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Debt Anything to do with debt including debt reduction, debt concerns, debt consolidation and how to get out of debt

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Old 01-11-2017, 05:57 AM
$ Saving Pre Schooler
 
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Post Should I Buy A Car or Wait? Need Advice Please! (Im New Here)

Hello Everybody.

Im new here and am learning everything i can do to pay off my debt. I am a 24 y.o. mom who is currently $26,000 in debt. Ive actucally been introduced recently to the dave ramsey cash envelope system and the baby steps to get out of debt.

Heres My Situation:
I sadly got laid off from my job in December and have been having problems finding a new one. I am very limited to applying for positions only in my little town due to the fact that i do not have a car of my own and my family require me to pay gas money every week to take me to my job (if i find one that is and the farther the location the more money i have to pay for gas)paying gas isnt the problem..the only issue is that my family is not very reliable. Ive had a couple instances where i had to call out of work because my family member i had already paid gas to was no where near the area to take me to work. Its a very tough situation for me as i can only depend on this one person to get me around transportation wise and Uber or public transportation is very costly.

My Question:
As stated above i am currently trying out the envelope system to budget myself but i do have a couple hundred dollars saved in my emergency fund and i do have my taxes coming up soon. Should i buy the car when i get my tax money (the car would be a paid full =no car payments) or should i use that tax money to fund my emergency fund and start paying my debt which could take years and then buy my car?

**Note: of course i wouldnt buy the car without a job first and by the way it would be my first car so basically anything under 2000 that is safe and will get me from point a to b is acceptable.


Thank you so much in advance for your advice everyone!
And if you need any additional info or for me to explain something better just let me know.

Thanks again!!
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Old 01-11-2017, 06:05 AM
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If you need a car, then the answer to your question is obvious.

The more important question is, "what kind of car?" The answer to that is... "low cost". Move up when you have less debt.
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Old 01-11-2017, 06:07 AM
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You probably got laid off due to poor reliability on your part for not showing up to work so not having a car is costing more than the car itself.

Get a used Toyota for 2k and get yourself to work on time.
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Old 01-11-2017, 06:48 AM
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Definitely get a car that you can pay cash for. You need a car so you can make money to fund your emergency fund.
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Old 01-11-2017, 07:11 AM
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Buying a used car takes a bit of reading and research as some have better track records than others. I hope you'll check your library for 'Lemon Aid' Used car book, which has charts at the back listing the type of repairs common to different brands. If you find a car you like, ask if they have had those common repairs done by the previous owner.

2nd, If you find a car you like, check on line for Kelly Blue Book [sometimes called Black Book] for it's 'value.' It's a major talking point to get a car at a price that reflects the car's value, not the dream price of the seller. You can make any offer you like when buying a car, price isn't fixed like a department store.

The issue with buying a new car, or newer car is that they depreciate so fast. They lose value the instant your drive them off the lot!
https://www.trustedchoice.com/insura...-depreciation/

Finally, check price of insurance with an insurance broker before you sign papers to buy a specific vehicle. Different models have way different basic car insurance premiums. An insurance broker deals with the re-insurer with the best rate...that day. An insurance agent works on commission with one specific agency who use a specific re-insurer. Rates vary so getting 3 different opinions helps awareness, possible an on-line agency, a known brand, a broker who puts your requirements to 'bid.'

Wishing you good luck on your job search. Happy to talk about car choices.
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Old 01-11-2017, 07:11 AM
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Welcome to SA! You are already on the right track by coming here, reading books, and trying to think longer term about this choice. I agree with others to buy a cheap car, preferably Toyota and one that will not use all your money, and then take the rest and start the steps.

The feeling of independence by having your own car will be a huge boost.
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Old 01-11-2017, 07:40 AM
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With only a few hundred dollars saved, it stinks but you'll probably have to borrow money and get a car. Hang on to some savings. A cheap car needs occasional repairs and other things come up too.

I'd see if you could get a bank loan for $2-3,000 and avoid those buy here pay here auto dealers. A car much cheaper than that is likely to be very troublesome.

If taking on a little debt is what it takes to hold down a decent job that will eventually improve your financial picture, then this is what you need to do. It's really not any sillier than taking on college loan debt, the end goal is the same.

Good luck!
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Old 01-11-2017, 09:01 AM
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Quote:
Originally Posted by james.hendrickson View Post
Welcome to the forums!

Have you explored options for raising extra money online? Working from home independently on the internet is becoming more and more viable as a career option.
Do you have an specific examples on this ?
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Old 01-11-2017, 11:55 AM
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Quote:
Originally Posted by Fishindude77 View Post
With only a few hundred dollars saved, it stinks but you'll probably have to borrow money and get a car. Hang on to some savings. A cheap car needs occasional repairs and other things come up too.

I'd see if you could get a bank loan for $2-3,000 and avoid those buy here pay here auto dealers. A car much cheaper than that is likely to be very troublesome.

If taking on a little debt is what it takes to hold down a decent job that will eventually improve your financial picture, then this is what you need to do. It's really not any sillier than taking on college loan debt, the end goal is the same.

Good luck!
I don't believe they can get a loan without proof of income. Until she gets a job, no loan. In this situation, you'd have to borrow money against the paid off car to accomplish the same thing. It really just depends on how fast you can get a job, and what job you get. It's a tough call.
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Old 01-11-2017, 02:16 PM
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I don't believe they can get a loan without proof of income. Until she gets a job, no loan.

Maybe? There are things we don't know.
She might be able to get a co-signer.
She might have previous loan history.

Small private banks don't have all of the red tape and BS. They can loan a few thousand dollars on a short term note based on the borrowers character if they want.
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Old 01-12-2017, 03:31 AM
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You need to make plan yourself about how you will reduce your debts. Without debt planning you should not move further. Your thinking should not be finish at buying low cost car only. The after cost of buying a car is more important. Yes, you're right, I'm telling about the maintenance cost. I saw many times like as your situation people often buy a car or any other vehicle without thinking of its maintenance cost.

Last edited by disneysteve; 01-12-2017 at 06:13 PM. Reason: removed advertising
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Old 01-19-2017, 08:21 AM
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Don't make any hasty decision, it won't do any good to you. You have to take a time to sit down and calculate all your regular expenses over how much you just earn. It's very important that you are sure and you know your income can cover the expenses when you plan purchasing a new car.
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