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Something else from today

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7:45 AM, 2008-Jan-29 .. Posted by Lynne

Amy,
So glad that's over!
From what I am hearing, I think you may be getting $2100 in the tax refund (economic package from Congress) this June. Is that enough to pay off one or two of the loans with the credit counseling agency?
I think your plan is good. If you can knock off those smaller loans as quickly as possible, then your budget won't be as suffocating once you apply those payments to the bigger, three year debt.
May I ask what kind of interest rate you are paying on the big debt? From what I read, it seems that the credit card companies are just killing people with extremely high interest rates (in the 20s!). It's no wonder people get trapped in their debt and can't get out.
Did you see 60 Minutes Sunday night? They had a story on how people (they focused on CA) have bought houses that have gone down so much in value that they are intentionally foreclosing, living basically rent free for months without paying their mortgage while the foreclosure proceeds, and then just mailing their keys to the lender (called "jingle mail"). You can see it on the CBS website. But, most of these people put little or nothing down, so other than a bad credit rating for 7 years, they are coming out way ahead financially by just walking away from their mortgage.
This is the third time this week I have heard someone mention the name David Ramsey. Where do you read or hear his information?

Lynne

6:03 PM, 2008-Jan-29 .. Posted by YPAmy5

It would be grand if the government would give us such an amount (although I'm still not holding my breath). And yes it would go a long way to paying down this debt!
As for the interest rate- 13%. Which as you know, is a LOT better than when we had the credit card!
Amy