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Math Help - What would be the best course of action for saving money?

  1. #1
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    What would be the best course of action for saving money?

    I have some basic figures here.

    I'm getting a 4000$ loan at roughly 5% interest. Payments are going to be around 135 a month.

    My current situation is as follows:

    Truck payment - 335 a month or 4000 to pay it off.

    Rent - 615 a month or 4305 to pay the lease up for the next 7 months to complete the 1 year agreement.

    Credit Card A - 50 per month or 1400 to pay it off.

    Credit Card B - 50 per month or 1600 to pay it off.

    I am just trying to determine what I should pay for in order to allow me to save the most money. Should I just pay one in full or parts of each or what?

    And if you need additional information just let me know.

    The objective is to make 1000 the new zero in my account in a years time.

    Thanks
    Last edited by z1mp; September 29th 2009 at 11:34 PM. Reason: Additional info
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  2. #2
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    Quote Originally Posted by z1mp View Post
    > I'm getting a 4000$ loan at roughly 5% interest. Payments are going to be around 135 a month.

    WHY? Pay off credit cards?

    > Truck payment - 335 a month or 4000 to pay it off.

    Interest rate?

    > Rent - 615 a month or 4305 to pay the lease up for the next 7 months to complete the 1 year agreement.

    What's your rent payment got to do with "saving" anything?

    > Credit Card A - 50 per month or 1400 to pay it off.
    > Credit Card B - 50 per month or 1600 to pay it off.

    Interest rates?


    > I am just trying to determine what I should pay for in order to allow me to save the most money.
    > Should I just pay one in full or parts of each or what?

    Are you trying to save interest wise, or reduce monthly payments?


    > The objective is to make 1000 the new zero in my account in a years time.

    That's your objective, yet you borrow $4000 ?!
    If you're able to put away $1000 in a year but still owe money,
    you'll be worse off, since the interest you'll get on that $1000
    will surely be less that on whatever you owe.
    Primary recommendation:
    ok to use credit cards, but ONLY if you pay them off IN FULL each month.
    Then you're theoretically borrowing "within a month" at 0%
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  3. #3
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    Originally Posted by z1mp
    > I'm getting a 4000$ loan at roughly 5% interest. Payments are going to be around 135 a month.

    WHY? Pay off credit cards? I'm getting the loan because I want to eliminate one of my current bills that has a higher interest rate than that of the loan. My kid's birthday and Christmas are coming up, if I can pay something off the difference I'll be saving will go towards that.

    > Truck payment - 335 a month or 4000 to pay it off.

    Interest rate? 9%

    > Rent - 615 a month or 4305 to pay the lease up for the next 7 months to complete the 1 year agreement.

    What's your rent payment got to do with "saving" anything? If I pay the rent up that takes a 615$ a month payment down to 135$ allowing me to put 480$ more out of each paycheck in savings. This isn't meant to reduce debt in the long run, just to allow me to put some extra money in savings and be able to buy presents and stuff without scraping for cash =/

    > Credit Card A - 50 per month or 1400 to pay it off.
    > Credit Card B - 50 per month or 1600 to pay it off.

    Interest rates? A - 15%, B - 0% Until 1/01/2010


    > I am just trying to determine what I should pay for in order to allow me to save the most money.
    > Should I just pay one in full or parts of each or what?

    Are you trying to save interest wise, or reduce monthly payments? Sort of both but mainly eliminate payments.


    > The objective is to make 1000 the new zero in my account in a years time.

    That's your objective, yet you borrow $4000 ?!
    If you're able to put away $1000 in a year but still owe money,
    you'll be worse off, since the interest you'll get on that $1000
    will surely be less that on whatever you owe.



    Quote Originally Posted by Wilmer View Post
    Primary recommendation:
    ok to use credit cards, but ONLY if you pay them off IN FULL each month.
    Then you're theoretically borrowing "within a month" at 0%
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  4. #4
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    Your situation is too confusing for me
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