I'm a bad speller.

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## Zippyjuan

> Edit: I'm a bad speller.


Maybe you need to pay for more schooling and learn then?  Lol. 

Be aware that silver can go up or down.  There is a thread on here someplace which predicted "$120 silver in the next 90 days- this summer!"  and as of today, it is down 16% since then (April 15th I think it started). Figure in your costs to buy and sell the silver too in calculating any returns. If you pay 5% to buy and 5% to sell, you need it to go up by 10% just to break even (just examples- I don't know what sort of margins you will be paying).

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## headhawg7

> if the interest is fixed, then don't pay off the student loans (you be insane to pay it off). your monthly payment is really low plus student loans have added protection if you loose your job, student loans can be suspended under "hardship" and then you can sign up for the income based repayment program. (so its a no brainier) 
> 
> if its not fixed, its your call. (1 major factor would be based on your job being civil servant 10 year vs 25 year) i would still side with not paying it off because of the added protection of income based repayment and plus if  you loose your job, you can have the payment suspended and not effect your credit score. 
> 
> 
> as for silver, by like 1,500 of silver and 1,500 of RMB





> Wouldn't it be better investing it in silver in a few months when the price hopefully temporarily drops?
> 
> It would make more sense to wait and put off your student loans for as long as possible. For once use inflation on YOUR SIDE. Paying off your student loans only gets easier and easier as inflation hits. 
> 
> Remember they don't adjust the loan for inflation- we at least that's what I think I never had a loan before.


I agree with both of these above threads concerning the student loans. Inflation benefits debtors.

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## Seraphim

I think that's a good idea - keep paying the monthly payment on the student loans. Getting a car when you have a perfectily functional one, would have been a bad idea. So would paying off a low interest fixed rate loan.

With the silver you either keep it for the long haul to help you retire on, or flip it for cash to pay off debts when the metals hit a "top" of sorts or you need the cash.

Good call.  





> Thank you all for your valuable input. I have made a decion. I'm going to purchase more silver. I believe the pos will rise signifegalintly in the next few years. I will continue to pay off my Stanford loan paying the monthly minimum until silver gets to 50 frns, then I'll focus on my loan.
> 
> Edit: I'm a bad speller.

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## 2young2vote

Question!

Are you going to buy silver in large sizes like Kilo bars and 50oz bars, or are you going to buy many small 1-5 oz bars and coins, or a mix?  I am in a similar situation to you and I am not sure what to do.  If I buy 30+ 1oz bars or coins then I can sell a few of them off to a local dealer if I need some cash, but I will be paying more for them.  If I buy a Kilo or 50oz bar then it is all or nothing and I will end up holding onto it for many years.  What are you planning on doing?

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## Seraphim

Pure value liquidity playing long term trends, 10-100 OZ bars (Silver).

As a function of money and commercial exchange - silver coins/rounds (1oz) and junk silver (90% US coins, pre 1965).

But that does not mean all are good options 




> Question!
> 
> Are you going to buy silver in large sizes like Kilo bars and 50oz bars, or are you going to buy many small 1-5 oz bars and coins, or a mix?  I am in a similar situation to you and I am not sure what to do.  If I buy 30+ 1oz bars or coins then I can sell a few of them off to a local dealer if I need some cash, but I will be paying more for them.  If I buy a Kilo or 50oz bar then it is all or nothing and I will end up holding onto it for many years.  What are you planning on doing?

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## Hunter Gatherer

> Question!
> 
> Are you going to buy silver in large sizes like Kilo bars and 50oz bars, or are you going to buy many small 1-5 oz bars and coins, or a mix?  I am in a similar situation to you and I am not sure what to do.  If I buy 30+ 1oz bars or coins then I can sell a few of them off to a local dealer if I need some cash, but I will be paying more for them.  If I buy a Kilo or 50oz bar then it is all or nothing and I will end up holding onto it for many years.  What are you planning on doing?




This quistion has crossed my mind several times. I'm not a fan of small bars, not sure why, I just like coins better. Kilo would be the smallest bar I would buy unless I came across a great deal with the 1, 5, 10 oz bars.

I do plan on holding silver for the long haul and would like to have some 100 oz bars. Pan American 100 oz bar is one of my faveroits. 1 kilo kookabarra's and lunar coins from Australia have also caught my eye.

I just don't want to be holding a kilo or higher during a currency crisis. 100 one oz coins is a lot easier to barter with then one 100 oz bar. So I'm going to build a good size stack of coins. Once I feel I have a large enough stack of coins to get me through a currency crisis I will start buying the big bars.

Then again, who the hell knows what we will barter with if there is a crisis. Less then 2% of the population have silver or gold. All I can do is research and lean from history.

 History has taught me that gold and silver have been used as currency for many different economies over thousands of years. I hope that trend continues and is the reason why I stack.

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## GreenBulldog

> I got into a car accedent two weeks ago and will be getting about 3,000 frn. I could do a couple of things; 
> 
> 1. Put a down payment on a truck that I really want. Toyota Tacoma.
> 
> 2. I could put the money into silver.
> 
> 3. I have around 15k to pay off on my student loan, I could put a dent into that.
> 
> My car still runs fine the hood is just dented really bad. It's drivable. I have a good job in the medical field. I'm an orthopedic tech, I put casts on broken limbs. Fun job but I get paid less then 20frns an hour.
> ...


Pay off student loans? Why would you want to do that with current inflation? The more you pay in the future, the more you're paying with worthless money. Haven't Bernake taught you anything? 

Car=depreciating asset. However, same thing as above: pay it off in the future with worthless money.  

Personally, I'd go with silver.

BTW, I have a car with tranny problems too. I too, hope it'll last 2 more years. If we had an economy running on sound money, I'd my money to buy a different car or fix it instead of buying silvers

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