|
100 HOGS AGREE posted:When I had my Sallie Mae loan I just made my payment manually every month and ignored the due date. I still got the autopay interest reduction because I was still technically on autopay, but if I let it go by itself it wouldn't autopay again for like another year usually.
|
#
?
Dec 6, 2014 01:28
|
|
|
|
| # ? May 25, 2024 17:04 |
|
|
SiGmA_X posted:You don't have a bank that offers free automated online billpay?? you had to sign up for a minimum of three different bills a month and all my other bills had perfectly adequate autopay that I had going through my credit card for points so I didn't see the point. I generally didn't overpay the same amount every month anyway so it would have been just as much effort.
|
|
#
?
Dec 6, 2014 02:44
|
|
|
100 HOGS AGREE posted:you had to sign up for a minimum of three different bills a month and all my other bills had perfectly adequate autopay that I had going through my credit card for points so I didn't see the point. I generally didn't overpay the same amount every month anyway so it would have been just as much effort.
|
|
#
?
Dec 6, 2014 11:15
|
|
|
C... posted:I'm not an expert, but I read 'advances to the next months' due date' as, if you overpay your monthly payment, the next payment will be due in more than a month from now - as in, the due date will advance. Which would be a weird way to set things up. Someone help explain this to me like I'm an idiot (anyone feel free, I'm just quoting C... to reference what I'm talking about). The way I thought it worked was if you send in money on a loan above and beyond the minimum payment it gets processed in one of two ways. The typical default way is that it applies towards you next month payment which is a combination of both principal and interest. Paying this way pushes back or reduces your next payment but you still end up paying the maximum amount of interest. The other way you can have the payment applied is directly to the principal only, which doesn't impact your next payment, but reduces the total amount of the loan which in turn reduces the amount of interest you pay over the life of the loan. My understanding is that the first way results in maximum interest payments where the second way reduces future interest payments over the life of the loan. Have I got that right or am I totally off base?
|
|
#
?
Dec 6, 2014 14:42
|
|
|
TouchyMcFeely posted:Someone help explain this to me like I'm an idiot (anyone feel free, I'm just quoting C... to reference what I'm talking about). It sounds like you have it right, unless you slipped a 'not' in there that I missed.
|
|
#
?
Dec 6, 2014 15:05
|
|
|
I just reviewed my returns and stuff and it looks like we've "made" almost $300 a month in returns this year! That's actually very motivating. However, turbulent times ahead in the tuyop family: My wife is leaving her job in the army by September to go to school for a BS in Nursing. This will reduce our net income by 60k and we'll have to pay like 8k a year in tuition and poo poo. She'll have to live in the city for four years. My disability pay runs out in August and I have to find a teaching job, probably in the North, where I'll have to live for... awhile. When the disability runs out, our income will be decreased about 40k. If I don't find a job, we will make no money. Best case scenario, I find a job in the city and make about 75k gross, which is the current pay for teachers with my education. The best case is like a 35% gross pay reduction.  I'm thinking the way forward is just to save everything and stop investing, since we'll need money for tuition and like, food or something within 9 months. Should I be as terrified about this as I am? I figure we can lean on student loans again if we need to, but our lifestyles will have to change dramatically. Our current rent would be about 40% of my income as a teacher, so moving is a certainty and we've signed over to a month-to-month lease, but part of me is thinking we should move NOW, live like students, and save the balance.
|
|
#
?
Dec 6, 2014 16:13
|
|
|
TouchyMcFeely posted:Someone help explain this to me like I'm an idiot (anyone feel free, I'm just quoting C... to reference what I'm talking about). It depends on how your lender tracks things. I will use my Great Lakes student loans and my mortgage as an example: At great lakes I have say $1000 balance and a $50 payment. I make a $75 payment so my balance is $925 now and they say I owe $25 at my next payment. I make another $75 payment and now owe $850 and I am a month ahead and don't owe a payment. If I don't make a payment I pay 2 months of interest until my next payment. Basically keep making the payment. Say my mortgage is $100,000 and a $1000 payment. I make a $1500 payment and now owe $98,500 but they do not do a pay ahead so next month I still owe $1000, not $500. As long as you keep making payments in either case the balance goes down and you pay less interest.
|
|
#
?
Dec 7, 2014 00:48
|
|
|
The thing is, (and again, correct me if I'm wrong) I don't think they're treated the same way. Let's take your first example. spwrozek posted:At great lakes I have say $1000 balance and a $50 payment. I make a $75 payment so my balance is $925 now and they say I owe $25 at my next payment. I make another $75 payment and now owe $850 and I am a month ahead and don't owe a payment. If I don't make a payment I pay 2 months of interest until my next payment. Basically keep making the payment. If you have a $1000 principal with a $50 payment and you make a $75 payment, in the first case the extra $25 doesn't go directly to the principal. Part of it goes towards the interest payment of the next month. Rather than seeing a reduction of the principal to $925, you'll see a reduction of less than that because part of that $50 went to interest for this month and part of the $25 goes towards next months interest. In the second scenario, where you tell the lender "apply the extra towards the principal" you will see an extra $25 reduction in the principal. Then when the next months payment is calculated you'll pay less in interest because the principal is reduced. I'm not a finance guy so maybe I'm missing something (or maybe not explaining it well) but in scenario one, you buy time, in the second one you save money.
|
|
#
?
Dec 7, 2014 04:15
|
|
|
tuyop posted:I just reviewed my returns and stuff and it looks like we've "made" almost $300 a month in returns this year! That's actually very motivating. Well if you subscribe to my method of life planning, this sounds like the perfect time to have a baby. And, what the hell, buy a puppy too. In all seriousness, the freaking out shows that you've thought this though and you already have at least a few backup plans. I'd go ahead and calculate how far you can make it on your worst case, so you know when to really start panicking. What the Great Northern social services security net like? Can you get on the dole while your wife is in school and you're looking for work? Also, did I read that right that you're thinking about temporarily splitting the household? I think that would scare me more than being broke.
|
|
#
?
Dec 7, 2014 04:42
|
|
|
TouchyMcFeely posted:The thing is, (and again, correct me if I'm wrong) I don't think they're treated the same way. Yes you buy time but if you sit down at calculate what is happening the principle goes down the same and interest is accruing on the lower amount so $925 not $950. They are just giving you the option to not pay for months if you are ahead which screw's you since it takes up interest so you have to just keep making payments. I consider it a trick to fleece money out of people. Also I bet some lenders do shady stuff and screw you even more.
|
|
#
?
Dec 7, 2014 04:49
|
|
|
Folly posted:Well if you subscribe to my method of life planning, this sounds like the perfect time to have a baby. And, what the hell, buy a puppy too. Well, we'd have to move to cut our largest expense (rent), which we can bring down to like 1k/month without having to live in a terrible neighbourhood far from everything like we did last year. Other than that, our expenses are pretty minimal as it is. We're only spending 10% above the projected break even on next year's income. Worst case is hard to plan for because I have a few academic job offers and I'm being nominated for a community development award that has some opportunities as well. The wife is a qualified carpenter and a heavy diesel mechanic with 3 years' experience, so she can pull in very good money with a flexible schedule. But if nothing works out, we have student loans and I'll beg for tutoring work I guess? And we don't qualify for any aid because we've made like 100k a year or more together for several years. I also don't have EI because I'm on disability, though she may qualify. As for the household split. It's important to both of us to do things that don't let us be together for awhile. It might not happen (it would be amazing if it didn't), but I've got a nine week practicum coming up that'll be a sort of test run. We both hate living apart.
|
|
#
?
Dec 7, 2014 05:31
|
|
|
spwrozek posted:Yes you buy time but if you sit down at calculate what is happening the principle goes down the same and interest is accruing on the lower amount so $925 not $950. They are just giving you the option to not pay for months if you are ahead which screw's you since it takes up interest so you have to just keep making payments. I consider it a trick to fleece money out of people. Did you read what you just typed before reaching your conclusion? At no point will overpayment result in paying more interest than one would have in the first place, provided that one never falls behind the original payment schedule (which would likely incur late fees in addition to the obvious effects). Allow me first to illustrate with an example. The example is slightly modified because it makes the math clearer, but the principle is the same. Suppose that, at t=0: (1) a payment is due, (2) you have $1,000 in combined principal + interest, and (3) your monthly minimum payment is $50. Suppose the interest rate is 6% APR (0.5% per month). Let's compare two options across a two-month period: (a) Pay $100 now and skip your next month's payment. Your principal will be $900 for those two months and you will accrue interest on that balance for 2 months until the next payment must be made. The interest will be $9. If they recapitalize interest each month, then it's $9.02, due to compound interest. In two months, your combined principal + interest will be $909.02. (b) Pay $50 now and again next month. You will accrue $4.75 (0.5%) interest on the $950 balance for the first month. Then you will pay $50 again, leaving $904.75 principal to accrue interest ($4.52). When the third month's payment is due, there will be a combined $909.27 principal + interest, which is $0.25 more than in the first option. You may note that the difference in interest payments ($0.25) is equal to 0.5% (1 month's interest) of $50 (the reduced principal). This is not a coincidence. If one opts never to adjust one's future payments after an overpayment of $k, then this is the equivalent of splitting an $n loan into two balances with equivalent APR and other characteristics: $k and ($n-$k). The $k loan is immediately repaid with zero interest penalty. The ($n-$k) loan subsequently accrues less interest over its (now reduced) lifetime.
|
|
#
?
Dec 7, 2014 07:08
|
|
|
I was on my phone and am bad at typing I guess. Using your example my point is that you need to keep making that $50 payment in option 1 even though they say you don't owe a payment. I think they trick people into not paying so they can get more money by saying you don't owe a payment.
|
|
#
?
Dec 7, 2014 07:26
|
|
|
spwrozek posted:I was on my phone and am bad at typing I guess. But you can clearly see in the example in my post that option (a) incurs LESS interest than option (b). It's a tiny amount less in this example, but it is still less, and you are claiming that it is more. Having (but not exercising) the option not to pay incurs no cost for the debtor, but it offers a benefit if the debtor later needs to reallocate limited funds toward higher APR debts.
|
|
#
?
Dec 7, 2014 07:38
|
|
|
Oblivion590 posted:But you can clearly see in the example in my post that option (a) incurs LESS interest than option (b). It's a tiny amount less in this example, but it is still less, and you are claiming that it is more. Having (but not exercising) the option not to pay incurs no cost for the debtor, but it offers a benefit if the debtor later needs to reallocate limited funds toward higher APR debts. What? I never claimed it was more and if my wording came across that way it was not intended (what I wrote really made no sense due to some auto-correcting I believe). My point is you should keep making the payment even if your lender says you don't have to, otherwise you pay more interest, within only that scenario, don't compare the two. That is all. And really you introduced something different than the discussion earlier. TouchyMcFeely posted:If you have a $1000 principal with a $50 payment and you make a $75 payment, in the first case the extra $25 doesn't go directly to the principal. Part of it goes towards the interest payment of the next month. Rather than seeing a reduction of the principal to $925, you'll see a reduction of less than that because part of that $50 went to interest for this month and part of the $25 goes towards next months interest. This is not correct though. The extra $25 goes to the principle. I will just use the last payment on the wife's loan: She owes a monthly payment of $322.97. I just pay $325. Last month we were $541.99 paid ahead. I make the payment and $106.13 went to interest and $218.87 went to principle. We are now ahead $544.02 and don't have to pay until Feb 10th. So if I pay on Jan 1 I will pay off the ~$100 in interest and then hit principle or I can wait and have ~$200 in interest in February and the rest to principle. This is from Great Lakes website: quote:I've prepaid or am paid ahead. Just keep making payments and pay more if you can, get out of debt and enjoy life. https://www.mygreatlakes.org/educate/knowledge-center/how-payments-are-applied.html spwrozek fucked around with this message at 08:31 on Dec 7, 2014 |
|
#
?
Dec 7, 2014 08:12
|
|
|
spwrozek posted:What? I never claimed it was more and if my wording came across that way it was not intended (what I wrote really made no sense due to some auto-correcting I believe). It seemed that way because you were unclear, not because of auto-correct. It is disingenuous to tell someone how they are getting screwed by a financial company when they are coming out ahead no matter what. Paying ahead at any point will always reduce total interest accrual, even if the loan is no longer overpaid in the future, as long as the loan is never past due (which of course incurs late fees and credit score hits). It is also confusing to tell someone that they need to keep making payments when the whole point of reduced future minimum payments is that the debtor is not financially obligated to keep making payments on the same schedule. That obligation returns only after the loan is no longer overpaid. Of course, continuing to make payments on the original schedule is a good idea and will save money for the debtor in the long run, so it is something that the debtor should do whenever possible. spwrozek posted:My point is you should keep making the payment even if your lender says you don't have to, otherwise you pay more interest Your claim appeared to be that "first overpaying, then relying on minimum payments" is actively harmful, rather than just not very helpful. This post does a better job of explaining it the second time around, though!
|
|
#
?
Dec 7, 2014 09:26
|
|
|
Thanks for the posts everyone. I did a little bit of looking around and I think I figured it out. As should come as no surprise, pay ahead vs pay down principal has a lot to do with they type of loan you have. I'll quote a couple of articles I came across and let folks discuss from there. http://www.creditcards.com/credit-card-news/prepay-auto-loan-apply-principal-1580.php posted:They told you your money would be applied to your next payment. If that's the case some will be going to the interest that will be due and only a portion goes to the amount borrowed. That's much different than if all of it went to reduce the amount borrowed. http://consumerist.com/2011/05/03/call-every-time-to-make-sure-extra-payments-go-to-paying-down-principal/ posted:People trying to get ahead on their car and house payments are sometimes shocked to discover the default way that banks handle their extra payments. Instead of paying down the existing principal, they apply it to the future interest. http://thelawdictionary.org/article/is-it-better-to-make-extra-principal-payments-or-extra-mortgage-payments/ posted:If you wish to pay down your principal ahead of schedule, your mortgage lender can't legally stop you from doing so. You'll need to alert your lender that you'll be sending a special payment for this explicit purpose. To ensure that your funds are used in the proper manner, you'll need to mark the check as a "principal-only" payment. To maximize the interest-fighting effects of your extra principal payments, you should make as many of them as possible during the first few years of your loan. This will lower the total value of the balance that remains subject to compounding during the mortgage's "out years." The only references I could find were discussing mortgages and car loans so maybe they're special snowflakes when compared to other types of loans. I couldn't find anyone who took the time to actually break out numbers but I think the key term is from the second article, "...They apply [the over payment] to future interest." When a bank is allowed to do that the consumer doesn't save money on the loan. They pay the same amount they would have anyway, only faster.
|
|
#
?
Dec 7, 2014 15:05
|
|
|
tuyop posted:The wife is a qualified carpenter and a heavy diesel mechanic with 3 years' experience The wife is a badass, tuyop. As I'm sure you're aware
|
|
#
?
Dec 7, 2014 15:14
|
|
|
Oblivion590 posted:It seemed that way because you were unclear, not because of auto-correct. Indeed I was confusing. Thanks for getting everything straightened out.
|
|
#
?
Dec 7, 2014 16:28
|
|
|
C... posted:The wife is a badass, tuyop. As I'm sure you're aware Yeah, she's amazing. For almost four months, she's woken up at 5, studied bio and calculus to upgrade her marks until six, changed and gone to work to work out and do her job - which is pretty physically demanding, especially for a small woman - come home at 4:30, eaten, studied another hour, gone to school four times a week until 9 or 11, then repeated the whole mess over again. There's one more week left of this schedule for her. She has a 94 average (keep in mind these are high school courses, but still!) In September she was leading a base-wide fitness competition and coordinating unit swim plans and sports tournaments, this got her nominated for a women in the military award since she was just a private with no leadership training and continued her normal duties without issue, and she recently got a commendation for staying up for 96 hours straight to get some vehicle working on an exercise. So yeah, I'm very proud of her.
|
|
#
?
Dec 7, 2014 18:15
|
|
|
tuyop posted:Yeah, she's amazing. ...how old is your wife
|
|
#
?
Dec 7, 2014 19:08
|
|
|
EugeneJ posted:...how old is your wife 24. Why?
|
|
#
?
Dec 7, 2014 19:13
|
|
|
tuyop posted:24. Why? He's hoping to steal her in an attempt to increase his earnings portfolio. I believe it's called a hostile takeover.
|
|
#
?
Dec 7, 2014 20:28
|
|
|
TouchyMcFeely posted:He's hoping to steal her in an attempt to increase his earnings portfolio. I believe it's called a hostile takeover. Look, I'm just an activist investor here. It's yours long term, I'm just here for the short term market arbitrage opportunity. I'll leave my mark on the board, I'll make some key inputs, you know, really just find a way to leverage insertion of value into the endeavor. And when it's time, I'll pull out and leave with my profits. Everyone prospers.
|
|
#
?
Dec 7, 2014 20:52
|
|
|
TouchyMcFeely posted:He's hoping to steal her in an attempt to increase his earnings portfolio. I believe it's called a hostile takeover. Gotta build that spouse equity.
|
|
#
?
Dec 8, 2014 13:41
|
|
|
Just accepted a job on the other side of the state to start in August. Moving in July. Nervous, excited, etc. At least I have lots of time to plan! There goes the vacation fund, though. Repurposing it for the move so I hopefully won't have to dip into my emergency fund. Which I will finally complete next month! Hurray. Hoping I can also save up enough to buy a new couch and bed frame once I move, since I don't really want to lug these ones with me. Probably could do one or the other, but not both.
|
|
#
?
Dec 12, 2014 22:58
|
|
|
Which thread would be best to post in if I suddenly found out my boss wants to do my year-end performance review tomorrow, and I need a speed course in how best to say "I am the most valuable person with my job title at this company and I have the evidence to prove it, you are not paying me enough nor giving me enough room to grow for me to stay in this job or with this company long-term". Where should I go for that?
|
|
#
?
Dec 15, 2014 21:14
|
|
|
The negotiation thread would be a decent place. Do you have a list of duties for your job title and the next one up? The easiest case to make for a raise or promotion is to use those lists and show that you do more than required.
|
|
#
?
Dec 15, 2014 21:19
|
|
|
C-Euro posted:Which thread would be best to post in if I suddenly found out my boss wants to do my year-end performance review tomorrow, and I need a speed course in how best to say "I am the most valuable person with my job title at this company and I have the evidence to prove it, you are not paying me enough nor giving me enough room to grow for me to stay in this job or with this company long-term". Where should I go for that? Negotiation thread. Also you should just walk in and say that if you have a cool boss. I basically did that 2 years ago and got an 8% raise, the max possible by corporate policy without changing jobs. It was pretty sweet.
|
|
#
?
Dec 15, 2014 21:49
|
|
|
Does anyone know where a good place is to sell or consign lightly used designer clothes or accessories? I'm going through my stuff and trying to minimize clutter and sell things to pay off debts. I have an inherited pair of $430 designer sunglasses I'd like to unload.
|
|
#
?
Dec 15, 2014 22:52
|
|
|
The Buffalo Exchange network of stores are pretty great, imo. http://m.buffaloexchange.com/index.php?pg=2
|
|
#
?
Dec 16, 2014 01:04
|
|
|
MAKE NO BABBYS posted:Does anyone know where a good place is to sell or consign lightly used designer clothes or accessories? I'm going through my stuff and trying to minimize clutter and sell things to pay off debts. I have an inherited pair of $430 designer sunglasses I'd like to unload. I'm in the process of selling off old stuff before I move overseas for good. Craigslist is great due to a lack of fees, but dealing with flaky people is a hassle and if you're not in a major metro area then it's a real crapshoot your stuff will even sell if you price it low. I still list stuff there first if I think it has a chance of selling, but my success rate hasn't been great despite undercutting (online) market prices. Has been good for getting rid of my book collection (not really worth shipping to sell online), I will say. eBay's fees are kinda high (don't forget to take into account shipping + Paypal's fees), but on the flipside it's a huge market and it's relatively low hassle. You can get a good idea of prices on anything by searching "Sold" listings. Some people have complained that in recent years it's gotten a lot more "buyer friendly" (unreasonably generous return policies, eBay dispute resolution siding with buyers most of the time, etc), but I've never had problems as a seller, probably since most of the stuff I sell there is pretty niche; scammers wouldn't even think to search for it. If you're doing eBay, read a few articles about best listing practices; for example, stuff will sell for the most if you end it on a Monday or Tuesday night. Third option is to sell on community sites; you still have to ship/pay Paypal, but no auction fees at least. I think the fashion people here have a buy/sell thread (or you can put it in SA Mart and link in the relevant thread), if you've got enough stuff it might be worth your while to sign up on a fashion/designer clothes oriented site and sell there.
|
|
#
?
Dec 16, 2014 01:06
|
|
|
Yeah, actually I don't know why I didn't think of Buffalo Exchange for the glasses. I'm in SF, they tend to offer really low on clothes but the glasses are pretty "hip" so it might be worth it. Thanks! I'm doing a lot on CL, especially the more cluttery things like books or furniture but vintage and designer clothes is kinda different. I hate ebay but have considered etsy. The place recommended to me for vintage was Ruby Lane but is 54 dollars a month to maintain a store plus listing fees... gently caress that. Thanks folks.
|
|
#
?
Dec 16, 2014 01:13
|
|
|
I've had a lot of success selling designer stuff (like my eyeglasses!) on Tradesy.com
|
|
#
?
Dec 16, 2014 02:54
|
|
|
I found a few apps on the App Store that I've used to sell camera lenses, bags, and an old Gameboy. I see fashion accessories listed on them a lot. The apps are Snaply, Schpock, Wallapop, and Depop. They may be UK-specific though.
|
|
#
?
Dec 16, 2014 19:16
|
|
|
I really want new skis and I have been trying so hard not to buy them but the other day killed me. Flyer in the mail, the exact pair I want for $429 instead of $699. Of course I need new boots and would have to get bindings too. I have been staring at that thing for 4 days now. Hold strong buddy, hold strong.
|
|
#
?
Dec 16, 2014 20:48
|
|
|
spwrozek posted:I really want new skis and I have been trying so hard not to buy them but the other day killed me. Flyer in the mail, the exact pair I want for $429 instead of $699. Of course I need new boots and would have to get bindings too. I have been staring at that thing for 4 days now. Hold strong buddy, hold strong. Posting itt to tell you to hold strong.
|
|
#
?
Dec 17, 2014 14:34
|
|
|
So uhh, has anyone had to cancel a credit card due to a fraudulent charge and then cancel the replacement card for a near identical fraudulent charge less than 24 hours later? I didn't even get the replacement card in the mail yet. What the gently caress Chase?
|
|
#
?
Dec 18, 2014 17:01
|
|
|
Cross posting from the budget thread: YNAB is currently on steam sale 25% off until January 2nd. It has gone to 50% off in other Steam sales (and even once to $15), so I'm holding out for now. Please post if you notice it gets cheaper.
|
|
#
?
Dec 20, 2014 04:05
|
|
|
|
| # ? May 25, 2024 17:04 |
|
|
I ate out today. It was delicious and also way under budget.
|
|
#
?
Dec 20, 2014 05:04
|
|
