WOMEN IN RED RACERS

[chiver78]

hugs, lark1964. I hope you're feeling better soon. 

MPL - Bell's Palsy is linked to Lyme disease. a couple friends have had this over the years. 

[minnesotapaintlady]

Mar 6, 2024 15:21:15 GMT -5 chiver78 said:

Mar 6, 2024 15:13:32 GMT -5 minnesotapaintlady said:

You can deduct the interest only if the HELOC was used for home improvement and only if you itemize already.

A HELOC is generally a line of credit with a 10 year draw period during which time you only are required to pay interest payments.  At the end of the draw it either will convert to a Home Equity Loan with a defined payment and repayment period or it will all become due as a balloon payment.  Just depends what kind of loan terms you sign up for.  Same with prepayment penalties. I've never had a HELOC (or any kind of loan) that didn't allow penalty free pre-payment, but not all states/banks have the same rules.

I had to pay like $300 in closing costs on a 60K HELOC.  No appraisal, but there was the title search and recording fees and what not. Another place in town was going to waive them, but they charge $50/year to keep the HELOC open, so they were getting it that way.

hmm.....so how do they accommodate partial home improvement interest? could I write any of it off then? and, with the rest of what you said, it sounds like a Home Equity Loan might be a better idea. thanks for the fast answer! 

I'm not sure how you would handle part of it being for improvements. You might be able to prorate it.  I haven't been able to itemize for many years so don't keep up on those rules.

[chiver78]

yeah, I haven't either. but it was worth a thought. I could get creative in finding ways to need to itemize, I've done that before. good to know it's not just a blanket write-off as a home loan though. going to explore home equity loans now as an option. I'm good with the plan I had before, but seeing all the FB ads for HELOCs I finally clicked one and started thinking down that rabbit hole. lol... 

thanks! 

[minnesotapaintlady]

Depending on what happens with the 2017 Tax Cut and Jobs Act that is expiring at the end of 2025 home equity loans might be deductible for everything again.  The limit on them was put in place temporarily.  Who knows if lawmakers will make some of those provisions permanent.  But as of now lots of things change tax-wise at the end of next year.

[chiver78]

that's good to know. maybe I'll wait and eat a month's worth of interest on one of those balances. I can ask the CPA that's been doing my taxes since the days when my return was complicated. I'm still waiting on one stupid form* before I upload my files to their server for processing. 

*stupid form is from the site that handles anything related to stocks, which is one of my bonuses that I always liquidate immediately. the bullshit about this 3rd party site is why I decided not to participate in ESPP here. but apparently I can't completely escape it unless I want to forfeit this manager-level 2nd bonus. 

[TheOtherMe]

I haven't drawn on my HELOC but it's there if I have to replace the furnace or a/c.  

I would not have it if the credit union was charging $50 a month to keep it open.

[lark1964]

I woke up from a weird dream. Don't ask what, it was just weird. OK....

Discover   15,198.88 12,019.00 25.74%  3,389.44
Tower Car  32,633.80    644.05  6.74% 32,224.12
Trumark    16,000.00    499.22  7.99% 15,660.00
           63,832.68 13,162.22        51,273.56
lark1964 [2]: 3/7/2024 $51273.38 (4/13/2023 $80,738.38 C290)

Let's see if I can fall back to sleep...    

[lark1964]

Mar 6, 2024 15:23:20 GMT -5 chiver78 said:

hugs, lark1964 . I hope you're feeling better soon. 

MPL - Bell's Palsy is linked to Lyme disease. a couple friends have had this over the years. 

Bell's palsy is also linked to heart disease and diabetes, both of which I have. And I've had Bell's, the left side of your face freezes. This isn't Bell's Palsy I had a TIA. It takes time, I'll get well.

[lark1964]

Mar 6, 2024 14:52:57 GMT -5 chiver78 said:

**thinking out loud here, no decisions have been made on anything yet**

can I ask some questions about HELOCs these days? I had one once, a long time ago, when I refinanced my mortgage into 80/20 - interest-only "mortgage" / HELOC for the remainder of the outstanding original balance, not necessarily 20% of the value, which I attacked like it was a CC payment. making this move allowed me to remove PMI from my note. I doubt this sort of thing has been allowed since the market crash ~2010, this was well before that. 

I guess my first question is - can you still write off the interest like it's 1098-INT mortgage interest? 
next - while doing a rough lookup of rates, I'm seeing all the places talking about fixed payments over 10 or 20 years. can I not pay it off ahead of time, esp if I won't be in this house that long? 
anything else I'm not considering here? oh, many of the links I read through said no upfront fees like closing costs or anything, and no refi needed. just HELOC against your current value/remaining mtg balance. 

my thought here, is that I can consolidate the non-racing balances (there are two) into one loan here, take a little extra out so I can finish the topcoat of the driveway paving and maybe cover the last of the landscaping under an interest rate I can write off on my taxes. I can keep more cash in hand while I navigate this work crap. because truth be told, a lot of it makes me nutty and I would much prefer never having to speak to a couple of my coworkers ever again, but my W2 for last year is absolving a lot of my past money sins.     another reason why I'd want to consolidate - I'm getting tired of my huge payoff spreadsheet, it's been 15 years now. if I made this move, I'd close those accounts I don't want to keep anymore and start that spreadsheet fresh. (and make debthaven happy that I've finally closed a bunch of stuff!  )   

There are many flavors of HELOC, you can get a fixed one, that's what my Trumark loan is, a fixed rate, a fixed payment, based on the value of my house, and it can be paid off early. Mine was for credit cards as well as actually closing another Trumark loan which was a slightly higher interest rate, I'd gotten it for my furnace at something like... I think 10.5%, something like that? Anyway, they let me roll it in, and then I paid off a high interest credit card, and it was nice and tidy. But it wasn't possible to write off that interest.

And then I moved and shot myself in the foot with new and different credit card bills.

You can also get flexible lines of credit, which is what I got with this new one, I have a $25K available HELOC, I can use it or not, depends on what I have going on. It's Prime less one percent, so where we're currently at 8.5%? I think? I borrow at 7.5%. It's variable, though, so I have to keep my eye on Prime, because if it goes up, so will my interest. Still, I only pay $100 for the initiation fee, and then that's it, there's no further cost unless I actually borrow. I can take out insurance (a new and different BS fee!) on it if I want to, but that's also a flexible option. Since my first order of business is killing off Discover, I don't plan to. But when I get the HVAC system, depending how much... eh, maybe I will, it's cheap like the one on my fixed loan, it's something like... I think $33/mo right now (on $16K), goes down a little bit every month, so if, say, I borrow $10K (hopefully the HVAC won't be more than that), it'll probably be something like $25/month. But that's an option, not a requirement for borrowing the money, etc. And I pay it off sooner if I want to.

Maybe I gotta not drink so much caffeine. Man, it was a weird dream, I'm actually starting to remember it a bit... I was godmother to a child for two characters in a TV show, so... they were real, not characters, the child was a real human... yeah, I gotta not eat late at night... 

[nidena]

I'm having two of the three trees removed from my property next week.  The tree guy came out late last year to give me the quote and it looks like he'll be honoring the amounts from then.  He also offered to bring me mulch after it's all said and done.  He explained they can't chip on the property because it's a very messy job and that chips will be flying everywhere, including my neighbor's yards.  I don't want that.  In any case, I need to get this done before the trees bloom even more than they already are.  They're diseased and dying but still trying their best to bloom.  lol.

[muffyinthered]

H and I are using our RMD (required minimum distribution) to get a new bed and to finally get rid of the counters in my kitchen. I did put the bed on a CC until I saw how much of the RMD would be used for the new counters.  The CC has 3.99 % interest so I will keep it on there until my Bof A is paid off in May and then send the payments $500 from that charge to this card.  Counters come on Monday, getting excited to see them in our house. The counters come with a new sink and facet so this will be great.

I am actually thinking that this is also increasing the value of my home.

[lark1964]

hee! hee! hee! hee! hee! hee!

I just paid off Discover with my new HELOC.

hee! hee! hee! hee! hee! hee!

[debthaven]

Congratulations lark1964 on getting rid of ALL your high-interest debt! 

I hope you heal quickly. 

[nikiz628]

lark1964 I hope you are feeling like yourself again soon! 

[lark1964]

La la la la la... putting feelers out with HVAC contractors, gotta start spending this HELOC money... *sigh*

Have an appointment with yet another '-ologist' - a neuro-opthalmologist this time, on April 4. Still haven't been referred to that stubbed toe specialist, anybody got one? Beuller? Beuller?

It is absolutely GORGEOUS weather outside today, my windows are open, my kitty is very happy. I know it will be ruined this weekend, but I'm enjoying it!

I have plans to get a sofa in here, now, I have a friend is moving, almost new furniture and she's downsizing and begging me to take it. So I gotta figure out how to get it into my house by the end of March. 

Bored. Really not happy I am not so mobile. I can drive, now, just - limited. How's everyone else? 

[chiver78]

I'm irritated, and would have taken a full day off Friday for the midday vet annual checkups for my pups just to ignore my laptop for a day.....except someone scheduled a meeting at 9am.    there might be a mental health day coming up next week, b/c my GAF is thoroughly busted as the company's priorities have been made painfully clear again today IRT: in-office time. I need to light a fire under my ass to find a new place to land. b/c me being in that office 2x/wk is just not a thing. and it's not worth the eventual aggravation to me in terms of lower productivity on the days I would actually try to get there, just to check the stupid box. so I'm out. 

[chiver78]

I'm feeling less intelligent after speaking with someone at my credit card company. can y'all explain this to me like I'm stupid? this is my daily user, that I've been paying off monthly up until I took advantage of their "easy pay" thing for a couple large balances last month (one of which was boarding the pups while I went on vacation...). there's no distinction when I log in as to how much of the "current balance" is that Easy Pay balance vs what will be charged interest at the purchase rate if I don't wipe out that balance. I want to not incur balance, other than the Easy Pay plan for those two charges. 

*dummy numbers here, for ease of following the conversation with a different number for each term.
my cycle closes on the 26th of the month, and as of 2/26 it was $6k*. when I open up the statement, the grid on p1 says Previous Balance was $3k, with payments of $3k, another credit of $2k (Easy Pay number) and purchases of $8k. am I correct in understanding that as long as I pay off the $6k by the payment due date of 3/23, that I will not incur interest on that amount? 

where I got all kinds of confused was that the woman on the phone was telling me that there's more information than needed in the statement (what??) and that all I needed to worry about to not incur interest was to make sure that the Previous Balance was paid - the $3k and that I'm all set. the $6k wouldn't begin to incur interest until I pass the next statement cycle, and that I'm ahead of the game. 

that doesn't feel right to me.... halp? my understanding is that my minimum payment being like $400 instead of under $100 means that the Easy Pay installments were added, and I should be paying on the statement balance at this time. I threw a chunk at it last paycheck, just trying to figure out what's left. also, it would be nice to have an understanding on their reporting so I know wtf I'm looking at, too. 

[TheOtherMe]

I did the easy pay a couple of times and did not understand how it works.  I wasn't talking about the $ you are, but I ended up paying it off.  Then I was charged $1 for paying it off early.  I did get that refunded.

[chiver78]

oh, those aren't the actual dollar amounts. I just wanted different numbers for the different particulars so I could follow whatever explanation easier. I'd done easy pay before, on a different card I've had forever. that one, when I'd log in, the balance that was enrolled in the easy pay setup wasn't included in the visible statement balance. so maybe I got spoiled there, but that's what I was expecting here and I'm confused. 

but am I wrong in thinking that interest starts accruing if you don't pay the "statement balance" by the payment due date? not the previous statement, b/c that would have been paid during the current cycle (and was). 

ETA - the reason I am asking this is the current cycle includes some summer airfare. if I pay that off now, that's fine. but if I can throw it at the resetting promotional rate card I'm about to BT, I'd rather do that and transfer less. by the time next bill arrives on this daily use card, I'll have an extra paycheck this month and whatever small tax refund from the Feds. it's just a timing issue at this point, with the underlying goal being that I don't want to be paying interest other than the easy pay, if I don't have to. and since I *can* pay it off, I would. if any of that makes sense.. 

[TheOtherMe]

You have to pay off the previous statement balance in full by the due date to not accrue interest.  That is how I have always understood it.  

I have a card that explains in very easy terms and one like yours that I can't figure out.  

[chiver78]

ok, so that $3k that was Previous Balance. that is cleared, has been and I've actually thrown some more $ since. I should have just not done the easy pay b/c this is confusing. if I just work the way I had been, paying it off by cycle reset and just keeping it clear, I'll be alright. well, there's 5 more installments on the easy pay. so, lesson learned. 

thanks! 

[minnesotapaintlady]

chiver78 - I read through your explanation like 4 times and I'm still not sure what's going on.    It sounds kind of like "My Chase Plan" where you put select purchases on a separate payoff schedule?  I did that with my cruise, but it was easy to calculate because the card started with $0 owed and it was for 18 months at 0%.  They calculated the payment at $312/month.  Then every month I had to pay that, plus any new charges to keep the interest at 0%.  They had three options for payments.  Minimum payment, statement balance, and interest saving balance.  The interest saving balance choice paid the plan amount and all new charges.

If this is the deal, I would assume you'd have to pay off any prior balance not included in the "plan" amount, any new charges and the Easy Pay amount. 

Chase makes it very clear.  I can't believe I'm praising Chase, but they do well with their credit cards.

[chiver78]

yes, I'm also still so confused! American Express clearly split the balances when I did this before.

where I'm still confused tonight is basic shit, bc the woman today told me things that made zero sense after my 26 years of active CC use. and now I'm second guessing everything I thought I knew. please explain when interest is accrued on a CC balance, in terms of statement cycles and payment due dates.

I'm honestly about ready to throw all of what's listed on this card as of today into that BT so I know I'm zeroed out again.

[minnesotapaintlady]

Mar 14, 2024 18:37:20 GMT -5 chiver78 said:

 please explain when interest is accrued on a CC balance, in terms of statement cycles and payment due dates.

If there is a balance that is carried past the due date, that amount accrues interest daily and also any new purchases that statement cycle will start accruing daily, you give up the grace period on any of it.  If this Easy Pay is like Chase Plan you've got a chunk of it set aside that is accruing at a different rate and are still being allowed the grace period on new purchases.  I ASSume that's what AE is doing too, but...

eta: I'm convinced they deliberately make it as confusing as possible in hopes you'll screw up.

[chiver78]

Mar 14, 2024 19:22:18 GMT -5 minnesotapaintlady said:

Mar 14, 2024 18:37:20 GMT -5 chiver78 said:

 please explain when interest is accrued on a CC balance, in terms of statement cycles and payment due dates.

If there is a balance that is carried past the due date, that amount accrues interest daily and also any new purchases that statement cycle will start accruing daily, you give up the grace period on any of it.  If this Easy Pay is like Chase Plan you've got a chunk of it set aside that is accruing at a different rate and are still being allowed the grace period on new purchases.  I ASSume that's what AE is doing too, but...

eta: I'm convinced they deliberately make it as confusing as possible in hopes you'll screw up.

for real! and as I see how JetBlue is changing their schedules in ways that don't benefit me, I'm souring on going all-in on this card.

ETA oh wait - I should answer the rest of this. so in what I presented, the Statement Balance as of 2/26 isn't actually due til 3/23, and that's when the interest starts accruing? I always thought the grace period was between cycle date and due date. so, as long as I paid off the statement balance by the due date, I was all set. *my confusion came from the easy pay not being split out. I think I'm good, I got given bad info today. and that's not okay either.

[nidena]

The tree removal was completed Tuesday afternoon.  They ground down the stumps as well.  It cost $4600 total but, considering that they left me a pile of wood chips the size of my HRV, I'm okay with the cost.  I looked up the cost of bulk mulch from Lowe's and it's $800 for 27 cubic feet.  The pile they left me was, easily, 4' tall x 5' wide x 10' long.  So, yeah, cutting those trees down wasn't a terrible cost.  Oh!  AND they said if I need more wood chips, they can deliver it for free.  I just have to text them and then give them a week or so.  Winning!!

[chiver78]

not clearly, no. and I complicate things by paying toward what I'm spending each month as it's my daily use card. so if I go back to my original question- if I zeroed out the Previous Balance, I'm good on interest for now. when do I need to have the $6k* Statement Balance paid off before interest starts accruing?

*following the dummy numbers

[minnesotapaintlady]

You need to have it paid off by the due date 3/23.  

I'm confused though. Why did they give you a 2K credit for the Easy Pay amount?   I thought it was just financing one or two line items that you'd charged.

[chiver78]

the 2k was what the pair of easy pay charges added up to. I'll def report back to share how that is listed for the March statement, bc I only enrolled those the first week of Feb....before the last cycle closed.

the woman today was confused why I had interest on those charges listed, because those payments weren't even due yet, according to her.

[minnesotapaintlady]

I'd be tempted to just pay it off rather than risk messing it up.