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Saturday, September 7, 2013

My debt situation on date of September 7th, 2013

$771.20 at 9.30% (credit line) = $71.72 in interest

$2 174.71 at for 6 months at 0% (credit card) = 0$ in interest. Expired: November 2013

$11 140.17 at 2.9% for 6 months (credit card) = $161.53 in interest. Expired: October 2013

$54 166.81 at a low interest rates of 4.25% (margin money coming from my broker account): = 
$2 302.09 in annual interest

$4 900 at a low interest rate of 4% (credit line rates) = $196 in annual interest

$5 676.48 at low interest rate loan at 5.50% (student loan) = $312.22 in annual interest

TOTAL: $78 829.37

TOTAL in annual interest: $3 043.55
[In date of September 7, 2013]


Anonymous said...

I love how you only calculated that the 11140.67 at 2.9% is only going to cost you 161.53..

The problem with that is that's it's only 6 months, not an annualized amount which is what you are trying to calculate. E.g. "Total in annual interest". It would be 323.08 annualized at 2.9%. The comedy of your error is that you know that your promotional rate ends in 1 month, so you should be calculating it at as 1 month at 2.9% + 11months at your non promotional rate. Let's assume that card has a non promotional rate is 19.99%. The annualized amount for that amount on that cc would be $2068.35, which is a far cry from the $161 you calculated.

Of course we all know that once that once the promotional rate is up, you're going to "pay it off" by transferring it to your line of credit which will be lower than your non promotional rate in your credit card, but it will still be higher than 0%.

My point is that if you are trying to annualize the cost of your debt while only counting the 6 months the offer is good for is just wrong, because you still have to carry that debt for the other 6 months! Or in this case the next 11months..

Anonymous said...

so many games with ping pong debt transfer back and forth. in the end you are not paying off your debt at all.

Anonymous said...

This is shows you that Sunny is living in her own little world.
If Sunny had to pay 20% interest on her 11,000 or so in debt her monthly interest expense would be $185.00/month. I guess approx 2/6 of her dividends would be required each month just to pay off the interest.


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