Last night, I went out and purchased a new washer, as I said I would in my previous post. After a lot of research and price shopping, we decided on the Whirlpool Duet washer and pedestal. After the 10% discount, sales taxes, and delivery charges (which will be refunded to me in a VISA prepaid card), our total came to $1,270.
Since I originally ran my calculations based on $1,350, I ran them again to see how our savings would look with the new balance:
Originally, I speculated that we would save a total of $30.98 over the course of a year and now that number has grown to $32.24. I did change one other thing, though: instead of 12 payments, I changed it to 11 with the final payment being a double payment. My reasoning for this was to eliminate the risk of going over the 12-month deadline and incurring all the late fees and interest that would completely negate all of my savings gains. If you are attempting this yourself, I recommend the same.
Banks count on the fact that you will not keep track of that last payment and if you miss the deadline by even a day, you will be smacked with all of the forgiven interest from the first year plus late fees. They know a few people will complete the plan successfully, but the overall profit from those who don’t is much larger. Don’t be one of those victims. Keep good track of the deadline and pay it off early to make sure there is no chance of getting pinged.
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Hi. I found your blog and really liked it, so I’ve added you to my blogroll. Good luck in your financial journey.