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Sunday, January 13, 2008

I must stay focused! Can't let my gaurd down.

I am eager to get rid of my smallest debt. With it's 31.74% interest, it is easily the debt that is most abusing to my finances. That interest rate is easily in excess 3 times more then any other interest rate, I pay.

Being eager, as soon as I got my paycheck last week, I sent them through my online bill pay a payment of $23.50. After I sent payment, they printed my new bill. Raising my bill from $395 to $405.83. They are expected to receive that payment tomorrow and have it posted at midnight Monday night/Tuesday morning.

But, I don't intend to stop there. My goal is to have the bill paid off by the end of January. I am expecting a payment from Google Adsense, for $147, late this week or sometime next. In addition, I received a little bit of cash from another source, allowing me to send another payment on Tuesday for $240.33. Right, now I have that cash sitting in my savings account so that I can earn a few days (the weekend) interest on it. Late Monday evening, I will move that to my checking, so that early Tuesday the money will be there to pay the payment, that I have already set up in my Credit Union's online bill pay.

I am pumped now. Watch as my 2-year struggle with this particular debt comes to an end. Then I will move on to fight Fingerhut ($1,000+ w/ 1% inteest), the home improvement loan ($990 w/10% interest) and the IRS debts ($3,000+ w/8% interest). Clearly, the smallest interest rate is that ripoff company known as Fingerhut, but which should I turn my focus onto next? I know Dave Ramsey would say the smallest (the Home Improvement loan), but Fingerhut is also the most annoying.


*** I misquoted the interest rate on this account. It is NOT 36% instead it IS 31.74%. Really, not much difference in the realm of things, but I did want to correct that.****
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go ahead share your thoughts with me now.
Posted by Kevin Surbaugh at 1/13/2008 12:25:00 PM
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5 comments:

  1. I would totally pay off the 10% loan first. Without a doubt. It's you highest level of interest, so that's logical to me. The numbers for Fingerhut are almost the same, but the interest rate is something I'm a stickler for.
    ReplyDelete
  2. when you pay off this 36% monster you're gonna deserve a big pat on the back. the rest are dogs but that's an alligator.

    well you know what i think! Fingerhut might be jerks. But if they've loaned you money at 1%, then you are *costing* them money by holding the debt, because they could loan money at 4% in the marketplace. basically kevin i've been ripping credit card companies off by taking their money at 0% and investing it for a profit. definitely pay Fingerhut last if you want to punish them as a company!

    i bet like me you're in the 10% or 15% tax rate. the home improvement loan at 10% gets a little break because you deduct the interest, but really that's like 9%. the IRS is 8%. so i'm gonna go with the home improvement loan next.

    kill the alligator!
    ReplyDelete
  3. Hey, way to go on that big 36% interest rate killing! Really, that should be illegal. And I think in some places it is.

    Next I would go for the home improvement loan, with it's 10% interest rate. That is, all things being equal.

    But you said that the Fingerhut is most annoying. It depends on HOW annoying they are. Is it annoying because it's inconvenient to pay, having to spend gas money to drive across town and make a payment? Is it annoying because you hate the word Fingerhut and hate having to look at it every month? Or do they annoy you by calling you on the phone two or three times a day wanting money?

    Annoying can mean a lot of different things to different people. If it's annoying to the point of making you want to kick the dog every time you hear the word Fingerhut, by all means, pay them off first.

    But at the rate you are going, I expect that whichever one that you choose, you will make quick work of and move on to the other, so it probably doesn't matter a whole lot which one you choose.
    ReplyDelete
  4. Kill the 36% debt and do a snoopy-dance! Way to go, you can see the writing on the wall....

    what in the heck caused them to charge you 36% anyway??
    ReplyDelete
  5. Edie -
    Don't know, tried several times to convince them to lower it, but they refused, even though Kansas law says credit card interest is to be capped 14.45% to 18%.

    Brooke and mcfnord -
    I like interest rate to, but it makes since to pay smaller debt also, because it goes faster. In this case the same debt is both...so that was the one I was thinking of doing as well.

    Jagular -
    Kansas is one of those states that cap the interest rates at 14.45% to 18%. It is something that certainly will be a topic of discussion, when I make one last ditch effort to get interest rates lowered and waived when I call them in the morning.
    http://www.bankrate.com/brm/news/cc/20020320b.asp
    (But it may be a thing of thats why they aren't located in Kansas. In other word s, it may be that they can charge that rate to Kansas customers, but if they were located in Kansas they couldn't charge the rate.)
    ReplyDelete

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