How am I doing?
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Thread: How am I doing?

  1. #1
    Registered User my4fireflies's Avatar
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    Default How am I doing?

    I have an offer to re-fi the house from a 7% interest to 4.75%. It will save me $222/mo. What do you think? The only OOP is $400 for the appraisal.

    I was able to re-fi the car from 6.5% to 5.8%. it only saved me $25 a month but over the life of the loan that's 1.2K.

    I put my college loans into forbearance--I will pay the interest, but will save $160/mo.

    FWIW: our credit score is kinda crappy, averaging 640.

    So since I don't know SQUAT about this kind of stuff--how'm I doin'? Any advice would be GREATLY appreciated.

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    Registered User CPA-Kim's Avatar
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    I only have one comment and that is reconsider putting your student loans into forbearance. Students loans and most IRS debt are the only debt you can't get rid of. These debts scare me the most. I think it's a good move to re-fi anything that reduces your rate to such an extent that it offsets up front costs as long as you are not extending the amount of time it'll take to pay it off. I would find a way to make a big dent in the principal of your student loans even if it meant taking on another job. That's the loan that will stick with you no matter what. Just my two cents.
    Kim
    The Lord will provide

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    Registered User CookieLee's Avatar
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    I like your mortgage re-fi. Plow the savings into your student loan debt. Good going.

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    Registered User my4fireflies's Avatar
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    Maybe I should mention that I put the loans into forbearance because I left my job a few weeks ago to take care of my son with a chronic illness. I will take them out of forbearance ASAP, as soon as I get my footing living on 30K less a year. Also, I have 13K in credit card debt--sounds bad but I paid off 25K last year with an inheritance. So--I could be wrong, but I think if I have extra I should put it on the cc bills first right? I'm thinking that since the school loans can be deducted at tax time, that the cc cards should come first, then the car loan, then the school loans? Am I right?

  6. #5
    Registered User CPA-Kim's Avatar
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    If the credit cards have a high interest rate, probably. It's hard to give advice without knowing your complete financial situation but it sounds like you are going to tighten everything up until you are debt free and that is the important thing.
    Kim
    The Lord will provide

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    I agree. Higher interest credit cards should come first. Def get your student loan out of forebearance ASAP as you won't be moving on it at all until you do. Minimums on everything, and throw all your extra at one bill. Then when it's paid off, snowball that into payment on another bill.

    I'm a newb here, but I've done lots of research on the best way to reduce debt! Now if I just have the will power to stick with it.

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