Are Airline Pilots Heavily in Debt??

[your_dreamguy]

Just curious.

Was talking to a captain about this a few days ago. This captain knew of a regional pilot who took out about a $100,000 loan to pay for their aviation training. Then they took out about another $100,000 loan (mortgage) to pay for their home, leaving them at least $200,000 in debt while making under $30,000 per year.

Also, a friend of a friend who wants to become an airline pilot just got turned down for a large loan to train at an aviation academy.

Another friend of mine, told me of some Captains he knew at SWA that are trying to pickup overtime because they are heavily in debt while making approximately $230,000 per year.

I try to follow the Dave Ramsey model and avoid debt, so, I'm wondering if anyone has any guesses on what percentage of pilots are in debt?

Just curious how pilots stack up against Doctors, Lawyers and other employees when it comes to debt.

Your thoughts please.

 

[pianoman]

Well, depends on how you view good debt/bad debt.

Currently, my wife has 50k student loans from her masters, we have one car loan of about 14k and the other is paid off. Zero credit card debt and a home loan. I think we're doing ok.

Dave R. has some good philosophies and I got a lot of good points from his book, but honestly I can't quite agree with his $1000 emergency fund being all you have in reserve while you dig out from the debt snowball. In our industry I don't sleep well unless I have at least 15k in the bank ready to draw.

Just my opinion.

 

[scoreboardII]

I have talked with the extreme few who played the "buy a house, buy a few more, buy a few more lots" and are now in bankruptcy, but thats just two out of hundreds. Most are fine, however if they ended on the street, all the fun would be repossessed.

 

[becket]

Does the Pope sh*t in the woods?

 

[N1atEcon]

Most guys I fly with have their financial house in order, as in a lot of $$$$ in the accounts. There are a few that are on their 3rd wife and have kids from all of them. They have a big house, a diesel pusher, a boat, a vaction home a few new cars and a lot of debt.

 

[densoo]

Another friend of mine, told me of some Captains he knew at SWA that are trying to pickup overtime because they are heavily in debt while making approximately $230,000 per year.

That's common to all airlines I would think.

 

[AA717driver]

Multiple ex-wives, deadbeat kids who never left home, spouse's medical bills, spend now/make it up when I make Capt., etc.

No different than Joe Sixpack.

TC

 

[pilotyip]

Live below your means, a 1400 sq ft home is just right even though you qualify for a 3500 sq ft 5 BR, 4 BA home. 6 months salary in cash. Remember you are an airline pilot you will be "between jobs" an average of 2.7 times during your career.

 

[Bigoober]

I don't think pilots are really any different than most other careers. The blaring difference for some, as you pointed out in the original post, is that some go to an aviation college and take out a large loan to pay for it.

Me, I was furloughed from CAL, with about a year's worth of savings. With unemployment benefits, I was able to avoid touching the savings for six months before I hooked onto a "long term" set of reserve orders that has allowed me to build another year or so's worth of savings. This wouldn't have been possible had I not sold my house in DC before the crash and avoided all other debt. I feel for those that had loan commitments.

As mentioned a couple of posts up, it all comes down to one's view on debt, not the profession as a whole. Me, I don't like being a slave to a lender.

 

[HalinTexas]

Seeing as I haven't flown a jet in a year, I would say no. But, since ATA shut down, and my gig with KX ended, and I've started a business, I've gone from no debt with $20K plus in the bank, to about $40K in debt (not all CC's), with a little savings.

I know a lot of TZ warriers that have fared worse. Hey, I haven't had to go to India yet!