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| 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 |
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94% |
[ 33 ] |
| NO, hold onto the lump sum, and pay it all off at a later date |
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5% |
[ 2 ] |
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| Total Votes : 35 |
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winterfall
Joined: 21 May 2009
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 Posted: Wed Oct 27, 2010 5:18 pm Post subject: |
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| blackjack wrote: |
Sorry how do you lose 4-500 dollars every time?
Fees should be a max of 20-30 dollars |
4-500 is an over exaggeration. Usually you lose about 2-300 for each $1000 USD. It's the loss from the exchange rate. The average KRW to USD rate is around 1,150. Give or take 100. So if you exchange 1,000,000 won today, it equals $882.70 USD. So for every $1000 USD, your losing about $120.
It's better to save up a huge amount of money and transfer it at once. Between 6 to 9 million won. The larger the transfer, the better chance, the bank will give you a preferential, discount exchange rate, usually its around 20-40%. Your still gonna take losses but it's definitely gonna help |
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blackjack
Joined: 04 Jan 2006
Location: anyang
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| Posted: Wed Oct 27, 2010 5:49 pm Post subject: |
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| winterfall wrote: |
| blackjack wrote: |
Sorry how do you lose 4-500 dollars every time?
Fees should be a max of 20-30 dollars |
4-500 is an over exaggeration. Usually you lose about 2-300 for each $1000 USD. It's the loss from the exchange rate. The average KRW to USD rate is around 1,150. Give or take 100. So if you exchange 1,000,000 won today, it equals $882.70 USD. So for every $1000 USD, your losing about $120.
It's better to save up a huge amount of money and transfer it at once. Between 6 to 9 million won. The larger the transfer, the better chance, the bank will give you a preferential, discount exchange rate, usually its around 20-40%. Your still gonna take losses but it's definitely gonna help |
You don't lose anything, it feels like losing money but exchange rates change.
a few years back it was 560 won to the dollar now it's 840 won to the dollar. It sucks but I haven't lost any money, I didn't have this money back then. |
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cert43
Joined: 17 Jun 2010
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wesharris
Joined: 10 Oct 2008
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| Posted: Wed Oct 27, 2010 9:48 pm Post subject: |
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Default and bankruptcy = keep the money !
Ruining your credit for seven years.
But hey, you keep the money....! |
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NYC_Gal
Joined: 08 Dec 2009
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| Posted: Wed Oct 27, 2010 10:22 pm Post subject: |
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| winterfall wrote: |
| blackjack wrote: |
Sorry how do you lose 4-500 dollars every time?
Fees should be a max of 20-30 dollars |
4-500 is an over exaggeration. Usually you lose about 2-300 for each $1000 USD. It's the loss from the exchange rate. The average KRW to USD rate is around 1,150. Give or take 100. So if you exchange 1,000,000 won today, it equals $882.70 USD. So for every $1000 USD, your losing about $120.
It's better to save up a huge amount of money and transfer it at once. Between 6 to 9 million won. The larger the transfer, the better chance, the bank will give you a preferential, discount exchange rate, usually its around 20-40%. Your still gonna take losses but it's definitely gonna help |
You don't lose $2-300 for each $1000. You appear to lose $2-300 from each million won because you think of 1,000 won as a dollar, but it isn't. You aren't losing anything, unless you count the bank transfer fee. |
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nstick13
Joined: 02 Aug 2009
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| Posted: Thu Oct 28, 2010 5:37 pm Post subject: |
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| There's no money lost. DO NOT think of this as changing Won to Dollars, but rather as *purchasing* dollars. One dollar costs about 1,150 won. Some people actually buy currency hoping that the exchange rate will change and they can sell it for profit (or, conversely short the currency). Supply and demand dictates the price. Sure, there are better times to buy dollars than others, but unless you monitor the market all the time, you'll have a difficult time doing it and predicting when you can buy the most dollars. For us *workers* who have to "send" money home, there's no "money lost". Sometimes it may have paid to hold it for a month, but again, you'll never know unless you're an astute investor/analyst. |
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jlb
Joined: 18 Sep 2003
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| Posted: Thu Oct 28, 2010 9:36 pm Post subject: |
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| wesharris wrote: |
Default and bankruptcy = keep the money !
Ruining your credit for seven years.
But hey, you keep the money....! |
As kind of an aside, is it really this simple or are there further repercussions after the 7 years? |
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shostahoosier
Joined: 14 Apr 2009
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| Posted: Fri Oct 29, 2010 6:37 pm Post subject: |
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| jlb wrote: |
| wesharris wrote: |
Default and bankruptcy = keep the money !
Ruining your credit for seven years.
But hey, you keep the money....! |
As kind of an aside, is it really this simple or are there further repercussions after the 7 years? |
Well, this is the least. The default will stay on your credit report for 7 years and your credit score will begin to increase as the default "ages", however, the credit card company can take you to court and sue you for not paying.
A judgement can stay on your report for a long time depending on which state you live in, though usually its about 10 years I think (some states allow you to renew). Also, a judgement is bad because it allows the creditor to look at your assets (bank account, home, car) and put a lien on them, or in the case of a bank - take money altogether.
You also will pretty much have burned your bridges with these creditors, which in this age of merging banks could bite you in the end.
The best (and ethical) thing to do is pay off your debts if you can. If you cant, try to come up with some sort of plan. Debt can affect a lot of things down the road.
Debt interest is negative income - and with inflation your money is slowly losing value. If you can afford to make debt payments (I know not everyone can), then you definitely should!
Sorry, one of my roommates was REALLY into money and I read through some of his books.
And I am one of those obsessive people who check the exchange rates every day  |
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winterfall
Joined: 21 May 2009
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| Posted: Tue Nov 02, 2010 1:47 am Post subject: |
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| nstick13 wrote: |
| There's no money lost. DO NOT think of this as changing Won to Dollars, but rather as *purchasing* dollars. One dollar costs about 1,150 won. Some people actually buy currency hoping that the exchange rate will change and they can sell it for profit (or, conversely short the currency). Supply and demand dictates the price. Sure, there are better times to buy dollars than others, but unless you monitor the market all the time, you'll have a difficult time doing it and predicting when you can buy the most dollars. For us *workers* who have to "send" money home, there's no "money lost". Sometimes it may have paid to hold it for a month, but again, you'll never know unless you're an astute investor/analyst. |
I'm having trouble understanding how you can say your not losing money when your value is in 'Flux'. If anything your losing more money cause you have no idea what the 'Real' value of the money is while your salary stays the same. If the salary was 'Adjusted' to counterbalance monthly losses from the exchange rates than yes, you aren't losing money. Otherwise, yes you are losing money. This is assuming the currencies we're talking about are free floating, not pegged like the Chinese. |
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PatrickGHBusan
Joined: 24 Jun 2008
Location: Busan (1997-2008) Canada 2008 -
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| Posted: Wed Nov 03, 2010 5:53 am Post subject: |
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| Quote: |
| You don't lose $2-300 for each $1000. You appear to lose $2-300 from each million won because you think of 1,000 won as a dollar, but it isn't. You aren't losing anything, unless you count the bank transfer fee. |
This could not have been explained better. Well done.
You are NOT losing money, you are dealing with exchange rates.
The wire transfer does COST you money in the form of bank fees. |
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