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Holy crap. If I had that much in CC debt I would have a cardiac event. Good luck either way though.
@MyLoFICO wrote:Holy crap. If I had that much in CC debt I would have a cardiac event. Good luck either way though.
LOL! Wifey has more...
We just rebuilt a house on credit cards.
...because we're brilliant like that....
@tcbofade wrote:
@MyLoFICO wrote:Holy crap. If I had that much in CC debt I would have a cardiac event. Good luck either way though.
LOL! Wifey has more...
We just rebuilt a house on credit cards.
...because we're brilliant like that....
Oh I got no room to talk CH7 fell off in 2001. I know about debt for sure. I hope things work out for you both.
@tcbofade wrote:
@noobody wrote:
@tcbofade wrote:Thanks both.
No, the CC balances are not at zero percent. I'm doing the math right now, and if I took a $10k loan and paid off 13 CC accounts, it would save me nearly $100 per month.
It is also a four year fixed loan, instead of a never ending revolving line.
Hmmmm.
I do not think it saves you any money, just $100 less towards principle and interestI confess that I haven't done the math... yet.
It would save us 90 odd dollars a month in cash flow...over the life of a four year loan vs open ended credit cards? I'll bet it will save us quite a bit, but as I said, I haven't done the math yet.
Lower payments is not saving money. How quick would you free up funds with the snowball system and paying off the lowest balance first. Once you pay off a card, you no longer have to make payments so your open ended credit card analogy doesn't fit. If it means that you have access to the card and can charge it back up, the same thing applies to transferring the balance to an installment loan.
Please advise us of how long it would take you to free up $50 then $90 if you use the snowball method. Based on your statement, the interest rate with the installment loan is higher than your cards. Thus, it's unlikely that you'd pay of the bills faster and you appear to be on pace to payoff without the installment.
Nearly 20K. Way to go!
@bdhu2001 wrote:
@tcbofade wrote:
@noobody wrote:
@tcbofade wrote:Thanks both.
No, the CC balances are not at zero percent. I'm doing the math right now, and if I took a $10k loan and paid off 13 CC accounts, it would save me nearly $100 per month.
It is also a four year fixed loan, instead of a never ending revolving line.
Hmmmm.
I do not think it saves you any money, just $100 less towards principle and interestI confess that I haven't done the math... yet.
It would save us 90 odd dollars a month in cash flow...over the life of a four year loan vs open ended credit cards? I'll bet it will save us quite a bit, but as I said, I haven't done the math yet.
Lower payments is not saving money. How quick would you free up funds with the snowball system and paying off the lowest balance first. Once you pay off a card, you no longer have to make payments so your open ended credit card analogy doesn't fit. If it means that you have access to the card and can charge it back up, the same thing applies to transferring the balance to an installment loan.
Please advise us of how long it would take you to free up $50 then $90 if you use the snowball method. Based on your statement, the interest rate with the installment loan is higher than your cards. Thus, it's unlikely that you'd pay of the bills faster and you appear to be on pace to payoff without the installment.
Nearly 20K. Way to go!
That is an excellent point... thank you.
Gimme a while, I'll go find out.
It would take a year to see the first $25, and about four more months to see the next $25. (Presumably, about two more months to see the next $27)
Still fine tuning my model, but in terms of actual dollars, it's close to a wash...
@tcbofade wrote:It would take a year to see the first $25, and about four more months to see the next $25. (Presumably, about two more months to see the next $27)
Still fine tuning my model, but in terms of actual dollars, it's close to a wash...
Doubtful that it's just a wash. If your interest costs (APR) are a bit lower on the CC, then your principal is going down faster with the CC payments than it would be with the 28% loan. That $90 of "cash flow savings" is really just lowering the current principal payment, making the pain last longer.
Which credit cards do you have? If you just paid $20k of them off, you might have some options to do BT between certain cards to get your interest cost down, with some BT fees instead.
It is good to see you are running calculations on this. The more you understand, the easier it gets to stay focused on that pay down.
@NRB525 wrote:
@tcbofade wrote:It would take a year to see the first $25, and about four more months to see the next $25. (Presumably, about two more months to see the next $27)
Still fine tuning my model, but in terms of actual dollars, it's close to a wash...
Doubtful that it's just a wash. If your interest costs (APR) are a bit lower on the CC, then your principal is going down faster with the CC payments than it would be with the 28% loan. That $90 of "cash flow savings" is really just lowering the current principal payment, making the pain last longer.
Which credit cards do you have? If you just paid $20k of them off, you might have some options to do BT between certain cards to get your interest cost down, with some BT fees instead.
It is good to see you are running calculations on this. The more you understand, the easier it gets to stay focused on that pay down.
+1
If you have a smart phone, download two different debt payoff apps. Use one app to calculate with your current apps and the second app to calculate your new loan. My favorite is DebtFree by mobile innovations. I've used numerous secondary apps, but DebtFree is my favorite. After you enter the Debts, you can export the data and enter it into your excel spread sheet.
It sounds like your CCs are using a shorter timeframe than your loan. Your lower payment with the loan is a reflection of it taking longer to pay off, especially since the loan has a higher APR.