Loan question

[SCUBA STEVE]

Ok loan guys explain to me how a boat loan works.
I really don't have anything to hide so this is what I got going.
Bought the boat in 2003 for 38k & some change financed 33k.
How in the heck do I still owe $31,752 after making 23 payments of $309.74ea.
Intrest rate 7.5% 180 months.
At this rate I'll never be able to sell my boat! :hammer2: :mad:
Can I refi at a lower intest rate now, and shorten my term? :frown:

[Jordy]

Because you pay all your interest up front. Your first payment of $309 probably included $300 in interest and $9 in prinicple and then went from there, with the principle increasing and the interest reducing. Have someone run an amortization and you'll see. It's depressing really. :frown:

[ChumpChange]

Because you pay all your interest up front. Your first payment of $309 probably included $300 in interest and $9 in prinicple and then went from there, with the principle increasing and the interest reducing. Have someone run an amortization and you'll see. It's depressing really. :frown:
Exactly. Go to bankrate.com and look at an amortization schedule. It's almost all interest at the beginning of a loan. Especially when its a 15 year.

[99 232 baja]

I took a loan out for my also, and I was at a loss of word when I found out after 3 yrs of payments I still owed close to what I financed. To remedy the problem I have since paid an extra $50.00 a month on it and the principal is going down pretty quick.

[SCUBA STEVE]

Because you pay all your interest up front. Your first payment of $309 probably included $300 in interest and $9 in prinicple and then went from there, with the principle increasing and the interest reducing. Have someone run an amortization and you'll see. It's depressing really. :frown:
I figured a boat load went to interest, but not all of it! Damn what a fock up on my part! :mad:

[SCUBA STEVE]

I took a loan out for my also, and I was at a loss of word when I found out after 3 yrs of payments I still owed close to what I financed. To remedy the problem I have since paid an extra $50.00 a month on it and the principal is going down pretty quick.
Gotta start doing that, but do you have to send it on a seperate check?
My payment stub does not give me the option of paying extra to the princible.

[Jordy]

Financing a house, if you make an extra payment a year you can cut the time on the note in almost half as that payment all goes to principle. Every loan I've ever had, I add $50-200 a month on the payment to knock it down faster. Sometimes it hurts a little bit, but when it's all said and done, you end up ahead of the game. :D

[Mtg Pro]

Steve,
I just ran the numbers based on the data that you provided. You should have paid $2551.30 in principal over the past 23 months. That would leave you with a balance of 30,448.70. If you want to PM me or call me I may be able to help you cut thru the crap.
Mike

[Mtg Pro]

Guys, remember this is a 15 year loan so if the loan is amortizing, it will pay down much quicker. We really need to see how the note is structured, or if they have an prepayment penalties.

[PHX ATC]

What they said.
Interest up front, principle later. Cut a separate check for principle only and label it as such in the "memo" section of your check. It helps. While you're cutting checks, do the same to your mortgage!!

[BoatPI]

Having a 15 year boat loan is not the wise thing to do, as illistrated. A 10 or 7 year loan makes more sense and really limits the intrest paid in $$.

[SCUBA STEVE]

Steve,
I just ran the numbers based on the data that you provided. You should have paid $2551.30 in principal over the past 23 months. That would leave you with a balance of 30,448.70. If you want to PM me or call me I may be able to help you cut thru the crap.
Mike
I took advantage of that holiday skip a payment plan twice, so that's probably where I got burned.... never doing that again. :yuk:
Thanks for the info. :cool:

[Mtg Pro]

They added the $ 600 plus in interest to the balance, just like a neg am loan.

[SCUBA STEVE]

They added the $ 600 plus in interest to the balance, just like a neg am loan.
All I can say is.... wicked burn. Mrs Scuba is telling me... "I tod you so" lol.
Fock it, you live and you learn. :hammerhea

[Jordy]

Mrs Scuba is telling me... "I told you so" lol.
I think that is the job of any female in a man's life. :D

[SCUBA STEVE]

I think that is the job of any female in a man's life. :D
Well she just got a raise to 3 shockers per hour. :hammerhea :wink:

[rrrr]

Well she just got a raise to 3 shockers per hour. :hammerhea :wink:
:jawdrop: :jawdrop: :D

[OGShocker]

Well she just got a raise to 3 shockers per hour. :hammerhea :wink:
Glad I could help...more than once! :wink:

[Sleek-Jet]

I'm just waiting for the "I pay everything in cash" peeps to get ahold of this one... :rolleyes: .
Is there anyway that loan is assumable Scuba???

[VEGASBABY]

Scuba your a smart man for asking the questions, all the advise givin is correct and works if you can put it in place, no better time then the present! Good luck!

[IN2MX]

Well she just got a raise to 3 shockers per hour. :hammerhea :wink:
SHIAT.....Jessi's already on 5 an hour!!!! :D

[Dribble]

The killer was 180 months. If you had gone 120 months the payment would have only been raised to $391.00, 60 months $661.00

[PHX ATC]

The killer was 180 months. If you had gone 120 months the payment would have only been raised to $391.00, 60 months $661.00
Don't beat the brother while he's down. :D
Shhhhhhh, don't tell him this stuff, man, he'll be drinking before 11 am. :jawdrop: :D

[BiggusJimbus]

Hey Scub...
Depending on the holder of your note, you can mitigate some of the pain of paying all that money in interest by getting a "courtesy lien".
This will allow you to at least use the interest paid for tax deduction purposes. I do this with any vehicles that I finance through my Credit union. Saves me a few hundred bucks a year.
Doesn't hurt to ask.
Jimbus.

[99 232 baja]

Gotta start doing that, but do you have to send it on a seperate check?
My payment stub does not give me the option of paying extra to the princible. you should be able to up what you have payrolled withdrawn. just contact your payroll or your boat lender even $100.00 isn't that much more ,just figure it as $25.00 a week .

[SDLifesaver]

Refi your house, pay the boat off and start a new right off for yourself. I know the refi rate will be lower than the boat loan rate.. Our credit union has 5.99 for boat loans right now. Alo better than the 9.25 that we paid just before 9/11/01. Good luck.

[Nubbs]

Ok loan guys explain to me how a boat loan works.
I really don't have anything to hide so this is what I got going.
Bought the boat in 2003 for 38k & some change financed 33k.
How in the heck do I still owe $31,752 after making 23 payments of $309.74ea.
Intrest rate 7.5% 180 months.
At this rate I'll never be able to sell my boat! :hammer2: :mad:
Can I refi at a lower intest rate now, and shorten my term? :frown:
Scuba, I'm not sure of your exact loan, but a typical loan works like this:
Amount borrowed: 33000
payment: 309.74
Interest: 7.5%
Interest charged each monthly payment = balance*interest rate/12
So the interest for the first payment = 33000*.075/12 = 206.25
Principal paid on the first payment = 309.74 -206.25 = 103.49
The interest for the second payment = (33000-103.49)*.075/12 = 205.60
Principal paid on the second payment = 309.74-205.60 = 104.13
and so on. Do you see how most of your payments go to interest?
Did that make sense?

[flat broke]

Scuba Steve,
You might want to look into a couple of options. 1. Refi into a better boat loan through your local credit union if you/your boat would qualify. 2. As suggested, do a cash out refi on your house to pay off the boat. You can get a 5yr fixed arm at about 2pts better than what you're paying now, plus have an interest only option(though exercising that option is similar to the am schedule you're paying on the boat right now) for lean months. The plus here would be tax deductability for the increased mortgage amount that used to be your boat payment. 3. see if the loan is assumable. If it is, it basically gives you the option to provide financing for someone looking to buy your boat private party. Typically they have to qualifiy with your note holder, but its usually not that big of a deal if the loan is assumable.
Then you can save a couple $$$ and buy a used jetboat cash and never have this problem again :D Seriously though, even if you do end up getting someone to assume the loan on your current boat before you buy something else. Talk with your mortgage professional of choice (there's tons of us floating around ;) ) to see if tacking the next boat purchase onto the house tab might be something you'd want to look at. There are up and down sides to that option, but at least if you investigate all options, you wont have to post up here again asking where the hell your $$ went.
Good Luck
Chris

[Rock-A-Bye-Baby]

[QUOTE=SDLifesaver]Refi your house, pay the boat off and start a new right off for yourself.
This is the way to go. Your overall payment will go down to about $150/month and if you can still afford the $300+ you are already paying, you'll pay it down much faster. We bought our boat with our home equity line of credit (HELOC) and the payment is nothing. We try to pay as close to $500 as we can---when we can. When times are tough, we pay the minimum of about $150.......

[OC-PARTYCAT]

So.....are you "selling it for what you owe now" :) :)

[Slick]

Steve,
NEVER, EVER PUT YOUR HOUSE ON THE LINE, by taking a second or doing a refi. What if something happened and you couldn't work for 6-8 months? That extra $3-400 a month could make the difference as to whether or not you're living with the in-laws. First rule of building wealth and getting out of debt...Always protect the roof over your head.

[SCUBA STEVE]

So.....are you "selling it for what you owe now" :) :)
Focker.. I did say I have to see what I owed first. :hammer2: :cool:
Slick, I hear what you and everyone else is saying. We'll see what happens, for now I still have a jet boat. :cool:
Thanks for everyones advise. I am trying to hold off on putting anything against the house for now. The equity here isnt going up as fast as it is in CA.
:hammerhea

[PHX ATC]

The equity here isnt going up as fast as it is in CA.
:hammerhea
Getting pretty close though!
:rollside:

[HavasuDreamin']

Steve,
NEVER, EVER PUT YOUR HOUSE ON THE LINE, by taking a second or doing a refi. What if something happened and you couldn't work for 6-8 months? That extra $3-400 a month could make the difference as to whether or not you're living with the in-laws. First rule of building wealth and getting out of debt...Always protect the roof over your head.
Finally. I was waiting for someone with sound financial advice to speak up. Also........never, ever, ever, never refi your house to pay for toys. You will be paying that toy off over 30 years. :hammerhea

[Roxysnow]

Finally. I was waiting for someone with sound financial advice to speak up. Also........never, ever, ever, never refi your house to pay for toys. You will be paying that toy off over 30 years. :hammerhea
Only nice thing about securing everything to the home is when you decide to let your house go into foreclosure, all those toys will be free and clear! :D But I definitely agree, try not to use the equity in your primary home to refinance depreciating toys! :D

[77charger]

A math teacher once told us in class about loans he drew a rectangle drew a line from top left corner to bottom right corner the big part at the begining he said this is the interest the smaller end(that gets bigger as time goes)is the principal get it!

[Outnumbered]

Getting pretty close though!
:rollside:
Actually, its going up quicker here in my part of AZ now than in most of SoCal. Talk to anyone in the biz in SoCal and you will see that the market has slowed quite a bit. OC register just ran an article a little while back about some parts of the OC market actually dropping in price. AZ is just trying to catch up with all of that crazy appreciation that SoCal saw last year. They are having lotteries in my development to buy a house and they have banned investors from buying houses in many new tracts. Its pretty crazy.
Anyway, I would agree with Slick. Don't go and refi your house to buy a toy unless you are in a real strong financial position. Just be sure you know what you are puting on the line.
Now, most boat and auto loans are simple interest, no pre-pay penalty loans. Just because you set it up with a 180 month amortization does not mean you have to go the full 180 months. Have an amortization schedule run at 120 months, or whatever term you want, and figure the payment. Then just pay that payment every month and it will be paid down to zero by the end of 120 months. Its that simple, unless you have a pre-pay loan which is very unlikely.
OL

[Outnumbered]

Steve,
NEVER, EVER PUT YOUR HOUSE ON THE LINE, by taking a second or doing a refi. What if something happened and you couldn't work for 6-8 months? That extra $3-400 a month could make the difference as to whether or not you're living with the in-laws. First rule of building wealth and getting out of debt...Always protect the roof over your head.
Long time no hear Slick. How have you been? Shoot me a PM or drop me a line. Hope the family and you are doing well.
OL

[Outnumbered]

OK Scuba, I ran a few numbers for you. Rough but should be close if your info above is correct:
To pay your loan off in 5 more years pay $636 per month
or
7 years $487 per month
or
10 years $376 per month
This assumes simple interest with no pre-pay.
Hope this helps clear up a little confusion.
OL

[6 Dollar Boat]

Steve,
NEVER, EVER PUT YOUR HOUSE ON THE LINE, by taking a second or doing a refi. What if something happened and you couldn't work for 6-8 months? That extra $3-400 a month could make the difference as to whether or not you're living with the in-laws. First rule of building wealth and getting out of debt...Always protect the roof over your head.
AMEN

[NorCal Gameshow]

This assumes simple interest with no pre-pay.
Hope this helps clear up a little confusion.
OL
doesn't look like he's got simple interest...
all loans should be simple interest. I can't believe it's legal to have pre-pay interest :mad:

[Outnumbered]

doesn't look like he's got simple interest...
all loans should be simple interest. I can't believe it's legal to have pre-pay interest :mad:
I think he does. The reason he got a little backward was the "skip a payment option" he took a few times. I will not sign a loan unless its simple and no pre-pay penalty. Hopefully for Scuba it is a simple interest note.
OL

[SCUBA STEVE]

OK Scuba, I ran a few numbers for you. Rough but should be close if your info above is correct:
To pay your loan off in 5 more years pay $636 per month
or
7 years $487 per month
or
10 years $376 per month
This assumes simple interest with no pre-pay.
Hope this helps clear up a little confusion.
OL
With all the loans & c/c's I have, which would you attack first? Highest interest, longest terms, or lowest balance? :D Time to get out of debt!! lol
I was thinking about it, if I get lets say a $100k + boat, I would be paying that thing off for ever and be some what in the same sittuation I am in now with my current boat. With our current income, not a wise choice. Its time to get out of debt, add a few things to the house (something that appreciates) and just deal with the boat we have now. (for now) :D But I'll proabably add some more speakers, that will keep me happy once we finally get to the sand bar. :D :D

[Jordy]

With all the loans & c/c's I have, which would you attack first? Highest interest, longest terms, or lowest balance? :D
As long as you're paying all of them and on time it will slowly happen. If you want to concentrate extra attention on any one type, I'd go with the highest interest first and pay the most you can on that loan as it's costing you more money than the others. Focus on one at a time, doubling and tripling payments if possible and then move to the next one. Paying off high interest loc's is always a good place to start. ;)

[TOBTEK]

What they said.
Interest up front, principle later. Cut a separate check for principle only and label it as such in the "memo" section of your check. It helps. While you're cutting checks, do the same to your mortgage!!
exactly! I write a SEPERATE CHECK each month on top of the reg payment and staple a note saying
"TO PRINCIPAL BALANCE ONLY- NOT INTEREST!" I do it this way because I've had lenders say.....OHHHHHH we didnt know you didnt want to prepay your interest :devil:

[Outnumbered]

With all the loans & c/c's I have, which would you attack first? Highest interest, longest terms, or lowest balance? :D Time to get out of debt!! lol
I was thinking about it, if I get lets say a $100k + boat, I would be paying that thing off for ever and be some what in the same sittuation I am in now with my current boat. With our current income, not a wise choice. Its time to get out of debt, add a few things to the house (something that appreciates) and just deal with the boat we have now. (for now) :D But I'll proabably add some more speakers, that will keep me happy once we finally get to the sand bar. :D :D
Scuba, pay off the damn credit cards first and stop using them. Those things are evil :skull:. All kidding aside, I would pay off the CC first, higher interest loans next, and make extra payments on the mortgage last. It makes no sense to pay extra payments on a mortgage or low interest boat loan when you have a CC with 15%+ interest. Hang onto that killer boat you have and stop trying to keep up with all these heavy-hitters :). Just use it and have fun. You have a nice easy payment and a nice boat. Enjoy it.
OL

[Jordy]

OHHHHHH we didnt know you didnt want to prepay your interest :devil:
Yeah, they didn't know... right. Some of them are more than a little shady. ;)

[framer1]

Steve,
NEVER, EVER PUT YOUR HOUSE ON THE LINE, by taking a second or doing a refi. What if something happened and you couldn't work for 6-8 months? That extra $3-400 a month could make the difference as to whether or not you're living with the in-laws. First rule of building wealth and getting out of debt...Always protect the roof over your head.
This is so true, if he puts the boat on his house he will be paying for that boat for 30 years. Long after his next two or three boats are gone.

[Kilrtoy]

Hey Steve,
Do What Makes You Happy,
You Only Have One Shot At Life,
Take Advantage Of It, Before It Takes You.
Shoulda, Coulda, Woulda Always Sucks Later In Life......

[Slick]

Steve,
The way to attack the CC cards is called the "snowball" effect. Keep your minds out of the gutters you fockers. Anyway it goes something like this:
First and foremost, cut up the cards.
Establish a budget. I have a simple spread sheat on Excel that I use that consists of all my monthly bills and expenses as well as so much for Dining/Entertainment, Groceries, Child Care and Misc. The established totals for the expenses are averaged over the year. Each time I make any type of purchase or pay a bill it's input to reflect the appropriate catagory and dollar amount. It also has a running balance total so I can scroll down and have pretty good idea of what I'll have in the bank on a weekly basis even months down the road.
Develop no less than a $1000 emergency fund
Pay for everything with cash, even groceries. It hurts more than just putting a purchase on your debit card. (I don't do this, but I should)
1. Make minimums on all your CC cards and loans.
2. Attack the lowest balance (not interest) card first with everything you can over and above the minimum.
3. When that card is payed off, take the amount you were paying on that card and apply it to the next over and above the minimum and anything else you can throw at it. If you can, make bi-monthly payments in addition, even if it's only an extra $40. That'll help kill the interest.
4. Keep plugin' away until you're done with the last card. And don't make that mistake again.
5. Then you can start on the other loans.
Hope that helps. It's pretty basic stuff you'll learn in any investment or get out of debt class.

[SCUBA STEVE]

Hey Steve,
Do What Makes You Happy,
You Only Have One Shot At Life,
Take Advantage Of It, Before It Takes You.
Shoulda, Coulda, Woulda Always Sucks Later In Life......
One thing I shoulda and coulda done was go to college. :cry:
I gotta send Angelisa to SC. :) On the serious side she is 9, I have 0 money saved for her. My parents did not do anything for me besides put a roof over my head and feed my belly, I went to a JC for a little bit, but found that I wanted & needed $ to do the things I wanted to do. I am hoping I can support Angelisa through college where she will not find the need to work full time. (part time work is ok) I have 9 years to get something going, buying a 100k boat, and 50k rig to tow it would set me way back. So in 10 years the 100k boat I want now, will run about 200k. lol :wink: I'll only be 40, still time to savage and have fun! With all these law's and such comming up, boating might become a thing of the past. :yuk:
Thanks for all your advice guys. :wink:

[AZKC]

Steve,
The way to attack the CC cards is called the "snowball" effect. Keep your minds out of the gutters you fockers. Anyway it goes something like this:
First and foremost, cut up the cards.
Establish a budget. I have a simple spread sheat on Excel that I use that consists of all my monthly bills and expenses as well as so much for Dining/Entertainment, Groceries, Child Care and Misc. The established totals for the expenses are averaged over the year. Each time I make any type of purchase or pay a bill it's input to reflect the appropriate catagory and dollar amount. It also has a running balance total so I can scroll down and have pretty good idea of what I'll have in the bank on a weekly basis even months down the road.
Develop no less than a $1000 emergency fund
Pay for everything with cash, even groceries. It hurts more than just putting a purchase on your debit card. (I don't do this, but I should)
1. Make minimums on all your CC cards and loans.
2. Attack the lowest balance (not interest) card first with everything you can over and above the minimum.
3. When that card is payed off, take the amount you were paying on that card and apply it to the next over and above the minimum and anything else you can throw at it. If you can, make bi-monthly payments in addition, even if it's only an extra $40. That'll help kill the interest.
4. Keep plugin' away until you're done with the last card. And don't make that mistake again.
5. Then you can start on the other loans.
Hope that helps. It's pretty basic stuff you'll learn in any investment or get out of debt class.
DING !!!!!
Thats the only way you'll get'er done in a resonable amoount of time :cool: I'm in the same boat Steve. As are many others :) That's why we got rid of new car payments, drive an old boat, and stay close to home. CC's are the root of all evil unless your banking a ton of cash and pay them of every month. Then they can be a good things :)

[Bryan Rose]

I wil post up a bit of what I think here and you all can flame away.... I went to college,got myself so far in debt with CC's took me 4 yeary to pay that shit off, not even funny. I live my life now at 36 with only a Mortgage, 15 year, and an A/X card... No credit cards no second mortgages etc.... I have a truck payment that is mine but the bussiness I own pays for it, but in the long run I am still the one who pays for it.... my bussiness and my wife has a company car. I own my boat... so it is only a jet but hey no payment and just as much fun... upgrade in the future but it will be managable and I will pay cash, less than $ 50,000 AND USED.
I often wonder about all of you out there buying boats that cost as much as a first house alot of people buy the first time out, and in reality some of you buy boats that cost more than a good starter house..... Why? can you really afford it? do you really need a $150,000 boat? to keep up with all the heavy hitters? If you can do it great....I mean listen to yourself a $150,000 boat? come on.... you have to be kidding me!
I can finance anything I want, perfect credit , a degree, fantastic debt to income ratio, etc... a plus is I make well into 6 figures a year and so does my wife but we live way below our means just in case something happens to one of us... do we live comfortable? you bet, do I have everything I want and my wife wants? yes , do I pay cash for what I want ? yes. am I in debt up to my eyeballs? HELL NO! Do I sleep well at night? yes not wondering if My paycheck to paycheck life is going to end soon.
Wealth, my Father told me was not what you made , not what you have to pay out every month , and toys that you make payments on, but what you have left over at the end of the month for security and investment. I have friends here in Atlanta that live leveraged to the hilt , on the outside they have the best of everything , boats, cars, house , 4x4's etc... but they have nothing left at the end of the month...and on the inside one mistep and the house of cards comes crashing down. I save and invest as much as I can and will retire by the time I am 55 and never look back.
Now that I am off my soapbox...... My hat is off to you Scuba Steve, good decision for realizing what is going on and doing something about it!

[SCUBA STEVE]

I save and invest as much as I can and will retire by the time I am 55 and never look back.
Now that I am off my soapbox...... My hat is off to you Scuba Steve, good decision for realizing what is going on and doing something about it!
My goal is to retire by 55 as well. 24 years and 15 days to go.. I need to get to work. lol
I always hear "you only live once so fock it" I believe in that as well, but I do not want to be working till I die for what the things I did while I was 30. :2purples:
That is a sweet jet boat! :cool:

[Freak]

One thing I shoulda and coulda done was go to college. :cry:
I gotta send Angelisa to SC. :) On the serious side she is 9, I have 0 money saved for her. My parents did not do anything for me besides put a roof over my head and feed my belly, I went to a JC for a little bit, but found that I wanted & needed $ to do the things I wanted to do. I am hoping I can support Angelisa through college where she will not find the need to work full time. (part time work is ok) I have 9 years to get something going, buying a 100k boat, and 50k rig to tow it would set me way back. So in 10 years the 100k boat I want now, will run about 200k. lol :wink: I'll only be 40, still time to savage and have fun! With all these law's and such comming up, boating might become a thing of the past. :yuk:
Thanks for all your advice guys. :wink:
Scuba,
Keep your boat. It gets the job done and you have fun in it right? Save for your daughter. In the long run you will get more satisfaction from that.

[Bryan Rose]

I always hear "you only live once so fock it" I believe in that as well, but I do not want to be working till I die for what the things I did while I was 30.
These are the people who work forever and never retire.....or are independantly wealthy trust fund kids. To be fair some with that motto do very well for themselves.... It is that risk VS reward thing.... no risk , no reward. Good for a bussiness motto, but to buy toys.... I dont' think so. Make it big in Bussiness then buy the toys when you can pay.
Scuba , thanks about the Jet , not new but good as new. Nice ride you have there as well. Gets the job done and is a lot cheaper . :argue:
Bryan

[SoCalOffshore]

One thing I shoulda and coulda done was go to college. :cry:
I gotta send Angelisa to SC. :) On the serious side she is 9, I have 0 money saved for her. My parents did not do anything for me besides put a roof over my head and feed my belly, I went to a JC for a little bit, but found that I wanted & needed $ to do the things I wanted to do. I am hoping I can support Angelisa through college where she will not find the need to work full time. (part time work is ok) I have 9 years to get something going, buying a 100k boat, and 50k rig to tow it would set me way back. So in 10 years the 100k boat I want now, will run about 200k. lol :wink: I'll only be 40, still time to savage and have fun! With all these law's and such comming up, boating might become a thing of the past. :yuk:
Thanks for all your advice guys. :wink:
USC runs over $30,000/year. Set up a 529 Plan now.

[Freak]

I wil post up a bit of what I think here and you all can flame away.... I went to college,got myself so far in debt with CC's took me 4 yeary to pay that shit off, not even funny. I live my life now at 36 with only a Mortgage, 15 year, and an A/X card... No credit cards no second mortgages etc.... I have a truck payment that is mine but the bussiness I own pays for it, but in the long run I am still the one who pays for it.... my bussiness and my wife has a company car. I own my boat... so it is only a jet but hey no payment and just as much fun... upgrade in the future but it will be managable and I will pay cash, less than $ 50,000 AND USED.
I often wonder about all of you out there buying boats that cost as much as a first house alot of people buy the first time out, and in reality some of you buy boats that cost more than a good starter house..... Why? can you really afford it? do you really need a $150,000 boat? to keep up with all the heavy hitters? If you can do it great....I mean listen to yourself a $150,000 boat? come on.... you have to be kidding me!
I can finance anything I want, perfect credit , a degree, fantastic debt to income ratio, etc... a plus is I make well into 6 figures a year and so does my wife but we live way below our means just in case something happens to one of us... do we live comfortable? you bet, do I have everything I want and my wife wants? yes , do I pay cash for what I want ? yes. am I in debt up to my eyeballs? HELL NO! Do I sleep well at night? yes not wondering if My paycheck to paycheck life is going to end soon.
Wealth, my Father told me was not what you made , not what you have to pay out every month , and toys that you make payments on, but what you have left over at the end of the month for security and investment. I have friends here in Atlanta that live leveraged to the hilt , on the outside they have the best of everything , boats, cars, house , 4x4's etc... but they have nothing left at the end of the month...and on the inside one mistep and the house of cards comes crashing down. I save and invest as much as I can and will retire by the time I am 55 and never look back.
Now that I am off my soapbox...... My hat is off to you Scuba Steve, good decision for realizing what is going on and doing something about it!
Whoa, this story sounds pretty familiar. As of recently I have found myself out of debt for the first time in a LONG time. Let me tell ya it feels really good. All that stuff that I thought I needed no longer has a grip on me and honestly as I grew older that stuff really only enthused me for shorter and shorter periods. My friends are all maxed out and the funny thing is they seem to think the American lifestyle of not saving is going to go on for ever. When you have nit wits refi their homes to finance a trip to the super bowl, things are bad off. The binge is almost over, the purge is coming. My hats off to Scuba also. It does not take long to realize the situation once you look at the #'s. Now you will start living right.

[Kilrtoy]

Save yourself some cash, SC is over priced......and over rated......

[Jordy]

Save yourself some cash, SC is over priced......and over rated......
Send her to ASU. It's a great school, you'll be able to have in state tuition, and the colors are pretty much the same. :D :D
Besides, I kind figure you're more of a Sun Devil type than a Trojan. :D

[Coleitis22]

Good advice out there. Don't beat yourself up over not going to college. I have met a lot of educated financial failures, so take it easy on yourself.
1. Buy a house. Your don't need the quad runner, hot boat, jacked up 4 wheel drive Bufordmobile and big titted Barbie doll at a young age.
2. Save cash. Stash the cash-at least 15% of your take home.
3. One credit card to establish yourself and only use in an emergency.
4. Control your wanger. Kids at an early stage of your financial beginning do not turn a profit. Neither does spousal support and child support combined.
5. Quit trying to impress Bimbo's with dinners and fine wines at an early age. Money is harder to acquire than a ditzoid.
6. Pay cash for essentials, food, clothes. Don't wast money on tatoos and tons of jewelry. Otherwise you'll look like a cross between Mr. T and Dennis Rodman without the bank account.
7. Avoid impulse items and situations until you are established. How many lap dances in Vegas will you regret?
8. Take advantage of your employers 401k.
Good Luck

[SCUBA STEVE]

Send her to ASU. It's a great school, you'll be able to have in state tuition, and the colors are pretty much the same. :D :D
Besides, I kind figure you're more of a Sun Devil type than a Trojan. :D
You suck!! :cool:

[Jordy]

You suck!! :cool:
Hey, I was saying that in a good way, like you're the Devil and all about the sun, not a So Cal rubber. It was a compliment. ;) :D

[SCUBA STEVE]

USC runs over $30,000/year. Set up a 529 Plan now.
529 plan? $30k a year, for 4 years= $120k, guess I am sacrificing the $117k deck boat for my daughters education. By the time she goes (if she gets accepted) It will be 45k a year. lol :D
Miguel, there is no way in hell she is going to UCLA. :boxingguy :D
We are already have 2 alums in the family, a 3rd is to much. :D

[Kilrtoy]

529 plan? $30k a year, for 4 years= $120k, guess I am sacrificing the $117k deck boat for my daughters education. By the time she goes (if she gets accepted) It will be 45k a year. lol :D
Miguel, there is no way in hell she is going to UCLA. :boxingguy :D
We are already have 2 alums in the family, a 3rd is to much. :D
I agree with Jordy ASU all the way
40K, plus books and get your DEGREE and call it a day.....

[SCUBA STEVE]

I agree with Jordy ASU all the way
40K, plus books and get your DEGREE and call it a day.....
What you guys agree on something? Whats going on here? :p
It will be her choice of course, but with me pumping the USC fight song into her head ever night I know where her choice will be. :rollside:

[Jordy]

I agree with Jordy ASU all the way
40K, plus books and get your DEGREE and call it a day.....
In state, at least right now, should be under $20K for a 4 year degree. I got mine in 4 1/2 only doing a couple sections during one summer. I'm sure it will all change by the time she gets there, not to mention I've been out for almost 10 years... :cry:
What you guys agree on something? Whats going on here? :p
We agree on alot of things, what are you talking about??? :D

[SCUBA STEVE]

In state, at least right now, should be under $20K for a 4 year degree. I got mine in 4 1/2 only doing a couple sections during one summer. I'm sure it will all change by the time she gets there, not to mention I've been out for almost 10 years... :cry:
We agree on alot of things, what are you talking about??? :D
I am sure you agree on Chevy trucks now. :D

[Jordy]

I am sure you agree on Chevy trucks now. :D
I've always agreed. He's finally seen the light on the Chevy thing. :D :D :D

[Kilrtoy]

I am sure you agree on Chevy trucks now. :D
Dont get me started on that piece of shit......

[boatnam2]

i got two words for my daughter! state college

[lucky]

TWO WORDS FOR MY STEP DAUGHTER STRIPPER SCHOOL :idea: :D

[totenhosen]

Steve,
The way to attack the CC cards is called the "snowball" effect. Keep your minds out of the gutters you fockers. Anyway it goes something like this:
First and foremost, cut up the cards.
Establish a budget. I have a simple spread sheat on Excel that I use that consists of all my monthly bills and expenses as well as so much for Dining/Entertainment, Groceries, Child Care and Misc. The established totals for the expenses are averaged over the year. Each time I make any type of purchase or pay a bill it's input to reflect the appropriate catagory and dollar amount. It also has a running balance total so I can scroll down and have pretty good idea of what I'll have in the bank on a weekly basis even months down the road.
Develop no less than a $1000 emergency fund
Pay for everything with cash, even groceries. It hurts more than just putting a purchase on your debit card. (I don't do this, but I should)
1. Make minimums on all your CC cards and loans.
2. Attack the lowest balance (not interest) card first with everything you can over and above the minimum.
3. When that card is payed off, take the amount you were paying on that card and apply it to the next over and above the minimum and anything else you can throw at it. If you can, make bi-monthly payments in addition, even if it's only an extra $40. That'll help kill the interest.
4. Keep plugin' away until you're done with the last card. And don't make that mistake again.
5. Then you can start on the other loans.
Hope that helps. It's pretty basic stuff you'll learn in any investment or get out of debt class.
I agree with everything here except that you should pay down/off the card with the highest interest rate not the one with the smallest balance.

[Jordy]

I agree with everything here except that you should pay down/off the card with the highest interest rate not the one with the smallest balance.
That's funny, because that's what I said. The highest interest costs you the most money and reacts the least to payment. Double and triple your payments on that card and be done with it. :cool:

[Freak]

I agree and that's the way I did it but the problem is most people need to see some change quickly to stick to the program. That's why some say to pay off the lowest first. You know the whole instant gratification thing.

[Sherpa]

the theory of "do what you want now, and don't worry about tomorrow is
pretty blind.....
I bought my boat on a 10yr RV loan. after about the 6th payment, (and it
was winter time) I had a OH SHIT, WTF did I sign up for-???
so, multiple payments sent, every payment way above the min due, and
alot of OT (which was pretty scarce) went to pay that boat off in just
over 5 years...
my 5 year truck loan only went about 38 months.
my 10 year student loan went to about 4 years...
when we bought our house, we did the variable loan.. after 2 years, and
it getting into the hi 8% rates, we refie'd to a 15 year, which at the time
cost me about 100 bucks more a month than the variable did.... that was
about 10 years ago now.... I've got 5 years left, then I actually own this
POS 800k trainwreck we call home........
pay off low $$ debt first, then take that amount and add it to the next
lowest amount.....
turn in all your credit cards for low/no interest rate cards... I get about 10
pre-approved card offers every week..........
Credit cards will f_ck you up really quick....
--Sherpa

[Slick]

I agree and that's the way I did it but the problem is most people need to see some change quickly to stick to the program. That's why some say to pay off the lowest first. You know the whole instant gratification thing.
That's exactly the reason to start with the lowest card. It gives you a sense of accomplishment and you see results sooner. Additionally, it looks better on your credit report to have one or two cards with higher balances than several cards at the same time.

[Jordy]

Actually it will look worse on your credit report to have higher balance cards and it skews your debt to income and available credit ratios, especially if you pay off the low balance cards and close them out as you're cutting your available credit down, which all plays into how your credit score is figured out. Showing that you have cards that have 75% or more of the balance available is better for your credit because it shows that you're responsible with how you use it and not running around with everything maxed out.
If you need feel good little victories along the way, then by all means, pay off low balance cards. If you want to stop screwing around and get out of debt, then tackle the high balance, high interest, revolving accounts. They cost you the most money, are harder to pay down and need much more attention, and hurt your credit.
On a side note, I did a little online search and the resounding concensus was this:
Pay off debt with the highest interest rates first. Your extra payments will work harder when reducing high interest rate debt.
:D

[My Man's Sportin' Wood]

DING !!!!!
Thats the only way you'll get'er done in a resonable amoount of time :cool: I'm in the same boat Steve. As are many others :) That's why we got rid of new car payments, drive an old boat, and stay close to home. CC's are the root of all evil unless your banking a ton of cash and pay them of every month. Then they can be a good things :)
mee too. Don't tell anyone I'm agreeing with you KC! :D I can drink the same amount of beer in my old boat as I can in a new boat (three! LOL) Vehicles are paid for and have a small mortgage on the ranch,and save 10%, so we can retire early. Jeff want's to retire at 45, I can wait. I'll keep teaching until I get tired of it. It's a decent income if your house is paid for and I'll still get 3 months off a year to vacation.
BTW, one thing about my old boat. . . EVERY time we go to the lake, someone comments on how nice it is and "What year is that?" or "Wow, is that an old Hallett?" It's a great conversation starter.
I think you guys made the right decision in keeping your boat, Steve.

[totenhosen]

Actually it will look worse on your credit report to have higher balance cards and it skews your debt to income and available credit ratios, especially if you pay off the low balance cards and close them out as you're cutting your available credit down, which all plays into how your credit score is figured out. Showing that you have cards that have 75% or more of the balance available is better for your credit because it shows that you're responsible with how you use it and not running around with everything maxed out.
If you need feel good little victories along the way, then by all means, pay off low balance cards. If you want to stop screwing around and get out of debt, then tackle the high balance, high interest, revolving accounts. They cost you the most money, are harder to pay down and need much more attention, and hurt your credit.
On a side note, I did a little online search and the resounding concensus was this:
Pay off debt with the highest interest rates first. Your extra payments will work harder when reducing high interest rate debt.
:D
What he said. I strongly disagree with the small victory theory because that in costs you more money and time.

[Slick]

Well, you know what they say: "Opinions are like a-holes, everone has one" and that includes motivational speakers. I've sat in on a couple different seminars and have heard both methods. Unfortunately, what worked for me is selling the boat :cry: to pay off most of everything. Too bad there wasn't enough to pay off the one card that wasn't in my name :argue: