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Budget item and a Question

June 6th, 2018 at 05:48 pm

I forgot to add an item to my budget. I've been doing a lot of mystery shopping lately and totally forgot to account for the cash I must spend up front. It isn't a lot and I do get reimbursed but I think I should plan for it. Oh well, this is all a process, right?

I received my first check for mystery shops done in May $57.45 going straight to the Discover Loan. I am expecting at least one more payment from a different company next week.

The question I have is in regards to my Discover Loan. Do you think it would be wise for me to transfer my credit card debt to another Discover Personal Loan? I like the loan for it's low interest rate (8.49%), the ability to pay it off early, and the fact that I have the payments automatically deducted and I just forget about. My balance never goes up.

If I did transfer I would only have one loan to throw extra payments towards and hopefully never use my credit cards again.

What do you all think?

Posted in Budgeting | 2 Comments »

2 Responses to “Budget item and a Question”

  1. creditcardfree Says:
    June 6th, 2018 at 06:08 pm 1528308513
    1528308513

    If there is no fee, and with the rates you have I say yes. You will only save yourself interest by doing it this way, which means you can pay this off quicker. Your payment may or not be higher than minimums depending on the length of the loan.

    You would continue to have your Retirement loan yes? And you would pursue paying the 'new' Discover Loan faster than agreed terms? You don't want taking on a new loan to change the ultimate goal which is to pay off all the debt.

    Keep in mind that in order to not use credit cards and loans, you will need to spend less than you earn and have savings set aside.

    Before you commit to Discover's rate, you might look around at local credit unions to see if there are even better rate options.

  2. ceejay74 Says:
    June 6th, 2018 at 09:17 pm 1528319850
    1528319850

    I did that when I finally got serious (I did a Capital One unsecured personal loan) and it really helped. When the balance went down I didn't think of it as credit being freed up to possibly use; it was just debt going away. Smile As long as there are no fees to get the loan and no early penalty fees, and the interest rate is lower, it's a win win win. (That's IF you cancel or cut up your cards so you don't start eyeing that available credit as free money. That was always my problem in the past with balance transfers.)

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