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Let's Talk About Money...

Discussion in 'The Pub' started by Maka1991, Aug 24, 2015.

  1. Hello and G'day Everyone,

    Let's talk about money and interest rates.

    I've read a few threads regarding debt and managing debt ( and of course buying vs borrowing).

    Here's a list on what's on my shoulders right now:
    bike: 13k loan on an interest rate of 14% over a 5-year contract.
    >>>10,3xx.xx left on loan for total payout.
    car: 24k loan on an interest rate of 3% over a 5-year contract.
    >>>To be announced (but would be good to pay this out as well)

    Here's what's in my head right now:
    credit score: 768
    income: 1.5-2k/month (depending on how much I feel like working)

    My questions/options:
    Is it worth refinancing a liability?
    Should I just do a personal loan 10.5k with an interest rate of 12.5% over a year contract?
    >>>>If yes, should I just repeat this option for the car as well?
    Should I involve a credit card with a 0% interest in 14 months of signing up?

    Thank you in advanced for your answers...x
  2. The credit card is ONLY a good idea if you are 100% certain you can pay it off in 14 months... Credit hopping is sometimes hard to do with interest free cc's, a lot of them don't do balance transfers so you might get in trouble if you don't pay it off in time.

    If you didn't make a typo above, and the car loan is actually 3%, don't touch that loan, The terms are incredible. Make the minimum repayments on the car and crank down the ridiculous bike loan...

    Or, as you suggested, get a credit card and pay the more expensive loan out with it, then pay the credit card off in required time. If it's a drain on your life having the debt, perhaps you should convince yourself to "feel like working" a bit more until it's cleared
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  3. I think you might benefit from getting a consult with a decent financial planner. You can often get an intro session for free which may point you in the right direction. From what you've said there, if you're only making $1.5-$2k per month how will you realistically be able to pay a $10.5K loan in a year - that alone will be just under $1k per month, and you've still got your car loan on top of that as well? What about food/rent/everything else. You may not want to put all this info online either... :)
    • Like Like x 1
  4. I get ya mate, well, I live at home with family, I don't have to pay for food/rent my other expenses are just petrol and phone bill (which I can get tax back due to the nature of one of my jobs). My car payment is minimum 130 which I'm paying 200/wk. If there is a will there is a way.

    If I can't achieve things in a year then okay I'll achieve them in 2 years. If that seems too long, I'll sell the bike now, take out a personal loan for the rest of the payment. Because the bike may be gone I don't have to spend on insurance and so that also adds a 100$ saving a month. I've lived my life in extreme measures lol so I'm pretty prepared to do what it takes.

    I really don't particularly care if this info is on here for all to see.
  5. Yeah, I have been told to pay off the biggest interest first and then move onto the smaller ones. As chillibutton said I may be better off doing consultations but to find these consultations free is a bit of rarity!

    I'll switch to serious mode once I get some external opinions.
  6. Other solution - keep bike and get rid of car lol!

    Free credit cards with no interest are great if used right, but as Steve said above you have to remain disciplined with them.
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  7. Lol well, I don't want to sound like a pessimist but the sun aint always gonna be a sunny day in sunny Queensland.

    I have ridden in the rain a few times, its not fun getting soaked AND having to keep at 40km/h once I start going over I start drifting/veering off into the opposite side of the road, I'm brave but not THAT brave lol.
  8. Therefore you shouldnt be paying extra on the 3% car loan. Pay that on your 14% bike loan.
    Or you could just marry a rich dude :greedy:
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  9. I hear Darrens rich......
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  10. Yeah maybe not rich enough to support 2 women JM!
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  11. If you are only earning that you should be looking at getting rid of both loans and buying a $4k bike to get by.
  12. I'm guessing it's simple interest, rather than reducing, so the real rate is actually much higher.
  13. Se mentioned that she don't have to pay rent, bills any other living expenses form her income so it is mostly going towards loan payments, meaning she's not really struggling to get by. But I agree, that's way too much debt for someone who don't have a reasonable income of their own. But then again, I'm a kind of person who will go out of their way to avoid having any kind of debts whatsoever so I might be biased here.
    • Agree Agree x 1
  14. Sad to say but on your income the option for a balance transfer is probably nil. I have only found one bank that will allow a balance transfer from a personal loan and that is Citibank, all other require it to be a transfer from and existing credit card which will mean you will have to apply for two. Not too many banks will allow for you to have that much access to debt on credit cards with the existing loans you have, you can still do this on a smaller scale which may save you a few hundred dollars over the space of a year but it is up to you.

    Best bet is to just pay out your personal loan for the bike, 13k is a gamble to pay off in a year unless you can find a credit card with a cash advance rate similar to your current loan.
  15. Thanks for the responses guys:

    I'm not up for marrying a rich guy unless they're gonna drop dead within a month...

    Thank you for your suggestions and opinions! I hope to find more even more helpful info.
  16. Don't dismiss the idea too quickly some rich blokes are hotttt! Bill.
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  17. rich woman? she doesn't look healthy, probably won't last long (without clones for bodyparts) :D
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  18. Sure, I'll go for Bill Gates, I missed my chance with Steve Jobs!

    As for this lady, she's actually really selfish so I don't think she's dumb enough to marry someone.
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