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Should I snowball the car?

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    #16
    Originally posted by junkmail View Post
    Here's my updated scenario after starting the DR debt snowball

    Owe:
    Mattress- $2,682 at 0% interest. Monthly is $145
    CC- $2,569 at 18% Monthly is $75 (roughly)
    Auto $21,500 at 0% Montlhy is $420
    House $126k at 5.5% Monthly is $1,100 (roughly)

    Utilities/Insurance/CellPhone: $509 a month

    As of today, I've paid off several CC around $3k

    My EF is at $1,000.00

    My monthly net income- $2,200 to $3,500 depending on the month
    If your monthly income is 2,200 to 3,500 and you should have a MAX of 28% going to housing, then that is between 616 and 980 given your income range. Average would be $798/month. So let's say $800/month.

    And your car should be about a MAX value of around $10k. Giving you the same terms on your current car, you're looking at around $195/month to car payments. So let's say $200/month.

    That's where you should be.

    So if I compare where you are to where you should be here's what I come up with:
    1,100 - 800 = $300/month
    420 - 200 = 220/month
    $520 extra dollars each month going to too much house and too much car.

    How much faster would you be able to get out of debt with an extra $520/month? (aka $6,240/year)

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      #17
      You'll continue to pay the minimum payment toward every debt while you're concentrating on the debt at the top of your list. Focus on that debt, adding extra to your payments when you're able. As soon as you've paid that debt off,

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        #18
        I have never paid more than $15,000 for a car and always have them paid off in 2-3 years if I got a loan. We paid cash for our last car.

        Drive Free, Retire Rich - Automobiles - daveramsey.com

        I would try to sell the car and then buy something cheaper yes you make need to get a loan only 2-3 year and have a payment of less than $250.

        Then focus on the credit and then the mattress.

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