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    What Do You Suggest?

    so i'm not sure what the next step should be...

    these are my current bills:

    auto insurance: 129.92
    netflix: 7.99
    credit card: 36.46
    sallie mae: 0 (deferred until Nov 2013 then will probably be at 190.01)
    timeshare: 132.80
    student loans: 0 (deferred til July 2013 & Sept 2013) (although they'll be deferred til i finish school)
    car loan: 213.55 (i actually pay this every two weeks (113.55 & 100)
    miscellaneous charges: $13.96
    alimony: 600
    dental: 11
    life insurance: 27
    AFRH: 0.50
    spouse life insurance: 13

    that's until i get back from deployment. once i'm back home these bills will be added:

    rent: 600
    water: 10
    cell: 75
    fuel: 200 (guesstimate)
    food: 200 (guesstimate)

    when i get back my paycheck should be $2,612/mo

    which leaves $340.82

    my debt is:

    credit card: $1,662.36 @ 0% (which may go back to 19% at any moment)
    car Loan: $9357.19 @ 11.5%
    timeshare: $7,503 @ 12.087%
    sallie mae: $9,543.16 @ 6%
    student loans: $37,164.06

    i'm going to use my tax refund to pay off the credit card so i'm ok with paying just the minimums until i get my refund. i'm also going to get car loan re-financed for a lower interest rate but i'm using it to help re-build my credit so my plans are NOT to get rid of the car loan only to pay it off.

    what do you suggest i do next with the $340? your suggestions will be helpful.
    Last edited by Sian; 12-02-2012, 05:04 AM.

    #2
    You've got almost 60K in debt not counting the timeshare. Timeshares are virtually always a losing proposition (with the rare exception of Disney Vacation Club ownership which has actually appreciated in value). I'd say to dump the timeshare. You will never get your money out of it. If you can find someone to take it off your hands at any price, even $1, do it and get it off your balance sheet.

    Next, you need to change your mindset about the car loan. You should never take on debt or prolong repayment just to "fix" your credit. Your payment is reasonable - less than 10% of income - but your interest rate is outrageous. If you can refi to a better rate, definitely do that. If not, consider selling and buying something more affordable.

    What to do with the $340? You don't mention anything about savings or emergency funds. Do you have any? If not, for the next 3 months, put that $340 into a savings account. That will give you an emergency fund of $1,120. Then, start applying that $340/month toward your highest interest debt - either the timeshare until you are able to sell it or the car loan until you refi. Keep a close watch on your credit card, though. You say that the rate could jump from 0% to 19% "at any moment". What does that mean? Usually, 0% deals are for a set period of time so you should know exactly when the 0% promo expires. You want to be sure to repay the balance before that happens. Also, make sure you are no longer using the credit card. If you can't afford to pay for something in full at the time of purchase you shouldn't be buying it.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

    Comment


      #3
      if i could get rid of the timeshare i would. i don't want it and i didn't take it to get anything money-wise out of it. if someone would buy it off me i would sell it to them right now but at this time no one will.

      when i re-fi i will actually pay it down faster than what the bank hopes i will. i'll re-fi when i get back to the states. i plan on makin a large payment every once in a while in order to pay it down faster. but when i re-fi i plan on givin a down payment on that so that it'll go down faster anyways.

      i already have an emergency fund of approximately $9,500 but i'm goin to use about $4,000 to pay off a collection so that'll leave me with $5,500 (approximately 2 months).

      as for the credit card, i'm unable to get in touch with them (i'm in afghanistan) so i'm unable to verify the interest rate. it's suppose to be 19% but currently i've noticed that my full payments are applied to the principal so it looks like it's 0%. i've had the card for a few years so i'm past a promo period.

      i'm not using ANY of my credit cards. i only use my debit card. i haven't used my credit cards in over a year (military trainin plus deployment) and i don't plan on using them again. i'm goin to get a credit card with my credit union and have them set a low credit limit (500 - 1000) which is only to be used in emergencies and close the other accounts.

      thanks steve!
      Last edited by Sian; 12-02-2012, 06:35 AM.

      Comment


        #4
        Originally posted by Sian View Post
        as for the credit card, i'm unable to get in touch with them (i'm in afghanistan) so i'm unable to verify the interest rate.
        If you're able to get online for SavingAdvice, why are you not allowed to login to see your statement/interest rate online?
        it's suppose to be 19% but currently i've noticed that my full payments are applied to the principal so it looks like it's 0%. i've had the card for a few years so i'm past a promo period.
        They may add an interest charge to your transaction list. I would also think that the rate would be listed on any statements you've seen where you are able to see that your payment has been applied to the principal.

        ---

        I've heard that some branches of the military have Student Loan assistance programs (ex. Student Loan Repayment Program | Incentives | NATIONAL GUARD ) -- have you looked into what your branch provides?

        If there's anyone who deserves a forgiveness of student loans, it's you guys who are serving this country. I hope there's a program to help eliminate some of that.

        Comment


          #5
          just because i can get online doesn't mean that the credit card company has the information i want online. they only list the amount due, amount paid, due date, current and previous balance as well as past online payment amounts. they also do not list statements. those are mailed only.

          so therefore i don't have access to that information. and i'm not having any of that type of mail sent to me just so that i can see the information. it'll be there when i get back to the states.

          u can only do the clrp (loan repayment program) if u didn't opt to have the mgib bill. u only get one or the other. since i have the mgib i don't get the loan repayment.

          too bad for me.

          and the clrp would only pay the principle, it wouldn't pay the whole thing. in approximately 3.5years i can start payin off things pretty quickly. i will no longer be payin alimony, so that's an extra $7,200/yr.

          Comment


            #6
            Originally posted by Sian View Post
            [SIZE="2"][COLOR="Blue"][FONT="Comic Sans MS"]just because i can get online doesn't mean that the credit card company has the information i want online. they only list the amount due, amount paid, due date, current and previous balance as well as past online payment amounts. they also do not list statements. those are mailed only.

            so therefore i don't have access to that information. and i'm not having any of that type of mail sent to me just so that i can see the information. it'll be there when i get back to the states.
            That's weird. I've never heard of a credit card company not having statements available online. What is the name of the issuer?

            Are they charging you 0% because you are in the military and currently in a war zone? It seems to me I have heard that you are not supposed to be charged interest while serving in the military in a war zone. I've never been in the military, so don't know. Anyone?

            Don't carry debt in order to improve your credit score. Pay all of your bills on time, always. That's all you have to do to have excellent credit. Your score will improve over time as past mistakes grow older and eventually fall off your report.

            Thank you for your service, and you stay safe over there.

            Comment


              #7
              Originally posted by Petunia 100 View Post
              That's weird. I've never heard of a credit card company not having statements available online. What is the name of the issuer?

              Are they charging you 0% because you are in the military and currently in a war zone? It seems to me I have heard that you are not supposed to be charged interest while serving in the military in a war zone. I've never been in the military, so don't know. Anyone?

              Don't carry debt in order to improve your credit score. Pay all of your bills on time, always. That's all you have to do to have excellent credit. Your score will improve over time as past mistakes grow older and eventually fall off your report.

              Thank you for your service, and you stay safe over there.
              Credit cards can still charge you interest while in a war zone. Often it can be reduced down to 6%.

              Sian, I believe you said, in your blog, your parents were taking care of your finances while you are gone. Can they read the statements issued by your credit card company? Can they call and inquire on your behalf? It seems there has to be a way to get the information you need.

              With your $340, I would suggest the bulk to be put towards debt. You should start making a habit of saving. Save a portion in the TSP or in a Roth IRA. Another portion should be accumulated for an emergency fund. You goal should be to get to a minimum of $1000.
              My other blog is Your Organized Friend.

              Comment


                #8
                Originally posted by Petunia 100 View Post
                That's weird. I've never heard of a credit card company not having statements available online. What is the name of the issuer?

                Are they charging you 0% because you are in the military and currently in a war zone? It seems to me I have heard that you are not supposed to be charged interest while serving in the military in a war zone. I've never been in the military, so don't know. Anyone?

                Don't carry debt in order to improve your credit score. Pay all of your bills on time, always. That's all you have to do to have excellent credit. Your score will improve over time as past mistakes grow older and eventually fall off your report.

                Thank you for your service, and you stay safe over there.
                yeah, it is weird... that's one of the reasons that i'm gettin rid of them. and they're called Emblem.

                that would be 6% but only if they chose to honor that. not everyone does (my car loan won't).

                & thanks for your support

                Comment


                  #9
                  [/SIZE]
                  Originally posted by creditcardfree View Post
                  Credit cards can still charge you interest while in a war zone. Often it can be reduced down to 6%.

                  Sian, I believe you said, in your blog, your parents were taking care of your finances while you are gone. Can they read the statements issued by your credit card company? Can they call and inquire on your behalf? It seems there has to be a way to get the information you need.

                  With your $340, I would suggest the bulk to be put towards debt. You should start making a habit of saving. Save a portion in the TSP or in a Roth IRA. Another portion should be accumulated for an emergency fund. You goal should be to get to a minimum of $1000.
                  i only talk to my parents on certain days and that's when i don't have duty and it's already been a few weeks. (they're older and i try not to let them type/write a lot of stuff to me b/c of injuries and such) they currently moved all the furniture around in the house (got new floors put it after almost 40yrs of the same thing) and are lookin for my things.

                  i have a general poa but they haven't submitted it to the company in order to speak with them.

                  i've already started an emergency fund ($9,500).

                  Comment


                    #10
                    Great job on that emergency fund! I would tackle the highest debt first...which I think is that time share. While you work on paying that off, I'd also keep looking to sell it. It is very likely if you do sell it, you will not recoup all the money you paid for it.
                    My other blog is Your Organized Friend.

                    Comment


                      #11
                      Originally posted by creditcardfree View Post
                      Great job on that emergency fund! I would tackle the highest debt first...which I think is that time share. While you work on paying that off, I'd also keep looking to sell it. It is very likely if you do sell it, you will not recoup all the money you paid for it.
                      thanks! the benefits of being deployed LOL. no rent/utilities so it saves me a lot of money.

                      that's alright, i'm not lookin to recoup any money off of it. if someone would just take if off my hands i'd be ok with that!

                      hey! u lookin for a timeshare?! HAHAHAHAHA

                      Comment


                        #12
                        update

                        spoke with my parents and realized that they had been paying a bill for me out of their own pocket that i thought i had been paying instead . fixed that!

                        but that bill costs $110/mo. so my extra cash has gone down some...

                        I was hoping to throw that extra cash at the auto loan and re-fi for a lower interest rate. but the lower interest rate isn't a guarantee even with a better credit score. the best i can hope for if they keep the same interest rate is $11/mo less. the only way to really get a lower payment is by gettin a lower interest which is were i would save the most. maybe even save $40/mo if that happened... (my goal was: get lower interest rate = lower payment, but make the same payment amount (213.55) so more principal would be paid = car loan paid off faster).

                        but now i have to figure it out (being ocd-ish really does come in handy sometimes lol) because it's gone down to $3,000 extra paid on it before I refi to half that amount. UGH!

                        i'm doin the math

                        Comment


                          #13
                          Not sure that branch of rank you are but your deployment pay should take care of more your debt if you save most of it. If you send deployment orders to the credit card companies your interest stops until your order are up if I remember correctly. If you don't already, switch to usaa for your insurance..you're paying too much. I have a house and full coverage on a car with a bigger bill than that and I only pay $65 a month for both. Your student loans can defer up to 3 yrs for financial hardship.

                          Comment


                            #14
                            If your car is not being driven in your absence, I wonder if your parents can request the discount given to members of armed services deployed. Here it's 80%

                            Comment


                              #15
                              Originally posted by Army wife View Post
                              Not sure that branch of rank you are but your deployment pay should take care of more your debt if you save most of it. If you send deployment orders to the credit card companies your interest stops until your order are up if I remember correctly. If you don't already, switch to usaa for your insurance..you're paying too much. I have a house and full coverage on a car with a bigger bill than that and I only pay $65 a month for both. Your student loans can defer up to 3 yrs for financial hardship.
                              i'm a PFC. deployment pay won't clear ALL of my debt, but it will allow for me to pay off a lot of it. i'm putting most of it in my savings for my EF, that way i don't have to worry about it so much. just keep puttin some in monthly but at least i'll have a good start.

                              not all the companies will honor it because they'll say that it's for national guard and i'm active.

                              i quoted with usaa and it was $86/mo just for myself but there are two drivers and they wouldn't allow for me to add her to the quote. so at best i would think that they're about $20/mo less. my deductible is $250 but i'm goin to raise them. i should have done it before i left... but that's the past...

                              well the student loans (except for the private loan) automatically defer when i'm goin to college at least half time so i'm not worried about that since i'm in school right now.
                              Last edited by Sian; 12-10-2012, 12:10 AM.

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