How would you handle these repayments

D

DrewChan

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Got me bonus today and it is considerable-

Trying to decide how to tackle me debt (I am not drowning but want to kill it soon) - my bonus covers about 60% of debt.

I have

Approx 3 store cards edgards etc. (All under 5k each)
1 Current Account (under 6k)
1 Credit Card (10k)

N then my car which I sold but still owe 45k on at 23% (Don't ask)

Do I hit all of the small accounts then start pumping cash into car - Or put money into car, then pump money into little accounts.
 
How did you end up with 23% interest on a car payment????? Sheesh pay that off ASAP. That's criminal.
 
cerebus it was a '91 model 200sx - only option I had, yeah so far paid about 18k on it and only 5k off capital - I hate banks
 
Kill the store cards, then the current account and lastly the CC. Add up all the monthly repayments of those 3 and pay it towards your car in addition to the cars monthly payment.
 
For more info-

Calculation all cards payed off -free about R1700 pm
Car - 1940 pm
 
You NEED to kill the capital amount on that car. I don't know how anybody can give or accept that kind of interest rate. Is it possible to take the debt elsewhere and renegotiate the interest rate?
 
cerebus said:
You NEED to kill the capital amount on that car. I don't know how anybody can give or accept that kind of interest rate. Is it possible to take the debt elsewhere and renegotiate the interest rate?
Click to expand...

Was a personal loan due to the age of the car, 23% was actually quite good for a personal loan lol. But agreed I can thwack at least 34k into car.
 
Pay the ones with the highest interest rates first. It doesn't matter if the other ones are small amounts that you can squash immediately, just pay the minimum there and the maximum on the big interest items.
 
Approximate algorithm for extraordinary repayments, in descending order of priority.

0. Always compound interest first, the 3 below:
1. Highest interest rate & highest outstanding amount (e.g. large personal loans, big credit card debts)
2. Highest outstanding amount & approximately same interest rate (e.g. large loans with low rates, e.g. student/bond)
3. Highest interest rate & approximately same outstanding amount (e.g. credit cards with small outstanding amounts)
4. Simple interest loans (e.g. car)
 
Scary things is as far as the corporate ladder is concerned I am on the 2nd to lowest rung, as you go up so do your bonuses etc
 
DrewChan said:
Got me bonus today and it is considerable-

Trying to decide how to tackle me debt (I am not drowning but want to kill it soon) - my bonus covers about 60% of debt.

I have

Approx 3 store cards edgards etc. (All under 5k each)
1 Current Account (under 6k)
1 Credit Card (10k)

N then my car which I sold but still owe 45k on at 23% (Don't ask)

Do I hit all of the small accounts then start pumping cash into car - Or put money into car, then pump money into little accounts.
Click to expand...

Quey_Quick said:
Kill the store cards, then the current account and lastly the CC. Add up all the monthly repayments of those 3 and pay it towards your car in addition to the cars monthly payment.
Click to expand...

I say credit card / overdraft first.
Then store cards, if they are the 6 month interest free type (you gave Edgars as an example).
Then pay off car as per Quey_Quick.

VG008 said:
Jeez dude, you got around a 40K bonus!
What company do you work for? And where do I apply?
Click to expand...

R40k may or may not be a good bonus depending on what he earns annually.
 
eehellfire said:
I say credit card / overdraft first.
Then store cards, if they are the 6 month interest free type (you gave Edgars as an example).
Then pay off car as per Quey_Quick. R40k may or may not be a good bonus depending on what he earns annually.
Click to expand...




Sigh if I earned that well I wouldn't be worried about 70k debt :P - but then I am generally unqualified
 
Sometimes it helps to kill of the smaller ones first as it feels as if your getting somewhere - then pay off the rest into your car and ask them to capitalise your payment, reducing your outstanding capital.
 
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