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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: The Plan||Date: 1/28/2014 12:42 PM|
|Author: aj485||Number: 307742 of 308429|
The GI Bill is about $1k a month. Add that to the $300 I was going to put in from my pay. That's ~$1100 toward the $10k credit card
So the $1k from the GI bill plus $300 from your paycheck - that is $1400. Yet, you say that provides $1100/month toward the credit card debt? So the other $300 is the signature loan payment?
(The interest payments are going to make it over $10k by the time it's paid off. I don't know how much more. I over budget rather than break it down that much. The interest rate is 7.9% and I paid about $80 in interest last month.)
When my daughter is with her dad for the summer, I won't have child support, so it will dip down to just paying $1k a month for a couple of months. That'll drag it out too.
Are there offsetting expenses that you won't have to pay because you won't be getting child support? Or do you have to pay him child support those months?
Also, is it the $1400 (credit card and signature loan) that will drop to $1000 or the $1100 (credit card only) that will drop to $1000? If it's the $1400, I'm still not getting the math of how you will have the credit card paid off by December, unless you actually get a fairly substantial tax refund. Because after September, you will have $400 to split between the credit card and the signature loan. If the signature loan payment is $300, then you only have $100 to put toward the credit card after September.
I don't need the GI Bill to live off of. I do fine. This is just extra money. There won't be any replacement, but there will be about $500 extra a month to put toward the loan even after the GI Bill is gone.
Is that really $500 'extra' or is it $500 'total' (including the minimum payment)?
If it's $500 total, I'm not so sure that I would dismiss the GI Bill money so lightly.
the signature loan is like 12% interest
If the signature loan rate is 12% and the card loan rate is 7.9%, why are you snowballing the card? If you can pay off the $10k card by December, then you should be able to pay off the $10k signature loan by December instead, saving yourself interest because you are paying off the higher rate loan.
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