The loan saga continues...
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Posted by CC Collector
(12.220.80.168) on September 12, 2002 at 15:40:40:
For those of you just tuning in, here is rundown of my debt: $1100 CC debt @ 2.9% and 14.65%
$2186 engagement ring debt @ 0% until 7/03
$8994 auto loan debt @ 13.3%, 41 months remaining Thank all of you very much for advise so far. Ok, the bank calls today and says that I was turned down for the unsecured, 13-15% $3000 loan but they will "definitely" get me approved with the underwriter because they said I have a good beacon score but was refused credit because my average account age is less than 2 years (I'm 19). They said they will e-mail the underwriter and have me approved. I understand that it is very stupid of me to switch from 2.9% and 14.65% to 15%. The 5.75% card only has a 500 credit line, as does my 2.9% until 12/02. My 14.65% has my largest balance, $857 dollars. So, what I want to do is pay off my credit cards ($1100) pay for real estate school ($780) and then give the rest of the loan money right back to the bank before the first interest accrues on $3000... so we'll be looking at $2000 @ 15%. It will take me 8 months to pay off $2000. My math tells me that is about $138.75 that the bank gets in interest for those 8 months. I pay $150 to my 14.65 ($850 bal) a month and $100 to my 2.9% ($200 bal) a month. If my math is right again, it will take me 2 months to pay off my Sears and they will get about 87 cents in interest. It will take my 6 months to pay off $850 and they will get almost $43 in interest. So... that means if I use $2000 at $15 I will pay about $139 in interest while if I pay my credit cards off the way I am now it is about $44 in interest. However, getting the loan enables me to goto real estate school about 6-12 months early because I won't have to pay off my credit cards and then save up $780.. Basically, it comes down to: Do I want to spend about $100 dollars to go to real estate school 6-12 months earlier than planned? Yes.
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