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Sunday, August 11, 2013

Want to hear from my money problem? Well ENJOY.

Its a beautiful Sunday here in Montreal. I just post an update about the debt that I hold. I have a few problems to deal with... 

One of the problem is my rent. My rent is going to increase of $10 per month starting September. I don't agree with this increase and I am really frustrated. I asked to stay at the same price, but I didn't hear from anything yet. In the meantime, I checked on some other places, but I haven't visited yet. I have until September 1st to decide what I do and if I don't accept the increase, I will have to move by October 1st. 

The other thing is that if I move, I will have to buy a few furniture. And I don't exactly have the money for that at this time. Luckily, for the move itself, I will be a one shoot in a taxi van. 

Another problem is my special interest rate credit cards. I have a $11 200 at 2.9% for 6 months at TD Visa. The promotional rate will stop being promotional in sometime October. While updating my debt profile, I suddenly realize that it doesn't seem like TD is going to give me anytime soon another promotional interest rate. I always paid my credit card on time, so I don't understand why this is happening. I had the promotional interest rate for many years now in my account.

Until October, I can save about 3k. This will leave me with a $8 200 balance. So I hope to get the TD Visa special interest rate by the end of October. If not, I will use 5 000$ of my TD credit line at 8.75% to pay it off. For the remaining of 3 200$, I will use my RBC credit line 9.5%. Its not the best plan ever, but I will be able to pay this debt completely in a couple of months. 

In November, I have a $2 242.54 at 0% interest rate with American Express that is going to expire in November. But no worries for that one because when I arrived from my vacations, I have a nice little something that was waiting for me in my mailbox! I need to call American by October 10, 2013 to benefit from the transfer at this time 0.99% interest rate. Once proceed, I will have until April 2014 to pay the balance...

For now, I am really looking forward to pay off a part of those heavy debt. And I already began yesterday: I paid $750 on my RBC credit line. The next couple of months won't be easy, but I would like not to have more than 60k in debt. I think now is a good time. 

And for the first time ever, I will soon gave you access to my best frugal tips on how to save money.


Anonymous said...

Would it not make sense to sell some of your dud stocks (anything making less than 8.75%) to pay the LOC? I mean use your noggin on this one, as it should be a no brainer... making a loss to even low returns on a stock, but paying interest in a higher range, does not make any long term financial sense.

Christine said...

Excellent! You've got a very advanced way of handling your debts.. I don't know too many people who are able to balance all of these promotional interest rates.

Anonymous said...

Pay your 60k$ debt with your 118k$ portfolio and keep 58k$ invested in a ETF as FEI.TO or CUD.TO and re-invest the 5-6% dividend yield (drip) ??

Anonymous said...

Problems are mounting. If you can't afford a $10 per month rent increase, you are certainly in trouble.

You also seem to not understand what paying something off actually means. Quote " I will use 5 000$ of my TD credit line at 8.75% to pay it off." You are just transferring the debt over NOT PAYING IT OFF! Plus - 8.75% interest rate? - That is crazy! Your credit score must be so bad.

All you need is a downturn in the market (sept-oct market usually sputters)and you will have your margins being called.

I would feel sorry for you for you, but you only have yourself to blame. As I have stock in the companies you owe money and are paying major interest to - please just continue - you are making ME money!

Anonymous said...

When you do not own a home, the interest rate on loans and LOC are high as they are unsecured.

My credit rating is perfect and still pay a high interest rate. The reason above is what I was told by the bank. My debt to asset ratio is 15% only.


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