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Thread: Which credit card debt should I start paying first?

  1. #21
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    Originally Posted by Jibralta
    Wow, your high card charges you $60/month in interest @ the $2900 balance, whereas your low card charges only $4/mo @ the $700 balance. Yeah, pay down that high one as quickly as you can!!
    No it's $40 a month interest every 1st of the month

  2. #22
    Platinum Member Jibralta's Avatar
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    Originally Posted by Wiseman2
    If youíre borrowing money (using a credit card, for example), they quote you an APR, which is the simple rate. So, even though itís compounded monthly and thus the growth of the balance in a year will be more than that rate, they advertise the lower simple rate. Letís look at an example: letís say you borrow $3,000 on a credit card at a 24.99% APR. At first glance, the interest rate seems to indicate that you would have to pay $749.70 extra after a year, but thatís just not the case. If the credit card compounds monthly, youíll actually owe a total of $3,841.82 Ė an extra $92.12. Itís even worse if they compound more often than monthly.
    You are talking about the APY (normalization of compounding interest). Yes, depending on whether his payments are first applied to principal or interest, some portion of the interest (if not all of it) will compound.

  3. #23
    Platinum Member Jibralta's Avatar
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    Originally Posted by sd95
    No it's $40 a month interest every 1st of the month
    How so?



    12345

  4. #24
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    Originally Posted by Jibralta
    How so?



    12345

    That's what I am charged every first of the month based on the interest.

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  6. #25
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    Originally Posted by Jibralta
    How so?



    12345

    My bad, it's 16.49% interest which charges me $41.69 a month.


    24.99% is the interest on my Bed Mattress Store credit card which I paid off last summer

  7. #26
    Bronze Member Blue Dreamer's Avatar
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    Surely you have learned to not use these cards in any further fashion? Just pay them both off ASAP and move on to a better life.

  8. #27
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    Originally Posted by Blue Dreamer
    Surely you have learned to not use these cards in any further fashion? Just pay them both off ASAP and move on to a better life.

    No I plan to use them after paying them off because I an a responsible spender. Both cards were only used to the max because lost my job and had to use both cards to pay rent and bills for 3 months.

  9. #28
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    Originally Posted by sd95
    No I plan to use them after paying them off because I an a responsible spender. Both cards were only used to the max because lost my job and had to use both cards to pay rent and bills for 3 months.
    did you not collect unemployment?

    That's not being the responsible spender you say you are.

    A responsible spender would have had.
    1) An emergency fund that would have covered rent and bills for three months.
    If you had not yet saved up that much, at least rent.

    2) cancel all cancellable luxuries such as streaming services.

    3) You would have picked up a job that was easy to get and was flexible, such as waiting tables, until you secured a job in your field.

    4) Shop around for a credit card that had 0% balance transfer to give you a little bit of a breather so you are not compounding interest.

    5) If you were desperate, a personal loan from a credit union would be a much lower percentage rate. I would open a small savings account with the local credit union to establish a relationship should you ever be in that situation again. A personal loan at 3-12% is much better than 24.99%

    Now, you should pay down your debt and also contribute to an emergency fund so that you will not put any emergency item back on your credit card. Use them for airline tickets, and only for items there you must put them on a card for protection, but only if you have the cash to pay it off immediately.

    Going forward things may help you become a responsible spender.

  10. #29
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    Originally Posted by abitbroken
    did you not collect unemployment?

    That's not being the responsible spender you say you are.

    A responsible spender would have had.
    1) An emergency fund that would have covered rent and bills for three months.
    If you had not yet saved up that much, at least rent.

    2) cancel all cancellable luxuries such as streaming services.

    3) You would have picked up a job that was easy to get and was flexible, such as waiting tables, until you secured a job in your field.

    4) Shop around for a credit card that had 0% balance transfer to give you a little bit of a breather so you are not compounding interest.

    5) If you were desperate, a personal loan from a credit union would be a much lower percentage rate. I would open a small savings account with the local credit union to establish a relationship should you ever be in that situation again. A personal loan at 3-12% is much better than 24.99%

    Now, you should pay down your debt and also contribute to an emergency fund so that you will not put any emergency item back on your credit card. Use them for airline tickets, and only for items there you must put them on a card for protection, but only if you have the cash to pay it off immediately.

    Going forward things may help you become a responsible spender.

    When you are fired you are not eligible for unemployment.

  11. #30
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    Originally Posted by sd95
    When you are fired you are not eligible for unemployment.
    Well, make sure that you don't do anything again which requires disciplanary action. But ALL of the other points in my post still apply. There was only one line about unemployment, and that was the only thing you chose to pick out of it to negate my entire point

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