SkydiveNFlorida 0 #1 December 16, 2004 I will get about 3000$ back after my semester is payed for. I have plenty of bills, but i'm not sure what is best to pay. Loan, originally 3500$, have about 3000$ left unpaid at 9% interest over 30 years (yikes). Payment is 40$/mo. Credit card that is closed that I still owe about 3000$ on at 8.9% interest. Payments are not much, maybe 35$/month minimum, but of course I always pay more or it'd never go down. Credit card that is opened that I owe 1500$ on. But, everytime I pay it I keep putting more on it. Interest is about the same as the other one. Credit line is almost maxed out. Car loan is 5 year loan, still have almost 4 years left to pay it, I owe about 7500$ on it and the payment is 250$/mo. Keep in mind that I will be going off to school next year, so I will have to quit my full-time job and probably get something part time for MUUUCH less than I make now. I will also have to move, and that could be costly. I will be taking loans out for school to live on. So, I could also put this $$ in savings, but I know me, and large amounts of $$ burn holes in my pockets. I am concerned with the 250$ car payment, but even if I put 3000$ on it, it will still be 250$/mo (for a shorter term I assume, I don't know how that works.) So, what is best to pay with the 3000$ I will have from federal grants + school (subsidized) loans? Financial advise is appreciated. Angela. Quote Share this post Link to post Share on other sites
PhillyKev 0 #2 December 16, 2004 Financially overall in the long run, pay down on whatever carries the highest interest rates. No question. Quote Share this post Link to post Share on other sites
RevJim 0 #3 December 16, 2004 Not exact advise in your case, but more general type stuff... Make minimum payments on everything, but pick one (that 30 year one sounds like a good starting point), and pay massivly on it, until it's paid off. Don't make the mistake a great deal of people make, the one where you pay a little extra on every loan and card. No no no no no no! By paying all at a minimum and one heavily, you'll see progress, and will quicky be able to close one out entirely. When that happens, go on to the next one and repeat this. Really. It works.It's your life, live it! Karma RB#684 "Corcho", ASK#60, Muff#3520, NCB#398, NHDZ#4, C-33989, DG#1 Quote Share this post Link to post Share on other sites
SkydiveNFlorida 0 #4 December 16, 2004 QuoteFinancially overall in the long run, pay down on whatever carries the highest interest rates. No question. The interest rates on everything are just about equal, around 9%. So, given interest rates are equal, what do you think? -A Quote Share this post Link to post Share on other sites
bob.dino 1 #5 December 16, 2004 As a general rule of thumb, I'd close off the credit cards first. They do tend to cause problems in moments of weakness. But how the hell did you get stuck with 9% APR over 30 years?! That's steep. Since it's higher than the CC, I'd pay it off and close it. One less thing to worry about. Focus next on getting the closed CC down, and don't accept a higher limit on your open CC. edit: actually, thinking about it a little more, interest rates in the US are likely to climb in the near future (the treasury has recently raised rates again). This makes it likely that the APR on your CCs will go up, so it might be better to pay that off first. Most important is to pay and close one off. Gives you a nice sense of achievement! Quote Share this post Link to post Share on other sites
SkydiveNFlorida 0 #6 December 16, 2004 QuoteReally. It works. I will do that. But, I guess what i'm asking here is do I pay one of the credit cards off entirely, or do I put a good deal on the principal of my auto, or maybe pay off the 30 year loan. All this given my situation of possibly having little/no income by late next year. In the meantime, I can still take your advice and pay large chunks on one item or another. -A Quote Share this post Link to post Share on other sites
SkydiveNFlorida 0 #7 December 16, 2004 QuoteAs a general rule of thumb, I'd close off the credit cards first. They do tend to cause problems in moments of weakness. But how the hell did you get stuck with 9% APR over 30 years?! That's steep. Since it's higher than the CC, I'd pay it off and close it. One less thing to worry about. Focus next on getting the closed CC down, and don't accept a higher limit on your open CC. Well, when I purchased my condo, the rates were not quite as low as they are now. I took out this loan to cover closing costs, but I didn't pay it off when I sold the condo (doh!). I think you may be right, tho, that loan is very annoying. Plus, I tend to pay more on the credit cards than on that loan anyhow because it seems like a hopeless cause at 30 years. Thanks! -A Quote Share this post Link to post Share on other sites
SkydiveNFlorida 0 #8 December 16, 2004 Quoteedit: actually, thinking about it a little more, interest rates in the US are likely to climb in the near future (the treasury has recently raised rates again). This makes it likely that the APR on your CCs will go up, so it might be better to pay that off first. Most important is to pay and close one off. Gives you a nice sense of achievement! Well, the one that is closed that I owe 3000$ on is locked at 8.9%. It was a fixed interest card and they were going to change it to variable (probably because that would mean profit for them in the future), but I objected and closed the card out. So, it is guaranteed at 8.9% until I pay the remaining $ on it UNLESS I use the card (which i've shredded.) The other card I only owe 1500$ on, and I can pay that off in a matter of 4 months on my regular salary. I think your first advice was good and I am probably going to pay off that 30 year loan. -A Quote Share this post Link to post Share on other sites
bob.dino 1 #9 December 16, 2004 Yup. I'm with you on that. Get it out of the way and feel all virtuous Quote Share this post Link to post Share on other sites SkydiveNFlorida 0 #10 December 16, 2004 QuoteYup. I'm with you on that. Get it out of the way and feel all virtuous I feel good already. It never seems like much, but all those 40$ payments could be going somewhere else! Thanks everyone! -A Quote Share this post Link to post Share on other sites flyangel2 2 #11 December 17, 2004 No, no, don't listen to them. Buy a new canopy to match that new rigMay your trails be crooked, winding, lonesome, dangerous, leading to the most amazing view. May your mountains rise into and above the clouds. - Edward Abbey Quote Share this post Link to post Share on other sites complexity 0 #12 December 17, 2004 If I were you I would pay the long-term loan as why pay 9% for years and years? If you continue at that rate you will be paying sooo much over the 30 year period. I personally think that federal grant loan program shouldn't have 30 year loans as that is not financially good long term. Second, I would see if you can consolidate your other credit cards onto a single credit card with a lower rate. OR even see if you can take out a bigger loan with a lower rate to pay those off. I did this once when I had two credit cards at high rates and my bank loan was much lower. Just some thoughts. Quote Share this post Link to post Share on other sites SkydiveNFlorida 0 #13 December 17, 2004 QuoteNo, no, don't listen to them. Buy a new canopy to match that new rig You EVIL woman, you!! Actually, I bought the rig to match the brand new canopy. Now I have two rigs but only one main, OH, THE HUMANITY!!! I am tempted to sell the second rig, but it would make such a good swoop pond rig and I hope to swoop the pond sometime next year. -A Quote Share this post Link to post Share on other sites flyangel2 2 #14 December 17, 2004 Then buy a canopy for that rig. You go girly, and swoop that pond, not just for you, but for all us gals that are too much of a pussy to try it. Then one day when you are standing on that stand with a gold metal around your neck, I can say that I remember you in your before days. flyangel wipes a tear from her eyeMay your trails be crooked, winding, lonesome, dangerous, leading to the most amazing view. May your mountains rise into and above the clouds. - Edward Abbey Quote Share this post Link to post Share on other sites happythoughts 0 #15 December 17, 2004 Pay off the credit cards. Cut all of them up except one. Quote Share this post Link to post Share on other sites WFFC 1 #16 December 17, 2004 the student loan you can deduct the interest. The car loan is a set timeframe. the credit will take a long time to pay off if you want to sit down and do the math. Give the 3k back to the student loan people, get your loan for next semester to take care of school. put the cc away for a rainy day (read: emergencies) and quit using it for everyday stuff.----- ~~~Michael Quote Share this post Link to post Share on other sites SkydiveNFlorida 0 #17 December 17, 2004 QuoteThen buy a canopy for that rig. You go girly, and swoop that pond, not just for you, but for all us gals that are too much of a pussy to try it. Then one day when you are standing on that stand with a gold metal around your neck, I can say that I remember you in your before days. flyangel wipes a tear from her eye I will swoop that pond for all of woman-kind! lol!! -A Quote Share this post Link to post Share on other sites flyangel2 2 #18 December 17, 2004 Okay then, I've tempted you enough and you have show just how strong you are. Now, pay off that CC and only use it if you are in an emergency situation.May your trails be crooked, winding, lonesome, dangerous, leading to the most amazing view. May your mountains rise into and above the clouds. - Edward Abbey Quote Share this post Link to post Share on other sites Bolas 5 #19 December 17, 2004 Remster may be willing to help Stupidity if left untreated is self-correcting If ya can't be good, look good, if that fails, make 'em laugh. Quote Share this post Link to post Share on other sites PhreeZone 20 #20 December 17, 2004 Actually the way she describes the loan none of the interst is deductible.Yesterday is history And tomorrow is a mystery Parachutemanuals.com Quote Share this post Link to post Share on other sites SkydiveNFlorida 0 #21 December 17, 2004 QuoteActually the way she describes the loan none of the interst is deductible. The 3500$ loan is not a school loan, and it is not deductible. -A Quote Share this post Link to post Share on other sites WFFC 1 #22 December 17, 2004 QuoteQuoteActually the way she describes the loan none of the interst is deductible. The 3500$ loan is not a school loan, and it is not deductible. -A Missed that part... ----- ~~~Michael Quote Share this post Link to post Share on other sites BIGUN 1,409 #23 December 17, 2004 Any chance of getting a consolidation loan for 15K at 7.5% on a five year note... Pay the 3k on that which leaves 12K @ 7.5% with a payment of $246.00/month?Nobody has time to listen; because they're desperately chasing the need of being heard. Quote Share this post Link to post Share on other sites Ron 10 #24 December 17, 2004 Pay off the 30 year loan. Sell the second rig and put it on the closed credit card. Take the card that still has space and place it in a plastic cup filled with water and put it in the freezer. DONT TOUCH IT UNLESS YOU HAVE TO. Now, you have two options on how to balance a budget. Create more income (which you say is actually going to reduce soon), or control spending (Freezing the CC). So, reduce your unnecessary expenses (Jumps, alcohol) by half. When I got divorced I took ALL of the debt. It was about 5 grand. I stopped jumping, ate Ramen and PB&J sandwiches and paid it off in 3 mths. Not sexy, not fun, but I have a much better time now that I owe nothing but a Car Payment, invest and have money in the bank. Don't sell your future for the present."No free man shall ever be debarred the use of arms." -- Thomas Jefferson, Thomas Jefferson Papers, 334 Quote Share this post Link to post Share on other sites Nightingale 0 #25 December 17, 2004 close the credit card that has the $1500 balance, and pay it off. Then, put the rest towards the other credit card. If you keep putting stuff on the open credit card, you're not being responsible with it, and it's hurting your credit rating by being almost maxed out. Having a loan can raise your credit rating, provided you pay on time, every month, so pay off the credit cards first. For school, you can get additional loans through companies like nellie mae, and bank of america has an education maximizer loan that's made to cover stuff that regular student loans don't, like living expenses. Quote Share this post Link to post Share on other sites Prev 1 2 Next Page 1 of 2 Join the conversation You can post now and register later. If you have an account, sign in now to post with your account. Note: Your post will require moderator approval before it will be visible. Reply to this topic... × Pasted as rich text. Paste as plain text instead Only 75 emoji are allowed. × Your link has been automatically embedded. Display as a link instead × Your previous content has been restored. Clear editor × You cannot paste images directly. Upload or insert images from URL. Insert image from URL × Desktop Tablet Phone Submit Reply 0
SkydiveNFlorida 0 #10 December 16, 2004 QuoteYup. I'm with you on that. Get it out of the way and feel all virtuous I feel good already. It never seems like much, but all those 40$ payments could be going somewhere else! Thanks everyone! -A Quote Share this post Link to post Share on other sites
flyangel2 2 #11 December 17, 2004 No, no, don't listen to them. Buy a new canopy to match that new rigMay your trails be crooked, winding, lonesome, dangerous, leading to the most amazing view. May your mountains rise into and above the clouds. - Edward Abbey Quote Share this post Link to post Share on other sites
complexity 0 #12 December 17, 2004 If I were you I would pay the long-term loan as why pay 9% for years and years? If you continue at that rate you will be paying sooo much over the 30 year period. I personally think that federal grant loan program shouldn't have 30 year loans as that is not financially good long term. Second, I would see if you can consolidate your other credit cards onto a single credit card with a lower rate. OR even see if you can take out a bigger loan with a lower rate to pay those off. I did this once when I had two credit cards at high rates and my bank loan was much lower. Just some thoughts. Quote Share this post Link to post Share on other sites
SkydiveNFlorida 0 #13 December 17, 2004 QuoteNo, no, don't listen to them. Buy a new canopy to match that new rig You EVIL woman, you!! Actually, I bought the rig to match the brand new canopy. Now I have two rigs but only one main, OH, THE HUMANITY!!! I am tempted to sell the second rig, but it would make such a good swoop pond rig and I hope to swoop the pond sometime next year. -A Quote Share this post Link to post Share on other sites
flyangel2 2 #14 December 17, 2004 Then buy a canopy for that rig. You go girly, and swoop that pond, not just for you, but for all us gals that are too much of a pussy to try it. Then one day when you are standing on that stand with a gold metal around your neck, I can say that I remember you in your before days. flyangel wipes a tear from her eyeMay your trails be crooked, winding, lonesome, dangerous, leading to the most amazing view. May your mountains rise into and above the clouds. - Edward Abbey Quote Share this post Link to post Share on other sites
happythoughts 0 #15 December 17, 2004 Pay off the credit cards. Cut all of them up except one. Quote Share this post Link to post Share on other sites
WFFC 1 #16 December 17, 2004 the student loan you can deduct the interest. The car loan is a set timeframe. the credit will take a long time to pay off if you want to sit down and do the math. Give the 3k back to the student loan people, get your loan for next semester to take care of school. put the cc away for a rainy day (read: emergencies) and quit using it for everyday stuff.----- ~~~Michael Quote Share this post Link to post Share on other sites
SkydiveNFlorida 0 #17 December 17, 2004 QuoteThen buy a canopy for that rig. You go girly, and swoop that pond, not just for you, but for all us gals that are too much of a pussy to try it. Then one day when you are standing on that stand with a gold metal around your neck, I can say that I remember you in your before days. flyangel wipes a tear from her eye I will swoop that pond for all of woman-kind! lol!! -A Quote Share this post Link to post Share on other sites
flyangel2 2 #18 December 17, 2004 Okay then, I've tempted you enough and you have show just how strong you are. Now, pay off that CC and only use it if you are in an emergency situation.May your trails be crooked, winding, lonesome, dangerous, leading to the most amazing view. May your mountains rise into and above the clouds. - Edward Abbey Quote Share this post Link to post Share on other sites
Bolas 5 #19 December 17, 2004 Remster may be willing to help Stupidity if left untreated is self-correcting If ya can't be good, look good, if that fails, make 'em laugh. Quote Share this post Link to post Share on other sites
PhreeZone 20 #20 December 17, 2004 Actually the way she describes the loan none of the interst is deductible.Yesterday is history And tomorrow is a mystery Parachutemanuals.com Quote Share this post Link to post Share on other sites
SkydiveNFlorida 0 #21 December 17, 2004 QuoteActually the way she describes the loan none of the interst is deductible. The 3500$ loan is not a school loan, and it is not deductible. -A Quote Share this post Link to post Share on other sites
WFFC 1 #22 December 17, 2004 QuoteQuoteActually the way she describes the loan none of the interst is deductible. The 3500$ loan is not a school loan, and it is not deductible. -A Missed that part... ----- ~~~Michael Quote Share this post Link to post Share on other sites
BIGUN 1,409 #23 December 17, 2004 Any chance of getting a consolidation loan for 15K at 7.5% on a five year note... Pay the 3k on that which leaves 12K @ 7.5% with a payment of $246.00/month?Nobody has time to listen; because they're desperately chasing the need of being heard. Quote Share this post Link to post Share on other sites
Ron 10 #24 December 17, 2004 Pay off the 30 year loan. Sell the second rig and put it on the closed credit card. Take the card that still has space and place it in a plastic cup filled with water and put it in the freezer. DONT TOUCH IT UNLESS YOU HAVE TO. Now, you have two options on how to balance a budget. Create more income (which you say is actually going to reduce soon), or control spending (Freezing the CC). So, reduce your unnecessary expenses (Jumps, alcohol) by half. When I got divorced I took ALL of the debt. It was about 5 grand. I stopped jumping, ate Ramen and PB&J sandwiches and paid it off in 3 mths. Not sexy, not fun, but I have a much better time now that I owe nothing but a Car Payment, invest and have money in the bank. Don't sell your future for the present."No free man shall ever be debarred the use of arms." -- Thomas Jefferson, Thomas Jefferson Papers, 334 Quote Share this post Link to post Share on other sites
Nightingale 0 #25 December 17, 2004 close the credit card that has the $1500 balance, and pay it off. Then, put the rest towards the other credit card. If you keep putting stuff on the open credit card, you're not being responsible with it, and it's hurting your credit rating by being almost maxed out. Having a loan can raise your credit rating, provided you pay on time, every month, so pay off the credit cards first. For school, you can get additional loans through companies like nellie mae, and bank of america has an education maximizer loan that's made to cover stuff that regular student loans don't, like living expenses. Quote Share this post Link to post Share on other sites
