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Re: What would you do?
Old 03-15-2006, 11:22 PM   #21
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Re: What would you do?

Don't use "second spouse" and "pull this off" in the same sentence...
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Re: What would you do?
Old 03-15-2006, 11:33 PM   #22
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Re: What would you do?

This from a sheep in garters and high heels...
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Re: What would you do?
Old 03-17-2006, 05:24 AM   #23
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Re: What would you do?

In principle it makes sense to pay off the debt that has the highest interest. However, I have the feeling that you might have a different problem.
I wonder a bit about your use of "her", "my" "our".

I believe that first of all you and your wife should talk about the use of "her" paycheck.
Now that you both have income, why not sharing expenses at a ratio related to the relative income.
Then, some of "her" paycheck should go to "her school loan". If you both plan to get a house, some of your both income should go to your both mortgage or savings.
Only you and your wife can decide if some of "her" paycheck should go to what you call "my car" or to your school loan.
Yes, up to now your paycheck was used for both of you. So it is fair enough to share the second income as well. But make sure to talk this over with your wife.
She may throw in an argument to balance out your income of the past - like "but I did most of the household"...

Please excuse if I mis- or overinterpreted your post.
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Re: What would you do?
Old 03-19-2006, 08:54 PM   #24
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Re: What would you do?

Chris2008, we have talked about it and she agrees with paying off the higher debt 1st, then paying off her loan. I would never make a decision like that without her input.

and lol@ the second spouse comment, didn't catch that
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Re: What would you do?
Old 03-30-2006, 04:25 AM   #25
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Re: What would you do?

Have you tried to consolidate your student loan at a lower rate? I was able to consolidate my student loans at a 3% interest rate last year. You might not be able to get it that low now, but it's still worth looking into.
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Re: What would you do?
Old 03-30-2006, 09:53 AM   #26
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Re: What would you do?

Quote:
Originally Posted by DonkeyTown
Have you tried to consolidate your student loan at a lower rate?* I was able to consolidate my student loans at a 3% interest rate last year.* You might not be able to get it that low now, but it's still worth looking into.* * * *
If you don't mind, who did you refinance with?
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Re: What would you do?
Old 03-30-2006, 01:24 PM   #27
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Re: What would you do?

SD
I agree with pretty much everything SteveR says. 8% is a pretty high interest rate as far as interest rates go. Paying it off first is by far the best choice.

Also, I don't know how much you know about PMI, but for my 109k house, I paid $75 a month. (That seems a little high compared with what others are paying, but it's in the range). Now, until you get 20% in the house, you pay that every month, and it's just like take $75 and paying the banks insurance. I remember when I first bought my place - I knew nothing about buying a house - when she said "PMI will be $75 a month" I told her - "oh no, I don't need that insurance, I know that I'll always pay my bill" - haha how clueless I was.

So I paid PMI for about 2 years and the price of my home skyrocketed. I was able to have it taken off, due to the amount of equity in my home thanks to the price increase.

I also only paid 3% down, which I would never ever do again -ESPECIALLY not in this market. I think even paying only 10% down is an unwise decision. Then again, paying rent for that much longer may be unacceptable to you.

Also, please make sure that you're keeping cash in reserve for those unexpected things. I would never feel comfortable without at least $5,000 in reserve (and I mean after you make your downpayment) just because anything can and will happen.

Keep the car loan and make the savings and downpayment a priority. The mortgage even on your house is bound to be over 3%, and the student loans are at an unacceptable rate.

Finally, think about how you will FEEL if you bought a house, still owed $25k on the car, 30-35k on the school loans, AND had the additional burden of the mortgage. (I would feel too stressed out for that to be acceptable).

Good luck brother.
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Re: What would you do?
Old 03-30-2006, 02:25 PM   #28
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Re: What would you do?

thx Virginia
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Re: What would you do?
Old 03-30-2006, 04:18 PM   #29
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Re: What would you do?

I consolidated with the Federal Government.* Now that interest rates have moved up, I doubt that rates that low are available.* However, it's still worth looking into, because you might be able to get a fixed rate lower than 8%.* Also, if you set up automatic payments from a bank account, you may get a 0.25% rate rebate.* Call up the student-loan people at your former school and ask them about consolidation and the rate rebate for automatic payments.

Another thing you can do is apply for one or more low-interest credit cards.* Some cards offer 0% for a year on purchases or balance transfers.* So, if you know that you will be able to pay off $4K in loans over the next year, you can get a low-interest credit card and transfer $4K to that.* Just make sure you pay off the $4K you transfer to the credit card or, alternatively, transfer that balance to another low-interest credit card.* However, beware of balance transfer fees.* Most are 3%, but some will transfer with no fee.

I currently have $40K in debt at a 0% rate spread across three credit cards (rbsnb.com, citi, and chase).* Last September, Citi actually mailed me a $15K "balance-transfer" check.* There was no balance-transfer fee, a 0% interest rate until this September, and no restrictions on what I could do with the money.* It was basically free money for a year.* I used the check to buy a 9-month CD at 3.5%.* So this July, I will be about $400 richer on the back of Citi.* Once the CD matures, I will collect my $400 in interest and send the $15K back to Citi.* Or, if I can find another credit card issuer willing to take on the balance at a 0% rate, I will transfer and buy another CD.

Of course, you have to make sure to make all the monthly minimum payments on time and to pay off your balance or transfer when the 0% introductory offer ends.* This is probably too much trouble for some people, but I like the idea of the credit card companies paying me to borrow money from them.* ** * * * *
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