The First Loan I Ever Took Out


#1

Hey All! I’m working on a post based on a conversation with a coworker yesterday. The topic is First Loan I Ever Took Out and would love to hear some of your stories. I plan to include some of them in my post so if you are a blogger please let me know your site so I can direct to you (and a link if it is about this topic) and if you aren’t a blogger, let me know if I can mention your name. :slight_smile: I promise not to give away any secrets unless you give me permission to!!

Back to my convo - Her answer, boobs. Mine, a mortgage. Needless to say we had an awesome (and interesting) conversation!! She’s ready for an upgrade and I am searching for another property. :wink:


#2

hahaha… ‘boobs’… I used to live in California, so I knew many girls with boob jobs. They ‘claim’ that it did wonders for their self esteem, but I sure didn’t see it from the kind of person they still were. All were super great, sweet, smart gals, but definitely lacking in the area of independence and confidence. Unless you are a stripper or porn star, there is probably little ROI and a lot of diminishing returns on that purchase. :slight_smile:

My first loan was a car loan for a Mazda Miata. The car was $20k, but the loan was only half that. I paid it off quickly. Then, my second loan was another car for $24k, same thing, the loan was about half and paid off quickly. My third loan was for a house that I had to drag my ex-husband kicking and screaming to, to even consider and think about it. We put $0 down, but ended up with a windfall due to the market at the time. That leads me to my fourth loan, which is even more ridiculous than boobs, and that is using the HELOC on our house to buy an airplane. Not something I would recommend to anyone. :slight_smile:


#3

When I was 16, my father suggested that I borrow money and pay it back in order to establish a good credit rating. I took his advice, financed a stereo system from Sears for $300, and stayed in debt for the next 50 years! Before I woke up, financially, my debts had grown to almost 2 million. My dad was a great guy, and very smart, but like most Americans he didn’t understand some of the most important rules of wealth creation.


#4

My first loan was for a 1999 Corvette convertible. Dropped a half year’s salary to buy it, and proceeded over the next several years to “Monster” the hell out of it - supercharger, long-tube headers, straight-through catback, forged 3.90 rear end, twin-disc clutch, race cam shaft.

That sucker was an absolute beast. You could hear me rollin’ down the road from a mile away, and if I was properly motivated, would nearly pop an ear drum driving away.

Fun car. Called her “Mighty Whitey”.


#5

I still think it was dog LASIK. But that’s just the kind of person you are, @MissMazuma (I guess?)

My first loan was the big one - federal student loan for undergrad. Actually, those federal student loans are all the loans I ever took out until about 8 years later when I bought my first car, but I paid that off too quickly to count it, anyway :slight_smile:


#6

My first loan was an auto loan (gasp!) when I realized a used car wouldn’t be much cheaper than a new one. I planned on paying for the car in cash, but I financed it when I realized I could get an extra $1,000 off the sticker price. I paid the loan off after the first month.


#7

For me, it was an auto loan for a brand new ’ 89 Chevy S-10 Pickup. Fancy eh?


#8

When I was 16, my father recommended I take out a signature loan from our local bank, put it in a savings account, and pay back the minimum every month in order to establish credit history. I borrowed $300, put it into a savings account at the same bank, and paid them back over the next couple of years.


#9

Do credit cards count? I got those in undergrad. Didn’t take any student loans out until my grad school days. But those student loans were the first non-credit card debt I ever had.

Then came mortgage #1, then a credit line, then a car loan… that’s when I started thinking about PF and started paying stuff off. And took out mortgage #2 (#1 became a rental property). Car loan is gone. Credit line is gone. Working on the mortgages. Student loan will be gone soon enough as originally scheduled.


#10

The first loan I ever took out was at the ripe old age of 18. It was a student loan, obviously designed to help pay for school, but I had scholarships to cover that. Instead it was “free money” that super rich future Me could easily pay off. I continued to take the loans for 4 years.

I got an expensive computer one semester, a cheap car another, and paid for a semester of rent with one. The rest went to bad food and video games, I’m sure.


#11

One of my parents was raised in poverty and felt that having a new car was a sign that you were doing well in life. At 18, that parent co-signed for me to take out a loan for an economy car way newer than I needed at a price well above Kelley Blue Book value… and I paid for gap insurance too. I paid the car off faithfully and ahead of schedule. I had a great credit score afterward, but it took me awhile to shake the example of using debt to make major purchases above my means.


#12

I applied for a personal loan $15,800 to buy 8000 shares in a national share IPO.
The Float was $3.20 with an installment share which was $1.95 initial price in Nov 1997. Then a second installment of $1.35 was payable in 12 months.i.e. Nov 1998
The stock rose to $7.20 by the time my second installment was due.
I then applied for a margin loan over the share to fund the second installment.
The share over the following 12 months rose to $9.15.
I ended up selling my shares for approx $7.00 when I got married and we put a deposit down on our home.
After loan repayments, dividends, tax deductions and loan pay out I netted approx $40,000 in capital gains.
This strategy has loads of risks as you can imagine, especially as I chose to borrow invest into shares, fortunately my calculated risk paid off and I learnt life long lessons about investing, shares, tax, and lending along the way.
Living the dream!
Peter


#13

17 years old, school loan based on what the University told me I would need to pay for costs. After I paid all of the costs and purchased a desk top computer ( Super expensive 20 years ago!), I had 8K left over. I sent it back after two months. I didn’t take out another student loan for the next four years. I ended up with 8K in student loans after putting myself through school. Paid that off in one year. My credit issues started after that success. Went up to 500k in debt and it took me years to pay that off.


#14

My first loan was for a 1996 CBR600F3. I knew I wanted it months before I bought it, having purchased the leathers and the helmet to match before the bike. And I wanted to get this bike, on my terms. The dealership would not let me get it without a cosigner, so I walked out (more to that whole story if you’re interested). I got a call within a couple of days that we could work something out. I had that bike for over ten years and my husband had to sell it for me because there’s no way I could have let it go (despite the fact that with my job responsibilities I wasn’t even riding it anymore). I still miss it.


#15

I echo the credit cards in undergrad. I did well with them. If I could not pay them off for the month, I cut way back until they were paid. Fortunately I did not have any school loans. My parents were able to swing tuition and room and board. I did work.

I guess my first loan was for my car after I had been working for 10 or 11 months. I did buy a new car. A Ford Escort, 3% loan, through Ford Credit. I buy new and keep my cars for over 10 years. Working in IT, It was affordable for me. This was all pre-marriage.


#16

Hey @F2P! Nice to hear about another female sport bike rider on the forum! I don’t ride anymore either, but I had a flat black Honda 599, which is basically the ‘naked’ version of the CBR600. I LOVED the way the 599 looked and rode, but at 5’2", it always felt too big for me. Before that, I had a Kawasaki Ninja 250, which was a perfect fit and a lot of fun!


#17

That’s hilarious. I’m also 5’2" AND I had a 250 Kawasaki for 3 months to learn to ride and make sure I really wanted to commit to a bike before buying the much more expensive 600.

My Kawasaki was bought second hand. It was black with a cool neon purple light fixture underneath that gave it a nice glow (which, it turns out, gave me grief with law enforcement, so I had to get rid of it).

As for fitting on the 600, I lowered the suspension, shaved the seat down and wore higher heel protective boots. I even managed to have passengers on a regular basis!


#18

OMG! Too funny!!! I also had the suspension lowered and the seat shaved down! haha. I guess, I didn’t think of looking into different boots. I still could just barely put both toes down on the ground at the same time. If I ever get another bike, the Ducati Monster 600 would be a good choice for someone who is vertically challenged. I sat on it once, and if I remember correctly, I could actually be flat footed on the ground. It is an expensive bike, but it is definitely lower than the Honda 599.

I also bought my Kawasaki 250 used. It was a shiny red with a purple stripe. You can see a picture here:


#19

Mine was for a car! It’s seriously the best auto related decision I’ve ever made. http://nzmuse.com/2015/11/car-loan-2/


#20

@PrimalProsperity - Haha - I am all for anything that helps the self esteem. :wink: I work in an industry that 10 years ago that type of purchase was the norm. These days I don’t hear it all that often which is why her comment stuck in my mind. I guess I never thought about the loan factor for such a purchase!! Now, using the HELOC to buy a plane?? That’s a great story!

@zendancer - from stereo $300 to 2 million…not bad!! Living the American Dream. Ha!

@Steve - I remember you talking about this car. Half years salary - ouch! How old were you? So funny what time does to our brains. Like, what would the Steve who bought Mighty Whitey say to the Steve who is cruisin down the road towing an Airstream?! I bet that would be a great conversation!

@The_Vigilante…if it was me, yes, the dog LASIK would have been an option. Since the answer came from a coworker I am sorry to report that my first loan was not a couple of bags of silicone but a home loan. I already had the LASIK by then. :slight_smile: