What do you think would be better. My husband and i have $8700 in CC and Line of credit debt. WE want a lower payment than the $400 we are paying.
A)Keep paying $400 month on CC’s & Line & use taxes to pay them off.
B)Get $8700 Low Int. Loan pay off CC’s & Line & use taxes, at least $5000, 2 fix basement. Loan pmt $285
C)2 loans totaling $10,000 pay off CC’s & Line use remaining ($1300) to fix basement. Pmt total $378. Use taxes to pay off 1 loan ($2000) have at least $3000 left from taxes & pmt after that is $225
Additional Info.
We had a flood a couple years ago and our basement was finished we had to gut it and have wanted to have fix it ever since.
2007-09-17 05:20:11 · 10 answers · asked by Kacey D 3 in Business & Finance ➔ Personal Finance
these aren't consolitdation loans they are loans from my credit union with NO fee's and WAY lower intrest.
2007-09-17 05:25:33 · update #1
and the plan is to not use the cc's or line anymore. we had a death in the close family and my husband was out of work for a long time. WE HAD to use them that's why they are so large right now
2007-09-17 05:26:51 · update #2
oh one more additional bit of info. The loans come with an insurance so if he is hurt or something they stop the payments on them so our credit doesn't get hurt. Problem with paying $400 we are so broke we can't afford food barely and have a baby on the way and two already.
2007-09-17 05:32:08 · update #3
D) Get a home equity loan to pay off the credit cards and fix the basement.
D1. Cancel all the credit cards except one that you will absolutely pay off every month and that pays a cash return on every charge (so you make money with it instead of pay for it).
D2. The interest on the home equity loan is deductable.
D3. I think that repairs or improvements to the basement is tax deductable, check the IRS web site to be sure.
2007-09-17 05:53:29 · answer #1 · answered by Feeling Mutual 7 · 0⤊ 0⤋
Pay off your current debt before working on the basement.
If that $400 is a total of the minimum payment, find some extra money to throw at your debt. Concentrate on the highest interest rate debt first, while making minimum on the rest. When the highest interest rate is paid off, move to the next. When you get your tax refund, throw it at the debt.
If you can get a loan at your credit union with a substantially lower interest rate, AND you are disciplined enough not to run the credit cards back up, do so. But don't stretch out the term. Make is a shorter term with a larger payment -- close to the $400 you're already paying. The faster you pay this off the better. Including using the tax refund to pay off the loan.
Once the debt is all paid off, you can consider the basement. Take another loan if necessary, but don't string out the payments.
2007-09-17 06:07:13 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋
It is never a good idea to get a consolidation loan as you will also have to pay the interest, and still pay the same amount. Continue to pay the $400 and use taxes to pay off the rest. The longevity of you paying on what you owe will boost your credit score and will be better for you in the long run.
2007-09-17 05:24:43 · answer #3 · answered by bonstermonster20 6 · 0⤊ 0⤋
What is the time frame for paying off the loans you have? I think this would be a big factor, because the CC could take awhile to pay off. I would say that "B" looks the best. What ever you do DO NOT CLOSE any credit cards. This hurts your score more than anything. Keep them open, the biggest score helper is credit history. Keep them cards open for the histories.
2007-09-17 05:30:22 · answer #4 · answered by kernsj 2 · 0⤊ 0⤋
No, pupil own loan debt is seen good debt. i've got self belief in maximum circumstances- counting on your man or woman loan- you have as much as six months until now you start up compensation. $six hundred each 2 weeks is robust. I do think of which you have a the right thank you to bypass until you are able to now start up paying each thing off yet each little bit helps. consistent with hire and residing expenditures, i think of you're able to desire to pay off the credit card 1st through intense costs of interest on them. consistently pay over the minimum, even despite if it extremely is purely an extra $20 and to any extent further do no longer close the account yet once you charge be arranged to pay all of it off on the tip of month. you're purely 21 so no you need to not rigidity yet don't get in worse shape. i might create a strict funds that for the time of touch groceries yet possibly some P&J for lunch, few coffees from Starbucks and doubtless various Raman Noodles... lol. There are countless busget websites in case you prefer to locate one on line. yet you're in great shape! do no longer rigidity purely save up the good paintings and pay off the debt so as which you will possibly be even much less under pressure!
2016-10-09 08:35:52 · answer #5 · answered by ? 3 · 0⤊ 0⤋
You must always be careful with credit cards, car loans, mortgages and debt consolidation. Persoanlly, I was in debt of over $100,000 at one point in time, roughly 4 years ago. I am proud to say I am now DEBT FREE. It is very confusing on what to pay first how to chop down your debt, but there is a lot of good content out there to help. I have also started my own blog to help people out by talking about what I think is important. Check it out sometime!
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2007-09-18 21:15:03 · answer #6 · answered by Anonymous · 1⤊ 0⤋
I would not take on additional debt until your initial debt is paid off. What happens if your husband ends up out of work again?
You have waited for 2 years for your basement, it can wait longer.
But that is me, I refuse to go farther into debt to pay off debt, it is risky business and if the worst happens you are royally screwed.
2007-09-17 05:29:21 · answer #7 · answered by Gem 7 · 0⤊ 0⤋
ok the best idea is to pay off debt use your taxes and continue to pay the 400 till then
2007-09-17 05:28:44 · answer #8 · answered by fightingstatue 3 · 0⤊ 0⤋
You must talk with a financial adviser, because a decision that sounds easiest to you, may not be the right answer for your circumstances.
If you do consolidate, make sure you talk to someone accredited by your state or province.
2007-09-17 05:25:21 · answer #9 · answered by Anonymous · 0⤊ 0⤋
My guess would be selection "B". Try to close the CCs and don't borrow any more money if you can help it. If you can't pay cash... don't get it till you can.
2007-09-17 05:25:31 · answer #10 · answered by killbasabill 6 · 0⤊ 0⤋