PayOff Loan

CrazeRIRunner · April 2015

So I applied and got a payoff loan to cover all of my credit cards. I fully researched the website and made sure it was all legit. I ended up getting an 8.2k loan for 3 years with roughly the same minimum payment as all my credit cards. I will not be spending on them at all and already getting my extra spending curtailed or using my money from my second job if I need to buy something, like the money I earned last night is going towards new jeans as my current ones are way too big. (I am going to try and take them in and turn them into shorts so they won't go to waste.) There is no prepayment penalty so I plan on paying that sucker down asap with all overtime money goes towards it as well as $300 of my regular income.

My financial breakdown:

Non Overtime Day Job: $1,800

Living Expenses: $1,200 (Rent, Internet, Electric, Food, Gas, Water, Phone)

Loan: $300

Savings: $200

Fun Money: Leftovers

Overtime: Loan
Second Job: Savings

In May and October I get an extra paycheck for the month (got to love bi-weekly checks) so almost that whole check will be going to the loan.

I know these types of loans are not preferred but I do end up saving on the interest instead of the snowball method and now only have 1 payment.

*this is not an advertisement for the website*

CrazeRIRunner · April 2015

The actual payment for the loan is $271...I bumped up to $300.

als1982 · April 2015

Is there a Plato's Closet or Clothes Mentor by you? I'd go there to resell your old jeans and buy a new (to you) pair.

Sisugal · April 2015

Ditto als 1982 -- consider consignment shop or Goodwill as a source of jeans, especially if you are losing weight.
They are broken in, preshrunk - so no guessing how they will fit after being washed a few times.

CrazeRIRunner · April 2015

I ended up buying 3 pairs from Sears for $42. Going to turn the old ones into shorts for summer. I do have a sewing machine, just need to learn how to take in clothes so I figured making shorts would be a great start.

bmo88 · April 2015

Is there anyway to reduce your living expenses? You are currently spending 66% of your income on living expenses, it is typically recommended you spend around 33-45% or less on those.

Can you find a cheaper place to rent? Lower your cell phone bill? Cheaper internet?

CrazeRIRunner · April 2015

I live in a college town and just renewed my lease. The breakdown is:

Rent $725

Internet $50

Electric $80

Cell $500/year

Water $75/quarter

Food $200

Gas $60

Insurance $250/ 6 months

I have the basics for everything.

Sisugal · April 2015

You can get a basic cell phone plan for much less. Trac Phone with prepaid minutes card for MUCH less. Of course if you have a smart phone you pay for those luxuries.
Can you get a roommate??
Do you NEED internet at home ? Can you just use internet at school?

Wulfgar · April 2015

There should be a way for you to get internet for less than $50 or you could just use the school's internet. I have done this in the past.

bmo88 · April 2015

As other PPs have mentioned, can you get a roommate or find a cheaper place?

Your rent, gas, water and electric come to just under $900 a month, which is almost 50% of your take home pay. That essentially makes you house poor. Not a good situation.

If you live in a college town, while rent may be high, there should be lots of prospective roommates.

Until you lower that expense, it may be very difficult and frustrating to get ahead financially.

CrazeRIRunner · April 2015

I do 2 of my classes online as well as occasionally work from home. I do not trust roommates, I have only lived at home or with significant others. I know the amount is a bit high, but did well with this first year in the apartment. It will be better once I get out of debt. I live in the East Bay area, I would have to move farther away from work to find anything cheaper and I currently have a half hour commute. I have a 2 bedroom apartment so I can have my office and work out room.

My cell phone plan is less than $50/month and is paid through August. I can't stand the college kids that live in the other units in my building, I would hate them being in my apartment. Since it is an expensive school they have the entitled brat air to them.

I actually grossed over $46k last year, so I do tend to work lots of overtime which helps get things paid off rather quickly.

simplyelise · April 2015

TBH, I think your plan sounds great. Yeah, you are paying more in rent than I'd be comfortable with, but the rest of the costs seem really reasonable.

I just want to encourage you to keep making awesome progress. It can feel slow, especially when you're pulling extra shifts and working a second job, but it's totally going to be worth it. What's your payoff goal for the loan?

CrazeRIRunner · April 2015

My original goal was to have the cards paid off by the end of the year, but will be happy with next tax return.

In this area it is very hard to find nice low rent apartments. The area is filled with older buildings so some can be in bad shape. When I was looking I saw my current apartment and a 1 bedroom that was $650. The 1 bedroom was a first floor and could fit 2 of them in my current place. I did not like the location.

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