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Started By
Message
Paying off debt update/questions
Posted on 2/16/18 at 11:00 am
Posted on 2/16/18 at 11:00 am
Gents, i have a quick question.
Some of you might recall last year (doubtfully but maybe) that i mentioned i'm trying to pay down some debt and finance better.
Since then i've decreased my 401k contributions which has allowed me to see more in my check and put more towards my credit card payments. And recently (maybe a month ago) i did a balance transfer for a loan to my discover card, which in essence, took care of the loan. According to the transfer terms, its a 12 month, no interest transfer which i plan to pay off using my tax return.
The question i have is do i pay discover the amount of the loan which will allow me to "pay it off" or is it something in which i need to discuss with a representative at discover? Does that make sense?
Some of you might recall last year (doubtfully but maybe) that i mentioned i'm trying to pay down some debt and finance better.
Since then i've decreased my 401k contributions which has allowed me to see more in my check and put more towards my credit card payments. And recently (maybe a month ago) i did a balance transfer for a loan to my discover card, which in essence, took care of the loan. According to the transfer terms, its a 12 month, no interest transfer which i plan to pay off using my tax return.
The question i have is do i pay discover the amount of the loan which will allow me to "pay it off" or is it something in which i need to discuss with a representative at discover? Does that make sense?
6
Posted on 2/16/18 at 11:03 am to FieldMink
If the loan balance has been transferred to your discover card, just pay off the card. Maybe I'm misunderstanding your question?
Posted on 2/16/18 at 11:04 am to FieldMink
quote:no, come again.
Does that make sense?
Posted on 2/16/18 at 11:16 am to FieldMink
quote:
The question i have is do i pay discover the amount of the loan which will allow me to "pay it off" or is it something in which i need to discuss with a representative at discover? Does that make sense?
If you used a balance transfer to pay off the original loan, that means it's essentially a debt you owe Discover now. Is it a credit card or one of their personal loan products? I'm guessing a credit card. In either case, you simply pay Discover directly. Do that with your tax return and you're good to go.
Now, problem is, balance transfers are never "free". You likely paid at least 3% up front to transfer the balance from your loan. If you were planning to pay it off in the next month, I don't think I would have advised doing that, but it's done now. Would have to think a month's worth of interest on a term loan would have been less than paying that 3% up front.
Posted on 2/16/18 at 12:01 pm to FieldMink
Just pay it off. There is no interest that will compound daily that would impact your payoff amount. This assumes you made the move because Discover gave you a 0% interest 12 month loan transfer deal.
When interest is involved, yes, you would want to call to get the payoff amount for that day or short time frame.
When interest is involved, yes, you would want to call to get the payoff amount for that day or short time frame.
This post was edited on 2/16/18 at 12:03 pm
Posted on 2/16/18 at 12:15 pm to FieldMink
quote:
which i plan to pay off using my tax return
If you figure out how to do this, let me know.
Posted on 2/16/18 at 12:32 pm to Golfer
I got ya! So basically i pay discover back directly and in essence the loan is "taken care of" least on the lenders part.
So basically i just need to toss money at discover and pay it all off. Luckily it was a 0 transfer and 0 interest for 12 months.
So basically i just need to toss money at discover and pay it all off. Luckily it was a 0 transfer and 0 interest for 12 months.
Posted on 2/16/18 at 1:05 pm to FieldMink
quote:
So basically i just need to toss money at discover and pay it all off. Luckily it was a 0 transfer and 0 interest for 12 months.
You might want to double-check and be sure your balance transfer covered the loan's full payoff amount. There may have been daily accrued interest that was not visible to you when you made the payment to pay it off.
Posted on 2/16/18 at 2:08 pm to S1C EM
quote:
balance transfers are never "free"
Chase Slate
Posted on 2/16/18 at 2:29 pm to S1C EM
True, i know at first i tumbled with the idea of doing this and read the actual interest rate fee and the extra. I saw that the transferred amount was more than i owed (at the time) for the loan. I'll keep an eye on it to see.
Posted on 2/16/18 at 3:46 pm to LSU6262
quote:
Chase Slate
What about it?
From their website:
quote:
Transfer balances with a low introductory fee of 2% during the first 60 days your account is open. After that, the fee for future balance transfers is 5% of the amount transferred, with a minimum of $5.
This post was edited on 2/16/18 at 3:53 pm
Posted on 2/16/18 at 6:42 pm to S1C EM
quote:
You might want to double-check and be sure your balance transfer covered the loan's full payoff amount. There may have been daily accrued interest that was not visible to you when you made the payment to pay it off.
This!
When I was young, I paid off a credit card one month and since I had paid the balance I stopped looking at it. Until a few months later when I had a late payment reported on my credit report. For a few dollars of accrued interest that I owed. Dinged my credit score pretty good since I still had very little credit history.
Learn from my mistake.
This post was edited on 2/16/18 at 6:43 pm
Posted on 2/17/18 at 7:51 am to LSU6262
quote:
LINK show $0 transfer fee for me. Chase Slate has had this offer for years. They are the only card I'm aware of that has it
That's interesting. Both your link and the one I am looking at are from Chase's website. Here's the funny thing....that link I was referencing yesterday said a 2% intro fee and today, it says 1%. And yet, your link says $0. That is weeeeeeeird.
LINK
EDIT: Just clicked on that link I posted to check it again and it was back to 2%. No idea on why they have it set up like that.
EDIT 2: WOW. If you click it and close it, then click again, the percentage just alternates indefinitely. I wonder how many poor saps sign up on the 2% offer thinking it's good deal when they could have done it for free?
At any rate, moot point. OP is using Discover, so this is a non-issue. He paid something.
This post was edited on 2/17/18 at 7:57 am
Posted on 2/17/18 at 11:17 am to FieldMink
The loan has a zero balance right now, correct? It's already taken care of. You are way overthinking this. It's a simple situation.
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