How many of you finance your contract?

[FLYNZ4]

We used a credit card... and then paid off the credit card a day later. That way we got free airline tickets in the process, and paid no interest.

/Jim

 

[goofy4tink]

Originally posted by JimC
It is a simple interest loan, the faster you pay the less you pay in interest. There are no pre-payment penalties.

How do I pay more each month if it is automatically withdrawn??

 

[pumpkinboy]

Originally posted by goofy4tink
How do I pay more each month if it is automatically withdrawn??

Hiya neighbor! We also have auto-pay, but have made a number of pre-payments. Just call member accounting, and give them your credit card (in our case Disney Visa ) in order to do it. We did the 10 yr for maximum flexibility but doubt if it will go more than three or four; plus we'll get that 1% in Disney rewards points that we can apply to maintenence fees, for character meals or whatever.

Also, on a tax adjusted basis, the 9.75% isn't all that bad if you deduct mortgage interest. We figure 9.75% less 33% marginal tax bracket = 6.435% (even in the 24% bracket you still end up with 7.41%, which beats unsecured loans, especially with US interest rates on the upswing).

 

[Mr Poohbrain]

We paid cash, I couldn't understand why I would pay Disney the 10% interest rate when home equity loans are at 4% and personal loans were 5-6%. Didn't make any sense to me to pay the extra for a little convenience.