https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Wed, 15 Apr 2026 06:50:35 +0000 https://boards.hellobee.com/topic/what-would-you-pay#post-2780376 Wed, 18 Oct 2017 08:11:08 +0000 bubblegum 2780376@https://boards.hellobee.com/ <p>@T.H.O.U.: Want a good laugh? My car ending up breaking down and it all went to my car. Le struggle </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2780366 Wed, 18 Oct 2017 07:48:07 +0000 T.H.O.U. 2780366@https://boards.hellobee.com/ <p>@bubblegum: What did you end up doing? If you paid off a CC could you now put your tuition balance on that credit card? Yes its working backwards but hopefully you are close to the end? </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775847 Wed, 27 Sep 2017 09:47:06 +0000 Becky 2775847@https://boards.hellobee.com/ <p>@gingerbebe: I also want to add that if we find ourselves in a financial situation where we can pay off my student loan debt prior to 10 year forgiveness, we would consider it due to the unpredictable political climate. While loan forgiveness is Plan A, we haven't at any point assumed it is a for sure thing and have contingency plans. I agree the psychological burden is very, very significant and a huge source of stress, and for this reason think if you have the means but are on a long term repayment plan paying off the majority of the loans should be a consideration. We just don't have the means at this point, and 10 years isn't very long. 30 years on the other hand is hard to stomach, especially if over that period of time you're only paying interest and it ultimately totals as much as you would have paid if you paid it off at one time. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775834 Wed, 27 Sep 2017 09:13:40 +0000 gingerbebe 2775834@https://boards.hellobee.com/ <p>@Truth Bombs: As is often the case with you and I, we shall agree to disagree. If you think I'm not being a "responsible spender" because I "tricked myself" into paying off all of my debt and half my husband's debt over 5 years while making the insane sacrifices we made, instead juggling public service loan forgiveness over 10 years, IBR, and various tax deductions over 10-30 years then 🤷🏻‍♀️. Having a mortgage worth of debt that is not a home mortgage does things psychologically to you where you essentially want to treat it LIKE a mortgage. And I didn't want to deal with it for that long. I see it more like I'm clearing the decks to be more responsible and aggressive moving forward, but again, fine, we're both entitled to our thoughts. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775807 Wed, 27 Sep 2017 08:10:47 +0000 bubblegum 2775807@https://boards.hellobee.com/ <p>This is why I love Hellobee! Thank you to everyone who shared their thoughts and experiences! It truly does help! :heart: </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775799 Wed, 27 Sep 2017 07:50:50 +0000 Becky 2775799@https://boards.hellobee.com/ <p>I would also go with the smallest debt. If you aren't enrolled in a student loan repayment plan (PAYE, REPAYE, IBR, or ICR) you should look into them as your outstanding balance will be forgiven after a certain number of years. We are in a similar boat and the first thing we paid off was my student loans that were not eligible for forgiveness (6.8% interest rate, so a high interest rate but a small loan amount). I always have to warn people to be mindful about consolidating your loans because if you are several years into a repayment plan and do so, it can reset that clock. For some people it is worth it, but just be careful. </p> <p>Our credit card debt on my card isn't huge so we hope to pay that off over the next few months (it is still lingering from when I was on maternity leave). Next year we hope to pay off one or both car loans. </p> <p>I have significant student loan debt. I am enrolled in the Public Service Loan Forgiveness program. Several years ago we put a big chunk of money toward my loans and very seriously regret it, as the total amount and interest rate are so high that it didn't really make a difference: the balance has barely changed over time. If we had saved that money for a year or two, we could have paid off at least one car loan by now, or invested it. Also consider how this would impact your credit if you decide to buy a new house, for example (having fewer debts to pay off). If your loans are as significant as mine, putting that much money toward them does not make sense even if the interest rate is your highest as you are most likely eligible for an income driven repayment plan. I'm just hoping I can keep my job for the next 6+ years. Thus far I have had 3 positions since grad school and all were non-profit, so if I lose my job (it's grant funded) I would look to join another non-profit to maintain my forgiveness status.</p> <p>Have you considered talking to a financial advisor? My husband is a certified financial planner (yes, even they can have debt: he just knows how to manage ours well) and works with a lot of medical and dental students, so they have significant student loan debt but are also starting families, buying homes, etc. You might want to consider consulting someone who works in a similar capacity. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775797 Wed, 27 Sep 2017 07:34:49 +0000 pwnstar 2775797@https://boards.hellobee.com/ <p>Setting aside the debt priority discussion for a second, there is no reason why you can't cut up your cards today. Keep the 1 or 2 that you will use going forward, and immediately cut up all the rest. </p> <p>That said, the math "argument" is valid. Period. Full stop. Because it's not an argument. It's math. And while really and truly you should do what makes the most financial sense, at the end of the day, what you need most of all is to move forward in the right direction, in whatever manner you decide is best. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775795 Wed, 27 Sep 2017 07:27:06 +0000 T.H.O.U. 2775795@https://boards.hellobee.com/ <p>The other advantage of paying off smaller amounts first even if they have a lower interest rate than others is if you cut out that debt. If you pay off the two small CC balances, will you cut up and stop using those cards? Or will you eventually just put money back on them? If you just use them again, the math method of highest rate should be your focus. But if you are serious about trying to get out of debt, a key step is to limit the debt you have. </p> <p>I think it also depends on the difference in interest rate. If the CC cards are 8% and the next "high" one is 9%, thats pretty marginal and I would just pay off the CC cards to be done with them. But if the difference in rate is CC cards 5% and 25%, then it really would make sense to pay off that higher interest rate (even if you dont completely pay it off) </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775792 Wed, 27 Sep 2017 07:04:17 +0000 MOMTOLITTLEB 2775792@https://boards.hellobee.com/ <p>It seems like this depends on how you look at finances. I have a bit of a fear of debt so I find myself thinking I should pay off my car when I have extra money, to eliminate the monthly payment. That makes no sense as my car has 0% interest. It would make more sense to throw extra money at my mortgage but I couldn't come close to paying it off so it wouldn't be as satisfying. My point is, I think my instinct would be to pay off the ones you could but my brain would definitely say to pay toward the one with the highest interest! </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775786 Wed, 27 Sep 2017 06:33:50 +0000 Truth Bombs 2775786@https://boards.hellobee.com/ <p>@gingerbebe: If you need to trick yourself into being motivated to pay down debt, then you aren't actually changing into a responsible spender. Knowing you are saving as much money as possible in the long run should be motivation enough. That's great you were able to pay off all your debts, pay for your husband's MBA with cash, etc. But if you had paid off in order of interest rate you would have done all those things and had more cash to your name now. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775780 Wed, 27 Sep 2017 05:36:44 +0000 bloved 2775780@https://boards.hellobee.com/ <p>I agree with @SweetiePie: I would pay off the two smaller ones and then immediately reallocate the monthly payments from those two towards your card with the higher interest rate (so in essence you never "see" the money you are saving from having paid off those debts). </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775775 Wed, 27 Sep 2017 00:18:38 +0000 gingerbebe 2775775@https://boards.hellobee.com/ <p>The math wins argument is valid if you would be just as disciplined in paying off your debts as the snowball method. But if it just seems like an endless mountain, you'all feel like you'll never pay off all your debts so you get discouraged. The reason Dave's method works is because it motivates you to be more aggressive and pay off your loans faster. My husband and I put ourselves through school and had no family support after we left home for college. That cost what it cost. Today we are both attorneys and DH has an MBA to boot and while we can do math just fine, we do Dave's method because it made us more cut throat and aggressive than if we were going to pay things off based on interest rate. So even though our accountant and planner thought we were nuts about how we were handling our money, we got rid of all and any of our smaller debts first and that jazzed us up to be ruthless enough to eventually pay off my $100K law school loans and pat down $80K of his in 5 years. And we paid for his MBA cash. So while I dunno what I would have saved in interest in the long run using math, I do know it ultimately saved us money because we paid things off so much faster. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775774 Wed, 27 Sep 2017 00:18:11 +0000 DesertDreams88 2775774@https://boards.hellobee.com/ <p>For me, interest rate matters most, not monthly payments - I care more about my total cost in the end, not the monthly perspective. </p> <p>The "snowball method" (AKA Dave Ramsey) prioritizes debt from smallest to biggest principal amount, the "avalanche method" lists debt from largest to smallest interest rate. Both of these models are predicated on a budget AKA money plan, where you are focused on paying off debt monthly via controlling spending, vs a one-time payoff using unexpected money. The one-time money is nice, for sure, but it's just one step in the right direction :) </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775764 Tue, 26 Sep 2017 22:15:46 +0000 birdofafeather 2775764@https://boards.hellobee.com/ <p>Definitely the highest interest rate. I was going to start putting more toward our car loan next month because it would be nice to pay it off sooner but I realized after logging in some numbers that I would only be saving $98 total over the life of the loan because our rate is so low. So inteastbim putting that extra toward our mortgage payment because although I won't feel it now, paying that extra starting now saves me $22K over the life of the loan (which yes is way longer than the car loan but come on.) Like @Truth Bombs: said, math wins. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775761 Tue, 26 Sep 2017 21:35:32 +0000 Truth Bombs 2775761@https://boards.hellobee.com/ <p>As a finance professional, I say math always wins. The Dave Ramsey method is just silly. If your budget is tight, saving money is more important than a psychological win. Pay off as much as you are able on the highest interest rate item. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775760 Tue, 26 Sep 2017 21:21:36 +0000 SweetiePie 2775760@https://boards.hellobee.com/ <p>My initial instinct was to pay towards the highest interest rate first, even if its not paying it off completely.<br /> However, I can see why the idea of paying off the two smallest and feeling some sense of "relief" could be beneficial, but only if 1) you will cut up/cancel those cards and not reuse them and 2) you can take the payments you were making on those two and apply it to another card/debt. So for example if payments before paying off look like this:</p> <p>DH Card - $50/month<br /> Card 1 - $55/month<br /> Card 2 - $75/month<br /> Card 3 - $75/month<br /> Card 4 - $100/month</p> <p>Pay off DH and Card 1 and start paying that extra $105 towards one of the other cards. So if that is Card 2, you'd be paying $180 per month. Then that would be paid off faster, and then you can apply that $180 to another. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775759 Tue, 26 Sep 2017 21:21:12 +0000 Mrs. High Heels 2775759@https://boards.hellobee.com/ <p>I'd do the same as @MsMini: , but honestly, which option gives you most peace of mind? That's the option I'd go with. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775748 Tue, 26 Sep 2017 20:19:40 +0000 gingerbebe 2775748@https://boards.hellobee.com/ <p>I do Dave Ramsey and I would pay off the first two cards and be done with it. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775739 Tue, 26 Sep 2017 20:08:16 +0000 MsMini 2775739@https://boards.hellobee.com/ <p>I would still pay towards the highest interest rate loan/card first. Even though you won't pay it off you will have a higher net benefit because you will save that extra money in interest every month. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775737 Tue, 26 Sep 2017 20:02:23 +0000 bubblegum 2775737@https://boards.hellobee.com/ <p>@lawbee11: right no interest rate on that! Thanks for the help! :happy: </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775735 Tue, 26 Sep 2017 19:52:41 +0000 lawbee11 2775735@https://boards.hellobee.com/ <p>@bubblegum: But I assume you aren't currently paying interest on the school balance? I would put the money towards the credit card with the highest interest rate. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775734 Tue, 26 Sep 2017 19:40:42 +0000 bubblegum 2775734@https://boards.hellobee.com/ <p>@Raspberry: @Mrs. High Heels: @MsMini: I wouldn’t be able to pay off the one with the highest interest only able to pay towards it. </p> <p>@lawbee11: I will be able to pay that with my income taxes. Unfortunately my financial aid has come to an end and everything has to come out of pocket. I was simply going to pay what I could when I had extra money until I was able to pay this balance off. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775733 Tue, 26 Sep 2017 19:37:59 +0000 lawbee11 2775733@https://boards.hellobee.com/ <p>Do you have other money to cover the school balance? If not what happens/how do you pay that? Is it a student loan? </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775731 Tue, 26 Sep 2017 19:29:26 +0000 MsMini 2775731@https://boards.hellobee.com/ <p>I would pay off whatever has the highest interest rate first. It will save you the most in the end. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775730 Tue, 26 Sep 2017 19:25:08 +0000 Mrs. High Heels 2775730@https://boards.hellobee.com/ <p>Which one has the highest interest rate? I know Dave Ramsey follows the smallest debt first concept, but it is mainly for psychological reasons because there's a sense of freedom/relief when one debt is completely gone. Then you're more motivated to keep going and pay off the rest. However, from a money savings perspective, it is best to pay off the highest interest debt first. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775726 Tue, 26 Sep 2017 19:02:44 +0000 Raspberry 2775726@https://boards.hellobee.com/ <p>I would pay off which ever balance has the highest interest rate. I would then look into getting a line of credit with as low rate as possible and use it to pay off whatever remaining debts have a higher interest than that line of credit. </p> https://boards.hellobee.com/topic/what-would-you-pay#post-2775725 Tue, 26 Sep 2017 18:57:37 +0000 bubblegum 2775725@https://boards.hellobee.com/ <p>I came across some money, not much but it is extra and can help with some debt. I’m not sure what to pay though. I know the smartest thing to pay is the smallest debt so you can rid it completely but I also am in school and owe the school every semester out of pocket. Currently what I owe them this semester is my largest debt of them all. </p> <p>My debts from smallest to biggest are as follows<br /> DH’s Credit card<br /> Credit card 1<br /> Credit card 2<br /> Credit card 3<br /> Credit card 4<br /> School balance for this semester </p> <p>If I were to pay dh’s card and my first one, that would be all the money. Which removes two minimum payments out of the way (not much of a payment monthly) but I look at that school balance and know that if I don’t pay something to it, next semester it’ll just get higher. </p> <p>What would you do?</p> <p>I meant to add I can only pay off DH’s and my first card. Even if I use the money towards another card, it will not clear the balance. </p>