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TXPRO4X

Casino Visit Got Out of Hand

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So the tite says it all. I haven't been to a casino in years and last night as part of a bachelor party, the casino was involved. I'll preface this by saying, I do not have a gambling problem. In a nutshell, waaaay to much alcohol was consumed and a huge lack in judgement took place. I've learned my lesson and will never let this happen again.

 

So with the above being said, I took out a 3k cash advance on my capital one credit card, gambled and lost it. I have 10k in my savings account. However the thought of touching a dime in my savings is completely devastating to me. I know it doesn't make sense to you guys however I would rather just pay this off over the course of 12 months out of my regular paychecks, yes interest will be involved, and yes I don't mind paying it, I just refuse to touch my savings as it has taken me 18 months to get it to where its at.

 

My question is, how long would I take to pay this off at 27.99% interest compounded daily, paying $400 bucks a month starting with this month and how much interest would I end up paying in the end.

 

Second, since its capital one, they basically could careless how you use your card as long as you pay them. If I opt to pay this off $400-500 bucks a month, will this affect me getting further CLI's in the future once its paid off?

 

Input is greatly appreciated.

Edited by TXPRO4X

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The second most incompetent thing you could do is to leave the money in savings and not pay off the card. ..the first was spending 3k from a cash advance

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$2.30 in interest is what you are paying daily as of now, growing by the day -- If you were to send $400 payments.....I'm gonna go with 9 payments. You will pay DEARLY in interest.

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To answer your direct question: $3,090 (remember, Capital One charges a 3% cash advance fee so you have an extra $90 on your tab) paid off at 27.99% with a monthly payment of $400 will take 9 months to pay off. You will pay $357.79 in interest (that doesn't include the $90 fee in the "cost of credit").

 

So you have $400/mo to put towards this debt? The interest you are paying to carry this is almost an extra payment. You could pay yourself $400 for free for eight months (one month less than you'd be paying Capital One), come out $200 ahead ($400 * 8 = $3,200), and not hand $358 to Capital One if you take the money from your savings account and pay off the cash advance. Savings accounts exist for financial security. Financial security means being able to look yourself in the mirror and say "self, I pulled a stupid, but I am not perfect and I have done well to be able to cover my stupid."

 

Probably the only thing that you could do which would be more silly and ill-advised is to default on this card and then file bankruptcy. Make the payment tomorrow, please.

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I felt similarly when my car broke down, and I had to choose whether to charge the repairs to a credit card and pay interest, or pull money out of my savings. This is the first time in my life I've actually had an emergency fund, and it felt awful to think about breaking into it. So I completely understand where you're coming from.

 

But ultimately, I felt better about borrowing money from MYSELF rather than paying interest to the BANK.

 

Take a loan from yourself. If it makes you feel better, charge yourself interest.

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To answer your direct question: $3,090 (remember, Capital One charges a 3% cash advance fee so you have an extra $90 on your tab) paid off at 27.99% with a monthly payment of $400 will take 9 months to pay off. You will pay $357.79 in interest (that doesn't include the $90 fee in the "cost of credit").

 

So you have $400/mo to put towards this debt? The interest you are paying to carry this is almost an extra payment. You could pay yourself $400 for free for eight months (one month less than you'd be paying Capital One), come out $200 ahead ($400 * 8 = $3,200), and not hand $358 to Capital One if you take the money from your savings account and pay off the cash advance. Savings accounts exist for financial security. Financial security means being able to look yourself in the mirror and say "self, I pulled a stupid, but I am not perfect and I have done well to be able to cover my stupid."

 

Probably the only thing that you could do which would be more silly and ill-advised is to default on this card and then file bankruptcy. Make the payment tomorrow, please.

^^^^ Exactly! Pay yourself the same 400 for 9 months to get your savings back to where you want it to be

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I felt similarly when my car broke down, and I had to choose whether to charge the repairs to a credit card and pay interest, or pull money out of my savings. This is the first time in my life I've actually had an emergency fund, and it felt awful to think about breaking into it. So I completely understand where you're coming from.

 

But ultimately, I felt better about borrowing money from MYSELF rather than paying interest to the BANK.

 

Take a loan from yourself. If it makes you feel better, charge yourself interest.

 

I felt similarly when my car broke down, and I had to choose whether to charge the repairs to a credit card and pay interest, or pull money out of my savings. This is the first time in my life I've actually had an emergency fund, and it felt awful to think about breaking into it. So I completely understand where you're coming from.

 

But ultimately, I felt better about borrowing money from MYSELF rather than paying interest to the BANK.

 

Take a loan from yourself. If it makes you feel better, charge yourself interest.

 

This. Make nine payments to YOU instead of to THEM and end up with more in savings than you started with.

 

Why did you save if not for a rainy day?

 

Guess what? It's pouring. Get your umbrella out.

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So with the above being said, I took out a 3k cash advance on my capital one credit card, gambled and lost it. I have 10k in my savings account. However the thought of touching a dime in my savings is completely devastating to me. I know it doesn't make sense to you guys however I would rather just pay this off over the course of 12 months out of my regular paychecks, yes interest will be involved, and yes I don't mind paying it, I just refuse to touch my savings as it has taken me 18 months to get it to where its at.

 

 

 

 

I can so relate to this.... at 3% cash advance fee plus 28% interest would been a catalyst so PIF ASAP...... maybe pay it in 3 or 4 months instead of 12 months... you will still pay interest but will mitigate SOME of your loss....

 

FWIW, this is why I keep a DEBIT card.... I am a semi-regular gambler.... when I go to the casino, I take nothing but my license, lipgloss and that debit card.... I get XX amount deposited into this, my "eff-it" account weekly.... when its gone, its gone.... no way for me to go overboard ( and trust me I MAJORLY lack self-control)

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I felt similarly when my car broke down, and I had to choose whether to charge the repairs to a credit card and pay interest, or pull money out of my savings. This is the first time in my life I've actually had an emergency fund, and it felt awful to think about breaking into it. So I completely understand where you're coming from.

 

But ultimately, I felt better about borrowing money from MYSELF rather than paying interest to the BANK.

 

Take a loan from yourself. If it makes you feel better, charge yourself interest..

 

This is really good advice. Charge yourself 14% interest instead, and pay it back to savings, and then when you're square with yourself, DON"T STOP. Keep doing this forever, only increase the amount that goes into savings every month.

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Losers never win! Go back and try to win it back! Just kidding, just trying to lighten up your mood.

 

As the others have said, pay it off now from your savings and pay yourself back over 8 months. In retrospect, it's probably the best thing that ever happened to you because if you won instead of lost, you WOULD have a gambling problem. You would think gambling is easy money and would go back regularly until you lost it all plus some. (That's how they build those nice glitzy casinos and maintain them)

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if you won instead of lost, you WOULD have a gambling problem

Very true.

 

Consider this a very cheap lesson learned.

 

Be thankful you have the savings and live to fight another day.

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if you won instead of lost, you WOULD have a gambling problem

Very true.

 

Consider this a very cheap lesson learned.

 

Be thankful you have the savings and live to fight another day.

 

yep... it's why they call it a casino and not an ATM... I've been there...

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To answer your direct question: $3,090 (remember, Capital One charges a 3% cash advance fee so you have an extra $90 on your tab) paid off at 27.99% with a monthly payment of $400 will take 9 months to pay off. You will pay $357.79 in interest (that doesn't include the $90 fee in the "cost of credit").

 

So you have $400/mo to put towards this debt? The interest you are paying to carry this is almost an extra payment. You could pay yourself $400 for free for eight months (one month less than you'd be paying Capital One), come out $200 ahead ($400 * 8 = $3,200), and not hand $358 to Capital One if you take the money from your savings account and pay off the cash advance. Savings accounts exist for financial security. Financial security means being able to look yourself in the mirror and say "self, I pulled a stupid, but I am not perfect and I have done well to be able to cover my stupid."

 

Probably the only thing that you could do which would be more silly and ill-advised is to default on this card and then file bankruptcy. Make the payment tomorrow, please.

^^^^ Exactly! Pay yourself the same 400 for 9 months to get your savings back to where you want it to be

 

+ 1,000

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Ive never understood why people would want to pay interest on a credit card - especially at the levels for a cash advance - and not pay it off the second they have the ability to. You have $10K just sitting there...even after paying it off you'll still have $7K left. How long it took you to build that fund up is irrelevant.

 

Im not a huge Dave Ramsay follower, but Ive listened to his shows where he tells people that doing dumb things with money is what he calls a "stupid tax". This is one of those times. You made a foolish mistake by running up a large cash advance on a CC despite the fact that you had funds available to you in another account. Dont compound the mistake by charging yourself a whole bunch of interest simply because you don't want to touch money that is available to you in another account. Instead of paying interest and paying back the debt with your paychecks, pay off this debt in full right now and pay your savings account back with your paychecks.

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I could see floating it for awhile if you had a very low interest rate 0% for 16 months or something promo you could transfer it to... but at 28 percent that would be insane to not take it from your savings. you need to feel the pain to make sure you don't do it again.. its easier to blow off when its not your money and you get to pay it over time..

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Ive never understood why people would want to pay interest on a credit card - especially at the levels for a cash advance - and not pay it off the second they have the ability to. You have $10K just sitting there...even after paying it off you'll still have $7K left. How long it took you to build that fund up is irrelevant.

 

Im not a huge Dave Ramsay follower, but Ive listened to his shows where he tells people that doing dumb things with money is what he calls a "stupid tax". This is one of those times. You made a foolish mistake by running up a large cash advance on a CC despite the fact that you had funds available to you in another account. Dont compound the mistake by charging yourself a whole bunch of interest simply because you don't want to touch money that is available to you in another account. Instead of paying interest and paying back the debt with your paychecks, pay off this debt in full right now and pay your savings account back with your paychecks.

 

 

for me, its about having that certain BALANCE in that account at all times.... and though it may not make financial sense to others, Id pay some interest on a CC to avoid going below that balance....

 

example, I had a major plumbing issue last month...cost $8000.... my "emergency fund" is supposed to be at $17000... its "only" $14000.... the thought of taking $8000 out, leaving me at only $6000 SUFFOCATED me...I was literally in panic mode.....so yes, I took out a loan.... at 3.9% but still... I MAY pay it off early.... I may be temporarily out of work soon so it depends on how that plays out... in the meantime, paying interest allowed me to hold onto CASH which gave me security... yes, Im losing money.... but that's the cost of MY security....

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Wasn't aware ppl actually used the cash advance feature on a CC?? That's crazy to me... especially with that much cash sitting around.

 

The advice is here, let us know if you decide to take any of it.

 

Live and learn, that's why we are all here.

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You feel guilty now? Why spread that guilt out over MONTHS? Pay the cars off, and spare yourself the punishment of a silly mistake. It will be cheaper financially and psychologically.

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To answer your direct question: $3,090 (remember, Capital One charges a 3% cash advance fee so you have an extra $90 on your tab) paid off at 27.99% with a monthly payment of $400 will take 9 months to pay off. You will pay $357.79 in interest (that doesn't include the $90 fee in the "cost of credit").

 

So you have $400/mo to put towards this debt? The interest you are paying to carry this is almost an extra payment. You could pay yourself $400 for free for eight months (one month less than you'd be paying Capital One), come out $200 ahead ($400 * 8 = $3,200), and not hand $358 to Capital One if you take the money from your savings account and pay off the cash advance. Savings accounts exist for financial security. Financial security means being able to look yourself in the mirror and say "self, I pulled a stupid, but I am not perfect and I have done well to be able to cover my stupid."

 

Probably the only thing that you could do which would be more silly and ill-advised is to default on this card and then file bankruptcy. Make the payment tomorrow, please.

Excellent Advice!!!

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...waaaay to much alcohol was consumed....

 

... I have 10k in my savings account. However the thought of touching a dime in my savings is completely devastating to me. I know it doesn't make sense to you guys however I would rather just pay this off over the course of 12 months out of my regular paychecks, yes interest will be involved, and yes I don't mind paying it, I just refuse to touch my savings as it has taken me 18 months to get it to where its at.

You're clearly still under the influence.

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