APR Rates?

[yenrod]

Im using obama subsidies...

 

[2014RubyRed]

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---------- Post added at 09:00 AM ---------- Previous post was at 08:53 AM ----------





If you or anyone are risk averse and that drives you to avoid any variation of debt, that's your choice. But don't fool yourself into thinking it is the best use of your money. You are talking feelings, I'm talking math.

Meh - math is overrated. No feelings involved, just plain old common sense. None of that Wall St. mentality though. Trust me, I'm almost smart enough to know what you are saying......

 

[gravedgr]

Meh - math is overrated. No feelings involved, just plain old common sense. None of that Wall St. mentality though. Trust me, I'm almost smart enough to know what you are saying......

Hey, I'm not trying to talk anyone into anything, or trying to say anyone is wrong. We all make our decisions based on what level of risk we're willing to live with and what is important to us.

Then, most of us lie to ourselves and pat ourselves on the back for making the best decisions, when usually they are not. I fall in that boat too. I make use of debt when it's a smart decision, and avoid it when it is not, but tend to err on the side of caution. Otherwise, I'd be much wealthier than I am now.

 

[nitronate33]

all this talk about the smartest way to spend and invest your money doesn't really matter that much as long as you live within your means. plenty of "well off" people are in worse financial shape than many middle class folks.

 

[2014RubyRed]

Hey, I'm not trying to talk anyone into anything, or trying to say anyone is wrong. We all make our decisions based on what level of risk we're willing to live with and what is important to us.

Then, most of us lie to ourselves and pat ourselves on the back for making the best decisions, when usually they are not. I fall in that boat too. I make use of debt when it's a smart decision, and avoid it when it is not, but tend to err on the side of caution. Otherwise, I'd be much wealthier than I am now.

Friendly banter is so much better than the hate, huh? I get what you are saying as I have made mistakes along the way as well. I wish I had never done some of things I have but, for the most part, wouldn't change a thing. What doesn't kill us makes us stronger, right?

We can always fall back on the ultimate tried and true saying:

"He with the most toys in the end wins"!!!​

 

[crash457]

I spent a lot of my 20s and early 30s paying off debt that I accrued using poor judgment. I went many years with no debt (no credit cards, no auto loans or even a mortgage) and thought I was doing things right. Its hard to think that your not being fiscally smart when you have no debt and live in a home that is fully paid for at 40yrs old. But then you realize that there is a difference between credit responsible and credit dependent. I have since refinanced my home and built myself a nice garage/workshop, carry at least one auto loan and have 1 credit card. I pay all of my bills with my credit card and pay that balance off monthly. I get rewards from the card and it keeps my credit score above 750. I invest extra income rather than pay outright for large purchases like my new Raptor. To say that my $70k won't earn me more that the interest paid on the loan is ridiculous. First investment return is a floating margin. The returns may net 12% but if left unmanaged, can drop to 2-3% or even result in a loss. That is why you cant just park your money somewhere and think it will all work out. Use your money as well as your worth to your advantage. Being responsible with you money means that banks are willing to loan you $70k for a new truck and doe so at very low interest rates. Not capitalizing on that means that you are letting your worth go to waste.

I know it seems backwards to think that you should have debt to gain wealth but if you step back and see the whole picture it does make sense.

That being said, you can be wealthy without debt or risk, but the rewards grow with the risk. The key is to find the level of acceptable risk for you.

 

[The Macf]

will you guys go to my gofundme so i can make this months payment?

 

[crash457]

will you guys go to my gofundme so i can make this months payment?

And what would the return on that investment be?

 

[Deleted member 12951]

Actually, it doesn't come out the same. 48 vs. 60 vs. 72 vs. 84 month loans for the same amount of money and at the same rate have differing amounts of interest charged per payment. If you get a a 60 loan and make 48 equal payments, you will have paid more interest than if you'd gotten the 48 loan.

Why? Just because you're making the 48 payment doesn't mean the 48 principal gets taken out. The 60 interest gets taken out first, then your principal, and then the interest amount for the next payment gets recalculated (assuming your loan adjusts monthly - some do not).

Is there a big difference? No. But to say there is no difference is factually inaccurate.

Take any loan calculator.
Extra Payment Calculator - Amortization Schedule
http://www.bankrate.com/calculators/auto/early-payment-payoff-calculator.aspx
https://www.calcxml.com/calculators/aut05

If I have a $50k loan at 3% for 72 months, the payment is $760 and interest would be $4697

If I take that same loan of $50k at 3% for 48 months, the payment is $1107 and interest would be $3122.

If instead I take the 72 month loan and pay $347 more to it, making it the same payment as a 48 month loan, it will get paid off in the same timeframe and pay "pretty darn close" to the same $3122 in interest. Any amortization schedule will show you this. Those extra payments go straight to the principle therefore the recalculation is done on a lower amount.

 

[Toadster]

---------- Post added at 07:38 AM ---------- Previous post was at 07:37 AM ----------

I spent a lot of my 20s and early 30s paying off debt that I accrued using poor judgment. I went many years with no debt (no credit cards, no auto loans or even a mortgage) and thought I was doing things right. Its hard to think that your not being fiscally smart when you have no debt and live in a home that is fully paid for at 40yrs old. But then you realize that there is a difference between credit responsible and credit dependent. I have since refinanced my home and built myself a nice garage/workshop, carry at least one auto loan and have 1 credit card. I pay all of my bills with my credit card and pay that balance off monthly. I get rewards from the card and it keeps my credit score above 750. I invest extra income rather than pay outright for large purchases like my new Raptor. To say that my $70k won't earn me more that the interest paid on the loan is ridiculous. First investment return is a floating margin. The returns may net 12% but if left unmanaged, can drop to 2-3% or even result in a loss. That is why you cant just park your money somewhere and think it will all work out. Use your money as well as your worth to your advantage. Being responsible with you money means that banks are willing to loan you $70k for a new truck and doe so at very low interest rates. Not capitalizing on that means that you are letting your worth go to waste.

I know it seems backwards to think that you should have debt to gain wealth but if you step back and see the whole picture it does make sense.

That being said, you can be wealthy without debt or risk, but the rewards grow with the risk. The key is to find the level of acceptable risk for you.

well said