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**cptacek** · 04-21-2010, 04:31 PM

Get another job. And it doesn't have to be a "job". You can mow lawns. You can paint. If you live close to a farm you can buck hay. Use your young body and energy to your advantage!

**creditcardfree** · 04-21-2010, 04:36 PM

Primarily you have an income problem. You need more income than $1000/mo to get ahead. Look for a second job or an improved primary job, babysit, sell things you own on ebay or craigslist. Increased income is the only way for your situation to improve fast.

Selling your car and getting a less expensive car would be a VERY good idea.

You must have other expenses. Food, housing, utilities. Give us the minimum payments and interest rates on your debt.

If the car you have the note on is not on the 'family car' then you need to cancel the warranty. The family emergencies are not your emergencies, especially when you don't have the income to handle this expense.

**cicy33** · 04-21-2010, 05:07 PM

I think 120 a month for a warranty is expensive. Unless this is a very problematic car then I would say bank the 120 and cancel the warranty. within a year you would have well over 1200 and that would fix a lot of problems all by itself. Again, without knowing anything about the car I don't know. I know that I have never in all my years (and I am 42) have I ever paid a monthly cost for a warranty.

**Love_Kiing** · 04-21-2010, 05:52 PM

I would like to hold onto my car for the time being. It saves me gas and is relatively cheap to maintain. As it is still under a loan with $10K remaining, I think it's a long shot since the value of the car is around $7.5K

The other expenses of the debt (primarily the credit cards) are just dumb moves from a year ago such as buying unnecessary things. Since then, I have only used the credit card for gas money and that warranty for $120 p/month.

The car that I have the warranty belongs to my mother and it's a family jewel. My mother makes about $3K p/month and takes care of housing and utilities, food, and my brother's school tuition (with occasional assistance from myself). As the car is sitting at 110K miles, I thought it be a good idea to obtain "Mogi," which claims to pay off 100% of all major mechanical work as long as I continue paying $120 p/month for 24 months with a "down payment" of $400.00 back in December. So far I have yet to take advantage of it. I have been thinking about cancelling but it sounds too good to be true to have that type of advantage over people who would end up paying for pricey extensive work done to their vehicle.

It is a '00 Lincoln V8 that has a "pristine" transmission according to my service tech. Although it has gone through 2 gasket repairs in the past 2 years (most recently in November), and some other "minor" but expensive problems, it has been a good car.

**cicy33** · 04-21-2010, 07:02 PM

Does this plan continue to pay for a specified time period after you stop making payments?

**Love_Kiing** · 04-21-2010, 07:21 PM

The coverage runs through December 2016 or 208K miles, whichever comes first.

Purchase date: 12/28/2009
Agreed Purchase Price: $3,375.00
Term (Months): 84
Miles: 100,000
Expires: 12/27/2016
Expired miles: 208,752

Covers: Engine, Transmission, Drive Axle (F & R), Cooling System, AC System, Fuel System, Electrical Components, 4x4 Transfer Case, Seals and gaskets, includes free car rental and towing.

**creditcardfree** · 04-22-2010, 04:45 AM

Most warranties are a waste of money. You bought a warranty for $3375, but with payments of $120 over 84 months you are paying $10,080!

That is enough money to have paid off your own car!

You only make $12000 per year. You are making a terrible mistake spending money in this way.

**woodie96** · 04-22-2010, 06:29 AM

wowww....cc hit the nail on the head...10K for a car repair plan....Especially one that doesn't continue covering anything once the final payment is done, wowwww.....
If you saved your 120 a month, that would really help you current state. Thats 1400 a year that you could use for car repairs (note....those should mostly be budgeted for because the car will need repairs eventually).
Like others have said, it seems to me that the most important issue is lack of income. If you could land a second job, that would greatly help you.
Look at the numbers.....based on 1K a month......275 car payment, and the additional 120 warranty eat up close to 40% of your income.

**rizzmo** · 04-22-2010, 08:25 AM

Originally posted by creditcardfree View Post

Most warranties are a waste of money. You bought a warranty for $3375, but with payments of $120 over 84 months you are paying $10,080!

That is enough money to have paid off your own car!

You only make $12000 per year. You are making a terrible mistake spending money in this way.

I think OP meant the total cost of the warranty is $3,375:
$120 x 24 months = $2,400 + $440 upfront = $3,320
I supsect the $120 is his monthly payment for it.

That being said warranties are almost always a waste of money. The warranty company prices the premium so they make money on it, statistically speaking. So while it might benefit a small percentage of purchasers the majority never see any benefit.

I agree with many of the previous responses; basically you have an income problem and need a second job or preferably a better paying primary job.

**BlackDiamond** · 04-22-2010, 08:29 AM

Normally I'd say your own finances need to come before the financial needs of family (recently ended a long term relationship over this issue because we disagreed so it's a matter I feel strongly about). However in this situation, since you are not paying rent to live with your mom, I suppose one could argue that what you pay for the warranty is in lieu of rent. So it's not so much the paying for something for family issue that bothers me.

It's the warranty itself. I agree with the prior posters as well, warranties are a waste of money most of the time. You are paying too much. You�d be better off saving the $120 a month in an account somewhere and then using that cash if there is a problem w/ the car.

Also, your car is too expensive. At 21, you don't need a $300/month car. You might want to look into selling it and getting a cheaper car. What kind of commute to work do you have? Unless it's insane and puts a ton of wear on your car, go with an older car.

With so many missed car payments, I don't know that you'd get a good interest rate on a loan to consolidate the cc debt. What is the actual balance of cc#2?

Do you have any idea what your FICO score is?

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