The 3G Ramblings & General Discussion Thread (Part 2)
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Undying Dreams (05-10-2013)
05-10-2013, 11:46 AM
#3923
Chapter Leader (Southern Region)
That's my thing. While I was out of work for my surgery, I ran up some of my credit cards to compensate for my short term disability payment. Now I'm back at work and have a good amount of money saved but still carry the high balances. To me it only makes sense to pay them off completely and start the saving process over again 
For example, say you owe $5k on CC with a 20% APR and you make $2500 / mo after taxes. You save $250 / mo and pay $83 / mo in interest on the CC. So you would need to save an additional $83 to cover interest and pad your savings.
Let's say you have $6k in savings and need $800 / mo to float rent / mortgage + utility bills. Give yourself a 6 month buffer that's roughly $4800 (negating gov't handout). Put the extra $1.2k into the card and you'll save almost $250 in interest for the year + whatever extra you put on the CC payment. If your savings has enough padding (per your own financial plan), you might even consider rolling that 10% into the debt instead of savings.
Most people have several debts.. School of thought is to put extra money into the highest interest debt. I think for most people though, it's easier to advise them to pay off the least owed debt, roll that payment into the next least owed debt once it's paid off. Also, leave the CC's at home.
05-10-2013, 11:50 AM
#3924
Senior Moderator
Personally, I think Manti Te'o's fake GF is pretty hawt. 
05-10-2013, 11:55 AM
#3925
Needs a 930
Guess how many CC's I have......... Zip zero stingy with dinero
I had one when I was 18. It all went to bongs and pizzas in like 3 weeks (thanks Amex)........ The parents paid that off and I learned that I didn't need one.
If you have a stable job then pay off your debt then hide the cc for emergencies
I had one when I was 18. It all went to bongs and pizzas in like 3 weeks (thanks Amex)........ The parents paid that off and I learned that I didn't need one.
If you have a stable job then pay off your debt then hide the cc for emergencies
05-10-2013, 12:03 PM
#3926
Chapter Leader (Southern Region)
05-10-2013, 12:05 PM
#3927
Senior Moderator
05-10-2013, 12:33 PM
#3928
Chapter Leader (Southern Region)
Guess how many CC's I have......... Zip zero stingy with dinero
I had one when I was 18. It all went to bongs and pizzas in like 3 weeks (thanks Amex)........ The parents paid that off and I learned that I didn't need one.
If you have a stable job then pay off your debt then hide the cc for emergencies
I had one when I was 18. It all went to bongs and pizzas in like 3 weeks (thanks Amex)........ The parents paid that off and I learned that I didn't need one.
If you have a stable job then pay off your debt then hide the cc for emergencies
Using credit is like drinking liquor.. Being modest can be beneficial.. but not knowing your limit can leave you butthurt and confused about how you got there.
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rockstar143 (05-10-2013)
05-10-2013, 12:41 PM
#3930
Drifting
I need to pay my Credit Card off 
05-10-2013, 01:07 PM
#3931
Low:
If you're earning 2% interest on the money sitting in savings.
and paying 22% interest on the credit card...then you are LITERALLY, losing 20% per month/year.
So, paying off will put all the interest back into your original savings amount. If you were earning 25% interest in savings and 22% on credit card, you'd still be netting a 3% gain and it would make sense to just pay the minimum and keep it in savings.
To me, if you owe money, you don't have any money until that's cleared.
...this applies to this situation, anyone that comes out of the woodwork about mortgages, save your breath.
If you're earning 2% interest on the money sitting in savings.
and paying 22% interest on the credit card...then you are LITERALLY, losing 20% per month/year.
So, paying off will put all the interest back into your original savings amount. If you were earning 25% interest in savings and 22% on credit card, you'd still be netting a 3% gain and it would make sense to just pay the minimum and keep it in savings.
To me, if you owe money, you don't have any money until that's cleared.
...this applies to this situation, anyone that comes out of the woodwork about mortgages, save your breath.
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05-10-2013, 01:10 PM
#3932
Drifting
tell me more about this 25% interest in savings! that's unheard of!
05-10-2013, 01:25 PM
#3933
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Zach, he was saying that hypothetically...if you want 25% returns invest in FB stocks 
totally agree with Jeremy...
since I didnt have any debts (cleared car and student loans) I started saving for the house....and now I keep X amount of money aside for rainy day but any other "extra" money goes to another additional mortgage payment....
I dont get it why people pay interest on credit cards and have X amount of money saved up....might as well clear a chunk of the credit card and cut down on the saved amount and play it conservative for a couple months (either till the card is paid off or till the savings are back to where you want it)....
totally agree with Jeremy...
since I didnt have any debts (cleared car and student loans) I started saving for the house....and now I keep X amount of money aside for rainy day but any other "extra" money goes to another additional mortgage payment....
I dont get it why people pay interest on credit cards and have X amount of money saved up....might as well clear a chunk of the credit card and cut down on the saved amount and play it conservative for a couple months (either till the card is paid off or till the savings are back to where you want it)....
Last edited by swoosh; 05-10-2013 at 01:27 PM.
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rockstar143 (05-10-2013)
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rockstar143 (05-10-2013)
05-10-2013, 01:31 PM
#3935
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^^^ and depending on the interest rate and money owed on those 2 loans, you know who to pay that extra $$$ 
05-10-2013, 01:36 PM
#3938
Drifting
05-10-2013, 01:38 PM
#3939
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well since the house loan amount result in high interest rates and overall a bigger payment, I would put my extra $$$ towards mortgage....
unless you have a 30% APR on the car loan....
unless you have a 30% APR on the car loan....
05-10-2013, 01:42 PM
#3940
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when I was dating my ex-girlfriend, she had a car loan off a brand new civic, student loan, minimum wage job and always talked about buying a new car....
I was like
but keep at it bro...just keep making the payments and before you know it, BOOM, you are debt free....I had a student loan and a car loan....I started paying both off and every now and then made an extra payment here and there....my old company gave out low paycheck but a bonus every 3 months....and I promised myself that the bonus is gonna go to the loans but the tax return is mine to spend how i like it....
so just some dedication and planning is all thats needed...
recently, the wifey and I were planning to trade in her lexus for a bigger car/SUV
but the thought of a car payment kinda turned us off....decided to keep things the way they are and buy a bigger car when its actually needed 
05-10-2013, 01:48 PM
#3942
Drifting
ya it sucks but i just keep chipping away at it each month. I took my credit card out of my wallet so im not tempted to use it.
05-10-2013, 01:54 PM
#3943
Chapter Leader (Southern Region)
Low:
If you're earning 2% interest on the money sitting in savings.
and paying 22% interest on the credit card...then you are LITERALLY, losing 20% per month/year.
So, paying off will put all the interest back into your original savings amount. If you were earning 25% interest in savings and 22% on credit card, you'd still be netting a 3% gain and it would make sense to just pay the minimum and keep it in savings.
To me, if you owe money, you don't have any money until that's cleared.
...this applies to this situation, anyone that comes out of the woodwork about mortgages, save your breath.
If you're earning 2% interest on the money sitting in savings.
and paying 22% interest on the credit card...then you are LITERALLY, losing 20% per month/year.
So, paying off will put all the interest back into your original savings amount. If you were earning 25% interest in savings and 22% on credit card, you'd still be netting a 3% gain and it would make sense to just pay the minimum and keep it in savings.
To me, if you owe money, you don't have any money until that's cleared.
...this applies to this situation, anyone that comes out of the woodwork about mortgages, save your breath.
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rockstar143 (05-10-2013)
05-10-2013, 01:57 PM
#3945
Chapter Leader (Southern Region)
20% per month per year????
05-10-2013, 01:59 PM
#3946
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yeah we have restricted to needs only in the past year or two...now am trying to be a little bit spendy
well I use my CC for everything....from my mortgage payment to my utilities to my phone bill...I get 1% back on everything
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TLDude876 (05-10-2013)
05-10-2013, 02:00 PM
#3947
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Justin....thats awesome (your credit score)...I bet you qualified for 0% or the lowest interest rates they had at that time...
05-10-2013, 02:01 PM
#3948
Drifting
05-10-2013, 02:15 PM
#3950
Chapter Leader (Southern Region)
The one card I use all the time is cash back as well.. I get 3% back on gas, 2% back on groceries + 1% on other items, but I use it only for gas + groceries.. pay that bitch off every month.
05-10-2013, 02:19 PM
#3951
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^^^ i get the same....BOA cash rewards FTW !!! 0% APR 
I use it for everything and pay that card off every month...
I use it for everything and pay that card off every month...
05-10-2013, 02:26 PM
#3952
Chapter Leader (Southern Region)
Did we just become best friends?
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05-10-2013, 02:29 PM
#3953
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^^^ only if you buy the first round
05-10-2013, 02:34 PM
#3954
Chapter Leader (Southern Region)
Nevermind
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TheLowLife (05-10-2013)
05-10-2013, 02:39 PM
#3955
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well I was gonna pay for the rest of the rounds....guess, nevermind
05-10-2013, 02:40 PM
#3956
Drifting
Ill buy the first round!
05-10-2013, 02:40 PM
#3957
Chapter Leader (Southern Region)
It wasn't paying for the round.. it was the invite. You obviously want butt secks.. no thank you.
05-10-2013, 02:47 PM
#3959
Chapter Leader (Southern Region)
05-10-2013, 02:53 PM
#3960
Chapter Leader (Southern Region)
Where were we...
