Let’s All Throw Some Money at Our Problems

Logan: Or, at least, one specific problem, in the form of one specific debt. Paying off $20,000 in credit card debt seems impossibllleeeeee. But paying off my J.Crew card seems totally within my reach! We had this great idea that we should all keep track of one debt and check in every month with it.

Mike: Yes! We think it’s a good idea to check in every month, and show how much progress we’re all making. Making yourself publicly accountable for a debt is a good incentive to get you to pay it off.

Logan: So: If you have a debt that you would like to pay off, you are welcome and encouraged to play along! Psychologically, the way this is supposed to work is that every time we are about to spend money now, we think about what a dent that money could make in our balance, and then we don’t spend the money and instead come home and make a transfer to our cards/accounts/etc. Or we can just keep doing what we’re doing and maybe a little more and see the debt fall away like so many petals on a blown-out rose. (?) 

Mike: I think the main incentive will be seeing that number go down when we check in again next month to see where our numbers stand. It’ll be on the honor system, so if you check in next month and say you’ve paid off $50 on a credit card, when you’ve actually charged an extra $100, we won’t know. But you will, and you won’t be doing yourself any favors! Just be honest about your number, and we’ll support you along the way. That’s why we’re here.

Logan: Care to play along? Pick a debt that you have and hate and want to pay off, and tell us about it in the comments section below. And then … start paying it off. Or just keep making your minimums and see how not-far that is getting you (it is getting me not-far). I’m picking my J.Crew card first because the APR is OOC.

Debt: JCREW CARD
Thanks for the memories: Several winter coats! Lots of stress shopping! Some great shoes! No regrets! (Okay, a few regrets.)
APR: 24.99%
6/19 balance: $567.20
Minimum payment:  $30
Years to pay off if I only make min payment: 2
Amount I’ll end up paying: $729

Mike: And I’m doing this too! If you don’t have credit card debt, maybe you have student loans, or a car or home loan, or you borrowed some money from a friend or relative. I’m going to start by putting one of my student loans on here—a Sallie Mae private loan I’ve been paying back very slowly for the past seven years.

Debt: Sallie Mae Private Student Loan
Interest Rate: 4.5%
Balance 6/19: $1,635

P.S. If you have no debts, one, good job. Two, we’ll start a separate thing for savings goals, so you can play too! Let’s throw money at this problem, and do this thing.

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56 Comments / Post A Comment

Megano! (#124)

I just want to say, if you had all of your post images come from Arrested Development, I would be more than OK with that.

Marissa (#467)

@Megano! “Return from whence you came, credit card debt!”

@Marissa I’m still waiting for a post on why it’s not a good idea to keep all your savings in cash in the walls of a banana stand.

Dancercise (#94)

“I’ve got a rabbit to buy.”

Marissa (#467)

I have a regular savings account with a sum I’m comfortable with that I haven’t added to since I reached my goal amount. I have since opened up another savings account I call “The Fun Fund.” It will either go toward: 1) paying off my student loans a lot sooner than I originally planned, 2) doing some serious travel, or 3) investing in big kid furniture and the like. Obviously, there is a great discrepancy between 2 and 3. I have no idea what I want out of life (or I do, but it’s too many different things!) Either way, the money will be there when I finally figure it all out. I’m going to try to up the money I put away each month to $500. I was doing that for a little while, but it was really difficult. I’m up for the challenge again, though. And my body would probably appreciate it if I stopped buying so much fancy cheese. If it weren’t for my unhealthy addiction to Humboldt Fog and Sottoncenere, I probably could have paid off my student loans already!

kellyography (#250)

Last month (when I found out I probably wasn’t going to get to move, ever), I wrote a check for $5,000 to Sallie Mae. Writing it out makes me really sad, because I still have to do two more and then some before my student loans are all paid off, and that is SO MUCH MONEY. But it’s accruing some kind of crazy interest so if I pay it off sooner rather than later, I will have saved money in the long run. I just keep telling myself that.

Spinach Party (#253)

Truly fantastic idea guys! The community here is what I love most, and like you said, “making yourself publicly accountable for a debt is a good incentive to get you to pay it off.” I’m the weirdo (without debt) who follows personal debt-reduction blogs, to… send out good vibes to people? Hope you all feel my good vibes!

I actually recently just paid off my car debt a couple weeks ago! I had been saving to buy a car forever (5 years, but really the last 2 years hardcore) but was still roughly $1000 short. But I just paid it off and got the title in the mail- woot!

My next debt is to my coworker and her boyfriend. They bought me some drinks and pizza right when I moved to town a month or so ago. I tried my hardest to treat them to drinks at the next happy hour, but failed (they secretly threw a $20 down, it was a mess).

BUT, they just got engaged! So my now my evil plan is to at least buy them a couple bottles of champagne, which will be impossible for them to refuse. And will also ease my mind if they still finagle out of me treating them to happy hour drinks.

moreteawesley (#545)

Oh, I am IN. I’m really feeling the get out of debt spirit lately. I had three chunks of “consumer debt,” (non-student loan, non-medical bills) a week ago, now I have two (goodbye, stupid high-APR credit card!), so I am going to tackle the smaller one first.

Current balance: $1,074.93
Interest rate: 19.99% (WHY DID I DO THIS)
Current minimum payment: $33
How long it will take me to pay it off if I only make the minimum payment: 3.9 years according to an online calculator, 12 years according to the credit card statement (that seems like a huge discrepancy so I’m not even sure what’s going on, but either way, too long).
How much I will end up paying: Almost 2x my actual balance.
How sick that makes me to write out: Really really sick, please hold while I go throw up
How much I going to go pop another $10 toward that debt right now: So much. (Done.)

sox (#246)

Oooh, since Mike taught me about snowballing, I want you all to know that I am finally on a financial plan that will work for me! So I’m paying off my highest interest credit card by about 4x the minimum payment each month, putting minimum payments on my others (on Autopay so they can’t be late!), and 5% of my income after taxes/deductions in savings.

But before I do this, I have a question! Just spoke with my company’s 401k rep and he asked how much I have in my savings, aka emergency fund, which is…about 1/2 of one month’s total expenses? Ouch. Anyway, he said I should I focus on getting 3-6 months of expenses saved up before I snowball but that seems like so much stupid interest in incur (ahem, ~$1,300 @ 24.99%. yes. that’s right. 24.99%). Mike, what are your thoughts???

CubeRootOfPi (#1,098)

@sox I’m not Mike Dang, obviously, but IMO it depends on your current life factors and what you feel is right for you (e.g. job security, how you feel about risk, health issues). It also doesn’t have to be an either/or situation a la Dave Ramsey ($1,000 emergency then balls out with paying off debt!) v. Suze Orman (8 months emergency fund, then debt!) – for example, instead of paying 4x the minimum payment, you can put in 3x (or whatever amount) into debt payments and put more into savings.

ThatJenn (#916)

@CubeRootOfPi Yes, I tend to think of money I don’t need to pay my immediate expenses (plus a very small “wants” fund now that I’m not a student) as money to be distributed between debt and savings. I adjust the balance between the two every few months depending on how much debt and savings I have, but I’m always throwing money at both.

Mike Dang (#2)

@sox My thoughts: Financial advisors really like to say that people need to have 3-6 or 9 months worth in emergency savings, but what they really mean is that you need to have an emergency plan you can rely on in case you ever lose your main source of income. We’re all different people with unique circumstances. Do you have parents, or siblings, or really close friends who would let you crash with them until you got back on your feet? Great, make that part of your emergency plan, and consider that when you think about how much money you need in emergency savings. Don’t have people you can rely on? Okay, yes, you need some cash saved up so you know you’ll be able to weather the hard times—have at least one month’s worth of expenses. Once you have an emergency plan figured out, you can start tackling that debt as hard as you can.

sox (#246)

@everyone: thanks y’all! Guess I’ll have to play the savings game for a bit before I can play this debt payoff game…but I will. I WILL!

I juuust transferred my Visa debt to my bank’s line of credit, which makes paying it off significantly more possible. I’d gotten my Visa from $0 to $1000 in just a couple months due to two semi-emergency family trips out of town (the cost of the car rentals + gas + food + etc). When I realized that I was accumulating $20 in interest charges I paid off my Visa with my $5000 line of credit (which I applied for when it was offered to me about 8 years ago and have never used until now!)

Debt: Previously Visa/Now Line of Credit
Rate: 3% (Visa was 19.5%!)
Current balance: $954.51
Minimum payment: I’ve set up an automatic transfer of $50 biweekly + I’ll throw any extra money I get from my occasional second job at it

Hopefully I can actually get this debt back down to $0 within a year.

Best Buy credit card, current balance $671.39, interest rate…I don’t know, it’s written down somewhere, I think it’s about 24.99%. Of all the debt I’m currently carrying it’s both my lowest balance and my highest interest rate, so when I started wanting to throw more money at my debt it was the logical first target.

Hey, you guys know about this credit card repayment system right? I can’t remember what they call it but it goes like this:

OK, so first you start by paying the monthly minimum on ALL your various debts. Can you afford that? Great. Keep doing that until the smallest one is totally paid off.

Now, you keep paying the same total amount per month, but you add what had been the payment on the now-paid-off card to the payment on the remaining debt with the highest interest rate. Your total monthly payment remains the same, but now you are throwing more money at your high-interest card.

As you pay off more of the smaller items, just keep doing the same thing. Eventually, things will snowball and your debt will be gone before you know it. Well OK, in a few years. But the important thing is it’s one known monthly payment that you can budget around!

(If you run the numbers, it makes total sense, trust.)

Edit: Oh, shouldn’t have just skimmed the comments up there. Whoops.

kitten_witawip (#1,309)

@stuffisthings Don’t forget to pay off the highest interest cards first.

lemons! (#384)

You guys I just realized I could pay off my student loans and have $103 left in my savings. I’d never have to think about it again and then I could rebuild my savings and be debt free. FREE! I’m going to sit with this.
Also 8mo of savings seems a bit much if you don’t have dependents, sorry Suze Orman but my .9% savings interest is not that tempting. I’d rather have 3 mo. of salary in savings and a series of CDs that add up to 8mo.

ThatJenn (#916)

@Dont Move to Finland I’ve run into situations like this and tried to decide what to do. Usually I compromise: this month, I throw a third of my savings at the loan and then continue saving/paying minimums as usual for a while Three months later, I reevaluate and maybe throw the next third at it. By then the balance is just a third of what it was, I still have a really good chunk of my savings, and it seems like maybe I can pay off the rest by being extra-frugal for a few months and just throwing normal (checking account) cash at it whenever I can.

Yay! I’m so glad this is happening.

I’m going to start with my lowest CC debt, which is also my lowest interest rate, but which has to be paid off by October or I’ll accrue that 24 months of transfer-interest-whatever (it was one of those low interest for 24 months things, you know).

SO!
VACU Visa: $1081.89
Interest rate: 6%
Have to pay off by: Oct 21
Which means I should pay per month: $270

I could theoretically pay it off now, today, I have the money left from the funds my parents gave me for a down payment. It would be the last of my cushion, though, and since I don’t know what to expect of utility bills/further settling in, I feel like it would be kind of a dumb move to use that thousand bucks quite yet. BUT $270 a month, I can do that.

aetataureate (#1,310)

This is not a debt per se, but someone stole my car two weeks ago, so now I need to emergency save whatever I can in the next few months toward getting a new (used) car.

@aetataureate That is a huge bummer, I’m sorry! Good luck!

bgprincipessa (#699)

I like this! I will probably wait for the savings side to participate, as I’m usually able to pay off my cc debt every month or maybe 2 months at most. (usually!) I do have student loans from undergrad, but I’m not actively trying to pay those off right now since I’ll be taking out a bunch more soon when I start grad school.

This has however made me start to think more about APR. I’m not sure I fully understand it. I avoid store cc because they seem to have bad plans, but now I just realized that my 2 cc have 18.99% and 20% … that doesn’t seem very good either!

Derbel McDillet (#1,241)

It makes me feel kind of hyperventilatey that my CC balance is so much higher than what everyone else is listing here! The one card that still has a balance has a hefty $3750. But but but the APR is 9.9%, which doesn’t seem too terrible compared to what I’m seeing here. I’m currently just paying the $68 minimum since I’m in grad school, but plan on throwing some serious money at it once I graduate (or rather, once I get a real job).

aetataureate (#1,310)

@AconyBelle I’d like a second opinion here, but it seems like it could benefit you to even pay $10 or $20 a month more down on the card, if that wouldn’t hurt too much.

ThatJenn (#916)

@AconyBelle I agree with @aetataureate – every little bit helps and you’ll thank yourself later. (If you want to feel good about balances, check out my debt below – but I’m also FINALLY not a grad student anymore and was lucky to land a relatively well-paying job, so it’s not fully comparable.)

Derbel McDillet (#1,241)

@aetataureate You guys are right, and I can definitely afford an extra $10-$20 a month. And thanks, Jenn, it’s nice to see something a little more in my ballpark. Sigh.

@AconyBelle Eh I have two other, larger debts than the one I listed here–one higher than yours! I agree w/ the idea that you should pay a little more. Maybe even just round up to $75 (or just $70) and if you’re okay with that extra $7 gone, add another $5 a month till you’re making a little headway?

aetataureate (#1,310)

@AconyBelle Plus Logan has higher other debts. I think the idea with this is that people with multiple things are choosing something accessible to work on first. You just have the one thing for now, which, though it is large, is the only one, and that’s something positive!

moreteawesley (#545)

@AconyBelle: I definitely have higher debts! I have about 7k left on my car loan and too many ks in medical bills to even think about. I can’t speak for anyone else, but I’m starting small. Knock it out and concentrate on the bigger ones later.

ThatJenn (#916)

Yes!

First, my main credit card – one on which, a few years ago, I had over $21k in debt (yes, on one card, and no, I have no idea why a bank allowed me to have over $25k in credit back when I was 22 and unemployed). It’s been paid off totally once or twice but this spring I had some big, unexpected purchases on it, and I’m about to have to actually pay interest on it for the first time in ages. I actually had to call the bank to find out how they calculate minimum payments (turns out it’s 1% of the balance plus the interest accrued during that month; she walked me through the math, too, which rocked), because I’ve been paying off all my new purchases for so long that I have no idea (if I pay off my purchases from the previous month by making payments throughout the month so no debt on there is more than a month old, they don’t accrue interest and there’s no minimum payment listed).

Debt: Main card
Thanks for the memories: New A/C system for my car; down payment on new A/C/heater for my house (the rest is on another no-interest card); dental work; plane tickets for me and my dude to go to my family reunion and for me to visit friends; regular old groceries and things. Sigh.
APR: 8.9% (I love my credit card company)
6/20 balance: $3,586.17
Minimum payment: 62.47
Years to pay off if I only make min payment: 6.3 (really?? wow.)
Amount I’ll end up paying: An additional $2,269.24

Debt: The “Home Projects Visa” with 0% interest rate for three years that I got to finance the new HVAC system in my house – home ownership is a lot of fun, guys.
Thanks for the memories: I actually got a sweet rebate from my utility company that has cancelled ALL of my utility bills for several months, and my electricity bills are at an all-time low after five years in this house, so it’s actually pretty sweet.
APR: 0% until spring 2015, and the minimum payments are set up so they’ll pay it off by then (plus I made a bunch of extra payments right before all the above drama hit).
6/20 balance: $6,236.44 (awesome considering it was at nearly $9k when I started in February)
Minimum payment: 222.76
Time to pay off if I stick with the minimum: 2 years, 4 months
I won’t pay any extra, but I really, really want to pay this off sooner rather than later.

Debt: Car loan
Thanks for the memories: This stupid car has cost me almost as much in maintenance as I paid for it in the first place. I’ve pumped about $8k of repairs into it, some of which are still on that first card, and it cost me $12.5k to buy. I keep thinking “Surely, this will be the last – oh never mind.” I love driving it, though, and I WILL get it to keep running until I pay off the loan.
APR: 4% (it’s a really good loan)
6/20 balance: I think about $5000; I’ll correct it to the exact amount next time
Minimum payment: $230.45
Years to pay off if I only make minimum payment: just under two years
I’ve already been paying an extra $150/month towards this, so that really helps. In fact, it probably means my balance is lower than I think. (I almost never check.)

Debt: Mortgage (sigh)
Thanks for the memories: I’ve put like $35k worth of work into this house. There is a reason I was in so much credit card debt way back when. It is a moneysink. But it is home.
APR: Really embarrassingly low for how much I complain about it
Balance: $110,000ish (I also never check this one)
It’s a 25-year mortgage from a recent refinance (my ex and I split up, so I bought him out of the house and refinanced into my name). Due to the addition of a second mortgage to pay for the aforementioned bills that’s now rolled into this mortgage, I haven’t paid down ANY of the principal from when I bought it at the exact top of the housing market 4 years ago. Luckily, so far the housing market has only eaten up my gigantic down payment – I’m just barely not underwater at the moment assuming my improvements actually added value to the house – so that’s good? But the market hasn’t recovered at all where I am, and has declined more or less steadily for five years, so I doubt I’ll pay down the mortgage as fast as the value declines. Sigh.

RachelG8489 (#1,297)

I don’t have any consumer debt yet- I’ve never made a really major purchase like a car or whatever, and didn’t get a credit card in college which probably helped. So I have my $15,000+ in student loans!

Thanks for the memories: College was awesome, and totally worth the relatively reasonable amount of loans.
APR: 5.075%
Minimum payment: $75, on a graduated plan so the minimum goes up every two years
Years to pay off it I only make minimum payment: 15
I don’t really feel like taking 15 years to pay off that debt, though. I’ve got the minimum payments on autopay, and then I’m throwing extra towards it when I can. I want to built up my almost-nonexistent emergency fund a bit first, but I have some bonds that I’m cashing in and throwing towards that this summer, so I’m hoping to start putting an extra $25-50 per month on the loan, which will speed things up.

myrna.minkoff (#272)

Debt: CapitalOne Card
APR: 9.9%
6/19 balance: $1298
Minimum payment: $25
Years to pay off if I only make min payment: 5.5
Amount I’ll end up paying: $1701

Debt: Citicard
APR: 20.9%
6/19 balance: $1118
Minimum payment: $35
Years to pay off if I only make min payment: 4
Amount I’ll end up paying: $1647

*wheeze*

Luckily, I should be receiving a substantial rent deposit check in the mail soon, which will take a nice chunk out of the citicard. Also, I am living at home until I leave for school so I can throw a few hundred extra a month at each.

One serious question I wonder is: is it worth it to spend student loan money on the remaining balances when I get to school? I am anticipating severe student poverty when I get to school, and I’m not sure I’ll be able to pay even the minimum amount every month… My tuition is covered, and I get a (pathetically small) stipend, so I won’t have a large amount of student debt when I graduate.

Derbel McDillet (#1,241)

@myrna.minkoff I have exactly the same question! I anticipate having a good size chunk of change when I graduate next year, due to putting my student loan refund into savings and only using it in dire circumstances. Once I’ve secured a job, should I use that money to pay off the CC, since it has a higher interest rate, or just send it back to pay off most of my student loan because that’s where the money came from? I also won’t have a huge amount of student loan debt either, so I’m not really scared of that particular number.

Jellybish (#560)

Debt: student loan
Thanks for the memories: This isn’t my loan. I married this debt. And my husband never finished this graduate degree.
Interest rate: 3.125%
Balance: $1500
Minimum payment: $223.07
Actual payment we make: $250
Time to pay off: 6 months

RocketSurgeon (#747)

I just learned a lesson in finance charges that may be of interest (ha ha, get it?). I sent AmEx a payment on June 8 in order to pay off my balance before the statement closed on June 14. But when the statement posted, I see that I got a finance charge even though I’d paid my balance (and then some) 5 days previously.

It turns out they assess the finance charges on the “average daily balance”, not on the balance on the card at the time the statement closes. I did not know this. It’s tricky, because the average daily balance is the total balance from each day/number of days in billing cycle * APR. So even if you pay your balance before the next cycle closes to avoid paying a finance charge, they still charge you for the average of all the debt carried during the cycle, even if the last 5 days are 0 balance, you’re still paying for something. Luckily, it only took a 5min phone call to reverse it, but still. SNEAKY!

Dancercise (#94)

As of 6/15, I’ve had my car for 1 year, which means I’ve paid off 1/5 of my loan! Only… 48 more months and $12,250 to go! I’ve love to participate in paying that down more, but the monthly payments are about at my limit right now.

OhMarie (#299)

Y’all, I have a house and it costed soooooo much money. It did make financial sense (the mr. and I both work from home and therefore need a little extra room; rent in this area for the kind of place we need is higher than mortgage payments) but JESUS is is a big number.

Debt: Mortgage
Thanks for the memories: I am going to wring every year I possibly can out of this house!
Interest rate: 4.5%
6/19 balance: $264,427
Minimum payment: $1478 (plus tax and insurance)
Years to pay off if I only make min payment: 24.5
Amount I’ll end up paying: Oh god, all of the money in the world. I don’t even know how to figure this out. Proabably half a million dollars.

IWannaBeKate (#1,323)

Fun! And also not fun because ARGHHH DEBT.

I have one credit card that I actually use (and a J Crew one that I’m terrified of ever using because once I open that Pandora’s Box, baaaad things…). As of 6/20, my balance is $1,023.28. My limit is $1,500, which hasn’t changed since 2009 because Capital One is terrible and never increases my limit. Although it’s probably a good thing that they never increased it, since I get all stressed out when my balance is over $1,000 and try to pay it all off as quickly as possible.

I always pay $100 every month, which would make a big difference if I just STOPPED USING IT.

This is awesome! I wanted to share something that this site inspired me to do (sort of). . .

So, I have a great job and just got a promotion with pay. I have student loans and a mortgage, but they are fairly reasonable. I do have some credit card debt, not much, somewhere under $500 right now. And I have about 3 different savings accounts for varying levels of savings and emergencies.

I put myself on a really strict budget to try and save tons of money and pay down my credit cards. But honestly? I think the act of paying out a big chunk of my income every two weeks was really taking its toll. So I made the decision to go ahead and use a bit of my savings and pay off all of my credit cards so I can stop worrying about that outstanding debt in the back of my mind.

Maaaybe not the best decision ever, especially if I run them up again. My ultimate hope is with my new raise and my savings getting to where I want them to be (and being automatic) that I will stop using my credit cards all together. I wanted to be responsible and have my payments as a kind of “punishment” that come out of my regular expenses, but. . .why? I figured I would stop being mean to myself and just get it done.

The money is transferring over this week and everything should be paid off by Monday. It’s a little thing, but I like it. And my hope is that my checking account “backup” funds are where I want them to be at the end of the summer, so I don’t have to worry about my balance everytime I go out to eat. Yay for making decisions to be happy!

lizziefresh (#651)

So what I am attacking the most aggressively right now:

Balance: $3091.61
Thanks for the memories: I was so irresponsible here. Had work expenses here and then when I was reimbursed just spent the money. Ugh. Some move in expenses for my last apartment. Some random vacation spending to CO and CA.
APR: 23.99%
Minimum payment: $88
How long and how much if I pay the mins: 15 years and $7438. (ouch!)
What I’m now playing: So since I started getting serious I’ve been paying at least $130 a month (what the min was at that point) + whatever interest accrued + any new charges. PLUS I get paid once a month, so I make my payment as soon as I’m paid then halfway through the month I talk a close look at my spending and try to put a small amount extra (so normally like $10-$20).

I started being really serious about dealing with debt and money stress in Feb and it’s really been the best thing for my sanity. Sometimes it sucks, but it’s so awesome not constantly having the feeling that everything will go wrong any second.

jason (#1,335)

So I’m going to put a number out here that I think will make everybody feel better about their own situation: $169,302.75.
Owed to the Department of Education, by way of Sallie Mae (I went to law school).

Interest rates ranging from 6.8-8.5% (it’s a lot of smaller loans with different rates). Luckily, the interest payments are tax deductible.

Minimum payment without IBR: ~$1800/mo
Minimum payment with IBR: $0 (based on my tax return from last year, when I made no money).

What do we think? Pay down aggressively, or stay on IBR for 25 years?

Okay! You guys motivated me to find out more information about my only debt! I don’t receive monthly statements for this one or anything so I had no idea what was left on it. (I also have about $1500 on my CC right now but most of it is work expenses that I get reimbursed for so it’s all good)

Debt: CAR LOAN
Thanks for the memories: I love my car. Sure I backed it into somebody else’s car within a month of ownership racking up over $2000 in damages (for them – $0 for me as my car just got a tiny little kink in the back bumper and also, I could not afford to repair it anyway). And SURE it’s a Chevrolet Cobalt, replaced in the GM lineup by the far superior Cruze, yadda yadda yadda. But I love it anyway. And I need it to do my job. So it all works out.
APR: 0% (This is possible right? I sometimes worry that the car financing people are scamming me.)
6/19 balance: $6716.58
Monthly payment: $173.00
Years to pay off if I only make min payment: 3 and a bit
Amount I’ll end up paying: $6716.58 (I think? Right? if I have 0% financing? Supposedly?)

I don’t know what to do with this bad boy. I guess I could refinance it to be making a higher monthly payment? Is that what I’d have to do? It’s pre-authorized monthly payments so… Or I could throw a chunk of my savings towards it although I don’t want to do that. I’ve heard that if you total your car, you have different options (better options?) depending on if you’ve paid it in full or not.

@redheadedandcrazy More information I found out about my car loan:

1. It is 0% financing.
2. I have 39 payments left, ending in August 2015.
3. I can’t change my monthly payment but I could make larger payments at any time by sending a cheque or whatever.

In conclusion, since I’m not paying any interest, I think I will continue to put my money into savings and just keep paying the monthly balance. Boring conclusion.

jtich (#4,058)

@redheaded&crazy actually, you’re losing what is called “opportunity” because your money is tied up in a stupid car payment. Here is a link to a great article that can help you get to not ever having a car payment again! http://www.daveramsey.com/article/the-truth-about-car-payments/lifeandmoney_automobiles/

@jtich thanks for the info! it doesn’t help me right now. but good to know for the future.

Okay. Somewhat spontaneously, inspired by this article, I just paid my entire credit card bill (several thousand dollars). This means that I only have ~$1000 left in my savings account…but the credit balance is gone!

I am seeing this a little late, but want to join in! Mostly because I also have a JCrew card balance from stress shopping.

JCrew Card
APR: 24.99%
6/26 Balance: $681.01
Minimum Payment: $35
Years to pay off if I only make minimum payment: 2
Amount I’ll end up paying: $874

vannyg (#2,525)

Hi there,
I want to join in too!

10/24:$3,000
APR:24%
Minimum Payment: $50
Years to pay off: forever
Goal:To pay off in two months and stop using the card.

ArizonaTime (#2,694)

Was unemployed/job searching for all of June so compounded some more debt, but I HAVE A JOB NOW! SO EXCITED TO START PAYING THIS OFF NEXT MONTH!

Paying off my “I don’t have enough cash to move to New York City loan,” 4% interest and $147 minimum monthly payment.

May Balance: $2,903.20
June Balance: $2,765.26

Vacation Fund (still bye bye)

May balance: $0
June Balance: $0

Chase Freedom 0% APR for 15 months, opened to get me through grad school:

May balance: $4,318
June balance: $5,296.72

Amex Delta Skymiles card, 12.99% APR:

May balance: $0
June balance: $978.60

lemonflower (#5,137)

Hmm. I’m debt free, but I’d like to save $30,000 (down payment on a house someday, not that I’d get a loan – but my partner might and anyway I just like having money). I pay $800/month in rent and earn $15,000 a year. I have $7,000 saved after four years of professional life (all at the same pay rate). More realistically I’d like to max out my Roth IRA, but I’ve had a series of unexpected breakages lately, expensive things I need to replace for work, so I might not make it this year.

pinches (#3,520)

I’m debt free but I want to offer my words of encouragement to everyone who is brave enough to post their balances here! You can do it!

I’ll be waiting for the savings post…

roseknows (#7,343)

I’m so excited about this!

My current credit card balance as of 7/31 is $3,170.13 and my goal is to pay it off by January 1st, 2015.

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