I hate having this dilemma... - TwoWheelForum: Motorcycle and Sportbike forums
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post #1 of 94 (permalink) Old 03-08-2007, 05:51 PM Thread Starter
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I hate having this dilemma...

Well, most of you know that I've been bikeless for over 1 1/2 years now, but now I have a REAL dilemma on my hands. I'm currently in debt about 14K, but it's not all what I would consider "bad" debt. 4K of it is a 0% subsidy loan that I have 3 years before it has to be paid, 4K of it is at 6% int, which isn't too bad, 3K is about 11% and the other 3K is at 13%, both of which I consider "bad debt". Here's my problem: I currently have 8K that JUST came in from tax refunds, work bonus, and the sale of a stock that had dipped low enough to hit my trailing stop and sell. I have four choices of what to do with that 8K:

1. Pay off the "bad debt" and part of the 6% debt and have nothing left over.

2. Use the 8K as a down payment on a house, but keep the debt.

3. Pay off the bad debt and put the remainder into my retirement account.

4. Say hell with it all and buy a bike with the 8K.

So, what do my friends on TWF think I should do?

Surrender the booty, and let me get my hands on that beautiful treasure chest!!

One of these days, I'll actually buy a bike again...
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post #2 of 94 (permalink) Old 03-08-2007, 05:53 PM
 
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Originally Posted by Captain Morgan View Post
Well, most of you know that I've been bikeless for over 1 1/2 years now, but now I have a REAL dilemma on my hands. I'm currently in debt about 14K, but it's not all what I would consider "bad" debt. 4K of it is a 0% subsidy loan that I have 3 years before it has to be paid, 4K of it is at 6% int, which isn't too bad, 3K is about 11% and the other 3K is at 13%, both of which I consider "bad debt". Here's my problem: I currently have 8K that JUST came in from tax refunds, work bonus, and the sale of a stock that had dipped low enough to hit my trailing stop and sell. I have four choices of what to do with that 8K:

1. Pay off the "bad debt" and part of the 6% debt and have nothing left over.

2. Use the 8K as a down payment on a house, but keep the debt.

3. Pay off the bad debt and put the remainder into my retirement account.

4. Say hell with it all and buy a bike with the 8K.

So, what do my friends on TWF think I should do?
so are we talking about friends or economic advisors???


as a friend hell with it get your bike mang....


as economic advisors bay off your bad debt and save the rest.

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post #3 of 94 (permalink) Old 03-08-2007, 05:55 PM
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I would lean towards paying off the debt, but a bike is a hard thing to not have...

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post #4 of 94 (permalink) Old 03-08-2007, 05:55 PM
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you could very well get a bike for 4 or 5k and use the remainder to pay some debt off.
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post #5 of 94 (permalink) Old 03-08-2007, 05:59 PM
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Pay off the bad debt and put the rest in a bank account by itself and keep adding to it each month/week until u can afford ur bike. Or just put the rest as a down payment for a new bike but that will put u into more debt.

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post #6 of 94 (permalink) Old 03-08-2007, 06:01 PM
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I'd pay off the "bad debt" and put the 2k left over asside for a bike or as a down payment on a bike (my bike is financed at 6.2)


but definatly pay off the bad debt... but I think you need to reward yourself a little too...
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post #7 of 94 (permalink) Old 03-08-2007, 06:02 PM
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Pay off the bad debt and put the rest in a bank account by itself and keep adding to it each month/week until u can afford ur bike. Or just put the rest as a down payment for a new bike but that will put u into more debt.
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I'd pay off the "bad debt" and put the 2k left over asside for a bike or as a down payment on a bike (my bike is financed at 6.2)


but definatly pay off the bad debt... but I think you need to reward yourself a little too...
with these guys they seem to be on the right track.

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post #8 of 94 (permalink) Old 03-08-2007, 06:14 PM
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I'd use the entire 8K to pay off debts. It'll take a little longer to get a bike, but you've been without one for a year and a half. A few more months won't kill ya. I'm in the debt boat too except my debt is around 105,000 dollars. Payoff the debt man. You'll feel so much better. Not only that, but with those payment's gone, you can set aside more money to save up for a bike.

That's just me though.

Oh, and when you do get a bike, pay cash. I financed mine. Never again. I just paid my truck off. I signed for the truck OTD for 15,800. With interest, I ended up shelling out over 23,000 bucks for the truck. Doesn't really seem logical to pay an extra 8K just to satisfy the 'I need it now' craving.

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post #9 of 94 (permalink) Old 03-08-2007, 06:15 PM
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go for the bike. i mean, when are you gonna get another chance like this?! at least the bike will be paid for. so it's not like you lost anything. you'll still be in the same position as before, except you'll have a bike.

when you turn your bike on, does it return the favor?



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post #10 of 94 (permalink) Old 03-08-2007, 06:16 PM
 
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go for the bike. i mean, when are you gonna get another chance like this?! at least the bike will be paid for. so it's not like you lost anything. you'll still be in the same position as before, except you'll have a bike.

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post #11 of 94 (permalink) Old 03-08-2007, 06:38 PM Thread Starter
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It's definitely a tough decision, but if I know me, I'll payoff the bad debt and keep renting for a little while till I can save up and buy a house and bike. Have a feeling the bike will come before the house, though.

Surrender the booty, and let me get my hands on that beautiful treasure chest!!

One of these days, I'll actually buy a bike again...
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post #12 of 94 (permalink) Old 03-08-2007, 06:41 PM
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It's definitely a tough decision, but if I know me, I'll payoff the bad debt and keep renting for a little while till I can save up and buy a house and bike. Have a feeling the bike will come before the house, though.
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post #13 of 94 (permalink) Old 03-08-2007, 06:45 PM
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yeah i would pay your debt off first. the average american is 80,000 dollars in debt so dont keep going in debt. otherwise you will never get out. there is plenty of time for a bike but take that money and get rid of that debt.



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post #14 of 94 (permalink) Old 03-08-2007, 06:48 PM
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get the bike

I currently have about $9,000 in debt. I saved up 20,000 bucks and I used it to buy my GSX-R750 K6 and I still have that debt. I have a roof over my head, car in the driveway, the bike on my porch, and money in my pocket. Life can be good. While we in this world we will forever be in debt so we might as well treat ourselves from time to time.
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post #15 of 94 (permalink) Old 03-08-2007, 06:50 PM
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I currently have about $9,000 in debt. I saved up 20,000 bucks and I used it to buy my GSX-R750 K6 and I still have that debt. I have a roof over my head, car in the driveway, the bike on my porch, and money in my pocket. Life can be good. While we in this world we will forever be in debt so we might as well treat ourselves from time to time.
but why not pay off that 9k debt... you'd still have 11K to buy the bike and have money left over for gear and what not...?




or are you trying to build your credit? cause if that's the case your going about it the right way
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post #16 of 94 (permalink) Old 03-08-2007, 06:56 PM
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bad debts

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but why not pay off that 9k debt... you'd still have 11K to buy the bike and have money left over for gear and what not...?




or are you trying to build your credit? cause if that's the case your going about it the right way
Because most of my debt will be gone after like a year. It should fall off my credit report. When I was younger I got caught up with credit cards in College and didn't have a job. When I tried to pay it off it seemed like I was going no where. I"m sure I paid those cards off if it weren't for the interest and fees so I don't feel guilty. So I just eventually said screw them. Now I have a high paying job and could pay it off easily, but it just wouldn't make any sense if the debts are about to come off my credit.
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post #17 of 94 (permalink) Old 03-08-2007, 06:59 PM
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Because most of my debt will be gone after like a year. It should fall off my credit report. When I was younger I got caught up with credit cards in College and didn't have a job. When I tried to pay it off it seemed like I was going no where. I"m sure I paid those cards off if it weren't for the interest and fees so I don't feel guilty. So I just eventually said screw them. Now I have a high paying job and could pay it off easily, but it just wouldn't make any sense if the debts are about to come off my credit.
how are they going to come off your credit if you haven't paid them off?
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post #18 of 94 (permalink) Old 03-08-2007, 07:04 PM
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how are they going to come off your credit if you haven't paid them off?
most companies don't go back more than 7 or 9 years because the debt is so old. As the debts are sold from collection agency to collection agency I just challenge an old bill. 8 out of 10 times these collection agencies can't find the original paperwork that comes with the debt and it is taken off my credit.
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post #19 of 94 (permalink) Old 03-08-2007, 07:13 PM
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most companies don't go back more than 7 or 9 years because the debt is so old. As the debts are sold from collection agency to collection agency I just challenge an old bill. 8 out of 10 times these collection agencies can't find the original paperwork that comes with the debt and it is taken off my credit.
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post #20 of 94 (permalink) Old 03-08-2007, 07:20 PM Thread Starter
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He's actually right. A collection will fall off your credit report within about 7 years. But I've always been of the mindset that, "I ran it up, I'm responsible for paying it off, including all interest, etc." I'm not a fan of not paying a debt. Even if it takes me forever, I'll pay the debt because I was the one that ran it up, regardless of circumstances.

Surrender the booty, and let me get my hands on that beautiful treasure chest!!

One of these days, I'll actually buy a bike again...
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