• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

I get paid every Thursday and have an extra weeks pay

S

swbsam

Platinum Member
The title says it all. I get paid every Thursday and this month has an extra Thursday. I do all of my budgeting based on a 4 "week" month, so I have a bit extra that I don't really need.

What would you do with it - pay down a credit card (though my credit card debt isn't excessive) or buy a ps3?

I already have an xbox 360 but I got a new tv so it might be time for bluray.

Note: I'm also expecting a pretty nice tax refund in the next few days and the plans for that are completely responsible

Let me make this argument more complex:

The wife and I have been living on a zero-budget for the past year because we're buying a home. We've been using our salaries to pay down our debt and are happy to say that we did a great job. But that involved months of sacrifice, from a food budget 1/4 of what we were used to, to not having Fridays out for months (Netflix and the xbox saved our marriage!).

So, now that we've accomplished our goal I made the leap to upgrade our TV, but did so in a responsible way (sold old tv for $450, bought a new one for $700).

On that note, I'm adding the option "put the money toward a mini-vacation" to the list)..
 
I do all of my budgeting based on a 4 "week" month, so I have a bit extra that I don't really need.
Click to expand...

If you're carrying a credit card debt you need the extra money. What's the interest on the card 18%?
 
Originally posted by: JTsyo
I do all of my budgeting based on a 4 "week" month, so I have a bit extra that I don't really need.
Click to expand...

If you're carrying a credit card debt you need the extra money. What's the interest on the card 18%?
Click to expand...

Yep, 18%

But I have less than 5k in debt, total (including student loans) and pay much more than minimum dues every month, and all of my cards are at only 50% usage, so my credit situation's not desperate.
 
Pay off the debts first.
then take the money you would have been applying to those payments monthly and bank it.

instant rainy day fund for your PS3 or whatever else you want to do instead of have sex with your wife.
 
Take a little vacation with the wife. You'll have drinks. It'll be fun. She'll like it. You'll like it.
 
I'd put it toward the debt. Staying in debt longer to be able to watch Blu-Rays isn't worth it.
 
18%? Pay off the debt. The PS3 is going to cost you $399 PLUS any interest you pay for the extra time it takes to pay off that additional $399 at 18%.

If the APR was lower, around 4-5% then you would be justified in even thinking aobut buying a PS3, but at 18 %this shouldnt even be a discussion.
 
Why are you guys always so friggin right?

The end of the month will find me paying off a credit card. Not very sexy or fun but, you're all right.. Dammit..
 
Originally posted by: swbsam
Why are you guys always so friggin right?

The end of the month will find me paying off a credit card. Not very sexy or fun but, you're all right.. Dammit..
Click to expand...

Sometimes it jsut helps to talk things out and get some reassurance... glad you came to the correct decision (even if you knew what it was to beginw with)
 
Originally posted by: akshatp
Originally posted by: swbsam
Why are you guys always so friggin right?

The end of the month will find me paying off a credit card. Not very sexy or fun but, you're all right.. Dammit..
Click to expand...

Sometimes it jsut helps to talk things out and get some reassurance... glad you came to the correct decision (even if you knew what it was to beginw with)
Click to expand...

🙂 Thanks for the positivity.

The extra money's enough to pay off one card completely - I'll just put that aside for an emergency and.. OK, if woot has a refurb ps3 for $199 sometime in the future then I can consider that an emergency 🙂
 
Originally posted by: swbsam
Why are you guys always so friggin right?

The end of the month will find me paying off a credit card. Not very sexy or fun but, you're all right.. Dammit..
Click to expand...

Glad you made the right choice. Credit card debt = :evil:

Not only are you paying 18% interest on your debt, but you are also losing x% interest that you could have gotten if you had invested your money in a CD or something.

If you spend $400 on a PS3 now (not including extra $60 dualshock controller and a few $40-$60 games and $20-$30 Blu-Rays), but you don't pay off your credit card debt in the next year, then you've spent:

$400 + ($400x18%) = $472. Actually, I think it comes out to be more than that because the interest compounds monthly. Not a hot deal.

Also, you may think you purchased your new TV in a responsible way, but I would disagree because you are still carrying credit card debt and you still paid $250 for a luxury item.

You should understand that owning a house incurs more bills than just the mortgage. There's property tax, insurance, PMI, higher electricity/gas bills, sewage, water, HOA fees, maintenance, and god help you if you get Waggy as a neighbor. 😉 Anyway, I'm just saying that even if you're in super savings mode right now, don't expect to get a lot more disposable income after you've bought a house, unless you've already factored all these costs in.

18% interest rate is huge. Try transferring the balance to a zero percent interest credit card for 6 months. With two incomes, you ought to be able to pay down less than $5K in debt in no time.
 
It's next month for me. Our payroll is every second Friday and May has three paydays. I haven't if I will spend it or save it (no debt to pay off), but I am leaning towards saving it to pay off property taxes which are due the end of June.
 
Not sure if the SonyStyle card is still offering $200 cashback for the PS3 but when you do buy a PS3 look into that.
 
You have every right and more than likely deserve to splurge and get yourself a ps3.

You should pay down your debt.

You should be saving for the mini vacation.

I vote hookers and blow.
 
Originally posted by: tk149
Originally posted by: swbsam
Why are you guys always so friggin right?

The end of the month will find me paying off a credit card. Not very sexy or fun but, you're all right.. Dammit..
Click to expand...

Glad you made the right choice. Credit card debt = :evil:

Not only are you paying 18% interest on your debt, but you are also losing x% interest that you could have gotten if you had invested your money in a CD or something.

If you spend $400 on a PS3 now (not including extra $60 dualshock controller and a few $40-$60 games and $20-$30 Blu-Rays), but you don't pay off your credit card debt in the next year, then you've spent:

$400 + ($400x18%) = $472. Actually, I think it comes out to be more than that because the interest compounds monthly. Not a hot deal.

Also, you may think you purchased your new TV in a responsible way, but I would disagree because you are still carrying credit card debt and you still paid $250 for a luxury item.

You should understand that owning a house incurs more bills than just the mortgage. There's property tax, insurance, PMI, higher electricity/gas bills, sewage, water, HOA fees, maintenance, and god help you if you get Waggy as a neighbor. 😉 Anyway, I'm just saying that even if you're in super savings mode right now, don't expect to get a lot more disposable income after you've bought a house, unless you've already factored all these costs in.

18% interest rate is huge. Try transferring the balance to a zero percent interest credit card for 6 months. With two incomes, you ought to be able to pay down less than $5K in debt in no time.
Click to expand...

Thanks for taking the time to reply - very useful info.

You know, my day to day credit card is only 7% but my friggin Home Depot card is 18.5%, I believe. That's also a bulk of my debt - store credit can't be transferred, can it?

Our mortgage is still being processed right now so I won't be applying for new credit, but I'll surely check out my options once we close. My credit score has gone up substantially from when I first got my Home Depot card, so I may have some leeway there.
 
Originally posted by: swbsam
Originally posted by: JTsyo
I do all of my budgeting based on a 4 "week" month, so I have a bit extra that I don't really need.
Click to expand...

If you're carrying a credit card debt you need the extra money. What's the interest on the card 18%?
Click to expand...

Yep, 18%

But I have less than 5k in debt, total (including student loans) and pay much more than minimum dues every month, and all of my cards are at only 50% usage, so my credit situation's not desperate.
Click to expand...

doesn't matter, pay off the debt, then get the PS3 after you paid it off, hell the ps3 will probably be cheaper by then too.

I have a ps3 and it's useless. want to buy it from me?
 
Originally posted by: swbsam

Thanks for taking the time to reply - very useful info.

You know, my day to day credit card is only 7% but my friggin Home Depot card is 18.5%, I believe. That's also a bulk of my debt - store credit can't be transferred, can it?

Our mortgage is still being processed right now so I won't be applying for new credit, but I'll surely check out my options once we close. My credit score has gone up substantially from when I first got my Home Depot card, so I may have some leeway there.
Click to expand...


You can get "balance transfer" paper checks from credit cards. Just use the credit card check like a normal check, pay off your Home Depot balance, and the debt is added to the other credit card (with hopefully a lower rate). Try shopping around for "Zero interest for 6 months (or a year)" credit cards. Remember to read the fine print though. There might be an upfront fee for using the check.

However, you have to be careful, because opening a new credit card may have an adverse effect on your credit score. There are a couple of credit score forums around the web that can give you better advice than I can. But you probably know that already.

Good luck, I hope that you realize your dream of homeownership! 🙂 Believe me, all the sacrifice you do now will be worth it once you step into your new home.

<- was in your shoes once
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top