Which should I pay off? [Archive] - GrandAmGT.com Forum

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gaowners32
10-07-2008, 08:24 PM
I have over $10,000 in one of my savings accounts. Currently I still owe $3,852.67 as of October 1st on my Grand am.


Here are my options:

1. Pay off the car and use what ever my old monthly payment was towards helping my mom pay her amex off. ( I owe her lots of cash)

2. Pay her amex off which is $3,016.25 and continue paying for my car($311.65 usual car payment but I pay $400.00 to get it done quicker).

3. Just pay the usual just in case I lose my job because of market conditions.;crap

Interest rate on my car loan...... 6.1%

Interest on the amex............. 12.99%

PhantomLover007
10-07-2008, 08:26 PM
I say pay off the Amex since it has the bigger interest rate.

Your mom will love you more for it too... lol

Rich
10-07-2008, 08:35 PM
x2. help your mom.

ryanbgb22
10-07-2008, 08:43 PM
Aren't you some kind of finance person of some sorts? You really wanna ask random people for advice?

gaowners32
10-07-2008, 08:48 PM
Aren't you some kind of finance person of some sorts? You really wanna ask random people for advice?

Yes I'm a licensed banker, but it doesn't mean I can't ask others for there opinions.
It's easier to work with other people's money because it is not my own. When it comes to your own you want the help of other because they have another view of things that might be clouded in your (my) mind.

timberwoof
10-07-2008, 08:48 PM
help your mom out. Family First!!!

bigstribs
10-07-2008, 08:49 PM
Pay both off then continue to save! 1. Your mom will be happy and less burden on her and 2. You will be saving $400 a month and the car will be all your's!

gaowners32
10-07-2008, 08:59 PM
Pay both off then continue to save! 1. Your mom will be happy and less burden on her and 2. You will be saving $400 a month and the car will be all your's!


I wish I could do that. But I've always been raised to at least have $6,000 in saving in case of emergency.

Thanks the quick help you guys. I'm going to pay off her amex and maybe a little extra on my car.

ryanbgb22
10-07-2008, 09:02 PM
Yes I'm a licensed banker, but it doesn't mean I can't ask others for there opinions.
It's easier to work with other people's money because it is not my own. When it comes to your own you want the help of other because they have another view of things that might be clouded in your (my) mind.

Well, never good to carry high-interest debt. Pay off as much as you can.

Mike Jung
10-07-2008, 09:04 PM
I have over $10,000 in one of my savings accounts. Currently I still owe $3,852.67 as of October 1st on my Grand am.


Here are my options:

1. Pay off the car and use what ever my old monthly payment was towards helping my mom pay her amex off. ( I owe her lots of cash)

2. Pay her amex off which is $3,016.25 and continue paying for my car($311.65 usual car payment but I pay $400.00 to get it done quicker).

3. Just pay the usual just in case I lose my job because of market conditions.;crap

Interest rate on my car loan...... 6.1%

Interest on the amex............. 12.99%
Ideally, pay off both debts.

But if you are going to only pay off only one:
(Maybe, I am just selfish...)
Pay off your debt(s); before others.

Without knowing the situation for the reason your Mom has a balance on her Amex.
It is kind of hard to say.

Why is she carrying a balance at 12.99% ?
(That is Prime Rate + 7.99%.)
Doesn't she have access to a lower interest rate line of credit ?

KhellendrosxS
10-08-2008, 04:34 AM
Im with MJ until I know the reason behind the charging. If its something you pay off is she just going to run up a balance again? A few more details could make that decision easier.

As for living if you have three months of expences saved up you should be good in the event you loose your job but 4-5 would be better. If you can pay both and keep enough to live on in the event of loosing your job Id go that route (pay off both). That way you can save the money that would have been going to interest on your car loan.

PhantomLover007
10-08-2008, 05:31 AM
^^^ He owes his mom money, so if he pays that off, he won't owe her any more. More than likely, she used the card to pay for stuff for him.

gaowners32
10-08-2008, 05:58 AM
^^^ He owes his mom money, so if he pays that off, he won't owe her any more. More than likely, she used the card to pay for stuff for him.
Ding Ding Ding......... Grand AM'S are expensive when your LIM, brakes, and both hubs go at one time.

PhantomLover007
10-08-2008, 08:25 AM
Wow. Sounds like a Scoop that I had for <6 months. Clutch and brakes went out at the same time. Stepped on the brakes, heard a "pop" and the pedal went to the floor. Started down shifting and the clutch goes to the floor... Not a good day at all. ;crap I left that sh1t sit on the side of the road in Ft. Polk... lol

Exodus
10-08-2008, 08:42 AM
I would pay both at once since you have more than enough. You wont have to pay anymore interest rates and no more monthly headaches. And, if you do lose your job everything is already paid for (considering you have more money saved after)

gaowners32
10-08-2008, 09:01 AM
I would pay both at once since you have more than enough. You wont have to pay anymore interest rates and no more monthly headaches. And, if you do lose your job everything is already paid for (considering you have more money saved after)

The rest I put into T-bills(paying 6.75 %) 2 weeks before all this market bull**** started.So its locked up right now for 1 year.

AMRAAM4
10-08-2008, 09:52 AM
I wish I could do that. But I've always been raised to at least have $6,000 in saving in case of emergency.

Thanks the quick help you guys. I'm going to pay off her amex and maybe a little extra on my car.
what the fock is so magical about $6000?? Nothing.

Pay off the Amex. Leave the Grand Am balance and continue to make your general monthly payment. You can get more than your remaining balance in trade in value or private party value for your car, so you are in the "positive" for that if worse came to worse. Amex, your p1ssing money away to nowhere. Pay it off, don't let your mom spend anything on you. If she decides to pile on her Amex herself, let her take care of it herself!

Now you've closed out your debt to mom, still have a good amount in the bank, can still make your monthly payment in the future on the car plus put extra in savings, and you always know your car's worth more than you owe.

notsoaveragej0e
10-08-2008, 05:17 PM
what the fock is so magical about $6000?? Nothing.

Pay off the Amex. Leave the Grand Am balance and continue to make your general monthly payment. You can get more than your remaining balance in trade in value or private party value for your car, so you are in the "positive" for that if worse came to worse. Amex, your p1ssing money away to nowhere. Pay it off, don't let your mom spend anything on you. If she decides to pile on her Amex herself, let her take care of it herself!

Now you've closed out your debt to mom, still have a good amount in the bank, can still make your monthly payment in the future on the car plus put extra in savings, and you always know your car's worth more than you owe.

Good point.


And if you do choose to over pay, make sure you specify that it is to be put toward the principle on the loan, not the interest. A lot of companies will use any extra for their own benefit unless otherwise specified.

Roush GT
10-08-2008, 07:08 PM
pay off both you will still have money left in savings. then you can put your would be car payments in savings. that is what I would do.

PhantomLover007
10-08-2008, 07:16 PM
Just give me the money Cory. It'll go to a good cause... I swear it will.. lol

gaowners32
10-08-2008, 07:17 PM
Thanks guys I just paid off the Amex and I will pay off my car tomorrow when I get a zero balance pay off quote.

gaowners32
10-08-2008, 07:17 PM
Just give me the money Cory. It'll go to a good cause... I swear it will.. lol


Sure the grand am fund.

PhantomLover007
10-08-2008, 07:19 PM
Sure the grand am fund.

Whaaa What... Who told you.. Dammit!!! They're fired...lol lol

Congrats man.

notsoaveragej0e
10-08-2008, 09:03 PM
10,000$ crack party?

AMRAAM4
10-09-2008, 06:50 AM
pay off both you will still have money left in savings. then you can put your would be car payments in savings. that is what I would do.
and that's a horrible idea, especially considering our economy and his job field.

If he gets let go in a week, or even 2 months, he doesn't have much in the bank to sustain him for the couple months it will take to find another well paying job. NEVER dump more than approx. 60-65% of your entire savings to simply pay off debt that is still in acceptable payment standing.

For example; I have $3000 on a 0% credit card right now....I could pay it off right now easily, but why should I? I know I can pay a substantial amount each month for the next few months AND keep all my savings collecting interest (as little as it may be now). If they decided to change to a 20% interest fee I would pay it off immediately, but as long as it's 0% (or in his case the car loan with mid single digit interest) I'd leave it where it is and hold onto my prescious savings as much as I can. There is that tendency to pay it all off when you have the money to, but people need to get rid of this BS stigma that the elitist douchebags on CNN Money/other similar trash that says to never have debt. Reality is, living in America means living with debt. The key is to be able to manage your debt and have enough left over to still live comfortably. That's where most go wrong...they don't manage their debt and/or accrue too much where they have nothing left after paying debt.

notsoaveragej0e
10-09-2008, 02:40 PM
Again, Bob posts a valid point. A basic accounting and business principle is to pay the minimum, on the due date, regardless of what monies you might have to pay the entire thing. You'll carry some overhead but keep money on the side (or in savings/MMA's) for whatever may come up. The idea is to hold on to your money and use it as leverage elsewhere, and only pay what they ask.

Wubby{Beat
10-15-2008, 09:36 AM
10,000$ crack party?

rocks man, ya got rocks?? eh man

id say pay off the CC as you've already done, personally what i'v done with my car loan is put more than 2x down each month, but just let it sit in my bank, and make lump sum payments on my loan once in a while, only have 1k left on my car, paid a 3yr loan in 1.5yr

Kdawg207
10-15-2008, 10:42 AM
easy one

AMEX

RIDNonDUBBS
10-15-2008, 04:06 PM
and that's a horrible idea, especially considering our economy and his job field.

If he gets let go in a week, or even 2 months, he doesn't have much in the bank to sustain him for the couple months it will take to find another well paying job. NEVER dump more than approx. 60-65% of your entire savings to simply pay off debt that is still in acceptable payment standing.

For example; I have $3000 on a 0% credit card right now....I could pay it off right now easily, but why should I? I know I can pay a substantial amount each month for the next few months AND keep all my savings collecting interest (as little as it may be now). If they decided to change to a 20% interest fee I would pay it off immediately, but as long as it's 0% (or in his case the car loan with mid single digit interest) I'd leave it where it is and hold onto my prescious savings as much as I can. There is that tendency to pay it all off when you have the money to, but people need to get rid of this BS stigma that the elitist douchebags on CNN Money/other similar trash that says to never have debt. Reality is, living in America means living with debt. The key is to be able to manage your debt and have enough left over to still live comfortably. That's where most go wrong...they don't manage their debt and/or accrue too much where they have nothing left after paying debt.

I hate to say it but i absolutely agree with you on this one. i know we always dont see eye to eye but you make great sence or sensce whatever it is.

let me throw this out there we all know how the housing market is now and its a buyers market. i bought a foreclosed house in june paid 21k for it cash and drained alot of my funds to do it but i figured why let it sit in a safe and sit there verses sit on it in a house that in 3-4 years is going to sell for 60-70. i already fixed it up for another 5000 and have a renter in a long term contract for 600 a month. eventually the renter will pay back my 26000 and i will still sell the house when the market climbs back up.

heres the situation i plan on moving with in 6 months to a bigger and better house. again its a buyers market so im going to get a house that should be worth every bit of 300,000 for 180-200 there all over in michigan. i have excelent credit i have about a 10% cash down payment to go with it but my question is do i CHANCE DUMPING EVERY DOLLAR I HAVE ON A DREAM HOME or try to give the bank a smaller down payment and hold onto every bit i can with the economy and jobs being lost everyday and all the other problems with america right now? as far as the house i live in now i cannot sell it for a loss so my only other option is going to be to rent it out for basically what my payment a month is and hope the renter or renters dont destroy it. i owe 90 on it and the banks say its worth 80 it used to apraise for 120 in 2005 so im barried.