jim_222 Posted November 25, 2012 Report Share Posted November 25, 2012 You didn't show him that. Save 750 dollars and pay out exactly what, in fees and interest? snipped No, I showed him exactly what I said that I showed him. The rest is merely your own assumptions, speculations, and hypothetical scenarios... If the OP, or anybody else for that matter, chooses to pay through a credit card, instead of cash, or check, or debit card, he might be able to get a fraction of his/her money back. In order to do that, he will have to pay off his credit card account at the end of each billing cycle. If he does that, then no fees, no penalties, no nothing... I didn't tell him, nor advised him to borrow money through his credit card, because that makes no sense, whatsoever. It wouldn't get it him very far, anyway, since his credit limit would probably be around $3,000. Not enough, when it comes to flight training. I started using credit cards to pay for my training in March, and right now my rewards account shows $414.30. That money I got for "free." It is money that I wouldn't have had available to spend, if I was not using a credit card. So I made approximately my year's worth of gas just by choosing the payment method. I was not in debt before, and I am not in debt now, either. I only fly what my (now exhausted) savings and my salary allow me to, and I make sure that every time I come home I transfer the money to the credit card. Fees, interest, and penalties paid/owed? $0. So, all I did was to say "hey OP, you know, because you mentioned 'occasional manageable credit card swipe,' actually it might benefit you to consistently pay through a credit card, you might be able to get something small out of it." And even said and clarified "hey, but you have to be really careful about it." In order to do that though, there are a few conditions: first of all use a credit card with a rewards program, and secondly make sure you just put in there whatever you would put if you were paying with cash. Simple as that. So if he is able to pay $1,500 per month paying cash (using his decent day job's salary and his $800 support), that's all he should fly paying with his credit card, too. Whether he should get a loan to pay for his training or not, is pretty much an irrelevant and different matter, and what I said has nothing to do with it. Heck, even if he chooses to do get a loan to go through his ratings at a faster pace, maybe he should consider using a credit card to pay the school, and pay the credit card with his money from the loan. That way he will pretty much knock a 1.5% off his loan's interest. Pretty good, or at least better, deal, if you ask me. Simple stuff... shouldn't take that much explaining.... (oops, I find repeating myself, again....) Brightspark, over and out. Quote Link to comment Share on other sites More sharing options...
DieselBoy Posted November 26, 2012 Report Share Posted November 26, 2012 I did exactly what Jim described since I was paying mostly out of pocket. I would put $3,000 on account with my school by using a credit card with rewards. I would then go home and make an online payment from my saving to that credit card for $3,000. I did that for over $40,000 and never paid any interest since I paid it off immediately, while taking all of their rewards!!! I like free money though... The OP said a "small" loan which I doubt is $50,000! My theory is if they have the option to take out a small loan now instead of using all of their savings, then do it. They will need money for moving, deposits, flying to interviews, and some to live off of while a CFI. It'll be much easier to get a loan now with a good job, then as a CFI. I will assume a $12k loan for 5 years. The loan will allow them to keep $12k in savings while they're a CFI. That might be a payment of $250 a month. Plan on being a CFI for 2 years.$250 x 24 months = $6,000.So $6k out of their savings would go to making those payments and they would still have a $6k security blanket. That'll allow someone to live a little better as a CFI. Once they get a post CFI job making good money again, just pay off the loan early. That's a much better plan than having zero $$ in savings and being a CFI. America is built around credit and it's ok to use it wisely. Quote Link to comment Share on other sites More sharing options...
Counterrotate Posted November 26, 2012 Report Share Posted November 26, 2012 Money in savings is good, but being a debt free CFI is still better than being a CFI with flight training loans to pay off. If you can find a way to do this without borrowing money, do that. I'm not touching this credit card argument. Quote Link to comment Share on other sites More sharing options...
aeroscout Posted November 26, 2012 Report Share Posted November 26, 2012 Money in savings is good, but being a debt free CFI is still better than being a CFI with flight training loans to pay off. If you can find a way to do this without borrowing money, do that. I'm not touching this credit card argument. Touch it, and either way it goes, I'll give you a "like this" ! Quote Link to comment Share on other sites More sharing options...
Counterrotate Posted November 26, 2012 Report Share Posted November 26, 2012 Touch it, and either way it goes, I'll give you a "like this" ! I see how it is. Quote Link to comment Share on other sites More sharing options...
aeroscout Posted November 26, 2012 Report Share Posted November 26, 2012 I see how it is.Let's not get our minds in the gutter, the "it" we are referring to is the credit card argument and or discussion. Quote Link to comment Share on other sites More sharing options...
Counterrotate Posted November 26, 2012 Report Share Posted November 26, 2012 Let's not get our minds in the gutter, the "it" we are referring to is the credit card argument and or discussion. You are way ahead of yourself there. And the "it" that I was referring to is the fact that a good number of posters on this forum seem to be here solely for blood sport. I'm not here to argue with people, I'm here to learn and pass on any advice I may have, however meager. 1 Quote Link to comment Share on other sites More sharing options...
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