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View Poll Results: What percent of people live by "managed debt"? | |||
0-25 | 11 | 6.96% | |
26-50 | 12 | 7.59% | |
51-75 | 80 | 50.63% | |
76-100 | 55 | 34.81% | |
Voters: 158. You may not vote on this poll |
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10-04-2012, 09:57 AM | #301 | ||
Scooby Specialist
Member#: 87081
Join Date: May 2005
Chapter/Region:
NESIC
Location: South Easton, MA
Vehicle:05 PSM STi 05 AW XTi |
Quote:
Quote:
seriously. it was an old lady special. got the car in 06, it was ~6 yrs old then with 32k miles on it, all the paper tags were still on the undercarriage and even on the axles, receipts from the day it was new all from the dealer and it was garage kept...
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10-04-2012, 10:02 AM | #302 |
Scooby Specialist
Member#: 74041
Join Date: Nov 2004
Chapter/Region:
Tri-State
Location: Suburbia PA
Vehicle:2006 2012 Weee-strom 14 Hyundai Borenata |
I'm currently living on 'managed debt', but it is not large, under $2k. It was alot better at the beginning of the year but stuff that was unavoidable came up and keeps coming up
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10-04-2012, 10:14 AM | #303 |
Scooby Guru
Member#: 34873
Join Date: Apr 2003
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My own situation went from bad, to worse, to great, in a matter of 5 months.
Bad: I bought a house in 2006 @ 7.125% interest. My only existing debt. Market crashed, house is worth 50% of initial cost, no chance of refinance. Worse: My car got totaled in June and my wife and I are expecting this February. Had to buy another car that could handle the kid stuff. Now have an expensive mortgage and additional car payment with little change in salary. Great: Parents offered to loan me some money to pay down my mortgage so that I could qualify for a refinance and save some interest. I would then pay them off over the course of about 10 years using the saved money. I called my lender to find the payoff balance, did some quick math to see where the 125% loan to property value would be at, and made a mental note of how much I would have to borrow from parents. In the process of this information acquisition, lender let me know the new Harp 2.0 regulations (3 weeks old now) do not require 125% ratio anymore. I now qualify for a refinance! My loan % is dropping from 7.125% to 4.125%. My monthly payment is going down by $712!!! 400 will go to my newly acquired car payment, and 300 will be rolled back into the mortgage. With 25 years left on my loan, I will now have the house payed off in 20 years with the additional $300 principal. |
10-04-2012, 11:28 AM | #304 |
*** Banned ***
Member#: 24038
Join Date: Sep 2002
Chapter/Region:
South East
Location: Godspeed Cale...
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What's the verdict on no interest CC's for the sake of big purchases?
My current situation: I put a good chunk of money on a CC to buy a big ticket item, call it $10,000. Got the rewards points, and it's no interest for over a year. My repayment options are: 1. Pay the balance off now. 2. Wait until the end of the no-interest period and pay it off (making minimum payments along the way of course). 3. Divide up the balance and make even monthly payments so it's gone by the end of the no-interest period. Option #2 makes the most sense from a strict $$$ perspective. However, I'm nervous about the fact that if I, for example, want a car loan between now and when I pay it off, I have 5 figures worth of CC debt sitting on my credit report. Thoughts? |
10-04-2012, 01:07 PM | #305 |
Scooby Guru
Member#: 11671
Join Date: Oct 2001
Chapter/Region:
SWIC
Location: Gilbert, AZ
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What are you thinking about purchasing? I don't see any problems with that, but you're right, it probably hurts your credit score a bit.
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10-04-2012, 01:21 PM | #306 | |
Scooby Specialist
Member#: 91208
Join Date: Jul 2005
Chapter/Region:
SCIC
Location: SoCal
Vehicle:'16 GTI & '14 WK2 |
Quote:
I'd probably try to pay off the 10k over the year, rather than at one time.. but it really depends on if you think the money sitting in your savings account making .1 percent is worth it keeping there until the 0% apr is up. |
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10-04-2012, 01:33 PM | #307 | |
Scooby Newbie
Member#: 223299
Join Date: Sep 2009
Chapter/Region:
MAIC
Location: NoVA/DC/NCR
Vehicle:2009 WRX WRB 4dr 2007 Kawasaki ZX6R |
Quote:
I always take advantage of no interest CCs. No point in having good credit if you aren't going to use it. I typically do #3 though because I don't like putting too much money in at once or having to pay a lot at the end. I usually break it up into 12 equal payments to ensure that I pay it off at the end of the promo period. |
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10-04-2012, 01:43 PM | #308 |
*** Banned ***
Member#: 24038
Join Date: Sep 2002
Chapter/Region:
South East
Location: Godspeed Cale...
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#3 is the way I've started to do it, but I hate seeing the balance on there.
I pulled a chunk of money out of savings to pay it off right away, then found a decent no-interest deal, so I threw the money at a 9.5% 90k student loan(which, $115k later, is now paid off as of last month. ). Spaze, believe it would hurt my score somewhat, as the ratio of available to used goes down somewhat. Although it was on a card I didn't previously have...so...who knows. |
10-04-2012, 01:49 PM | #309 | ||
Scooby Specialist
Member#: 91208
Join Date: Jul 2005
Chapter/Region:
SCIC
Location: SoCal
Vehicle:'16 GTI & '14 WK2 |
Quote:
Quote:
I actually just had my wife do that to take 3K off her 19% CC that she racked up. She decided to just pay it off in the year or something before the APR changed. It makes great sense! |
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10-04-2012, 02:06 PM | #310 |
Scooby Guru
Member#: 692
Join Date: Dec 1999
Chapter/Region:
SCIC
Vehicle:2021 Tacoma TRD Pro White |
Damn x2. 9.5% interest rate? Ouch. Paying off $115k in loans? Awesome. How long did that take?
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10-04-2012, 02:07 PM | #311 |
Scooby Newbie
Member#: 44808
Join Date: Oct 2003
Chapter/Region:
MWSOC
Location: Council Bluffs, IA
Vehicle:2003 Impreza RS Platinum Silver |
#2 would be my choice. If you already have liquid cash to pay off the balance (#1) you could put the rest of the money somewhere safe to make a little interest while the year ticked away.
Though, ending a $90K student loan is . I didn't think debt to income was as important when purchasing a car (when compared to a house). In my experience, as long as you aren't already overloaded with debt AND you have a good credit score there shouldn't be an issue with an automotive purchase. |
10-04-2012, 02:29 PM | #312 | |
*** Banned ***
Member#: 24038
Join Date: Sep 2002
Chapter/Region:
South East
Location: Godspeed Cale...
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Quote:
I still have a bunch in lower interest (like 4%), but I'll be paying those back as slowly as possible. It's good I guess and a relief somewhat...but they were my own doing, and a huge damper on moving on with adult life. Now I'm 30, don't own a home, don't have a ton in retirement, etc. Don't cry for me though. The CC debt was an engagement ring for an orthopedic doctor. She's broke now, of course, but promised me a spec miata and a garage full of tires one day if I agree to do the dishes from now until my death. I took the deal. Last edited by REX8; 10-04-2012 at 02:38 PM. |
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10-04-2012, 02:34 PM | #313 |
Scooby Specialist
Member#: 30733
Join Date: Dec 2002
Chapter/Region:
TXIC
Location: Houston texas
Vehicle:2007 tiny car striped |
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10-04-2012, 02:35 PM | #314 | |
Scooby Guru
Member#: 692
Join Date: Dec 1999
Chapter/Region:
SCIC
Vehicle:2021 Tacoma TRD Pro White |
Quote:
Congrats! You'll end up doing the dishes regardless so I'd take that trade! |
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10-04-2012, 02:39 PM | #315 |
Scooby Newbie
Member#: 223299
Join Date: Sep 2009
Chapter/Region:
MAIC
Location: NoVA/DC/NCR
Vehicle:2009 WRX WRB 4dr 2007 Kawasaki ZX6R |
If it was a card you didn't previously have then it was a hard pull on your credit, which will lower your score.
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10-04-2012, 02:41 PM | #316 |
Scooby Specialist
Member#: 12434
Join Date: Nov 2001
Chapter/Region:
Tri-State
Location: PA
Vehicle:2002 WRX #332 2019 BMW m240ix |
I wish I could do that new HARP program but my mortgage isn't Fannie Mae or Freddie Mac backed
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10-04-2012, 03:01 PM | #317 | |
*** Banned ***
Member#: 24038
Join Date: Sep 2002
Chapter/Region:
South East
Location: Godspeed Cale...
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Quote:
never have gotten a straight answer to that question. What to do with old CC accounts you don't use. Like some of the ****ty cards you get when you're a college kid? |
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10-04-2012, 03:10 PM | #318 | |
Scooby Newbie
Member#: 223299
Join Date: Sep 2009
Chapter/Region:
MAIC
Location: NoVA/DC/NCR
Vehicle:2009 WRX WRB 4dr 2007 Kawasaki ZX6R |
Quote:
Particularly never close your oldest cards. I cancelled my very first card (Capital One) because those douche bags started charging a fee like 5 years into my using the card. I told them to pound sand, reserve the charges and cancel my card. I've kept every card since then open but I really just use one of them. |
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10-04-2012, 03:16 PM | #319 |
Scooby Specialist
Member#: 123330
Join Date: Aug 2006
Chapter/Region:
Tri-State
Location: Pink Cow Arena
Vehicle:16 ZoomZoom CeX-3 15 ZoomZoom3-Regina |
Wow, we're both almost on the same boat. Except I used the money from the Subaru as a funding source. One love for another. Except she promised me a Daytona as long as it's only used on the track and I stop riding street altogether.
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10-04-2012, 04:03 PM | #320 |
Scooby Newbie
Member#: 34631
Join Date: Mar 2003
Chapter/Region:
MAIC
Location: Momma Didn't Love Me
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10-04-2012, 05:12 PM | #321 | |
Scooby Newbie
Member#: 127205
Join Date: Sep 2006
Chapter/Region:
South East
Location: Ashley River
Vehicle:08 2500 Ram Red |
Quote:
If you have too many lines of credit open it can hurt you if you go for a loan on a house or other item. Say you kept open 10 CC with a potential line of credit worth 100k - they may/can/and do hold that against you as you could go out and rack all those cards up after you close. And at some point it will lower your score... and when you have to close them to get the loan you want, your score may get even lower. |
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10-04-2012, 05:16 PM | #322 | |
Scooby Newbie
Member#: 127205
Join Date: Sep 2006
Chapter/Region:
South East
Location: Ashley River
Vehicle:08 2500 Ram Red |
Quote:
So I say option #1 to be safe. |
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10-04-2012, 05:51 PM | #323 | |
Scooby Newbie
Member#: 223299
Join Date: Sep 2009
Chapter/Region:
MAIC
Location: NoVA/DC/NCR
Vehicle:2009 WRX WRB 4dr 2007 Kawasaki ZX6R |
Quote:
No part of your credit score is determined by the number of accounts you have open. The only way that that comes into account is by determining your debt to credit ratio, which will obviously always be higher the more accounts you have open. By leaving open all of your accounts, you are ensuring that you always have a high debt/credit ratio. Like I said previously, I've only closed one account in my life and my debt to credit ratio is something ridiculous, like 99% available credit. Closing accounts - particularly older ones - negatively impacts you in several ways: 1) shortens your average credit history, 2) shortens your oldest credit account and 3) lowers your debt to credit ratio. While it's true that many open cards has the possibility of being abused, that would be reflected in your credit score if you have a history of doing so. I've got a bunch of open accounts but I only use one of them (plus a car loan and a mortgage) and so my credit score benefits because of that. While it's true that many organizations are going beyond simple FICO scores for a more in depth analysis, the FICO score remains the simplest and easiest way to determine someones credit worthiness. And any in depth analysis of someone with a high score and multiple open accounts would show that they haven't abused it in the past and aren't likely to do it in the future. You can take my advice for whatever it's worth but my credit score literally cannot get any higher. |
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10-04-2012, 06:11 PM | #324 | ||
Scooby Newbie
Member#: 34631
Join Date: Mar 2003
Chapter/Region:
MAIC
Location: Momma Didn't Love Me
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Quote:
Quote:
Also made the credit mistake of closing my oldest credit card... guess it hurt... but I haven't felt it. I guess from the time I did that I didn't apply for any other credit until recently, ~2 years later. Last edited by lag; 10-04-2012 at 06:19 PM. |
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10-04-2012, 06:18 PM | #325 | |
Scooby Newbie
Member#: 223299
Join Date: Sep 2009
Chapter/Region:
MAIC
Location: NoVA/DC/NCR
Vehicle:2009 WRX WRB 4dr 2007 Kawasaki ZX6R |
Quote:
Based on my purely anecdotal experience, I'll say that retail cards are probably the worst to open. I took a somewhat significant hit when I opened my Best Buy card but I had also just gotten a house and a car so I didn't really need the credit score for a while. My score recovered a couple months later and I got the TV interest free so that's all I cared about. Bottom line is that the whole point of a good credit score is to use it to your advantage. You shouldn't be afraid of a short term drop so long as it recovers and is there when you *truly* need it, e.g. a mortgage or a new car loan. |
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