I have 8k to work with to pay down debt. My thought is this to either:
Pay off: Door loan (Greensky): 0% for 18 months. Balance is 7k
Pay 7800 toward Home improvement loan which would bring balance down to 10k. (Orginial Balance 25k @5.99 for 84 months)
Thoughts?
@Harvey26 wrote:I have 8k to work with to pay down debt. My thought is this to either:
Pay off: Door loan (Greensky): 0% for 18 months. Balance is 7k
Pay 7800 toward Home improvement loan which would bring balance down to 10k. (Orginial Balance 25k @5.99 for 84 months)
Thoughts?
What other things are out there? Credit card balances, etc.
How much time is left on the 0% loan?
What happens on the 0% loan after 18 months?
What is a door loan?
@SouthJamaica wrote:
@Harvey26 wrote:I have 8k to work with to pay down debt. My thought is this to either:
Pay off: Door loan (Greensky): 0% for 18 months. Balance is 7k
Pay 7800 toward Home improvement loan which would bring balance down to 10k. (Orginial Balance 25k @5.99 for 84 months)
Thoughts?
What is a door loan?
@SouthJamaica a very very nice front door, multiple doors in the home, or maybe a garage door.
@Harvey26 I'm going to make a few assumptions:
1) that the 0%/18mo is new and the plan is to pay $389 monthly to pay it off in time.
2) that there have been no over-payments to the required improvement loan so there are about 56 payments left.
| nper | apr | balance | pmt | cumipmt | |
| door | 18 | 0 | 7000 | -389 | 0 |
| loan start | 84 | 6 | 25000 | -365 | -5668 |
| loan now | 56 | 6 | 17800 | -365 | -2649 |
payoff doors and/or apply extra $389 to improvement loan payments:
| nper | apr | balance | pmt | cumipmt | |
| door | 0 | 0 | 0 | 0 | 0 |
| loan now | 56 | 6 | 17800 | -365 | -2649 |
| loan w/ extra pmt | 25 | 6 | 17800 | -754 | -1186 |
pay down improvement loan to $10000:
| nper | apr | balance | pmt | cumipmt | |
| door | 18 | 0 | 7000 | -389 | 0 |
| loan now | 30 | 6 | 10000 | -365 | -779 |
| blended | 23 | 4 | 17000 | -754 | -614 |
I would probably dump the $8k into the home improvement loan to collect the savings on the cumulative interest.
@SouthJamaica Ok to answer some questions. No credit card debt. I do have car note which is $500 and mortgage is 1400. I have 12 months remaining on greensky. Apr if I dont pay it off is 24.99 and they will apply all deffered interest. I was able to get the credit union to re work my payments down to 283 from 400. I replaced my front storm door and front door and got the back doors replaced from doors to sliding door.
@Harvey26 wrote:@SouthJamaica Ok to answer some questions. No credit card debt. I do have car note which is $500 and mortgage is 1400. I have 12 months remaining on greensky. Apr if I dont pay it off is 24.99 and they will apply all deffered interest. I was able to get the credit union to re work my payments down to 283 from 400. I replaced my front storm door and front door and got the back doors replaced from doors to sliding door.
I don't know if this is the best advice, but if it were me I would get rid of that Greensky loan; I wouldn't want to have that one hanging over me.
@SouthJamaica Yeah I have thought about it and I rather get rid of that and then I will maybe to take the money i was paying this and put it towards the home improvement loan.
@Harvey26 wrote:@SouthJamaica Yeah I have thought about it and I rather get rid of that and then I will maybe to take the money i was paying this and put it towards the home improvement loan.
That's what I would do.
I'd like to offer another perspective. My response would be none of the above. You didn't mention anything about savings. Also, not sure what your credit scores look like. I would save the $7,000 as an emergency/backup fund and then continue as usual making your payments every month. Don't apply for credit or take any hard pulls or open any new cards over the next 10-11 months and then refinance the Greensky loan for something much better before the 0% interest period ends.
The reason why I say this is because if you took that 7K and immediately paid off a loan and then ran into some unexpected expense, you're going to be in trouble, and possibly end up right back where you started.
