Fru-Gal Friends

Subject: Credit Card PayOff Wed 13 Feb 2008, 4:47 pm

I found this on BankRate.com for those who have credit card balances.
It shows how long it would take to pay off the balance if you dont pay it off in full every month.

http://www.bankrate.com/brm/calc/creditcardpay.asp

It was painful for me to see how long it's going to take us.

~M
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"It is not how much money you make - it is how you spend it."

Subject: Re: Credit Card PayOff Wed 13 Feb 2008, 4:54 pm

Ouch!!!
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Vicki

[url=http://www.TickerFactory.com/weight-loss/wH4660m/]

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Subject: Re: Credit Card PayOff Wed 13 Feb 2008, 5:26 pm

A very useful calculator M, thanks for sharing.
I'm relieved that we only have one c/card and have always cleared it each month when necessary.
We were caught out many, many years ago when buying a new bed (DS was a baby), then a cooker on 'seemingly' interest free credit. At the time we hadn't realized we had to clear the balance within the interest-free period and were just paying the minimum each month, yes that was ignorance on our part. With these kind of agreements you need to work out the months of the agreement and divide the amount owing by those months to clear it in that time-frame, you live and learn.
I imagine many people get caught out like this, I'm glad we had that experience, it taught us a valuable lesson, we've never been caught out like that again.
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~ By sowing frugality we reap liberty, a golden harvest. --Agesilaus ~

Subject: Re: Credit Card PayOff Wed 13 Feb 2008, 6:55 pm

I am so glad we dont have any debt I entered an amout scary very scary
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Gayla

"They take great pride in making their dinner cost much; I take my pride in making my dinner cost so little."

---Henry David Thoreau (1817-1862)

Subject: Re: Credit Card PayOff Wed 13 Feb 2008, 8:30 pm

Thats a eye opener,,make ya want to get it paid sown faster!

Subject: Re: Credit Card PayOff Thu 14 Feb 2008, 7:14 am

Donna,
Absolutely!
Makes me want to rent out the Akron house to be able to pay them all off sooner!

I've done a computation of how much we owe on each of our debts.

Akron house vacant = 18% of our take home income
Vehicles (including insurance) = 13% of our take home pay
Credit cards = 14% of our take home income
New house and utilities = 25% of our take home income

All of that is 70% of our income...in payments!
No wonder why we are feeling the pinch!

Groceries/Gas Money/ Date Night / Etc. = 14% of our income
Savings = 13% of our income per month to go toward paying down debts.
That means I have no idea where 3% is going per month. I should probably look into that.

I have no problems paying the 14% for Groceries, Date Night and gas, but the other stuff has to be lowered, drastically.
I have the money to pay off Todd's car, but I'm glad I didnt pay it off in full last month because alot of semi-annual bills came up this month (and the roof). If I paid off Todd's car (highest interest rate we have), it would lower the car expense by 1%.
When we get rid of the van, if will lower the vehicle expenses by another 4%. Then, all we'd have is my car and insurance.
My car is the most reliable of any of the three.

So, new plan:
1.) Try to rent out Akron house as is for the next 6 months starting spring to get rid of 18% of our debt
2.) Try to sell the Van by Spring-early Summer to get rid of another 4% debt
3.) Pay off Todd's car this month to have another 1% to go toward other bills.

Is there an emotiacon that shows paying cash? Just hands it out?
If so, I need that one inserted here! :-)

One good thing - Todd and I have not used a credit card since December. Well, Todd has not used a credit card in over a year, but I havent used mine as backup since December. I'm really proud of that.

~M
_________________
"It is not how much money you make - it is how you spend it."

Subject: Re: Credit Card PayOff Sun 02 Mar 2008, 5:03 pm

Todd and I went to the Auto Show last week. We were thinking about getting a new vehicle to tow a camper in the next 2-3 years. I had talked him into getting rid of the van about 3 weeks ago. But he made a good point today.
It is kind of silly for us to get rid of an inexpensive van that tows everything for us (for the housework). We have been able to save up $500/additional per month to pay down our debts. If I were to just pay the van payment twice a month, it'll be paid off in just 2 years. We have accumulated $1500 toward the "debt destruction" fund, but I think some of that should go toward the roof (that we'd have to put on a credit card) and some home improvements that we have been financing.

As I keep telling Todd, the sooner we get the Akron house out of our name, the easier things will be to pay off.

I am now trying the "We Buy Any House" route just to get rid of it.

So...it looks like we will keep the Van, and do away with buying the 3 year old SUV in 3 years. It would cost about $15,000 3 years from now. But we've got a van that in 3 years will be paid off...and it can tow a camper easily! Good point, Todd.
Saves us alot of money.

~M
_________________
"It is not how much money you make - it is how you spend it."

Subject: Re: Credit Card PayOff Sun 02 Mar 2008, 5:19 pm

I reckon you've made a wise decision, M (& Todd!).
I hope you can both work out a good deal on the Akron house and avoid any losses.
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~ By sowing frugality we reap liberty, a golden harvest. --Agesilaus ~

Subject: Re: Credit Card PayOff Sun 02 Mar 2008, 8:00 pm

Sometimes it takes a little money to make bigger money! kinda ironic,,but when you look at it in that way,,the van is serving multi uses,,so its earning its keep!

Subject: Re: Credit Card PayOff Sun 02 Mar 2008, 8:24 pm

M- I like the way you and Todd worked together on that one and thought about it before just jumping the gun. Great job!!
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Vicki

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