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So I want to pay off some of my debts in a smart way while I wait for a new job in perpetuity. All of my income is from my Army Reserve Commitment which pays ~$400 a month(for one weekend) with some money payed into my TSP(401k for Government Employees) other than that I get money intermittently from my personal training business. No rent/mortgage Subaru Forester loan $10,006 @10.99% APR ~ 200 per month USAA Credit Card $3998 @ 7.75% (Prime + 4.50%) ~100 per month Sallie Mae School Loan $3,182.34 @ 3.75% ~50 per month they want me to pay less GE CareCredit $796 @ 0.0%(for the next 18 months- I got Lasik) APR I pay $100/month I have $8,400 saved from my Army Bonus and I want to pay some of this down and leave a large chunk(4-5k) for a wedding ring, burning man and to keep me going until I actually get a full time job. I had to leave my last job(manager of an Ambulance company) because I joined the Army Reserve and I can't go back due to them(breaking the law and I don't want to be a part of it). I intended to pay off my auto loan with my bonus but because it came 4 months late(!!) I had to put travel expenses on my credit card with the Army paying me back later(way later as it turns out). I graduated in 2008 and have been paying down my student loan since then. I have been having a hell of a time finding work though. Current plan is to pay off my student loan(because it has been so long and I hate Sallie Mae), pay off the GE CareCredit(because it is so small, then cut the card), then aggressively pay down the Forester Loan/Credit Card as I am able while leaving 3-5k to keep me afloat while I wait to get in school or get a full time job.
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Aug 6, 2013 18:21
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White Chocolate posted:So I want to pay off some of my debts in a smart way while I wait for a new job in perpetuity. All of my income is from my Army Reserve Commitment which pays ~$400 a month(for one weekend) with some money payed into my TSP(401k for Government Employees) other than that I get money intermittently from my personal training business. I'd say wipe out the USAA credit card, then put that 100 a month toward your car. Keep doing the minimum on Sallie Mae until the car is paid off since it's at a decent rate, and wipe out the GE debt whenever before it goes into collecting interest. Like you said, it's small; if you keep at it at $100 a month it'll be gone in no time. I'd go down to $50 a month (Paid off in 16 months) and put another $50 toward the car, but that's just me. From a purely financial point of view, dumping the bonus into the car would make the most sense since it's your highest rate debt, but psychologically it's probably best to wipe out the USAA and put the monthly payments toward the car if you can afford it. Edit: The poster below also makes a very good point. Also your debt service is 450 / month and you're making 400 a month. Something's wrong. FrozenVent fucked around with this message at 18:47 on Aug 6, 2013 |
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Aug 6, 2013 18:44
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You have enough debt to have negative net worth, no job or upcoming employment prospects, and you want to spend a couple grand on a wedding ring and go to Burning Man? 
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Aug 6, 2013 18:44
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Cicero posted:You have enough debt to have negative net worth, no job or upcoming employment prospects, and you want to spend a couple grand on a wedding ring and go to Burning Man? However the government is going to pay me to go to school(GI Bill) if I don't get a job, I am going back to Community College so I'm not to worried about that. As for the wedding ring and burning man well, sometimes I need a break from the bleak east coast outlook, and it looks like I will be going back to school full time in the fall. Plus we have been dating for 6 years and it's time to get engaged or break up. The ring is probably going to be a lot less than 1k I just haven't looked around yet... I can also put that off for a while. So what I am hearing is pay off the Credit Card first then put more into my car loan and not worry about the other smaller loans as much.(?) Anything else I missed? I really appreciate the help. Edit: Also I am actively interviewing with a couple of companies right now and in the future so it isn't like I am not going to have something down the line.
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Aug 6, 2013 19:22
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Burning man is just a ridiculously expensive rave these days. If you're interested in that scene, you'll have a much better experience at a smaller regional event, at a fraction of the cost to attend. I know this is a bit outside the scope of this thread, but since it will save you a ton of money, I'd be happy to point you to a regional event and community if you tell me where you live. edit: Since you mention East Coast, check out http://playadelfuego.org/ . Tickets go on sale next week and are only $50, plus you don't have to fly out or buy a bunch of crap in Reno to survive for a week in the desert. SlightlyMadman fucked around with this message at 19:36 on Aug 6, 2013 |
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Aug 6, 2013 19:23
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I'd say pay off the USAA card, and then throw another $1000 into the car loan. Most car loans will let you not make a payment if you are payed up in advance, so it can be a quasi emergency fund if things go bad.
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Aug 6, 2013 19:39
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White Chocolate posted:Plus we have been dating for 6 years and it's time to get engaged or break up.  That is not a good reason to get married. If your line of thinking is "If we don't get married, we'll break up", you should break up.White Chocolate posted:So what I am hearing is pay off the Credit Card first then put more into my car loan and not worry about the other smaller loans as much.(?) Anything else I missed? I really appreciate the help. That's my suggestion, but smarter goons should be along anytime soon. Like I said, financially dumping all you have to spare from the bonus (How much do you have to spare?) into the car would make the most financial sense, from a purely number standpoint. Personally I'd prefer reducing the number of line items and making more than minimal payments so I have more leeway if poo poo goes wrong, but I don't know that it's generally accepted BFC wisdom. White Chocolate posted:Edit: Also I am actively interviewing with a couple of companies right now and in the future so it isn't like I am not going to have something down the line. You're spending money you don't have because you expect to have a job somewhere down the line. Gotcha.
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Aug 6, 2013 19:43
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FrozenVent posted:
Right now I am trying to determine how much to save to live off of and how much to pay off, which is why I posted. If nothing else happens(school/work) I will be going back to active duty sometime in March(for 3 years) so I'm not terribly worried about being broke in the next year. Also that isn't the only reason we are getting married but I have been waiting a long time to get engaged.
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Aug 6, 2013 20:17
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What is the most painless way to close old accounts when switching banks? So far my spouse and I have opened new checking and savings accounts at our local credit union. I also opened a new credit card and have a free balance transfer check to pay off our Wells Fargo credit cards. We have gotten our paychecks diverted to the new accounts. Our question is what is the best way to get the last of our cash out of our Wells Fargo checking and savings accounts and close them without triggering a bunch of fees. I know that our joint checking will trigger a fee sometime soon since we don't have direct deposit going there anymore and savings will trigger if it drops below $300. I also don't really trust Wells to let us cash out easily and just take our money without trying to put a hold on it or something. I think we at least want to wait to close them until our new CU debit and credit cards arrive. Anyone who has done this already have any tips?
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Aug 7, 2013 02:51
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I just transferred out all the money and called them to close it out. It was pretty quick and painless.
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Aug 7, 2013 02:56
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When I switched the agent at our bank actually told me to just write a check to myself for the full account balance, and then called them to close the empty account. That was really straightforward, whereas if I had tried to close it with funds in it they want all sorts of paperwork mailed to them and then it would have taken them weeks to send me a check for the balance.
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Aug 7, 2013 04:23
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I closed my accounts at a bank back in October and the process was simply walking into the bank, telling the clerk I wanted to close an account, got redirected to a higher-level manager (?) who took me the process and handed me a check of all my assets ten minutes later. He wanted to know why I was closing my account, I explained I was switching over to a credit union because I'd gotten dinged with fees way too many times while I was unemployed and now that I had a job and was working on becoming financially literate I realized how badly I'd gotten screwed. I said this in somewhat more diplomatic terms, though. He looked upset but didn't follow up on it. I wonder if they made any changes to their policies but I doubt it. This was with Associated Bank (which I think is primarily Midwestern), I'm sure the larger banks are more of a pain in the rear end about it.
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Aug 7, 2013 04:30
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Well, I couldn't do it in person, which probably made things more complicated. I was moving from GA to MA, and had been banking with Suntrust, but they don't go any further north than NC, I think. Certainly not to MA. But I had to leave the account open because there was still stuff clearing in it from the move, etc. So when it came time to close, I was hundreds of miles from any branch office and had to do everything by mail or phone.
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Aug 7, 2013 04:33
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Bank of America makes you write a letter on paper and mail it into their headquarters to close an account with them. Complete pain in the rear end.
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Aug 7, 2013 04:57
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White chocolate are you eligible to get any pre service debts reduced to 6% via the SCRA? Also join usaa/navy fed/penfed and see about refinancing your car loan to a lower rate. 11% is a ton.
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Aug 7, 2013 11:51
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INTJ Mastermind posted:Bank of America makes you write a letter on paper and mail it into their headquarters to close an account with them. Complete pain in the rear end. This is not true, for anyone who doesn't know. You can just walk into a branch and close it out.
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Aug 7, 2013 12:55
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Rurutia posted:This is not true, for anyone who doesn't know. You can just walk into a branch and close it out. I had the same experience, writing the letter did nothing. I waited over a week, then walked into a branch and had it closed in 15 minutes. Closing my wife's BB&T account was worse. The woman kept trying to dissuade us from leaving, explaining the benefits of the bank and generally making us feel like we were putting them on a hardship. I told the employee that we were going to a credit union with 1000% better interest rates, and she countered with BB&Ts numerous locations. I explained that the credit union we were using actually had a bigger footprint thanks to the network. She really didn't have a whole lot more to say after that. On the way home, my wife commented that she felt like she was letting her old bank down somehow. She's a real softie, which is why she prefers to let me handle business matters. I have no allegiance to any bank, and trying to put an emotional spin on a business transaction pisses me off.
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Aug 7, 2013 13:48
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Nocheez posted:On the way home, my wife commented that she felt like she was letting her old bank down somehow. She's a real softie, which is why she prefers to let me handle business matters. I have no allegiance to any bank, and trying to put an emotional spin on a business transaction pisses me off. My wife put up with some minimal fees for years since she didn't have direct deposit, there was no fee for her actual account, but fees if she went over a certain number of PIN transactions, teller/drive through transactions, etc. It was completely insane, but she wouldn't switch to any of the more convenient, no-fee alternatives for the same reason as your wife. She is usually the one that gets appointed to negotiate stuff because she is more of a hardass than I am, but for this she would just recount stories about how she opened the account as soon as she burst from the womb and how it didn't used to be so bad, etc...
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Aug 7, 2013 14:56
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Rurutia posted:I just transferred out all the money and called them to close it out. It was pretty quick and painless. When I did that with Wachovia, they refused to close my account because the transfer triggered some fees, which then put my account into a negative balance. I had to drive around in Tennessee to find a Wachovia later that day and deposit $3 in cash, then call back and close the account before overdrafts started happening
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Aug 7, 2013 15:30
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Omne posted:When I did that with Wachovia, they refused to close my account because the transfer triggered some fees, which then put my account into a negative balance. I had to drive around in Tennessee to find a Wachovia later that day and deposit $3 in cash, then call back and close the account before overdrafts started happening Well yes, you have to check if there are fees involved and make sure your account balances at the end. As far as I know, Wells Fargo internal transfers are free (and sometimes you have the option to take the 1 day transfer, but you may have to wait a few days for it to clear) or just going to a teller and pulling out all the money should do it. It might be useful to just go to the branch and sit there until someone closes it.
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Aug 7, 2013 15:35
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Our spending/bill money is still with BB&T but I have the emergency egg with a credit union. The only reason why I haven't completely closed the BB&T account is because my wife works there and it might leave a bad impression or something. We don't have fees or anything like that but I'd rather my money be with a credit union.quote:In May 2008, National Public Radio reported that the BB&T Charitable Foundation had given 25 U.S. colleges and universities "several million dollars" to fund programs promoting Ayn Rand's work and economic philosophy. Sephiroth_IRA fucked around with this message at 17:08 on Aug 7, 2013 |
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Aug 7, 2013 17:05
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Orange_Lazarus posted:Our spending/bill money is still with BB&T but I have the emergency egg with a credit union. The only reason why I haven't completely closed the BB&T account is because my wife works there and it might leave a bad impression or something. We don't have fees or anything like that but I'd rather my money be with a credit union. I went to grad school at Wake Forest, where John Alison is a faculty member now. It's scary how serious they are about Ayn Rand...
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Aug 7, 2013 18:05
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I'm considering getting rid of my car, here's my situation: I currently work around 1.5 miles from my work in Metro-Detroit and I own two motorcycles(one out-right, the other I financed). I also live with two people who have cars and would likely lend me theirs if I did need one. The vehicle I'd like to get ride of is my 2008 Ford Focus, it's in fair shape, which I still owe $8,000.00 on and pay $315/mo and 175 in insurance for another 27 months. I think I can conservatively get around 6500 for the car, maybe 8,000 if I get lucky. Even if I lost 1,500 on the vehicle I'd be saving money after 3 months. Also, let's say I pay it off and then get like 3500 or 4000 for it, I'd still be saving around seven grand over the period of the loan. What am I missing in this picture? Two questions. First, will I be miserable without a car living in Michigan? I do have quite a bit of motorcycle gear, but I'm still new to riding so riding in the snow could be a mess, but for work I can always walk, car pool. Second, if you had the same situation would you do this? Why or Why not? Texibus fucked around with this message at 19:17 on Aug 7, 2013 |
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Aug 7, 2013 19:15
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Texibus posted:I'm considering getting rid of my car, here's my situation: I'm about 5mi from work and moving to 7mi from work in DC and am in the process of doing exactly that. Granted I'm in DC so winters are lighter; but if you have any marginal telework capability and/or carpool options its definitely worth serious consideration. And if its not working out after a few months, buy a beater civic with the money you saved for those lovely days. Win/win.
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Aug 7, 2013 20:56
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Texibus posted:I'm considering getting rid of my car, here's my situation: Are you new in Michigan? Having only a motorcycle in the winter is going to be... rough. It's doable but you're going to have to rely on someone with a car a lot because it snows a lot in this state and the plows don't always keep up with the roads as much as you would like. You'll probably want to buy some chaps and other cold-riding gear if you insist on it. Sounds like you've got plans to get to work, and you're pretty close, walking a mile and a half in the snow is completely do-able. But beyond that you'll probably need a car. I usually mothball my bike in late October/early November, depending on the weather, it just gets too drat cold to ride it much. I really wouldn't recommend riding in the winter, and never, never, ever in the snow. It's just too goddamn cold and riding a motorcycle in the snow will probably kill you. 100 HOGS AGREE fucked around with this message at 21:06 on Aug 7, 2013 |
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Aug 7, 2013 21:03
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Walked posted:I'm about 5mi from work and moving to 7mi from work in DC and am in the process of doing exactly that. The winters in DC and Michigan don't really compare, though. A snowfall that would shut down the city in DC is basically "Tuesday" up north. Do other bike riders in your area use theirs in the winter? Why or why not? That might have an impact on the feasibility of your plan.
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Aug 7, 2013 21:03
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FrozenVent posted:The winters in DC and Michigan don't really compare, though. A snowfall that would shut down the city in DC is basically "Tuesday" up north. Remember too, we salt the poo poo out of our roads, riding over that poo poo is going to eat your bike. 100 HOGS AGREE fucked around with this message at 21:09 on Aug 7, 2013 |
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Aug 7, 2013 21:07
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Sell the car, buy a cheap beater for the winter. Put minimum coverage on it, and save up for a replacement beater every 2-5 years (depending on how lucky you get).
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Aug 7, 2013 21:24
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lampey posted:White chocolate are you eligible to get any pre service debts reduced to 6% via the SCRA? Also join usaa/navy fed/penfed and see about refinancing your car loan to a lower rate. 11% is a ton. SCRA no as I have never been active duty not training and I am thinking about refinancing my load with USAA(the original guarantor)
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Aug 7, 2013 21:34
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I must be missing why you can't pay off the car, and then keep it for another 10 years. I couldn't imagine riding a motorcycle around Detroit in the winter, and borrowing peoples cars all the time will get old quick. In fact, I don't see why you wouldn't sell off a motorcycle first.
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Aug 7, 2013 21:36
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Texibus posted:I also live with two people who have cars and would likely lend me theirs if I did need one. I would be careful on this one. It all depends on your state and whom your roommates have auto insurance through, but you may or may not be covered if you borrow their car as a roommate unless you have been added as a listed driver on their policy (and that may increase their premiums). I have heard horror stories of people getting dropped or insurance companies reducing/refusing to cover in situations like this. Just something to keep in mind.
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Aug 7, 2013 21:38
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100 HOGS AGREE posted:
Well, I'm not new to Michigan, been here for nearly 13 years. I am however, new to motorcycle riding, I just started about three months ago. I was just doing a budget and saw all the freaking money I could be saving just by dropping that one thing. Plus, I'd be doing something I completely love. Again, getting to the job isn't the issue it's 1.5 miles. I did 3 miles uphill both ways through the snow in my youth  so I'm not worried about that, my only two real hang ups on selling the car thing is this: Getting to social activities in the winter because of snow or cold, and I volunteer so I wouldn't have any way of transporting the kid I mentor around. Kinda wished we had those Zip Cars in this area.@Frozenvent: I haven't had an opportunity to speak with too many riders up here,(hogs is turning into a good resource!) but I will. I can say that my BRC instructors all claimed that they did ride their motorcycles year round, even in the winter, maybe I'll contact them. However, they were all older and I imagine if it got too dicey or needed a car they'd just jump into their wife's mini-van @Fancy: Good point on the insurance front, I'm pretty sure my bro-mates have Progressive and AAA, which I believe both cover occasional non-primary drivers. I know AAA does. Hell, maybe just getting added on to one of their policies would work too. @Harry: I hear what you're saying, the following is why I would rather get rid of the car: I find the motorcycle to be more appealing/fun to ride, won't be the case in the cold weather but it's 1.5 miles. It's more fuel efficient, would lower insurance by half and a payment that is a 1/3 the cost of my car. Also, I don't think I'd be bumming a car all the time, generally on a Saturday morning for 3 hours and to any social event that happens far away on snowy cold days. Good points though, stuff to think about. Texibus fucked around with this message at 22:35 on Aug 7, 2013 |
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Aug 7, 2013 22:06
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I almost sold my car when I got my first motorcycle four years ago, but I'm glad now that I didn't. I still love to ride it and choose the bike 9 times out of 10, but that 1 in 10 when I take the car is still a few times a week. You don't think about it much in day-to-day life, but if you add up all the times you've got luggage, shopping, a passenger, etc. you'll realize you actually use the car quite a bit. Yes you COULD get rid of the car and go strictly two wheels, but having that car with doors and a passenger seat and a trunk is a big help. Another thing you may not think about is if you're emotionally shaken up (end of a relationship, death of a relative, etc.) you probably shouldn't be on the bike. If you're not making ends meet and it's sell the car or get evicted, then sell the car, but if you can afford to keep a car, it's well worth it, even if you mostly ride. At the very least, don't get rid of it until you've had the bike for a year.
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Aug 7, 2013 22:50
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Yeah. The only costs my motorcycle incurs are my insurance and regular maintenance, it is so much cheaper than my car is. But I wouldn't feel comfortable not having a car and only having a motorcycle. I've been riding for like 5 years now.SlightlyMadman posted:I almost sold my car when I got my first motorcycle four years ago, but I'm glad now that I didn't. I still love to ride it and choose the bike 9 times out of 10, but that 1 in 10 when I take the car is still a few times a week. You don't think about it much in day-to-day life, but if you add up all the times you've got luggage, shopping, a passenger, etc. you'll realize you actually use the car quite a bit. It's really nice getting to work for two weeks on like 15 dollars of gas. My gas budget is so much lower in the riding season. I'm gonna keep it up this year until the snow comes. I only ever drive the car if I'm feeling sick in the morning or it's raining when I leave for work. Otherwise I will take the bike hands down every time. I've ridden in rain, it's not terrible, but sometimes you just don't want to get wet to go somewhere, and you have to be a lot more careful. All the dangers of riding a motorcycle are compounded when the conditions make you slower to maneuver and stop. And that chance of rain turns into a storm and you weren't keeping up with the weather before you left? You better find a gas station with cover or stop under an overpass because suddenly you can't see anything. Helmets don't come with windshield wipers. If you wanna go for a ride some time send me a PM though. 
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Aug 7, 2013 22:55
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100 HOGS AGREE posted:Helmets don't come with windshield wipers. But yeah everything you and Slightly Madman said. I personally never minded the infrequent bout of rain, but commuting is a daily risk that adds up, and nothing increases the odds you'll ride when tired, hung over, or emotionally distracted than when you have no other choice. As a new rider it's easy to keep focus, but I found as the novelty wore off I had an increasing tendency to do the same things I do driving a car- letting my mind wander to work, dinner, internet arguments. It was always good to be able to take a car when I wasn't up for a ride. Remy Marathe fucked around with this message at 00:29 on Aug 8, 2013 |
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Aug 7, 2013 23:46
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Is it possible to live on 41k a year while working and living just outside of Washington DC? I have a potential offer, and I would murder puppies to get over 30k a year, but the apartment rates are loving insane. Like, a minimum of 300 more than what I'm paying now. I don't even know about gas and food.
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Aug 8, 2013 00:21
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OMG JC a Bomb! posted:Is it possible to live on 41k a year while working and living just outside of Washington DC? I have a potential offer, and I would murder puppies to get over 30k a year, but the apartment rates are loving insane. Like, a minimum of 300 more than what I'm paying now. I don't even know about gas and food. With roommates, yeah. My girlfriend makes about 30k I think, and lives in Takoma Park, but she shares a house with four other people. Or you could always commute from Baltimore, but it's not nearly as cheap here as it used to be so I'm not sure it's worth it.
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Aug 8, 2013 01:22
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SlightlyMadman posted:With roommates, yeah. My girlfriend makes about 30k I think, and lives in Takoma Park, but she shares a house with four other people. Or you could always commute from Baltimore, but it's not nearly as cheap here as it used to be so I'm not sure it's worth it. Agree with this. 41k is on the low side in DC for living wages, but doable. Dont try to fly solo unless living in the outer suburbs; but inside the belway is doable (easily) with roommates.
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Aug 8, 2013 02:14
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Is it true that paying off really old accounts(like 4-5 years in my case) on your credit history has a worse effect on your credit score than just leaving them be because it makes them active again(or for any other reason)? That's the advice a few google searches have turned up. I have a few I could easily just wipe out in one payment each but if it's just going to hurt me gently caress it.
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Aug 10, 2013 10:31
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borodino posted:Is it true that paying off really old accounts(like 4-5 years in my case) on your credit history has a worse effect on your credit score than just leaving them be because it makes them active again(or for any other reason)? That's the advice a few google searches have turned up. I have a few I could easily just wipe out in one payment each but if it's just going to hurt me gently caress it. Why do you care about your credit score? Are you six months away from buying a house? If so you should want as little debt service as possible before going in; if not you shouldn't care about your credit score. Just pay the drat debt.
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Aug 10, 2013 12:24
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