Pete88
join:2009-09-13
Denver, CO | calculate how much saving if get a loan to pay off CCs? lets say i have 50K on 5 credit cards with APRs of 10-20%, minimum monthly payment of 2%,
if i get a loan lets say 8% APR for 50K and use that to pay off the credit cards, then pay the loan monthly ... how do i calculate how much i save per year? |
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 ttiiggyPremium
join:2001-03-27
Bozeman, MT | I don't have the answer to your question...
Make sure you QUIT using the credit cards until you get this new loan paid off. |
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 TearAbiteD'oh
join:2001-07-25
Rancho Cucamonga, CA
kudos:2 | reply to Pete88
said by Pete88:.. how do i calculate how much i save per year? There are many ways to do it, but if it were me, I would use a calculator.
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 The PigI know you want to be mePremium
join:2009-09-11 | reply to Pete88
There are banks/lending companies out there that will give you a loan when you owe 50K on CCs? |
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 LocoObviously InsanePremium
join:2002-11-09
405 Freeway
kudos:2
 ·RoadRunner Cable
| said by The Pig:There are banks/lending companies out there that will give you a loan when you owe 50K on CCs? Some seem to think so.
You know, i love reading these Credit card / debit threads. They literally crack me up.
It's amazing what many people do when handed a credit line...spend, spend, spend.
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I work hard. I play hard. I stay hard. |
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| [[[[It's amazing what -many- people do when handed a credit line...spend, spend, spend.]]]]
Isn't that exactly what the system encourages people to do? Spend money they don't have to buy things they don't need to impress people they don't like?
It's a system specifically designed to set people up for failure. So they fail. Sure, it's funny so long as you don't think -too- long and -too- hard about it, but there are days I could weep for all of us. |
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 CylonRedPremium,MVM
join:2000-07-06
Bloom County
1 edit | quote:
Isn't that exactly what the system encourages people to do? Spend money they don't have to buy things they don't need to impress people they don't like?
No, no in my opinion - at least for those with half a brain... People cause themselves to fail - period. It is within peoples ability to not fail but they *choose* otherwise but it starts and ends with the individual who allow marketing to make their decisions and that is a flawed part.
Now - it could very well be that the OP started a business and the only way to start it up was use CCs - very common to use CC when starting a business and no one will loan money to them.
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Brian
"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain |
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 drslashGoya AsmaPremium
join:2002-02-18
Marion, IA | reply to Pete88
If your average interest rate on your CCs is 16%, then on 50K you are paying $8000 per year interest. 8% would be $4000 per year interest. This is a rough calculation of the interest on 50K for the first year. |
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1 edit | You can probably use one or more of the credit card calculators here - »www.bankrate.com/calculators/ind···ors.aspx
EDIT: Sorry, meant to reply to Pete88. |
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 thegeekPremium
join:2008-02-21
right here
kudos:2 | reply to Pete88
I predict that in 1-2 years Pete88 will be back with a thread asking how he can consolidate a $50k loan and $50k in CC debt into one low easy monthly payment and how much will it save him. |
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1 edit | reply to The Pig
Yep seen a lot some folks get home equity loan to pay off credit cards. Banks are more than happy to give the out. Problem is they just rack up more bills on credit cards. Never ending cycle until they file bankruptcy. Get it cleaned up in 2 to 7 years the cycle starts over.
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| said by dcurrey:Yep seen a lot some folks get home equity loan to pay off credit cards. It's generally a bad idea to replace unsecured debt with secured debt. |
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 timcuthBraves FanPremium
join:2000-09-18
Pelham, AL
·AT&T Southeast
| reply to ttiiggy
said by ttiiggy:Make sure you QUIT using the credit cards until you get this new loan paid off. +1
Listen to him.
Tim
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"Life is like this long line, except at the end there ain't no merry-go-round." - Arthur on The King of Queens
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 ROCINANTEOriginal Member 007Premium
join:1999-06-29
Hartsdale, NY
1 edit | reply to Pete88
said by Pete88:lets say i have 50K on 5 credit cards with APRs of 10-20%, minimum monthly payment of 2%, if i get a loan lets say 8% APR for 50K and use that to pay off the credit cards, then pay the loan monthly ... how do i calculate how much i save per year? We would need more information about the payments and rates remaining on your 5 credit cards. I would use the FV function (future value) and other financial functions in Excel and treat the monthly payments of each card as annuity payments to find out how long it would take to pay them off and compare them with your 50K loan.
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CRUNCH THIS!
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| reply to Pete88
speaking of debt..I have a friend who is 80K in the hole! They sold a home a few years ago, paid off all their debt and still have $150k left in cash. Well they burned through that and some how got back into debt with cc's..... |
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| reply to dcurrey
[Yep seen a lot some folks get home equity loan to pay off credit cards. Banks are more than happy to give the out. ]
I think banks -were- happy to give the out. I don't know if they're still keen on that nowadays, though.
I remember those lovely (and quite insane) "interest-only" loans. Those things made "Your house is an ATM!" loans look completely rational by comparison. Wow. |
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| I know people who refinanced their house taking out more equity. I forget the exact numbers, but basically they bought their house for $80,000; now it's thirty years later and they should own it outright, but they still owe $250,000 on it. |
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 AVDRespice, Adspice, ProspicePremium
join:2003-02-06
Onion, NJ
kudos:1 | reply to Pete88
said by Pete88:lets say i have 50K on 5 credit cards with APRs of 10-20%, minimum monthly payment of 2%, if i get a loan lets say 8% APR for 50K and use that to pay off the credit cards, then pay the loan monthly ... how do i calculate how much i save per year? getting back to the OP. If the interest rate on the cards range 10 to 20% and the loan is 8% I would think, that roughly, you save between 2% to 18% in interest fees.
Another way to look at it is, get a 5 year loan, after 5 years, you save 100% a year.
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standard disclaimers apply. |
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AVDRespice, Adspice, ProspicePremium
join:2003-02-06
Onion, NJ
kudos:1 | reply to Bobcat79
said by Bobcat79:I know people who refinanced their house taking out more equity. I forget the exact numbers, but basically they bought their house for $80,000; now it's thirty years later and they should own it outright, but they still owe $250,000 on it. What's it worth?
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standard disclaimers apply. |
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| reply to Pete88
FYI - Under the new Credit Card Act rules that took effect this month, your next bank or credit card statement must provide a notice of how long it will take to pay off the balance and how much it will cost if you pay only the minimum payment, and will also provid the minimum amount and cost to pay off the debt in 3 years.
You can find all kinds of online loan payment calculators using Google. |
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