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Unread 05-09-2013, 12:52 PM   #31
bobjp
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Quote:
Originally Posted by Achped View Post

I've considered this. I qualify for need-based subsidized federal loans which are interest free while in school and 3.4% once I graduate.

But everyone I've talked to basically views student loans more evil than credit cards. I don't really understand why other than the fact that even bankruptcy won't erase them. 0% for a
couple years sounds pretty good.
If they're not differentiating between federal subsidized loans and private loans (which can carry high interest) then they don't know what they're talking about. Picking up up debt at 9,16, and 21% to avoid federal loans at <4% after graduation is not the way to go.

Quote:
Edit: I'm seriously still considering selling the motorcycle. I could get $6,000 for it right this very second from a local dealer. It would make my family a lot happier and my risk for dismemberment would drop dramatically.

But then I think to myself a few months from now. I've got $10,000+ in the bank. No motorcycle. No debt whatsoever.

Regardless, I just paid off the 16% CC.

So now I have ~$7000 to play with, a $5850 motorcycle note and a $4000 interest free CC.

I'm thinking about dropping $1850 on the motorcycle principle (to reduce the amount of interest I pay monthly) paying off the credit card (just because I don't like having CC debt) and throwing $1000 in savings.

Thoughts?
Sounds pretty reasonable to me. But, personally, I would ditch the Mercedes. What's the point in an expensive car that you never drive?

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Unread 05-09-2013, 01:02 PM   #32
nwiTJdave
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If I were in your shoes, I would write out a budget. Then, I would just pay off the lowest amount debt you owe first, regardless of interest rate (it just so happens that it is the highest in your case). Next, whatever amount you were paying for on that card, roll it over to your next lowest debt. Without knowing the rest of your financial duties, try and maintain at least 3 months worth of living expenses (which sounds like you should easily). If you have left over cash at the end of the month, throw half in to savings and the other half at your smallest debt. Eventually, you will be paying a substantial amount each month at your largest debt, which will pay it down faster than you think.

It is also nice in your case that your one CC is interest free. Don't spend your money when you don't have to.

Edit: I did not read through all the responses before posting but just noticed you paid off the high interest rate card. If you are just looking to be debt free, ditch the bike and pay off your other card over the next 10 months. Its interest free so I would make minimum payments on it until the 9th month and then pay it off with the money you have saved over that time.
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Unread 05-09-2013, 10:23 PM   #33
74Maverick
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How in the heck did you get all that debt? You dont even have any modification listed on your tj. I mean ive jacked about ,000 into 3 cjs in the last few years and about 12,000 into my maverick. I got about 2,500 in my mutual fund to pay off the 1800 car loan on my cj5 if i need to, and maybe 150 in my bank, but 13,000 in debt is nuts.

kids these days...
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Unread 05-10-2013, 06:45 AM   #34
Achped
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Originally Posted by 74Maverick View Post
How in the heck did you get all that debt? You dont even have any modification listed on your tj. I mean ive jacked about ,000 into 3 cjs in the last few years and about 12,000 into my maverick. I got about 2,500 in my mutual fund to pay off the 1800 car loan on my cj5 if i need to, and maybe 150 in my bank, but 13,000 in debt is nuts.

kids these days...
To start:
I bought a $2800 rifle (LMT MWS). Put a $1500 scope on it and about $300 more in accesories. The rest is misc upgrades to my bike, maintenance on my wave runner, and a trip to panama city beach for spring break.

But I'm not at $13,000 anymore. Just paid off the bike.

The only debt I have is $4,000 to my 0% credit card. I'm going to make minimum payments until the end of the year and pay it off in full when I've got the money saved and before it goes to 21% interest.

It was the only option that really made sense to me. I'm done paying people for letting me use their money....cash only from now on. And I can always sell my bike if I hit a rough spot.
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Unread 05-10-2013, 07:22 AM   #35
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That felt good.
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Unread 05-10-2013, 10:43 AM   #36
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Or marry a sugar Mama like I did. Debt Gone!
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Unread 05-10-2013, 02:04 PM   #37
74Maverick
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I guess. I am just not that big on owning things i didnt pay for, I know our economy is based on that but it doesnt make it right. I feel if you really want something, you'll sweat for it.

No offense its just our society really confuses me sometimes.
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Unread 05-10-2013, 02:34 PM   #38
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Gonna take you years to get a house.
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Unread 05-10-2013, 02:36 PM   #39
74Maverick
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Id rather buy land and build as I can. Preferably using the land to some degree. But yes it will take years, thats why they gave us a lifetime.
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Unread 05-10-2013, 02:43 PM   #40
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Id rather buy land and build as I can. Preferably using the land to some degree. But yes it will take years, thats why they gave us a lifetime.
So, where do you plan on living until you can afford the land?
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Unread 05-10-2013, 02:49 PM   #41
74Maverick
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I rent a house and let out some of the rooms, although I am thinking about moving back to hawaii for a while. Out there I can work-trade for housing and save alot more money. I can save about 15-25k a year out there if i eat mostly from the land.
But land is really too expensive out there. Although I have seen a few acres for 90,000 but its still high.
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Unread 05-10-2013, 02:50 PM   #42
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But everyone I've talked to basically views student loans more evil than credit cards. I don't really understand why other than the fact that even bankruptcy won't erase them. 0% for a
couple years sounds pretty good.
Who cares what others think?

I guess the interest rate on student loans are so low that people rarely get incentive to pay it off.

But all things equal, I would definitely take the student loan.

By the way, the interest payment on the student loan is also tax deductible. So the 3.4% rate is really a 2.X%.
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Unread 05-10-2013, 03:07 PM   #43
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Originally Posted by 74Maverick View Post
I rent a house and let out some of the rooms, although I am thinking about moving back to hawaii for a while. Out there I can work-trade for housing and save alot more money. I can save about 15-25k a year out there if i eat mostly from the land.
But land is really too expensive out there. Although I have seen a few acres for 90,000 but its still high.
You can do the same thing with a home loan & rent out the rooms. After a couple of years, just rent the house out & move on to another house, live there for a couple years then rent it out. You can build up a a lot of paid for properties this way & it's using someone elses dollar.

Not all debt is terrible. Sometimes you have to take that kind of risk to see a large return. You just have to research your area & be wise about what you're buying.

Sorry to derail this.
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Unread 06-05-2013, 05:02 AM   #44
Achped
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Just wanted to update this thread.

I sold my motorcycle, got way more than what I expected. Used that money to pay off both credit cards and pad my savings account a little.

I think I'm also going to sell my Mercedes and my Jeep and pay cash for a 2 year old Hyundai and rock the 35mpg, 5 year bumper to bumper warranty and just stack currency in the bank and pay cash for some cheap Fannie Mae starter home in the hood.
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Unread 06-05-2013, 09:29 AM   #45
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Sounds like a great plan!!

You will not believe how much money you can bank when you have no debt. I have lots of toys that are paid for and my house will be paid off next year, all because I live within my means. Once this house is paid off my next house will be paid for in cash as well. I will never take out another loan again.

I used to repo cars for a living and it's amazing the amount of debt some people have just on their vehicles.
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