| View previous topic :: View next topic |
| This is purely just for curiousity. But I have saved the money so far, should i pay off the whole 6k now or keep making monthly payments and hold onto the money for security/emergency funds. What would you do? |
| YES, pay it off NOW |
|
94% |
[ 33 ] |
| NO, hold onto the lump sum, and pay it all off at a later date |
|
5% |
[ 2 ] |
|
| Total Votes : 35 |
|
| Author |
Message |
Radius
Joined: 20 Dec 2009
|
 Posted: Wed Oct 27, 2010 6:17 am Post subject: Have 6k (USD) in credit card debt. Pay it all off now? |
 |
|
I know what the responsible thing to do is--Im just wondering what you all would do (I know i will end up going ahead and paying it all off soon.) I just hate to plop down all the money ive saved so far on credit card bills, but OTOH, it would feel good to be credit card debt-free (i still have student loans.)
But who knows if Ill be here next here, and if I may end up needing that money. |
|
| Back to top |
|
 |
NYC_Gal
Joined: 08 Dec 2009
|
| Posted: Wed Oct 27, 2010 6:19 am Post subject: |
|
|
| I'd pay it off. If you need the money, you'll be able to use those credit cards again, as you'll have good credit, yes? |
|
| Back to top |
|
|
northway
Joined: 05 Jul 2010
|
| Posted: Wed Oct 27, 2010 6:22 am Post subject: |
|
|
| If it was student loans, I'd probably say feel free to sit on it. When it comes to credit cards, I'm always going to say pay off as much of it as quickly as you can. |
|
| Back to top |
|
|
Vagabundo
Joined: 26 Aug 2010
|
| Posted: Wed Oct 27, 2010 6:22 am Post subject: Re: Have 6k (USD) in credit card debt. Pay it all off now? |
|
|
| Radius wrote: |
I know what the responsible thing to do is--Im just wondering what you all would do (I know i will end up going ahead and paying it all off soon.) I just hate to plop down all the money ive saved so far on credit card bills, but OTOH, it would feel good to be credit card debt-free (i still have student loans.)
But who knows if Ill be here next here, and if I may end up needing that money. |
I hate to be harsh, but that sounds like an idiotically stupid question.
UNLESS you have this 6K on a super low or interest free loan/credit card.
I don't think they do those promotions anymore, so I'm going to guess your interest on this is 20%, no lower than 15%.
simple math says = 1200/12 = 100 USD interest a month.
this is called a black hole. Fill it immediately, asap. Leave the minimum in savings that you can to feel comfortable and paid it off. Then rip up the card, breathe and smile.
Relax for a day or two. Then start working on your student loans. |
|
| Back to top |
|
|
Radius
Joined: 20 Dec 2009
|
| Posted: Wed Oct 27, 2010 6:30 am Post subject: Re: Have 6k (USD) in credit card debt. Pay it all off now? |
|
|
| Vagabundo wrote: |
| Radius wrote: |
I know what the responsible thing to do is--Im just wondering what you all would do (I know i will end up going ahead and paying it all off soon.) I just hate to plop down all the money ive saved so far on credit card bills, but OTOH, it would feel good to be credit card debt-free (i still have student loans.)
But who knows if Ill be here next here, and if I may end up needing that money. |
I hate to be harsh, but that sounds like an idiotically stupid question.
UNLESS you have this 6K on a super low or interest free loan/credit card.
I don't think they do those promotions anymore, so I'm going to guess your interest on this is 20%, no lower than 15%.
simple math says = 1200/12 = 100 USD interest a month.
this is called a black hole. Fill it immediately, asap. Leave the minimum in savings that you can to feel comfortable and paid it off. Then rip up the card, breathe and smile.
Relax for a day or two. Then start working on your student loans. |
Relax, im going to pay it off now, that's why i prefaced the question "out of curiosity." Im just shooting the breeze with you guys... |
|
| Back to top |
|
|
cert43
Joined: 17 Jun 2010
|
| Posted: Wed Oct 27, 2010 6:46 am Post subject: |
|
|
What's you compounding interest? APR? Is it just on your minimum payment or
your total allocated debt? ADB?
Do you have other unsecured debt? The interest rate depends on a the card holders"credit risk factor.
They can probably raise/keep of the interest rates regardless of your total
monthly payments, so I suggest you save and do lump.
http://en.wikipedia.org/wiki/Credit_card_interest
Last edited by cert43 on Wed Oct 27, 2010 7:02 am; edited 1 time in total |
|
| Back to top |
|
|
Vagabundo
Joined: 26 Aug 2010
|
| Posted: Wed Oct 27, 2010 6:50 am Post subject: Re: Have 6k (USD) in credit card debt. Pay it all off now? |
|
|
| Radius wrote: |
| Vagabundo wrote: |
| Radius wrote: |
I know what the responsible thing to do is--Im just wondering what you all would do (I know i will end up going ahead and paying it all off soon.) I just hate to plop down all the money ive saved so far on credit card bills, but OTOH, it would feel good to be credit card debt-free (i still have student loans.)
But who knows if Ill be here next here, and if I may end up needing that money. |
I hate to be harsh, but that sounds like an idiotically stupid question.
UNLESS you have this 6K on a super low or interest free loan/credit card.
I don't think they do those promotions anymore, so I'm going to guess your interest on this is 20%, no lower than 15%.
simple math says = 1200/12 = 100 USD interest a month.
this is called a black hole. Fill it immediately, asap. Leave the minimum in savings that you can to feel comfortable and paid it off. Then rip up the card, breathe and smile.
Relax for a day or two. Then start working on your student loans. |
Relax, im going to pay it off now, that's why i prefaced the question "out of curiosity." Im just shooting the breeze with you guys... |
no sweat.
I just get pissed off when scumsucking leech banks make off like bandits on people that think along the lines you proposed.
you have no idea of the revenue streams involved. This is precisely why they were so vociferously opposed to some of Obama's financial regulations bill.
That said however, the bank pretty much told you what you were getting yourself into before you actually took out that loan, or charged that credit card. |
|
| Back to top |
|
|
Radius
Joined: 20 Dec 2009
|
| Posted: Wed Oct 27, 2010 7:24 am Post subject: |
|
|
| cert43 wrote: |
What's you compounding interest? APR? Is it just on your minimum payment or
your total allocated debt? ADB?
Do you have other unsecured debt? The interest rate depends on a the card holders"credit risk factor.
They can probably raise/keep of the interest rates regardless of your total
monthly payments, so I suggest you save and do lump.
http://en.wikipedia.org/wiki/Credit_card_interest |
yea i think all three are around 20-25% because i fell into hard times and couldnt make some payments so they JACKED it up. |
|
| Back to top |
|
|
rockymtn
Joined: 01 Oct 2010
Location: USA
|
| Posted: Wed Oct 27, 2010 8:39 am Post subject: |
|
|
pay it off
Once you have less debt hanging over your head & you don't have debtors nickle & diming you to death. You actually end up investing/pocketing more of your own hard earned cash. |
|
| Back to top |
|
|
cert43
Joined: 17 Jun 2010
|
| Posted: Wed Oct 27, 2010 9:26 am Post subject: |
|
|
Yeah? That sounds like B.of America, man.
They will keep doing it once they see you are reducing the debt.
All the more reason to do a lump. |
|
| Back to top |
|
|
SandyG21
Joined: 26 Oct 2008
|
| Posted: Wed Oct 27, 2010 10:00 am Post subject: |
|
|
| Increase your monthly payments by a third or one half and keep some money for emergencies as well. Or see if you qualify for one of those 0% balance deals. Set a goal to knock out the debt in say one year or whatever works for you. Even if you use 3000 (half) toward the debt - they might lower your interest rate. |
|
| Back to top |
|
|
cert43
Joined: 17 Jun 2010
|
| Posted: Wed Oct 27, 2010 11:07 am Post subject: |
|
|
The problem is the exchange rate. You loose $400 -500 EVERYTIME ,then
think about having to do this 4 or 5 times a year ( or however often you
need to send )every 2 months? Even if you pay 3,000 two times, you
still have to factor the leftover interest ( that will keep increasing regardless).
He needs to either send EVERYTHING at once, or just keep
it someplace with a higher interest and exchange rate untill it can
returned back.
May I suggest a Hong Kong securties account? ( This one is Swiss, but
their margain profitibilty levels are the same)
http://www.swedbank.lv/eng/pakalp/pr_1_1_1.php |
|
| Back to top |
|
|
blackjack
Joined: 04 Jan 2006
Location: anyang
|
| Posted: Wed Oct 27, 2010 4:45 pm Post subject: |
|
|
| cert43 wrote: |
The problem is the exchange rate. You loose $400 -500 EVERYTIME ,then
think about having to do this 4 or 5 times a year ( or however often you
need to send )every 2 months? Even if you pay 3,000 two times, you
still have to factor the leftover interest ( that will keep increasing regardless).
He needs to either send EVERYTHING at once, or just keep
it someplace with a higher interest and exchange rate untill it can
returned back.
May I suggest a Hong Kong securties account? ( This one is Swiss, but
their margain profitibilty levels are the same)
http://www.swedbank.lv/eng/pakalp/pr_1_1_1.php |
Sorry how do you lose 4-500 dollars every time?
Fees should be a max of 20-30 dollars |
|
| Back to top |
|
|
NYC_Gal
Joined: 08 Dec 2009
|
| Posted: Wed Oct 27, 2010 4:50 pm Post subject: |
|
|
| blackjack wrote: |
| cert43 wrote: |
The problem is the exchange rate. You loose $400 -500 EVERYTIME ,then
think about having to do this 4 or 5 times a year ( or however often you
need to send )every 2 months? Even if you pay 3,000 two times, you
still have to factor the leftover interest ( that will keep increasing regardless).
He needs to either send EVERYTHING at once, or just keep
it someplace with a higher interest and exchange rate untill it can
returned back.
May I suggest a Hong Kong securties account? ( This one is Swiss, but
their margain profitibilty levels are the same)
http://www.swedbank.lv/eng/pakalp/pr_1_1_1.php |
Sorry how do you lose 4-500 dollars every time?
Fees should be a max of 20-30 dollars |
I believe she's thinking about the exchange rate. If I'm wrong, I apologize. I don't see it as losing money, though. We get so used to considering 1000 won as a dollar, that when we have to change it to real dollars, it seems as though we've lost a fair chunk. |
|
| Back to top |
|
|
winterfall
Joined: 21 May 2009
|
| Posted: Wed Oct 27, 2010 4:59 pm Post subject: Re: Have 6k (USD) in credit card debt. Pay it all off now? |
|
|
| Vagabundo wrote: |
| Radius wrote: |
I know what the responsible thing to do is--Im just wondering what you all would do (I know i will end up going ahead and paying it all off soon.) I just hate to plop down all the money ive saved so far on credit card bills, but OTOH, it would feel good to be credit card debt-free (i still have student loans.)
But who knows if Ill be here next here, and if I may end up needing that money. |
I hate to be harsh, but that sounds like an idiotically stupid question.
UNLESS you have this 6K on a super low or interest free loan/credit card.
I don't think they do those promotions anymore, so I'm going to guess your interest on this is 20%, no lower than 15%.
simple math says = 1200/12 = 100 USD interest a month.
this is called a black hole. Fill it immediately, asap. Leave the minimum in savings that you can to feel comfortable and paid it off. Then rip up the card, breathe and smile.
Relax for a day or two. Then start working on your student loans. |
+1 . Unless you really need the boost to your credit score. Its not worth it. Your credit score actually gets better faster if you make payments over a longer period of time instead of doing lumps. But the price is the ridiculously high interest.
Example: I use my cc like a debit card, I buy everything with it and just rack up the rewards points. Then I pay everything off with my paycheck. So there's never any interest. A friend uses a cc to buy everything and only makes the minimum payments every month. Even though I spent more than him, almost 3-4x as much. His credit score is higher. Go figure.. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
