Amanda Stanhaus

Tag: interest payment

Annuity

security. This investment pays the owner regularly. The owner is repaid the principal plus interest.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Credit card bill explanation

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Creditor, how much do I owe?

I am not alone in thinking credit card companies make it super difficult to know what # I need to pay on my credit card bill.

Dudettes, this is the deal.

It took me a few billsinterest payments, and awkwardly asking to figure out I owe the larger #, named “new balance” on my bill.

The TINIER #, named “minimum payment” on my bill,  is the LAME #. It is the absolute minimum I have to pay.

If a date only paid a teeny-tiny portion of the bill and left me to pay the rest—bye bye, buster!

Creditors like me to pay the LAME #, so they make $$ (i.e. interest payments) off me.

I try to pay large because I’m in charge when I pay in FULL (AKA pay the new balance #).

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

Guaranteed Investment Certificate

GIC. Canadians buy these when they want to guarantee their principal investment and interest payments. CDIC insured.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Guaranteed Investment Certificate

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Usually, I’m weary of guarantees. But, the CDIC is behind Guaranteed Investment Certificates (GICs), so I’m feeling good about my principal.

(click on the bold-faced vocab word:))

GICs are the Canadian equivalent of the U.S.’s Certificates of Deposit.

I invest a certain sum of money and can’t access it till it matures. I’m rewarded for my good non-withdrawing behavior with higher than usual interest payments.

There are a considerable amount of combos with my ability to choose time frame till maturity and interest payment frequency.

Ask your bank about the endless possibilities of GICs!

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

Debt Deal

I love deals.

Sale shoes. Day old bread. Debt.

(click on the bold-faced vocab words:))

If I’m going to pay off my debt, why not pay it off as cheaply as possible?

When paying off debt, deals can be made with interest rates and the associated interest payments. Sorry, there’s no changing the principle. Unless, maybe if I morph into Hermione, hmm…

mortgage’s interest rate can be lowered when refinanced.

Credit Card or Student Debt can be paid off in full with a line of credit. Lines of credit are known to have negotiable interest rates.

If the interest rate associated with a line of credit is less than the one associated with my current debt, a deal is within reach!

Go grab it!

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

Certificate of Deposit

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Bobbi’s husband is being relocated to europe. I know boo-hoo, Bobbi has to visit Europe regularly at the company’s expense.

But it’s going to be sad for these inseparable newlyweds to be separated for weeks at a time.

I tried to cheer her up with a new investment vehicle I recently learned about.

Bobbi could deposit a sum of money as a certificate of deposit (CD) and when it matures after a year she will get her $$ back, plus an extra cushy interest payment.

(click on the bold-faced vocab words:))

The withdrawal penalties, if she gets too tempted to use the $$, will keep Bobbi in check. Plus, if she buys it at a FDIC-insured bank, the CD itself is insured.

My unconventional cheering up worked! They are already planning their second honeymoon for when his year in Europe is over, fully-funded by their CD.

See, separation can be a good thing! It grows $$. And makes the heart grow fonder.

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

Overdraft Protection

With this I can overdraft and not bounce a check. And I don’t pay a fee. Caution: interest will still need to be paid on the amount loaned.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Good vs. Bad Debt

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All debt is not bad.

(click on the bold-faced vocab words:))

Owing anything to anyone can bring out the scaredy cat in me. Responsibility! Commitment!

Extra ew when interest payments are involved.

For me, the reason why is critical to good decision making.

I will use this loan to fund…

  • my master’s degree, to land my dream job.
  • my home, to have a safe place for the rug-rats to play.
  • my car, to make my commute easier.
  • my peep-toe platforms, to win over that trust fund baby. He likes toe cleavage.

Will the loan realistically create an opportunity to add to my $$ once I’ve paid off the principal plus interest?

I decide what’s good debt or bad!

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)