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.
I love this quote for a couple reasons but the first thing that comes to mind is when my gf is like
" JEFF!!! I could save 25% off that $100 dress!!!.."
Me- I know how you can save $100 off the bat!
The rates on non-secured loans like personal loans are usually pretty high to begin with (not always, credit unions are a great thing), but will almost always be seriously high if the person has lots of debt to begin with. If they are seriously in the red, unsecured loans have no recourse if the person goes totally Failvis.
In a way, it’s doing the same thing as the consolidation people, but before you get the money they evaluate your credit not knowing you’re going to use it to pay all the other debt off and they wont just take your word for it. So to them, you’re taking out an additional $XX,XXX without any collateral.
Unless you’re saving money (rate and/or term), it can just make it easier and more simple at best by giving you just one monthly bill at a time. You’re better off crying to the CC companies that you’re “in a unsustainable situation and need help on the interest rate to remain solvent so you dont go totally Failvis and then they’ll never get paid.” :ninja Cleverly weaseling out of your obligations is the American way.
Dyslexia is on overdrive today, not proofread for spelling. :facepalm
Jclark lots of good info in there. Thanks man! I purchased the cheapest house on a very high dollar road. My neighbors house if $650K, and the rest of the houses on that road are $300-$700K houses. I fully gutted, wiring, plumbing, blow in insulation… and put high end everything in. Corian, granite, high end cabinets, fixtures… $50K in materials, at contractors cost. A remodel on that scale would cost $120K+ if my father’s companies were to come in and do it all. My mother was in real state for 15 years and gave me some figures already… I am doing well to say the least with the house.
I guess the thing to consider with all this is the consolidation plans use my home and other things as collateral, which not saying I am sketchy with making payments on time, exact opposite actually, just having that hover over my head if I went that road is enough to detour me.
The only debt I have over 5% apr is that 4K card, and my car loan. I will just have to do some quick math and see what I can max a monthly payment for that card comfortably and get that paid out asap. the car will just go at it as I am.
I appreciate all the help and useful information. I am sure a lot of other people out there are reading this and it might be helping them out too.
No prob. It sounds like you have a pretty good handle on your situation, so you’re automatically not the person those companies are looking for.
Also you most likely wont get an interest rate anywhere near 5% with something backed by home equity. Home equity loans are a secondary loans, mortgages being primary. Meaning if you default and they have to take action, the mortgage bank has first dibs on the collateral, the secondary lien holder (home equity) has second dibs. To the banks, that’s more risk which = a higher rate for you. Considering the market/economy/blah blah, its even higher risk than usual.
I’d clean out that high rate card and refi the car if you can or at least make sure the term isnt something crazy like 72+ months. Debt sucks. Rich people earn interest, young people pay interest. :banghead
Thanks buddy. When my tax guys gets back to me with, and hits me with the federal pound my ass bill, I am going to set up an appt with my bank and see what they say about the garage situation. My car should be paid off in 2 more years. argh.
Yah I hear yah your saying… but like for me, I would do what you said just so I could get the credit card companies off my back and just have that one payment a month.
