Saving Bonds Question - Tilted Forum Project Discussion Community

mused76 · 10-13-2004, 01:42 PM

I have a question regarding some saving bonds I have from the late 70's and my current credit charges. I currently owe around 3000 in credit card debt not to mention car payment and soon will be repaying my student loans back. I currently have 3500 worth of bonds, not all have matured yet, but are available for my use. Should I suck it up and pay my credit cards off with money from my paychecks or immediately pay the credit cards off with the bonds? Not sure which is the better move. Any help is appreciated.
me

spindles · 10-13-2004, 06:22 PM

Are you going to make more by keeping the bonds and incurring interest on the Credit Card. Personally I think you are better off clearing the debt. I also think that it is only good to do so if you are not going to immediately use the CC for something else...

I also think CC are evil - I don't have one (just one Amex Charge card - you have to pay the balance at the end of the month). Basically, if I can't afford to buy it, I don't get it! (Apart from the house that I don't own very much of but live in

)

pcockren · 10-13-2004, 07:08 PM

I would also say use the bonds to pay off the debt. You are not earning close to as much on the bonds as you are paying in interest if you use your paycheck to pay down the principal owed on your credit cards...After your done paying them I would suggest just keeping one as well as using a debit card connected to a checking account for everyday use. It really helps not spending what you don't have.

gar1976 · 10-14-2004, 11:05 AM

I dunno, but bonds from the late 70's might have some really nice rates on them.

If CC rate > Bond rate, look into it.

mused76 · 10-14-2004, 03:15 PM

thank you for the help... i might just use the bonds to cover the cc debt. i hate credit cards

SaltPork · 10-14-2004, 07:27 PM

Hey Mused76, be careful about cashing in those bonds. Find out how much they're worth first, because any amount over the initial purchase price paid is taxable interest. If you have a lot of bonds to cash in you are going to be in for an ugly surprise. Get educated on them before you are in deep shit with the IRS for not being able to handle the amount of tax against that. It happened to me and it sucked.

quakegod · 10-23-2004, 04:28 PM

You need to figure out the current price of those bonds were you to sell them to determine the effective current yield. If that's higher than what you're paying on your cc debt, then you should keep the bonds. But, I can tell you without knowing any of the details that you're almost definately better off selling those bonds now and paying down your debt (unless you have an apr on the cc's less than, say, 5%). PM me if you want me to walk you through the math.

10-13-2004, 01:42 PM	#1 (permalink)
mused76 Crazy Location: NE Ohio	Saving Bonds Question I have a question regarding some saving bonds I have from the late 70's and my current credit charges. I currently owe around 3000 in credit card debt not to mention car payment and soon will be repaying my student loans back. I currently have 3500 worth of bonds, not all have matured yet, but are available for my use. Should I suck it up and pay my credit cards off with money from my paychecks or immediately pay the credit cards off with the bonds? Not sure which is the better move. Any help is appreciated. me

10-13-2004, 06:22 PM	#2 (permalink)
spindles Mine is an evil laugh Location: Sydney, Australia	Are you going to make more by keeping the bonds and incurring interest on the Credit Card. Personally I think you are better off clearing the debt. I also think that it is only good to do so if you are not going to immediately use the CC for something else... I also think CC are evil - I don't have one (just one Amex Charge card - you have to pay the balance at the end of the month). Basically, if I can't afford to buy it, I don't get it! (Apart from the house that I don't own very much of but live in ) __________________ who hid my keyboard's PANIC button?

10-14-2004, 11:05 AM	#4 (permalink)
gar1976 Custom User Title Location: Lurking. Under the desk.	I dunno, but bonds from the late 70's might have some really nice rates on them. If CC rate > Bond rate, look into it. __________________ Blistex, in regards to crappy games - They made pong look like a story driven RPG with a dynamic campaign.

10-14-2004, 03:15 PM	#5 (permalink)
mused76 Crazy Location: NE Ohio	gracias thank you for the help... i might just use the bonds to cover the cc debt. i hate credit cards

10-14-2004, 07:27 PM	#6 (permalink)
SaltPork Everything's better with bacon Location: In your local grocer's freezer.	Hey Mused76, be careful about cashing in those bonds. Find out how much they're worth first, because any amount over the initial purchase price paid is taxable interest. If you have a lot of bonds to cash in you are going to be in for an ugly surprise. Get educated on them before you are in deep shit with the IRS for not being able to handle the amount of tax against that. It happened to me and it sucked. __________________ It was like that when I got here....I swear.

10-13-2004, 07:08 PM	#3 (permalink)
pcockren Tilted	I would also say use the bonds to pay off the debt. You are not earning close to as much on the bonds as you are paying in interest if you use your paycheck to pay down the principal owed on your credit cards...After your done paying them I would suggest just keeping one as well as using a debit card connected to a checking account for everyday use. It really helps not spending what you don't have.

10-23-2004, 04:28 PM	#7 (permalink)
quakegod Upright	You need to figure out the current price of those bonds were you to sell them to determine the effective current yield. If that's higher than what you're paying on your cc debt, then you should keep the bonds. But, I can tell you without knowing any of the details that you're almost definately better off selling those bonds now and paying down your debt (unless you have an apr on the cc's less than, say, 5%). PM me if you want me to walk you through the math.