Credit Debt

[34saving]

Re: Credit Debt

You can feel screwed if that motivates you, but you have a job and good credit and in America that means you have lots of options, you just have to figure out what they are.

Are you part of a union (or do you work for a private school?) If you are, there are tons of loan programs out there for teachers. Check with your union rep. he/she will be able to point you to the right places for low interest loans.

What about this 14.9% loan? Are there any prepayment penalities? Let us know and we'll go from there.

[cicy33]

Re: Credit Debt

I am not quite sure of your methodology here. I get approx $390 a month on a $22000 loan over 8 years (96 months). I think you are figuring it as 14.9% life of the loan interest rather than annually, which is typically how interest rates are quoted. Annual Interest rate on an 8 year $22000 a month loan would have to be below 3% to warrant a payment of $250 a month.

I so do not understand interest rates. But I did take the 390 x the 96 months and got the super large amount. and I guess I feel that paying $15,000 in interest alone on a $22,000 loan is pretty high for only 14.9% interest. it is more than half the original loan. Could you explain the interest rate thing to me. I would love to understand it. I have always wanted to. I just find it so confusing!

[Snoopy2645]

Re: Credit Debt

Cut everything to the bare minimum & pay off as much as you can as fast as you can. If you are single & this is what you make a year with no kids you can do it. My dh & I together make about what you make & we have 3 kids.

Ok first I would cut the cell phone I dont believe these are necessities for a second!! Then I would cut anything else I could. Maybe get a second job on weekends or at night. I know here their are afterschool tutoring programs teachers get paid for. And maybe sale the car & get a cheaper one at least for now.

[cicy33]

Re: Credit Debt

I feel like I am so screwed

Please don't feel that way. I unfortunately am beyond your point so I am starting from bottom up. but, I feel so much better when I am reading these boards. I just wish I would have come here when you did. I understand things so much better now. at least you are willing to try. The cell phone bill seems high but i know that area to area is different. We pay about 60 here for unlimited plus long distance.

[34saving]

Re: Credit Debt

I so do not understand interest rates. But I did take the 390 x the 96 months and got the super large amount. and I guess I feel that paying $15,000 in interest alone on a $22,000 loan is pretty high for only 14.9% interest. it is more than half the original loan. Could you explain the interest rate thing to me. I would love to understand it. I have always wanted to. I just find it so confusing!

Actually, that's about right for 14.9% . . .unfortunately . . . The whole compounding interest while you're making payments is kind of mathematically complicated. You're best bet would be to go to an online amortization table and plug in the numbers. However, here's a long way to get pretty close that has pretty easy math.

Month 1 = $22,000*(.149/12) = $273 in interest. You pay $390, so $390-$273 = $117 applies to principle.

Month 2 = ($22,000-$117)*(.149/12) = $272 in interest. $390-$272 = $118 applies to principle

Month 3 = (22,000-117-118)*(.149/12) = $270 in interest. $390 - $270 = $120 applies to priciple.

Rinse, lather, repeat as I said it's a long method, and an amoritization table is definitely easier, but hopefully this give an idea of the underlying math. If not, I'm sorry

[_yb]

Re: Credit Debt

EZPass/Gas-400 (I drive 95 miles per day)

Is there anyway you can locate closer to your work at your current rent? If you can get within a couple of miles of work that may make a good monthly debt payment. Plus it would save you alot of stressfull time on the road.

[cicy33]

Re: Credit Debt

That seems worse than a mortgage! wow. I think that i would attempt to get a 0% credit card and try to transfer the balance. If you have good credit that is. even transferring part of it and refinancing the rest would help.

[Bluezy]

Re: Credit Debt

My current bills are...
Car payment- 370 (at 9.9% because of the year of vehicle and amount owed)
Loan for consolidation-390 at 14.9%
Cellular- 85
Rent/Utilities-700
Car insurance-90
EZPass/Gas-400 (I drive 95 miles per day)
Misc- groceries,etc

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Bless your heart! You are paying an awful amount of interest here....

First, I agree with the idea of moving closer to work. That is an immense expense in petrol. If you have security in your teaching position (such as tenure) I would be confortable in moving closer to work.

The months that you do not teach, should find you in another job that is, again, close to where you are located.

I also agree that you seek out a 0% balance transfer for the debt consolidation. 14.9% is robbery!!!! You won't get the debt resolved quickly when you pay interest like that.

If you are fortunate to not be under the tyranny of a cellular contract, you should use a pay-as-you-go service such as Virgin Mobile in the States. Limit your calls to necessities and you will find that your cell bill will go from $85 a month to $30 every three months. It's a big savings.

For groceries use coupons. Buy in bulk when you can and cook at home. Shop warehouses and take the time to plan meals. Don't eat out unless you absolutely have to.

It will take some creative ideas, but I feel you should be in good stead soon. Be rid of that 14% and huge petrol bill and you will have a good start.

Cheers hun!

[Tree0164]

Re: Credit Debt

Stay away from the debt consolidatin companies.

I would focus on earning more income. Get a nighttime job, weekend job-even if you see your girlfriend less. Money problems cause major relationship programs so the less debt that you would bring to the marriage the better.

Also if sounds like you bought too much car for you. Even though you bought you, try to sell it and maybe buy sometimes a lot less expensive. $370 for a car payment is way too much.

[channah]

Re: Credit Debt

Any ideas of how to find cards with 0% transfers? I did that before, so I know I can qualify for them

[cicy33]

Re: Credit Debt

Any ideas of how to find cards with 0% transfers? I did that before, so I know I can qualify for them

I think that they just usually come in the mail. not really sure.

[BAGAGT1]

Re: Credit Debt

If you don't mind me asking, how is your credit? You mentioned at the top of your thread that you've never been late on an account, but the interest rates that you are getting lead me to believe that your credit is not great. I have never paid 9.9% on a car loan in my life, because my credit was always good.

I agree with Tree, you bought way too much car, if your credit is good, try to refinance the vehicle, or sell it, and buy a car in cash (if you have it). If you sold this car on your own (don't trade it in) how much could you get for it? Would you be upside down on the loan? The car is really hurting you.

Also get rid of the cell phone, and get a pay as you go phone.

I would not transfer the balance to a 0% credit card. Depending on the terms of the Card the introductory rate may not last long, and CC companies are sharks when it comes to being paid on time. I would look for another fixed rate loan at a lower interest rate, but don't get hung upon the interest rate. If you focus hard enough, you should be able to pay this off in less than two years. Get yourself a part time job, and all of that income should go to paying off this loan. If you can ditch the car without incurring too much expense do so.

Do you work for a public school system? Most Teachers unions have a credit union, I always start all of my loans at my Credit Union first, there rates are usually far better than other lenders.

[channah]

Re: Credit Debt

The reason the car loan was 9.9 is that I had carry over from my other vehicle, and I was trying to finance more than it was worth. I had a delinquent account four years ago(don't get me started on that one!) which has hurt me, but the last I knew my score was like 660 or so.

[channah]

Re: Credit Debt

Okay, so I just did a blue book value on my jeep. It came up under 11K. The payoff is like 16. The value dropped terribly in the last few months. I would be willing to get a better mileage, cheaper vehicle, but I am going to be eating 6K on the difference! How am I going to do that? this sucks!!!!

[byusteeler]

Re: Credit Debt

Ouch!