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Janmurr
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Bonus & commissions  Reply with quote  

Here's our financial dilemma: we expect to get approx 12k-13k in bonus and commissions next month. We have 4 cc (12k @ 0% till 2013) (4k @ 10%) (4k @ 13%) (6k @ 13%). My husband will also be getting approx 1k per month in commissions. We are not frivolous spenders but just kept ends meeting in the past few years. Our main goal is to get out of this debt but we also have no savings.
Post Wed Feb 22, 2012 1:38 pm
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coaster
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And your question is?

~Tim~
Post Wed Feb 22, 2012 4:45 pm
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Janmurr
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Sorry bout that. I guess we are looking for advice on the best way to use the funds that we are expecting. Our biggest cc balance has zero interest for a short term but w a larger monthly payment We aren't sure whether or not to pay on that balance to bring it down or pay off the small ones that have interest charges. We also need to build a savings account again so we feel like some $ should be put away for an emergency. We are both almost in our 50's and have one child left at home (a Jr. in HS)
Post Wed Feb 22, 2012 6:09 pm
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oldguy
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So - how does "$26,000 in revolving consumer debt" go with "not frivolous"? <kidding>

I would definitely want rid of the $10,000 @ 13%, that is hurting you - $1300/year is a lot of interest just for the use of $10,000.

We need one more peice of info before we can tell you the next move - what will the 0% loan default to in 2013? If it will be higher than 10%, you may need to keep the 10% loan for a while and prepay the 0%.
Post Wed Feb 22, 2012 8:15 pm
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asapcc
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Yes... the key is to pay off your highest interest rate cards first! So obviously the 13% cards should be your first priority. Then, you definitely want to consider an emergency fund if you have no savings.

I would take $10K and pay the two 13% cards off immediately. This will leave you with $2-3K. Put it aside, keep paying down the 10% offer slowly and determine a plan for the 0% offer. If you're going to get hit with a high interest rate in 2013, you'll definitely want to start paying it down ahead of time with a portion of the $1000 per month commissions...
Post Thu Feb 23, 2012 6:24 am
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Boso
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it's seems that it's a good idea...worth trying...
Post Fri Mar 30, 2012 2:04 am
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lena012
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I would agree with asapcc on this one. Start getting rid of high interest rates(13%). And if you pay them off, add the money that you pay for them for the your other credit card (10% and 0%).

And it is really important to set aside a little money to put up on your savings since you are not getting any younger. A monthly savings of $50-$100 is good enough. You just have to budget your money.
Post Sat Mar 31, 2012 4:45 pm
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loanuniverse
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I think is important to not fall into the trap of using double digit revolving debt again.

Do not close the credit card after you pay it off because it will affect your credit score due to the {usage vs availability} formula, but do rip it off so that there is no temptation to use it again.

Carrying $26,000 in debt is too much. The only debt should be a mortgage and a car loan, and if you really want to get "non-frivolous" then you should be buying used cars with cash so the only debt is the mortgage.
Post Sat Mar 31, 2012 8:30 pm
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