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My wife and I are looking to buy a couch, and a few furniture places offer 0% APR for like 5 years or something. We could pay for the entire thing up front - would it be dumb to do a payment plan for furniture if it is at 0%?
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Nov 11, 2018 20:47
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The Slack Lagoon posted:My wife and I are looking to buy a couch, and a few furniture places offer 0% APR for like 5 years or something. We could pay for the entire thing up front - would it be dumb to do a payment plan for furniture if it is at 0%? If you're disciplined about it and don't screw up the payment somehow, not at all. In fact you'll get a slight advantage and aren't going to spend as much money if you compare the Net Present Value (NPV) though that's really a secondary consideration. The problem comes because people screw up payments: they forget to pay the monthly bill, and get hit by all the interest; or they spend the cash they would have allocated for the couch, and end up overextended; or they take too long to pay it off or only do the minimum payment, and are caught by the interest that way. FWIW I've leveraged 0% deals every time I could for big purchases, and I just set the money aside in a dedicated account for that purpose - usually some kind of interest-bearing account. Though I'll at least ask if there isn't a cash discount for payment up front, if that's an option.
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Nov 11, 2018 21:34
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I've never bothered with 0% when I had the cash - I prefer the simplicity of fewer/no payment plans to the potential opportunity cost. If it's a daunting purchase to use cash for, that tends to mean I haven't saved for it long enough.
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Nov 11, 2018 21:36
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DarkHorse posted:The problem comes because people screw up payments: they forget to pay the monthly bill, and get hit by all the interest; or they spend the cash they would have allocated for the couch, and end up overextended; or they take too long to pay it off or only do the minimum payment, and are caught by the interest that way. I love YNAB as a budgeting tool, but one of their catchphrases is that you don’t need multiple accounts if you’re in control of your budget, and while I get the logic behind it, it’s just fundamentally not how people operate and I wish they wouldn’t push it so hard. Also makes me wish more banks had the option to create budgeting sub accounts.
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Nov 11, 2018 21:48
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Mocking Bird posted:I've never bothered with 0% when I had the cash - I prefer the simplicity of fewer/no payment plans to the potential opportunity cost. If it's a daunting purchase to use cash for, that tends to mean I haven't saved for it long enough. Also, a lot of places will offer a cash discount that they don't advertise if they also have 0% financing offers. No harm in asking.
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Nov 11, 2018 21:50
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First decision: can you afford the whole thing Second decision: if yes, how best to finance it, if at all In other words, do it if you can pay cash and put the amount in an account somewhere earning more than 0%. Or just buy it and move on and save the cash flow.
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Nov 11, 2018 22:08
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DarkHorse posted:If you're disciplined about it and don't screw up the payment somehow, not at all. In fact you'll get a slight advantage and aren't going to spend as much money if you compare the Net Present Value (NPV) though that's really a secondary consideration. If you can finance for 5 years at 0% then probably do it. Ask if there is a cash discount, if there is then take the cash discount, if there isn't, then finance at 0% and immediately put the payments on auto pay. For what it's worth, I have literally never been in a furniture store that won't negotiate on price, even chain stores in the mall will almost always do it if you tell them you are ready to buy right now and ask them to get their manager for the best possible price. Best of both worlds, you get a discount and 0% financing for 5 years.
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Nov 11, 2018 23:34
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I've never been able to get a credit check run despite being in the country and have a SSN for 2 years now. If I go to the ssa.gov website and try set up an account, I get the same error of mismatching info that I do if I try to run a credit check. I've tried both my current address and an older one in case it never got updated I moved. I filed a w-2 this year through my family's accountant, but I don't really know much about that side of things as I let them handle it all. Something is obviously wrong, but I don't know who I need to contact in order to fix it. Any ideas? e: dug out the 1040 that was emailed to me, it has my current address and correct SSN on it. EL BROMANCE fucked around with this message at 22:17 on Nov 12, 2018 |
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Nov 12, 2018 22:11
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Im paying off an old debt that was in collections. I wasn't aware about the Pay to Delete agreement I should have asked for before giving them money (it is a valid debt). should I request it before paying it off? I was planning on paying them today but I also want it off my credit report
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Nov 15, 2018 17:24
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I'm getting old and having to go to the doctor more than once a year (if that), so I decided to sign up for an FSA through work and just throw 500 bucks in, since if I dont use it, it will at least roll over. When I inevitably have to pay a medical bill, do I pay right from that account? Or am I able to pay with a CC and then reimburse from the FSA?
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Nov 16, 2018 13:52
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BAE OF PIGS posted:I'm getting old and having to go to the doctor more than once a year (if that), so I decided to sign up for an FSA through work and just throw 500 bucks in, since if I dont use it, it will at least roll over. Both. They will issue you a debit card but you can also submit receipts for eligible expenses and have it paid to you.
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Nov 16, 2018 14:45
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The FSA for Federal employees lets you link your insurance numbers to the FSA itself and they automatically process any claims and deposit the money in my checking account a few days later. It has worked for all copays, prescriptions, and other doctor's office visits without us doing anything.
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Nov 16, 2018 14:53
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Dumb question - I'm starting a new job soon, should I claim the personal exemption on the W4 ? I'm married with no kids and my spouse works.
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Nov 16, 2018 21:45
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Sleepytime posted:Dumb question - I'm starting a new job soon, should I claim the personal exemption on the W4 ? I'm married with no kids and my spouse works. Here's a calculator you can use to calculate it. https://apps.irs.gov/app/withholdingcalculator/ I have my withholding allowances set to 3 currently and got a pretty small federal refund last year (which was my goal). I didn't redo it for 2018 I don't know if the new standard deduction will make that big a difference for me or not, I guess I'll figure that out later. 100 HOGS AGREE fucked around with this message at 23:13 on Nov 16, 2018 |
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Nov 16, 2018 22:40
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If you're a weirdo like me you can make a spreadsheet that calculates out what your expected tax burden will be based on your known sources of income, use another spreadsheet that calculates your withholding amount based on your allowances and biweekly post-deduction-pre-tax pay, and then use your current YTD tax withheld to figure out if your numbers are right. You also get to change your W4 every time your financial situation changes a little. Don't be like me
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Nov 16, 2018 22:57
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Sleepytime posted:Dumb question - I'm starting a new job soon, should I claim the personal exemption on the W4 ? I'm married with no kids and my spouse works. 2 https://www.irs.gov/pub/irs-pdf/fw4.pdf
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Nov 16, 2018 22:57
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I need to double check my W4, I feel like I have way too much being withheld
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Nov 17, 2018 00:43
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Geez, Ally Online Savings is up to 2% now. I know this can’t continue indefinitely but it’s nice while it’s lasting.
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Nov 19, 2018 19:47
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gregday posted:Geez, Ally Online Savings is up to 2% now. I know this can’t continue indefinitely but it’s nice while it’s lasting. It's offset by increasing inflation and higher lending rates in the economy. In 2005 online savings accounts were pushing 5%.
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Nov 19, 2018 19:55
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Guinness posted:It's offset by increasing inflation and higher lending rates in the economy. ING Orange what up. Too bad I didn't have any money to save in 2005.
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Nov 19, 2018 23:46
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gregday posted:Geez, Ally Online Savings is up to 2% now. I know this can’t continue indefinitely but it’s nice while it’s lasting. Historically speaking, it can continue for a long time, the era of 0% savings is a historical anomaly
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Nov 20, 2018 00:08
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Guinness posted:It's offset by increasing inflation and higher lending rates in the economy. I remember walking into a WaMu branch right before it collapsed offering 8% CDs.
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Nov 20, 2018 02:29
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AndrewP posted:ING Orange what up. Too bad I didn't have any money to save in 2005. Same. I remember having $600 in my ING account and loving the interest.
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Nov 20, 2018 04:32
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ING CDs were the first kind of savings I did on my own, loved that stupid little orange website. 
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Nov 21, 2018 01:20
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I had a ING Direct checking account, the debit card was transparent orange and I thought that was the coolest thing ever.
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Nov 21, 2018 02:42
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Is this the place to ask about options for a friend with a 20% interest rate on a auto loan. Her credit score has significantly improved since she got that and now has her partner(with an 800 score) willing to cosign
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Nov 21, 2018 16:31
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Auto loans can be refinanced. Go to your bank or credit union and ask.
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Nov 21, 2018 16:39
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KYOON GRIFFEY JR posted:Auto loans can be refinanced. Go to your bank or credit union and ask. She spoke with her bank and they said they couldn't do anything and she have to talk to the dealer. The dealer of course told her to trade in for a new car for a better interest rate because nobody is going to refinance while she owes more than the car is worth.
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Nov 21, 2018 16:46
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Go to a credit union. They're usually much better about consumer level loans.
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Nov 21, 2018 17:30
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Quabzor posted:She spoke with her bank and they said they couldn't do anything and she have to talk to the dealer. The dealer of course told her to trade in for a new car for a better interest rate because nobody is going to refinance while she owes more than the car is worth. finance companies issue loans all the time where people owe more than the car is worth - negative equity rolls, for one, and also the fact that the depreciation curve on almost any car is more steep than the repayment curve
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Nov 21, 2018 18:40
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KYOON GRIFFEY JR posted:finance companies issue loans all the time where people owe more than the car is worth - negative equity rolls, for one, and also the fact that the depreciation curve on almost any car is more steep than the repayment curve Yeah but making a car dealer money by trading in and taking a negative equity roll with a 20% interest rate is a different proposition than going to a bank and asking them to refinance your underwater car loan at greater than 100% loan to value. I'm not saying nobody will do it but if you ended up with a 20% interest rate in the first place it is going to be a big ask. Paying the loan down until it is not underwater anymore will open up financing options and improve offered interest rates a great deal.
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Nov 21, 2018 20:06
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BEHOLD: MY CAPE posted:Yeah but making a car dealer money by trading in and taking a negative equity roll with a 20% interest rate is a different proposition than going to a bank and asking them to refinance your underwater car loan at greater than 100% loan to value. I'm not saying nobody will do it but if you ended up with a 20% interest rate in the first place it is going to be a big ask. Paying the loan down until it is not underwater anymore will open up financing options and improve offered interest rates a great deal. I don't have much experience about lovely loans, but I figure the best course of action is try to talk to a few credit unions/banks into refinancing. Worst case scenario dump as much extra money towards the loan and try again in a year or so with a lower balance.
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Nov 21, 2018 20:38
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gregday posted:Geez, Ally Online Savings is up to 2% now. I know this can’t continue indefinitely but it’s nice while it’s lasting.
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Nov 21, 2018 20:47
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Small White Dragon posted:Are they the fave around here for online savings these days? Ally, CapitalOne 360, Goldman Sachs Marcus, Barclays, etc. Take your pick they are all about the same. Ally & CapitalOne are perennial goon favorites just because they've been around a long time.
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Nov 21, 2018 20:56
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Quabzor posted:I don't have much experience about lovely loans, but I figure the best course of action is try to talk to a few credit unions/banks into refinancing. Worst case scenario dump as much extra money towards the loan and try again in a year or so with a lower balance. Yeah, I mean even if he can't refinance through the CU for the car, a 10% interest personal loan will be better than that nightmare of a loan. This is why you take care of your credit, and teach your kids to build it as soon as they can.
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Nov 21, 2018 21:37
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I have a budget and am paying down my debt, but I just realized my new job pays me biweekly, and my budget is setup for semimonthly. I've only ever done monthly or semimonthly and I'm embarassed to admit but I feel like that dope from the Jon Bois video who can't figure out how many days are in a week. Every time I try to rebalance this budget I get confused. Right now I'm using the semimonthly budget and when i get an "extra" paycheck just throwing it at debt. Is this a sound method or should I be doing something smarter?
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Nov 22, 2018 06:04
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My first suggestion would be to use the YNAB method of only budgeting the money you have today. That means that every two weeks you would sit down and re-budget as soon as you get your new deposit. This has the added advantage of making you rewire your brain to your new payment schedule faster. If that’s not possible you could calculate what your salary would be on a semimonthly basis and use that? So if you’re making 400 bucks every 2 weeks that’s the same as 28 bucks a day (400/14 rounded down). Then you just calculate what your hypothetical salary would be on Day 15 ($420) and use that. It’s an extra step but if the change helps you out on sticking to your budget.
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Nov 22, 2018 14:00
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I just lived and budgeted like I got paid semimonthly and when the three paycheck months came around that third paycheck was just a bonus. Usually I just threw it at my student loans or in savings.
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Nov 22, 2018 16:58
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fuzzy_logic posted:I have a budget and am paying down my debt, but I just realized my new job pays me biweekly, and my budget is setup for semimonthly. I've only ever done monthly or semimonthly and I'm embarassed to admit but I feel like that dope from the Jon Bois video who can't figure out how many days are in a week. Every time I try to rebalance this budget I get confused. Right now I'm using the semimonthly budget and when i get an "extra" paycheck just throwing it at debt. Is this a sound method or should I be doing something smarter? Assuming you're able to comfortably live in the 24 paychecks/year budget, this is a good approach. Treat the extra two paychecks per year as predictable windfalls, and throw the money at clearing your debt. Once the debt is under control, put them into savings instead.
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Nov 22, 2018 17:29
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Space Gopher posted:Assuming you're able to comfortably live in the 24 paychecks/year budget, this is a good approach. Treat the extra two paychecks per year as predictable windfalls, and throw the money at clearing your debt. Once the debt is under control, put them into savings instead. If you cannot comfortably live on the 24, put the extra paychecks into a buffer account and draw on it in the in-between months as you need to. Keep that approach up until you get to your next extra paycheck and you haven't touched it. Then congrats, you're living on 24 and can use those extra checks for other goals (debt, savings, emergency funds, etc.)
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Nov 22, 2018 17:32
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