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Financial Deciscions • credit, investing, etc

Discussion in 'News' started by BOATS N HOES, Jul 12, 2011.

  1. CILONE/SK

    CILONE/SK 12oz Loyalist

    Joined: Jun 25, 2003 Messages: 10,263 Likes Received: 277
    I stay in hotels for work at least one week or more a month. Reputable places want a card incase of damages. I am staying in chicago all next week and will ask when I check in.
     
  2. KILZ FILLZ

    KILZ FILLZ Moderator Crew

    Joined: Dec 30, 2008 Messages: 14,018 Likes Received: 958
    Yeah I have 2 with under 2k on each. Not a large debt. I'm in the process of paying them off. I was doing good and paying off the balance each month then I got in a situation where I had to use them for things I'd rather not have (gas, food, etc) it was a short amount of time but shit added up and now the interest is showing it's ugly face.

    Been paying about $200 to each/mo. Doesn't seem to be very effective in getting these things down as quickly as I'd like. Maybe I'm impatient lol. Should I start paying 300 to one and 100 to the other? ... Kinda working at getting one down first instead of both at the same.
     
    Last edited: Jul 14, 2011
  3. KM4RT

    KM4RT Veteran Member

    Joined: Jul 20, 2007 Messages: 6,888 Likes Received: 487
    It's hard to pay down because compound interest is a bitch.
    I assume you probably have high rate (15-20%??) on both.

    Ideally you want to....
    - find another card that allows balance transfers - i.e. so you can transfer your debt over to the new card, and cancel the old cards
    - preferably the new card has a very low rate on balance transfer - look around and you'll find deals. some banks here were offering like 0% for 6months
    - then you pay that entire debt off whilst the low rate is in effect
    - never have to do this again

    You just need to be careful with fees, other charges, rates that explode ridiculously high if you stuff up, etc.

    Good luck.
     
  4. !@#$%

    [email protected]#$% Moderator Crew

    Joined: Oct 1, 2002 Messages: 18,517 Likes Received: 621
    i guess for me, i don't want a hassle.
    hotels i stay in will usually hassle me if i don't present a credit card.

    i also like the protection a cc will get you. i have after all had to dispute charges before and my cc co has sided with me.. so if i buy something really pricey i might put it on the amex for extra warranty

    i also shop at costco, they only accept one cc but the rewards are good.
    between them and discover i get about 2% back on most things i buy.

    ..........

    decyfer, i once learned that 'no credit card transaction is ever truly final'
    sorta fucked, but in most instance places are reasonable and would never go back and alter a transaction. plus, if that happened, you would dispute the charge and likely be credited.
    but this can and has happened

    it's one of the dangers inherent in credit cards and one reason the account is never truly closed


    (just like a danger inherent in money, if you must carry a lot to purchase things, it may get lost or stolen and be impossible to recover, unlike a credit line...)

    ...............
    BOATS
    paying down debt.

    you gotta listen to someone like suzy orman
    you are not paying enough on those debts. you simply must step it up

    that may mean sacrifice: can you get a cheaper place? can you get a cheaper car? cheaper insurance?
    can you use less energy? can you get rid of cable? can you get a cheaper phone or get rid of it? get rid of internet? stop buying: clothes, restaurant food, coffee, cigarettes, alcohol, entertainment

    get another job. you have to increase the income if you can't slash expenses

    seriously, the debt will kill you at the rate you are paying it, and one year of hard sacrifice (second job, no car, no internet at home, no cable, extra roommate) to pay it off is totally worth it

    then start saving for a safety net
     
  5. KILZ FILLZ

    KILZ FILLZ Moderator Crew

    Joined: Dec 30, 2008 Messages: 14,018 Likes Received: 958
    Alot of that is either in effect or not in option.
    Just moved into a new place signed a year lease so I can't move, 1bdrm apt so no room mate, own my car, a 91 sedan and my insurance is dirt cheap, already have no cable/Internet, don't smoke or go out or buy clothes except a hat every couple months, already working 50+ hrs/wk and second job isn't an option because I go to school at night.

    I buy a case of beer/ paycheck not gonna give that up
    iPhone bill is up there but wont give it up because it's my Internet

    I have savings I COULD throw down on this, but I'm sitting on it incase my car craps out on me.

    Fiscal is coming up at work so I'll be doing 70+ hr work wks pretty soon here. I'm going to knock a large chunk of this out with that.
     
    Last edited: Jul 14, 2011
  6. KILZ FILLZ

    KILZ FILLZ Moderator Crew

    Joined: Dec 30, 2008 Messages: 14,018 Likes Received: 958
    I've had a couple offers for this come in the mail but figured there was a catch so paid them no mind. I'll check out the next one that comes around.
     
  7. Decyferon

    Decyferon Moderator Crew

    Joined: Jan 12, 2008 Messages: 10,473 Likes Received: 602
    well if you look at it logically, at the moment savings rates are awful, I dunno how bad they are in the US but most standard savings accounts are only paying around 2% interest. I wouldnt advise using all your savings but if you are paying a rate of say 17% on your credit card but only getting 2% interest on your savings, I would use a chunk of the savings to clear some sums off the credit card but leave yourself enough savings if something does happen.

    Not only are you clearing the credit card but if something did go wrong on your car you are then in a position to barter down your interest rates on your credit card as you would have almost paid it off and can threaten to leave the company for (their main) competitor.

    Your would be surprised the deals you can get if you deal with a financial institutions retention teams.
     
  8. !@#$%

    [email protected]#$% Moderator Crew

    Joined: Oct 1, 2002 Messages: 18,517 Likes Received: 621
    BOATS you can consolidate the debts and get a loan
    then pay it all off with the loan, then pay the loan with a low interest rate

    as kmart is mentioning it's also possible to do that with a credit card, but i'd only do that if you have a GUARANTEE that the rate will not increase within a certain time (then pay that bitch off before the interest rate explodes, which is likely)

    savings rates are shit, but if he is worried about the car it might make sense to protect oneself against a complete vehicle failure. public transit may not be an option, and i know most people cannot or will not ride a bike to work

    BOATS if you are willing to ditch the car, that might be ideal... you;d pay the debts off and ride a bike sans insurance and gas.. but i know this is likely impossible.

    my bff did a consolidation loan for 7k of debt, but she's been awful about paying it off, so now, 5 years later, she is almost done, and has builkt another 1500 in cc debt back up. don't make that same mistake. only consolidate if you are really going to work to pay it off fast
     
  9. Decyferon

    Decyferon Moderator Crew

    Joined: Jan 12, 2008 Messages: 10,473 Likes Received: 602
    I know in the bank I last worked at that if you said a loan was for consolidation of debt they would hike the interest rate on it. The best rate I think you can get over here on a loan is about 7% but that is for people with real good credit ratings.

    I think I need to look into how American finance companies work, I can only really talk from a UK perspective.
     
  10. !@#$%

    [email protected]#$% Moderator Crew

    Joined: Oct 1, 2002 Messages: 18,517 Likes Received: 621
    yeah, we have organizations like Consumer Credit Counseling that can help you find a consolidation loan for low interest, like my bff did (she had to have a cosigner)

    american finances are off the rails dude, unregulated and extremely cutthroat
     
  11. _blank_

    _blank_ Veteran Member

    Joined: Feb 1, 2007 Messages: 5,668 Likes Received: 107
    im glad i havent gotten myself involved with credit cards.


    this seems a lil stressfull
     
  12. KILZ FILLZ

    KILZ FILLZ Moderator Crew

    Joined: Dec 30, 2008 Messages: 14,018 Likes Received: 958
    If I dont get rid of this stuff by the end of the year i may go that route.

    I feel like I've misrepresented myself here though. The bills arent killin me, I still live comfortably. All that stuff I said I'm living without is by choice not because I have to.
     
  13. !@#$%

    [email protected]#$% Moderator Crew

    Joined: Oct 1, 2002 Messages: 18,517 Likes Received: 621
    word, i live a frugal life too

    people say wtf when i travel all over the world, like i'm winin and dinin, livin high on the hog and shit.
    WRONG

    it's good. not only can one enjoy what i think are the better things in life, but i'm also not part of some shitty consumer culture. i hate that about the US
     
  14. CILONE/SK

    CILONE/SK 12oz Loyalist

    Joined: Jun 25, 2003 Messages: 10,263 Likes Received: 277
    I hated going to malls after I moved back to the US from Italy, because of that consumer culture.
     
  15. KILZ FILLZ

    KILZ FILLZ Moderator Crew

    Joined: Dec 30, 2008 Messages: 14,018 Likes Received: 958
    What should I do?
     
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