How much debt are you in? What are you doing to get out of it?

Originally Posted by Dirtylicious

no...quite the opposite.
you don't want to do that...


lets take an example.

say you owe 40K...
your min payment for the month is say $200, but you can afford to pay $1,000 - an $800 difference
yearly... you're going to pay $12,000...no matter what.

I'm not sure how your particular %tages are calculated...but I'll use someone I know personally how they said their loans payments are factored: 5% of every payment is applied to the interest and 95% to the principle
so in essence.. you're paying $950 towards the principle every month.
that's $11,400 yearly


now.. do it the way I suggested.
make the min payment $200 per month
95% of that is $190...so that's $2,280 yearly
ADD to that $800 leftover that directly applied to the principle monthy ($800 x 12 = 9,600) and that's $11,880 yearly

compare the two...and you have a difference of $480... that's almost half a month's payment you saved just by maximizing your payment schedule.

..The math is probably slightly more complicated...as I didn't factor in daily interest rate...but the concept is sound. Pay down the principle faster...which is what the interest rate is based on... and you'll end up paying less over the course of the loan.
Click to expand...


Gotchya...Will do. Thanks.
 
Originally Posted by Dirtylicious

no...quite the opposite.
you don't want to do that...


lets take an example.

say you owe 40K...
your min payment for the month is say $200, but you can afford to pay $1,000 - an $800 difference
yearly... you're going to pay $12,000...no matter what.

I'm not sure how your particular %tages are calculated...but I'll use someone I know personally how they said their loans payments are factored: 5% of every payment is applied to the interest and 95% to the principle
so in essence.. you're paying $950 towards the principle every month.
that's $11,400 yearly


now.. do it the way I suggested.
make the min payment $200 per month
95% of that is $190...so that's $2,280 yearly
ADD to that $800 leftover that directly applied to the principle monthy ($800 x 12 = 9,600) and that's $11,880 yearly

compare the two...and you have a difference of $480... that's almost half a month's payment you saved just by maximizing your payment schedule.

..The math is probably slightly more complicated...as I didn't factor in daily interest rate...but the concept is sound. Pay down the principle faster...which is what the interest rate is based on... and you'll end up paying less over the course of the loan.
Click to expand...
I don't get it. (Or I don't think I do. Halp.)

So pay $200. Then pay another $800 right away?
 
You don't wanna know and it's only gonna get worse once i take these loans out for school
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I don't get it. (Or I don't think I do. Halp.)

So pay $200. Then pay another $800 right away?
But make sure that $800 is paid directly to the principle so your balance gets lowered which saves you some money because the interest they chargeyou is based on your total balance. The lower your total balance, the lower the amount of interest they make off of you. A lot of homeowners do this.
Click to expand...
 
First New Years Resolution that I finally kept and succeeded at!

As of 4/30/09 I am 100% debt free and damn does it feel good. Was finally able to payoff the last $4K of my student loans, just sent a lump sum check and paidoff the $6500 in CC debt that I had. Love it.
 
about 680 on my cc, but its sall 0% for another year and its taking up less than 20% of my overall credit, so I'm paying it down little by little, butI'm getting a car loan to buy a car this year, so I expect that to increase.
 
I have kind of an odd question too... When you have a $0 balance on a CC, when does a purchase start to accumulate interest? Is it at the end of the statementthat it's on if it's not paid in full? I usually pay my CC off every month and I never really pay interest... Just wondering...
 
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let me see i owe western fargo 1440 in credit debt i couldbring it down to about 1000 and i think i owe another credit company 1500 for a student loan that i took about 3 years ago i never whent for more than a monthso that $+@$#
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me off
 
I owe about $2400 total to 2 credit cards an old sprint bill and something else i cant remember.

One of the credit cards i owe $1009 to wants to settle for about $600............im gonna wait another 2-3 months to see if they go down to 4-500 (started offat $800 3 months ago).

Hopefully if they take it down to 4-500, then i can tell them all i have is $350 and they will take it, no questions asked.

THe other company hasnt sent a settlement request yet, i owe them like $1700-$1800..............If me and my fiance can get a house before December 1st, themim gonna use that $8000 tax credit to pay off all those bills and a hospital bill that my girl has.

Im getting a secured credit card in the next month to start raising my Credit score.


Can someone answer this for me.............Is it better if i pay for something, then pay if off immediately?? or is it better to buy stuff through the month,keep the money in my checking account, then pay it off when the minimum payment is due???
 
Originally Posted by nnarum

I have kind of an odd question too... When you have a $0 balance on a CC, when does a purchase start to accumulate interest? Is it at the end of the statement that it's on if it's not paid in full? I usually pay my CC off every month and I never really pay interest... Just wondering...
Click to expand...
wondering about this too. i pay off my credit card full every month.

if i decide to just pay the minimum ($10) do they just multiply what's left of the balance with the interest rate and add that to the remaining balance? isthat how it works? i feel like just paying the minimum sometimes so that i have money during months when money is low
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Got mine down to abt $8200 at 4.2% interest all in student loans. Car is all paid off. I'm doing my best to pay it off by the end of the year. As of rightnow, I could not pay anything for 4 years and still be good.
 
2000 for car
1900 student loan
1500 in medical
all will be payed in the next year.......or so......lol
 
Originally Posted by dyzzle

Originally Posted by nnarum

I have kind of an odd question too... When you have a $0 balance on a CC, when does a purchase start to accumulate interest? Is it at the end of the statement that it's on if it's not paid in full? I usually pay my CC off every month and I never really pay interest... Just wondering...
Click to expand...
wondering about this too. i pay off my credit card full every month.

if i decide to just pay the minimum ($10) do they just multiply what's left of the balance with the interest rate and add that to the remaining balance? is that how it works? i feel like just paying the minimum sometimes so that i have money during months when money is low
nerd.gif
Click to expand...
Yeah, it's whatever your interest rate is divided by 12, times your remaining balance to get your interest for the month. So say you have $100left over, and your rate was 13%, you'd have $1.08 in interest charged. (.13/12)*100) = 1.0833333
 
about 20000 I plan on consolodating some, and paying some off. I have to manage my money better in order to achieve a debt free lifestyle. Money management iskey, but im ignorant to the fact. I blame it on being young.
 
none
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then again, i just got a cc a month or so ago. i only used it twice, for my last.fm subscription and for an ndc order which was refunded anyways
 
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