Casa Adalia

Archive for the ‘debt’ Category

She’s now a commissioned Air Force officer, so unfortunately, 2nd or 3rd jobs are out of the question

Sunday, May 28th, 2017

Her disposable income is better than I thought it was, so she can handle the extra jump if she swaps it out to a lower interest rate. There aren’t any fees associated with doing it up front, but I’m having her check and see if she can pay off a specific loan or earmark extra payments to go to a specific loan, or does it just blob together.

So at issue now is, she has a 20,600 loan at 7.9%. This is the one which would take the majority of the swap out.

Then she has
3500
3500
4392
8000 (ish)
11000 (ish)

with interest rates ranging from 3.4 to 6.0, attached almost in reverse order of the dollar amounts shown.

Would it be better do you think, to fold the first 3500 and half of the 2nd one into the max she can swap out (25k)? Or just fold in the 4392 loan in its entirety?

And then, is she better off sticking with a normal debt snowball and knocking off lowest to highest, or knocking off the highest balances first?

Just amazing how smart I became in her view AFTER it was all said and done (I had set her up with a decent paying job transfer back when she was a freshman…but her bio mom talked her in to turning it down because “it’s important to have FUN FUN FUN when you’re in college”. Of course, did bio mom foot any of her college expenses? yeah, you already know that’s a big fat ZERO.) So who’s having fun NOW, eh?

No one has responded yet, not sure why, but I thought I’d give my thoughts

Wednesday, April 26th, 2017

It seems to me that this swap the loan thing is really just that, swapping one debt for another. It reminded me of DR talking about paying off one cc with a lower interest cc or a 0% interest. He said it amounted to shuffling or swapping around debt, almost like the old ponzi scheme. No, I am not saying your dd is looking at a ponzi scheme but it has that aroma because it is swapping debt.

Is she not in a place financially to simply accelerate payments on the current debt w/o penalty?

If she does take on this new debt will you have to co-sign? If you have to co-sign for her then I’d have to fall back on DR’s advice about never co-signing for anyone’s debt.

If she does this I’d tell her to be care of fees and stuff that would get rolled into the new debt and she would end up owing more. Would she be able to make accelerated payments to the new debt w/o penalty?