Question

Which debt would you tackle first?! I’m thinking snowball method with that first navient Loan, but that 0% on the diamond expires in June 2020. We could transfer it again before it expires. Or. do we attack the Explorer? We tried to sell it but it’s only valued at 19k, so we’ve decided to keep it. It’s a dependable car and that’s important to us since I drive our son three hours away for doctors appts. Just wondering what others would do?  

Answer 1

I would get those super high minimum payments out of the way first!  

Comments

@ankus that’s what I was thinking with the Explorer! Freeing up that minimum would be amazing!  

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@jamikajamil You would be able to put that amount right towards the others and knock those bitches out QUICK  

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@ankus definitely!  

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Look at your statements for the explorer. Majority of that payment is most likely interest and you won't get rid of that payment as quick :( that's how mine is at least.  

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@goose10 but paying extra towards the principal is what gets it paid off faster ❤

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We are in the second half of the loan. If I remember correctly, the big chunk of interest is paid in the first half of the loan

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@jamikajamil Yes! The less the loan the less the dollar amount of the interest!  

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@ankus if extra can be paid, then yes that's true. Depending on the interest rate, it could be a year or more before that's paid off. She'll have to continue to balance transfer the 0% cards

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@goose10 Honestly I hadn't noticed those small dates with the 0% interest. Definitely those first, girl! If all those interest rates hit those amounts will skyrocket.  

Answer 2

I personally would start with the 0% interest cards bc if you don't pay those off by the expiration the interest charged wont be fun

Comments

@goose10 between my husband and I, we get 0% offers quite a bit. The 3% transfer fee isn’t ideal but not terrible

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@goose10 this happened to my hubby for a TV. With the higher interest after 0% was up he ended up paying 2x the amount for the TV.  

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Yeah, this just happened to us. We knew it would be paid off in time, but so much kept coming off. Then boom, 2 weeks before we could pay it off completely $1400 in interest was tacked on.  

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@goose10 I am pretty sure they only tack on all the accrued interest on store cards with like 6 months no interest on purchases. On major bank cards (in my experience, of course different cards could have different terms) when the 0% ends, the interest starts accruing that day, it’s not retroactive.  

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@alpert71 this!  

Answer 3

Where did you find this sheet

Comments

@rumrunner5 it was sent in a Friday newsletter email

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@lombok do you know which one?  

Answer 4

Can you pay the 0% off by June? That’s over $2000 a month. If you can I would start with that one so you aren’t hit with back interest.  

Comments

@hauteur $2000 a month? I’m confused! They aren’t store credit cards where interest accumulates if not paid off during time frame

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It says $11, 000+ balance with zero interest due by June 2020. That means you would have to pay $2000+ per month for the next 5 months or you will be charged whatever the normal interest rate is. Most of those 0% offers say they will charge you the new interest rate on the full amount transferred (not the current amount left) if not paid off by the expiration, but you would have to look at the fine print of the offer.  

Answer 5

Smallest balance first. Dave Ramsey method. You’ll pay it off fastest. Throw all money available at that one while paying minimum payment on the rest. Then go onto the next smallest one.  

Comments

@lombok Mottesheard Cagni yes! That has helped my family stay motivated throughout the process

Answer 6

I would def leave the school loans because you can use the interest paid on those as a tax deduction

Answer 7

When I decided to decide what order to focus on I wanted to take into account the monthly payment and the debt balance and I came up with a formula that gave me breathing room in my budget by focusing on eliminating the smallest debts with the highest payments first.  

Answer 8

Don’t defer it only makes this harder and you pay fees. What method you choose depends on how much you have to put forward debt each month. If you can pay off the 0% before the introductory period is over and you get hit with huge back interest. But if you can’t pay them in full pay one if them at a time before date and then snowball to next. If that’s not an option to pay off before maturity date. then pay off lowest balance first add then use the snowball balance to pay off next smallest

Answer 9

Definitely the diamond one! If there was even a 5% interest on the 11, 000 that’s over $550 in interest that’ll be added on there after June of 2020.  

Answer 10

I would start with the top Navient, highest interest rate and lowest balance so win win. If the 0%s were lower I would divide them out by how long you have left and increase your minimum payment to that but it looks like that probably isn’t doable so I would just ignore them until they are accruing interest