PF Under 30

Paying off debt and finding my financial lifestyle

Archive for category Auto Loans

Is it worth the $300?

Sep 10

Posted by kiki in Auto Loans | No Comments

So, as everybody knows I’m on the Dave Ramsey plan. I’m currently working on the Debt Snowball, and according to this awesome calculator I found online, I will be debt-free by New Years Eve, 2009.

However, the item that’s on the list to be paid off last is the car. Right now it’s sitting @ a 7.14% APR. If I move it to a 4.6% APR at Alliant (where I’m stashing my new HSA) – the difference doesn’t pay off a whole month earlier, but it does save me $300.

Is it worth it to transfer?

My gut reaction says yes – $300 saved is still $300 earned. It’s at a bank I’m going to have anyway (read easy and convienient), plus it seems to make financial sense.

But what am I missing? The midset. I know the Dave Ramsey idea is not to borrow your way out of debt. The focus is to get Gazelle intense and pay it off as quickly as possible. I balance transferred my way into this mess, and I’m not intending on balance transferring my way out of it.

Still – it’s $300. That’s $300 that could go to my Emergency fund, or to Christmas, or to SAVE UP FOR that Imac I’ve been wanting. Heck – I could even take that $300 and put it towards the principle on that 2nd mortgage that I hate. I love my USAA, but not enough to donate $300 to them that I didn’t have to.

Please, help me out here.

I’m In!! USAA stole me love!

Nov 7

Posted by kiki in Auto Loans, Big Purchases, Credit Scores, Insurance, Mortgage, USAA | 3 Comments

As of yesterday I am officially a full fledged member of USAA. How you may ask? Well… my Grandfater was a Captain in the military and he had an account. My father has an account as a result of being one of my grandfather’s children, and I now have an account because I am his daughter. Can we say SWEET?!?!?

USAA has some of the best banking and insurance products on the market. Their Bill Pay Service is phenominal. You can deposit checks online, they refund ATM fees, and have free checks for life. They win awards for their phenomenal customer service year after year.

Anyway, as of yesterday I transferred my auto and home policies to them… saving me around $300 a year and putting all my accounts in one place. They couldn’t beat my life insurance premium with Prudential though, so I guess that one won’t go over.

I will probably be refinancing my mortgage with them as well – into a fixed 30 year product – and again – all at the same institution. My new vechicle will probably be financed with them as well, as soon as I figure out what I want to replace the ML500.

Credit Minitoring will probably go to them as well, as they have a $6 a month plan for unlimited Experian credit monitoring. Stay tuned as I learn all the intracacies of USAA!

Fed Drops the Interest Rate another .25% Now What?

Nov 1

Posted by kiki in Auto Loans, Big Purchases | 1 Comment

So this week the Federal Reserve dropped it’s Prime Interest Rate another .25%. The stock market has rejoyced by rallying, but where are the discounts?

ING drops its savings rate if not the day of, the day after. I assume mortgage refinances are .25% cheaper, but as for my accounts – no love!

This isn’t necessarily a bad thing. My credit card APRs are so low below prime it would make anyone want to go out and charge an around the world trip. My 2nd mortgage is a locked rate. My 1st – fixed for quite a few (read I don’t know the answer to this) years.

The thing that irks me the most is my auto loan, which didn’t budge the first time the fed dropped .50% or this week. What gives? I would expect this from the big bad for profit banks, but my loan is thru my local credit union and they should not be doing this kind of thing.

All the more reason I should get rid of the SUV and drive something smaller, more gas efficient. I want to drive something that gets great mileage but still something sexy. Any ideas?

ML Update – $18,000 selling price

Oct 12

Posted by kiki in Auto Loans, Big Purchases | 3 Comments

So I looked up the Kelly Blue Book (www.kbb.com) Private Reseale Value for my ML and it came out at $18,050. So I’m selling it for an even $18,000. Taking the time this weekend (since the LA trip has been cancelled) and get in cleaned up and posted on AutoTrader.com

As of last check, I currently owe $14,368.19 – which makes a Grand Total of $3631.81 back. Would love to put that in my Roth – it would almost top it out for the year. However, the truth is that it’s sitting on Credit Card bills somewhere, so it will probably go back to American Express.

In other news, I also get to get rid of my monthly payment of $376.57 and a large chunk of my monthly car insurance. Would like to take that “Payment” and put it toward something else, like my Credit Card, but I have no idea how this weekly check thing is going to work. It is definately going to take some adjustment.

I feel releived already. Can’t wait to get back to my Civic. I think keeping it for now, until I figure out what I want to do, is the smartest move yet.

Thanks sweetheart!

I lost It yesterday: revaluating my priorities

Oct 12

Posted by kiki in American Express, Auto Loans, Credit and Debt | 1 Comment

While this post may sound chipper in nature, the truth is, it wasn’t. It was the hardest, most honest look in the mirror I have taken in a long time, and I didn’t like what I saw. I lost all my marbles yesterday.

How it all started: I charged $405 on my AMEX yesterday for mine and the boyfriend’s trip to see my mom in Seattle for Thanksgiving. This is actually cheap, believe me. We used my mom’s $50 Companion Pass making his trip aroung $80 and mine around $320. We are flying out Thanksgiving morning to save money, we are flying home on Saturday night.

And as many of you know I am unemployed – very close to a new job, but the reality is that it’s going to take me a while to undo all of this. I’m almost confirmed for a really cool job as a contractor for the #1 Best Company to Work for as reported by Fortune Magazine this year. (Everybody go “Google” that and you will find your answer.) If this works out it will be amazing, a great challenge, and great fun I am sure. It’s a 95% done deal, but it’s the other 5% of uncertainty that’s scaring me.

Next thing – I’m driving around town, unemployed, in a Mercedez Benz SUV that I took out a loan on when I have a perfectly good car sitting around paid off. What the f&@k was I thinking? It gets bad gas mileage (not too great for commuting across town) and it certainly doesn’t help me with my ability to pay down my credit card debt.

Now, let’s talk about that credit card debt. I actually can’t even tell you the total, because I don’t quite know what it is. With all of the balance transfers I’ve done in the last 4 months, I’ve been “borrowing from Peter to pay Paul”. And even worse, Peter won’t let you borrow from himself to pay for another “Peter” account, so I used Paul as an intermediary. I think it’s somewhere in the 25K range right now, but either way, it’s pretty darn sick.

Anyway, I had a talk with the boyfriend last night and we both decided that we need to stop all of this. He’s not in any kind of great position either until his house sells, as it straps most of his monthly cash. Even without the equity in it, it would be nice to get back the monthly income.

So last night we made each other a promise – to keep our noses to the grindstone and correct some of this crazy spending we feel like we’re entitled to do.

  1. We cancelled our trip to LA for this weekend. Hotel savings: $130 Gas Savings: $50 Misc Savings: $100
  2. We are cancelling our Windjammer Barefoot Cruise for New Year’s. With what’s going on with Windjammer, their fate is unknown at best. I haven’t even really “paid” for it already as it is sitting as a balance to “still pay off” on my American Express. Gainback of CC balance: $1300 Not spending airfare: $1000 Misc Savings: $1000
  3. I think I’m going to sell the ML and go back to the Honda Civic for a while until I figure out what I really want. While I really love it, it’s not practical, requires a monthly payment, more insurance, and is a gas hog. Going to look onto Kelly Blue today to see what I can sell it for.
  4. He’s going to sell his powered paraglider. Since he doesn’t plan on using it anymore, this is a no brainer. Net cash flow gained: about $10,000
  5. Putting my house on the rental market. We decided we were going to spend our newfound free time this weekend getting the house ready to rent. The idea is to rent an apartment for six months, in the neighborhood we want to live in – renting mine indefinately. With the difference in the mortgage and the apartment rent, it will come out to about the same. However, my utilities will be less, no gardner required, no home security system (and subsequently no home phone) either. It will also be a lot closer to both of our works.

So that’s the tangle I’m working at getting myself out of – in a nutshell. I will keep you posted as to my progress. I’m no longer just posting the good stuff on this blog – I’m also posting the bad. Helps keep me honest.

-K