Mothering Forum banner

1 - 6 of 6 Posts

·
Registered
Joined
·
1,011 Posts
Discussion Starter · #1 ·
Debt<br>
(50)ACS (student loan) 2,000<br>
(20)Discover 475 (at 3.9% until august then 15.99=%)<br>
(50)Alienware 1500 (at 30%)<br>
(0)Lowes 770 (at no interest no payments until March 09)<br>
Total $4745<br><br>
My goal is to have this paid off in a year. When we get our tax return we'll use it to pay off what is left, but we'd like to have as much gone as possible before then. <b>Where should I start?</b><br><br>
I have anywhere from 150-450 a month (depending on how the paychecks work out).<br><br>
We have a few reimbursments from BCBS that should total $300 I was going to start a savings with it, but if I should put it towards this stuff instead I will. <b>What should I do with the $300?</b>
 

·
Banned
Joined
·
5,766 Posts
Dave Ramsey would say to save $1000 in an emergency fund and then pay off from smallest to largest.<br><br>
Personally, I would save an emergency fund then pay off in the following order:<br><br>
Discover<br>
Alienware<br>
Lowe's<br>
Student Loan<br><br>
Have you been paying on time at Alienware for 6 months? If so, call them and see if they will lower your interest rate. If they won't I would consider a balance transfer. Depending on the balance transfer fees, you can save money in a short amount of time. 30% is high and is generally the penalty rate for paying late. (DH had that at a cc company, after 6 months of me paying on time he got that lowered.)
 

·
Registered
Joined
·
1,011 Posts
Discussion Starter · #3 ·
<div style="margin:20px;margin-top:5px;">
<div class="smallfont" style="margin-bottom:2px;">Quote:</div>
<table border="0" cellpadding="6" cellspacing="0" width="99%"><tr><td class="alt2" style="border:1px inset;">
<div>Originally Posted by <strong>lalaland42</strong> <a href="/community/forum/post/11632315"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">Dave Ramsey would say to save $1000 in an emergency fund and then pay off from smallest to largest.<br><br>
Personally, I would save an emergency fund then pay off in the following order:<br><br>
Discover<br>
Alienware<br>
Lowe's<br>
Student Loan<br><br>
Have you been paying on time at Alienware for 6 months? If so, call them and see if they will lower your interest rate. If they won't I would consider a balance transfer. Depending on the balance transfer fees, you can save money in a short amount of time. 30% is high and is generally the penalty rate for paying late. (DH had that at a cc company, after 6 months of me paying on time he got that lowered.)</div>
</td>
</tr></table></div>
I haven't had the account for more than 6 months with alienware. I would consider a balance transfer to the discover card, but I only have a 500 limit which I requested to keep that low because I will go crazy with it if I don't.
 

·
Registered
Joined
·
2,485 Posts
Debt<br>
(50)ACS (student loan) 2,000 *Pay the min. each month*<br><br>
(20)Discover 475 (at 3.9% until august then 15.99=%) *call and see if you can get a lower rate worked out, 3.9 sounds like a great rate, the 15.99 sounds a little high, but even at that rate, you are looking at aprox $75.95 per year, or 6.33 per month going toward interest, nothing compared to what you are paying below. It would be tempting to wipe this one out, but financially better if you work on the one below. Of your $20 payment, you have $13,67 toward the principal*<br><br>
(50)Alienware 1500 (at 30%) *Attack this one w/ a vengance! 30% is rediculous! Call and see if they will lower it. I would put the $300 here b/c this is where it will pay off the most. By paying only $50 a month, aprox $37.50 of that in INTEREST!!! THat means only $12.50 goes toward the balance. You are never going to make headway unless you lower that balance! Check out the no-spend challenges, sell some stuff on e-bay, find a few extra jobs here and there and put all the money you can toward this one.<br><br>
(0)Lowes 770 (at no interest no payments until March 09) *Pay off before March 09 or there is a good chance you could get retro-active interest on these type deals!<br><br>
Total $4745<br><br><br>
Some people think it would be better to attack the smallest debt first, but I think w/ a 30% interest rate you really need to attack that one first. I think you can totally pay all of htis off by the first of the year if you really buckle down and work on it. It sounds like aprox $300 (on average) per month can go toward these debts, try to find some 'extra' money by canceling luxury services (cable) just temporarily until you get it all paid [email protected] Gooc LucK!
 

·
Banned
Joined
·
5,766 Posts
I just want to post this debt snowball calculator.<br><br><a href="http://www.whatsthecost.com/snowball.aspx?country=us" target="_blank">http://www.whatsthecost.com/snowball.aspx?country=us</a><br><br>
It never hurts to ask for Alienware to lower the APR. Like I said, DH had success with getting his cc to lower the APR but it had been 6 months of on-time (and larger than min payment) paying. If this doesn't work, I do suggest balance transferring the Alienware. Or you could just tell them you are going to balance transfer. <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/winky.gif" style="border:0px solid;" title="Wink">
 

·
Registered
Joined
·
1,011 Posts
Discussion Starter · #6 ·
Thanks for the calculator. It's kind of cool to see it laid out infront of you.<br><br>
After a few months of paying on time/extra for the AW card I will call and see if I can get a lower rate. We haven't been late on hardly a thing in about 6 months+.<br><br>
I'm torn between the discover and alienware, because the discover can get paid off in 1-2 months and then I don't have 3 min payments. But I hate high interest. However it'd only be 2 months.<br><br><br>
I'm not sure where I can cut corners. We only have one car, it's paid for. We only use a tank a week, if that. We do splurge on the internet, but dh is home with dd and insist upon it. It's non-negotiable. I'm trying to cut back on food costs, but everything just seems to be getting more and more expensive. We already don't buy meat, hardly ever. I don't have much to sell. And we're trying to prepare for a baby in december plus some major car repairs that will be coming up in order for my car to pass inspection in dec.
 
1 - 6 of 6 Posts
Top