8 Payments left

[hoosier1104]

Well after reviewing my account balance on my truck, I figured if I kicked in an additional $35-40 per month my truck will be paid for on 1 Dec.

More money for more mods really. Either way it is a win-win situation.

 

[straycat]

Darn, why not just put out $150 a month extra and it will be yours before you know it!!!

 

[doorgunner]

Darn, why not just put out $150 a month extra and it will be yours before you know it!!!

hoosier_ ..........................pay no attention to Money-Bag.......

just pace yourself.....

 

[press 1 for english]

Darn, why not just put out $150 a month extra and it will be yours before you know it!!!

I drive my vehicles until they are not cost effective to keep, which is usually 175,000-200,000 miles. While I own them I put $250 a month in a savings account so when the truck gives out, I can pay cash for the next vehicle.
People who have the new vehicle bug need to look at the ENTIRE cost of ownership.....payments, insurance, maintenance, and the &%$@@^&$ cost of fuel.
No payments.....priceless!

 

[adsm08]

hoosier_ ..........................pay no attention to Money-Bag.......

just pace yourself.....

Nah, I kinda agree with the Cat on this one. If you can suck it up and put down the extra $150 a month you'll have that sucker paid in no time and be out from under the payment. We took half of our tax refund to pay off our highest interest and lowest balance loan which was my tool box. Paid it off 4 years early and saved just about $1000 in interest.


The best thing to do if you want out of debt is pay off your smallest debt as fast as you can. Then put the money you paid on that towards the next smallest until it's gone. Then move both payments to the next one. It's called a "debt snowball".

 

[hoosier1104]

The most I could do is $100 per month due to I am paying close to $500 in student loans per month.

 

[straycat]

hoosier_ ..........................pay no attention to Money-Bag.......

just pace yourself.....

LOL...yea...my pockets are full.....of catnip....lol

 

[straycat]

Nah, I kinda agree with the Cat on this one. If you can suck it up and put down the extra $150 a month you'll have that sucker paid in no time and be out from under the payment. We took half of our tax refund to pay off our highest interest and lowest balance loan which was my tool box. Paid it off 4 years early and saved just about $1000 in interest.


The best thing to do if you want out of debt is pay off your smallest debt as fast as you can. Then put the money you paid on that towards the next smallest until it's gone. Then move both payments to the next one. It's called a "debt snowball".

That is great advice!!! This is what the wife and I have done on some of our loans. Our first VA loan on our first house was a 15 year loan. We paid it of in 10 1/2 years by paying extra every month towards the principal. The same with the second VA home loan as well. Paid off in full and we own that puppy. You got to want to do it...that is the only way to do it.

 

[--weezl--]

Nah, I kinda agree with the Cat on this one. If you can suck it up and put down the extra $150 a month you'll have that sucker paid in no time and be out from under the payment. We took half of our tax refund to pay off our highest interest and lowest balance loan which was my tool box. Paid it off 4 years early and saved just about $1000 in interest.


The best thing to do if you want out of debt is pay off your smallest debt as fast as you can. Then put the money you paid on that towards the next smallest until it's gone. Then move both payments to the next one. It's called a "debt snowball".

that's wrong... you want to put as much money on the highest interest rate loan you have, first...

basically, lets say you have 2 loans, one for 1000$ at 20% and one at 100$ at 10%

lets say you're making a 10$ a month payment on the 100$ one, and 100$ a month on the 1000, not counting interest, you will pay it off after 10 months... you will pay 2$ interest on every dollar on the 20% loan, and 1$ interest on the 10% loan... if you were to drop an extra 100$ (tax return or something) onto the 10% loan, you would effectively save yourself 10$ in interest, but if you were to drop it on the 20% loan, you would save yourself 20$ in interest...

this of course is not taking into consideration compounding interest, but that effects both loans the same... long term, you want to pay off the highest interest rate first... if you need to free up some extra cash, for the next two months, then pay off the small balance first...

in summary, putting payments on the highest interest rate loan, will lower the total interest you pay, in the long run

 

[hoosier1104]

Either way, it is paid off at the end of the year.

 

[Mazda]

Straycat has the idea....

You need to send in your regular payment for the month. Also send the extra but let your lender know you want this to go to the "principle of the loan.". You really wont pay off the loan faster buy just sending in the extra and it going to pay off interest.

 

[CHKNFKR]

The best thing to do if you want out of debt is pay off your smallest debt as fast as you can. Then put the money you paid on that towards the next smallest until it's gone. Then move both payments to the next one. It's called a "debt snowball".

You must listen to dave huh?

that's wrong... you want to put as much money on the highest interest rate loan you have, first...

basically, lets say you have 2 loans, one for 1000$ at 20% and one at 100$ at 10%

lets say you're making a 10$ a month payment on the 100$ one, and 100$ a month on the 1000, not counting interest, you will pay it off after 10 months... you will pay 2$ interest on every dollar on the 20% loan, and 1$ interest on the 10% loan... if you were to drop an extra 100$ (tax return or something) onto the 10% loan, you would effectively save yourself 10$ in interest, but if you were to drop it on the 20% loan, you would save yourself 20$ in interest...

this of course is not taking into consideration compounding interest, but that effects both loans the same... long term, you want to pay off the highest interest rate first... if you need to free up some extra cash, for the next two months, then pay off the small balance first...

in summary, putting payments on the highest interest rate loan, will lower the total interest you pay, in the long run

Actually adsm had it right. you always start at the bottom and work your way up. it frees up money that was going towards payments faster and allows you to pay off the total debt faster while accruing less interest.

 

[--weezl--]

depends on if you are trying to free up money, or pay less total interest... if you pay your minimum payments on everything, plus xx dollars per month, you will be done with all of your bills faster, and pay less interest by doing the way i posted

if you want to decrease your total "minimum payments" per month, then the lowest balance first... trust me, i didn't believe it when someone first told me that either, so i ran the numbers using hypothetical situations, there is no situation where paying off a low interest loan works faster than starting with the highest interest...

though luckly, most people have the smallest balance on the highest interest rate loans, so they naturally do that... the exception to the rule is when you get a bestbuy card or something, with retroactive interest if not paid off in 6 months... while technically the interest rate is 0% it is the most important thing to pay off

 

[CHKNFKR]

interest rate is irrelevant in this scenario. it's current balance that matters, start with the lowest, and work your way towards the highest. run your numbers on that and it will beat the snot out of the highest interest rate method every time.

 

[--weezl--]

no it won't! that's completely illogical...

edit: information backing up my claim,

http://credit.about.com/od/reducingdebt/f/creditpayorder.htm

basically, what it's saying is the method i'm suggesting will save you money on interest, and if you use that money to make payments with, it will be faster... the other way just FEELS faster, because there is less creditors you owe