Just calculated all my CC debt and I have a grand total of $2450 in debt. I also have to pay tuition next semester which will be another $2,000. So $4450 total. This CC debt is hanging over my head and annoying. I just want to get rid of it once and for all!
I have been offered a loan of $8,000. My minimum balance per month would be $280. I would take the $8,000 to pay off the $4450 debt which leaves me with $3,550 in my bank account. With that $3,550 + my current bank account balance + work I will pay the $280 per month.
...Then I will not rip up my CC cards (3 total) but I will just straight up not use them. Actually my highest balance is on my Best Buy store card (bought a laptop, a desktop, and an HD Canon over the last 6 months).....
So do you think it is a good idea to do this? I do because I will pay off and "consolidate" all my debt into one payment a month. Instead of worrying about 4 due dates I'll just worry about 1....Not to mention this loan will boost my credit score and report (which is good so far, not one missed payment or late payment, staying below 35-40% of my max credit limit at all times)....
Here is the good part. I recently was approved to buy a foreclosed home. I believe I can get (renting it out) $800 a month. The problem is I am waiting on the bank to get the paperwork together so I can use my money from my checking account (yes I have enough to pay off all my debt listed above + way more) BUT I want to use this money to pay for the house THEN LATER when the house is paid for + repairs worry about the $2,000 in debt. It has been a few weeks since the bank accepted my offer and I am hoping any day now they will have the paperwork ready so I can get a tenant in there.
So the good news is (hopefully just before Xmas) I will have an extra income of $800 a month which will by itself pay for more than the min. balance of the loan each month.
Since I said I would have roughly $3550 of the loan money left after I pay my debt I will use this + the first months rent + the deposit from my tenant to pay a large chunk of that $8,000 debt off (probably $6,000). Then from that point I will go on with my life and business and only owe $2,000 on the $8,000 loan which I will pay off quickly. Now I spoke with the lender and they said if I paid the loan early I would barely pay any interest whereas if I pay over the life of the loan I will pay the full interest.
...Then several months down the road I will try to talk with my bank on getting a home equity loan (to use to buy a second foreclosed home)...
What do you guys think?
Awesome! You seem to have a clear goal, rational- well thought out plans, and a good head on your shoulders. Go for it! Hope you get filthy rich & have fun doing it!
It sounds good on paper, but sometimes things don't work out like we plan. Whenever you rent, you have to deal with tenants, who don't always pay the rent on time, they don't always take care of the property and wouldn't hesitate to call you in the middle of the night when the furnace breaks.
The $800 a month rent will be nice for additional income, but what about the mortgage payment? Taxes? Insurance? Repairs?
If you have the money to pay the CC debt as you say, just pay it off and it will be done. Then if you need to borrow for tuition, do that. Don't depend on the rental property to help with the bills. I was a landlord for a few months while I was waiting for a house to close and it was a DISASTER!! The tenants didn't pay, I had to evict them, and they trashed the house. I got screwed a couple times with different tenants and I finally sold the house for way less than I paid for it. I took a beating on it but was happy to get rid of it.
So, if it were me, I would just concentrate on school and work and not become a landlord.
it sounds good,real good.but one must be sure one can hold up to those long term plans.
i cant lie i would think hard on it.also i would serch other places to pull me out of debt,as well as put me on my feet.something to think about.