OsoiNA6
February 28, 2010, 6:44pm
23
Very good to know. Thanks!
The rate was 5%. Which is the same as my mortgage.
That I was not aware of. Like you said that right there will stop me with this plan. Just the risk involved, that I didn’t know of is not worth it like you said.
I am not taking it anyway buddy, I asked the questions and put myself out there because I am looking for answers and have no problem sharing some personal information to get on the right track… Plus it might help others out that might be in boat too, who knows.
My job is rather stable. And you’re correct, I spent a lot of money poorly this year. A lot of things came up rather quickly and I should have thought more before I jumped on some stuff. It’s a learning experience and I am working on that now.
Your correct. I spend money sometimes like it’s going outa style! I am not ashamed of it, it is what it is. I ran into some bad luck and had a lot of things break that needed fixing all in a short period of time. The money I did save got blown to keep up. I am working on digging myself back out. The biggest thing was a job change, that I stepped backwards a little in pay, but made up for it with stability.
I am not trying to trick myself into getting what I want, and can’t afford. I am thinking in the long run actually, and making sure I can do what I want to do. I understand that the $600 less a year in apr isn’t squat in the big picture. I was looking at it, thinking that being able to pay off my debts to the lenders would lift some pressure from my shoulders. I have 2 years left on the current auto loan, the school is pushed out for a long time and the credit card could technically be indefinite. If I put it all into a loan that was 5 years or so, it would even out I think, and even with the extra 3 years + on say the balance of the auto loan and my projected payback on the credit card. The convenience of paying all those bills off with a single payment would be helpful to me because I haven’t had a good track record of planning in advance for things.
I think the best thing I can do at this time is pay off the small balance on the 24% card… its only $255. Then ask them to reduce that APR just because. The best thing I did was destroyed the 2 credit cards I have open. That way I can’t possibly put any more debt on them. If for some reason I had major problems and needed to I could ask for a replacement card. The second card at 9% I will call up to see if there is a way I can drop it a bit more. I have made some good progress in the last year or so with my debts. A lot of the money I made on side projects and what not I put %100 into paying down my debts. I will continue to do that too.
I will just keep paying my personal debts as they are, and just do the garage between Steff and I under the mortgage. Like you said the lift, and tools are wants, your correct. But all of those things are long term investments. The major tools I purchased in the last few years, I will keep for a long time. The side work I do, pays for them. Each one I purchased was used with money I made from a project, there was very little out of my paycheck going into them. The only thing I need to pay for to build the garage is the materials and the concrete slab… the excavating and construction will be done by myself. All the remodeling to the house was done at a materials cost also, and because of that I am way ahead on that.
I want to give you a big thank you for the time you put into that reply. I really appreciate that.
Glad the post was helpful to you… I think your approach to paying your stuff down is good and you are taking some good steps here. Props for being able to do all the DIY / construction stuff, when it comes to practical skills like that I admire people who can do it…
Also, I realize that your side work earns money, and if you love doing it then that’s great. Remember to be practical about it and take a look at the return on investment (how long it will take you in terms of hours/weeks/months/years to pay off your purchase…
Even if you do it for leisure, it’s still nice to know what your payback is… After all, your time is worth something as well. Very easy to “justify” purchases one already wants saying it will earn _____ but then in the end sometimes a look at the hard numbers is a good reality check.
Good luck!!