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--> anyone here who knows ALOT about credit cards and purchase loans

Discussion in 'The Lounge' started by R72K5, Jul 7, 2003.

  1. R72K5

    R72K5 Banned

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    ok basically to make it short i have a purchase loan for a puter i bought a coupel years back and i have been unable to pay it off because of being laid off so much in the last few years and it started out at 1400 and now its up to 2200, i got a union plus mastercard today for up to 2400 line, my credit gets more and more ruined thansk to the purchase loan crap and it really needs paid off asap, so would be good to use the union plus master card to pay off the purchase loan and then worry about the master card balance when i can get a chance to ? the purchase loan increases negative balance each month by about 100 bucks if i dont pay at least the minimum which is 60 bucks, i wonder if the credit card would be any worse or better than that ? i dont know how to tell i cannot read credit card mumble jumble terminology crap.

    what would you do ?

    thanks
     
  2. 77Jimmy

    77Jimmy 1/2 ton status

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    I might be able to help...I use to work at a credit card company and I'm a finance/acctng guy. What's the interest rate on the computer loan vs the interest rate on the credit card? I'd think w/ interest rates as low as they are the credit card would have a lower interest rate than the computer loan, but I don't have the facts so I'm just guessing. If you paid off the computer loan w/ the credit card, I "think" the minimum payment would be lower but watch out this can be dangerous...depending on the interest rate, if you just pay the minimum each month you might not ever actually be paying down the principle on the loan (ie the amount you borrowed)...you'd just be paying the interest and never really getting anywhere. Also, if you did the credit card thing be real sure you can make the payment on time each month or they'll ding you w/ a $25-$30 late fee. If you do end up going late a couple of times, that might give them the right to increase your interest rate (be sure to read the fine print) and really screw you. If you go the credit card route, my advice is to use it to only to pay off the computer loan and do not use it for anything else no matter what...cut up the card and just make payments.

    Another route...go to your bank or credit union and ask about a loan. My wife had some pretty stout credit card debt when I first met her and she went to the bank and took out a loan...talked w/ the banker and worked out a payment plan that fit her budget. The loan was not a home equity loan or anything like that...just a straight up loan. I would caution you not to take out a home equity loan to pay off the computer loan...if you can't make the payments and default on the loan, that might give them ground to take away your home.

    Also, you might try going to a family member for a loan. This can be a bit risky since you're dealing w/ family, but the family member might be willing to give you a loan at a very minimum interest rate or no interest rate at all...just find a monthly payment that works for you. I like keeping the money "in the family" so to speak...better than paying some credit card company that doesn't give a rip about you.

    Sorry for long winded post. Hope that helps some.
     
  3. R72K5

    R72K5 Banned

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  4. 77Jimmy

    77Jimmy 1/2 ton status

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    ok, that info helps...family option is not an option and neither is a loan so we're basically talking about sticking w/ the computer loan you've got now, going the credit card route, or something else.

    yep, APR (annual percentage rate) is your interest rate. it works like this. example: you have a $1000 balance w/ an interest rate of 12%. basically, they are going to charge you 1/12th of 12%, or 1%, each month on the average balance you carried in that one month period. so in the first month, let's say you paid $50. your new balance is now $950, but don't forget the interest they're going to charge you of $9.75 (($1000+$950)/2)=$975 x 1%=$9.75). So really your new balance is $950 + $9.75 = $959.75. It's a little more complicated than that but that's basically what's happening.

    sounds like your expenses are low which is great. i see you selling a lot of stuff on here (also great)...can you sell enough to pay bills and pay off some of the loan? kind of a dumb question I know but if you could sell something major and pay off some or all of that loan it would be great. maybe it's time to take a good hard look at what you can and can not live without and sell or get rid of (eliminate the expense) the "can live without stuff". maybe you've already done that.

    have you tried the local unemployment agency? maybe you can do a skills assessment...what can you do, what do you like to do, and where can you put those skills to good use? get the local unemployment agency to help you write a resume and target those businesses that are looking for people w/ your skills.

    maybe you've already thougth about all this before or have done it already...don't know, am just tossing some stuff out there that might spark something.
     
  5. R72K5

    R72K5 Banned

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    yeah ive already been through the employment stuff, did all that, problem is that this town is too small, everyone knows everyone and there are not alot of businesses in mechanically or automotive related fields, theres not even a tranny shop or anything like that here.
    and parts dont sell well currently and havent really ever sold very well, i have to scrap about 90% of everything ive ever listed for sale cuz no one is interested

    thanks for percentage rate explanation, i understand what APR is now, i can use that info to help me decide on what i should do /forums/images/graemlins/laugh.gif
     
  6. Chris_T

    Chris_T 1/2 ton status

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    Depending on where you live there may be a credit counseling service offered. A way to consolodate all your debt and start repayment at a rate that takes into account your actual available income and monthly costs. I have a friend that worked in that area years back - a lot of people get in trouble doing what you suggested because of credit card rates.

    that said ...

    A lot of cards will give you 6 months no interest and allow you to transfer balances .. in theory (and I know of a couple people that did it) if your credit is good enough to get approved for card after card you can transfer, wait 5 months, transfer to a new card and cancel the old. This is NOT a safe way to do things, because often 6 months no interest is followed by a not-very-good interest rate on the balance. The two people I knew that did this did it for a very short term until they were back on their feet. I knew one crazy guy that made money at it by using the no interest money to invest in high risk short term investments ... but he had the cash to cover any shortfalls and just liked the idea of playing with "someone else's money" for those six months
     
  7. R72K5

    R72K5 Banned

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    also, while im already at it: do you really have to sign the back of the card before it is valid ? sign it on the white sticker strip thingy on the back ? also if i go to any cirrus ATM machine at any bank that has one here, dont i have to have a PIN number to enter to use it ? i didnt see a PIN number in any of the papaer work that was sent with the card, i activated it over the phone like it said and that went well, so hmm..

    in the white strip on back of card there four number digits and then a space and then three more number digits

    are the first four the PIN maybe ?

    thanks
     
  8. 77Jimmy

    77Jimmy 1/2 ton status

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    about signing it...you don't really need to sign it in order for it to work...it's there more for your protection...sometimes when you buy something the cashier will compare the signature on the back of the card w/ your signature on the receipt...just a way for the retailer to make sure that it's you.

    the pin number will not be on the card...again for your protection (and the banks actually)...someone steals your wallet or something they would have immediate access to all you funds...not good. usually they send you a pin in the mail a couple of days after you get the card.

    yea, you'll need your pin to take money out at an ATM or to use it anywhere.

    you're talking about a debit card, right? some credit cards have pin numbers...you probably don't want to go that route to get cash...the cash APR is basically always higher than the APR on purchases.

    i'd call the bank and find out what the deal is w/ you pin number.
     
  9. R72K5

    R72K5 Banned

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    it says max APR of 18%
    so 18% is probably what cash use would be huh ?

    so some carsds dont have PIN numbers ? this is a full blown master card, is the union plus series card cuz im in a union at work, so..

    i had to call a numbe rto activate the card and i succeeded and it said nothing about a PIN numbe,r siad i was ready to use it, but i thought all cars needed a PIN number in order to use at an ATM ?


    as you can see... i know absolutely ZERO about financing and bank stuff of any kind.

    what do you think ?

    thanks
     
  10. 77Jimmy

    77Jimmy 1/2 ton status

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    sounds like a credit card. i'd call them and ask them if you can use it at an ATM and whether or not you need/have a pin number.

    yea, i imagine the cash would be at 18%.
     
  11. R72K5

    R72K5 Banned

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    i called already, i was require dto call to activate it and its activated according to message i got ont he phone and says i am ready to use it

    no PIN in message or in paperwork with the card

    says i can use it at any cirrus ATM, theres a couple her ein town


    can i ?

    ami missing anything ?

    thanks
     
  12. Muddytazz

    Muddytazz 1 ton status

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    typically once the card is activated, you'll get the pin in the mail a few days to a week later /forums/images/graemlins/thumb.gif
     
  13. R72K5

    R72K5 Banned

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    cool
    so definitely need PIN number to use a normal credit card at an ATM i take it ?

    thanks
     
  14. Muddytazz

    Muddytazz 1 ton status

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  15. R72K5

    R72K5 Banned

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    thanks, that be all the answers i need, officially

    hope pin number come in mail tommorrow

    thanks
     
  16. the cork

    the cork 1/2 ton status

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    see if you can get a bank of america credit card, mine
    offers 0% interest on balance transfers,until paid in full
    as long as you make your minimun monthly payment, helps
    a little,
     
  17. R72K5

    R72K5 Banned

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    [ QUOTE ]
    see if you can get a bank of america credit card, mine
    offers 0% interest on balance transfers,until paid in full
    as long as you make your minimun monthly payment, helps
    a little,

    [/ QUOTE ]

    crap.. that sounds like a good thing definitely

    damn,
    i will keep that in my head for sure, hmmm...

    thanks
     
  18. driney

    driney 1/2 ton status Premium Member

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    One thing to keep in mind is that often there is a cash advance fee, possibly a transaction fee from the bank that owns the ATM, and interest on the cash advance often starts from the date of the transaction. There may not be a grace period. /forums/images/graemlins/deal.gif If you are using that for day to day expenses, you will be borrowing for something that may be long gone when you get the bill.
     

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