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 $750 on my RBC credit line. The next couple of months won't be easy, but I would like not to have more than 60k in debt. I think now is a good time.
And for the first time ever, I will soon gave you access to my best frugal tips on how to save money.
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5 comments:
Would it not make sense to sell some of your dud stocks (anything making less than 8.75%) to pay the LOC? I mean use your noggin on this one, as it should be a no brainer... making a loss to even low returns on a stock, but paying interest in a higher range, does not make any long term financial sense.
Excellent! You've got a very advanced way of handling your debts.. I don't know too many people who are able to balance all of these promotional interest rates.
Pay your 60k$ 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) ??
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!
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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