need help with debt?

[mike81]

I totally understand what you mean, it makes perfect sence. I know i should sell the car but i really cant after all the money that i have already put in to it. Its a corvette and the car originally costed me about 50k and then i must have spent at least another 15k in modifications. If is sold it i would never see any of that money again. At the time when i purchased the car i was single and living with family. I have a sick obsession with this car, they been in my family since i was a little kid. I'm more than willing to cut back on other wants like restaurants and things like that. I'm also thinking of getting a side job to make up for those car payments. As soon as i have a log of expenses i'll post them up. thanks

[disneysteve]

the car originally costed me about 50k and then i must have spent at least another 15k in modifications.

So you spent about 65K and you owe 28K. What is the car worth? How much could you get if you sold it today? Could you get at least 20K? If so, sell it, take a loan for the difference plus $5,000 for a replacement. So instead of a 28K car loan, you'd be down to maybe 13K, less than half of what you owe now.

[maat55]

I totally understand what you mean, it makes perfect sence. I know i should sell the car but i really cant after all the money that i have already put in to it. Its a corvette and the car originally costed me about 50k and then i must have spent at least another 15k in modifications. If is sold it i would never see any of that money again. At the time when i purchased the car i was single and living with family. I have a sick obsession with this car, they been in my family since i was a little kid. I'm more than willing to cut back on other wants like restaurants and things like that. I'm also thinking of getting a side job to make up for those car payments. As soon as i have a log of expenses i'll post them up. thanks

Exactly when do you inticipate seeing that money again? I assure you, that money is long gone. I'm trying to save whats left. Mike, just the fact that you know you are obcessed should tell you to sell this car. It may be your only brickwall between you and financial success. THINK REAL HARD ABOUT IT. It's just metal on rubber.

[jIM_Ohio]

I'd have to disagree with one part of that, Maat. Lifestyle should be based on 80% of TAKE HOME pay, not gross. If you base it on 80-90% of gross, after you pay taxes, you're already in the hole.

10% minimum of gross should go to savings, ideally 15-20%. Taxes knock off another 25% roughly. That means take home is about 60-65% of gross. You should be living on that and no more. If you can't do that, you are living a lifestyle that you can't afford and you need to start cutting out luxuries like expensive cars, cell phones, cable tv, dining out, designer clothes, gym memberships, etc.

I agree.

I suggest 20% of gross go to debt because 20% of gross can go to investing... and if a person makes 100k, and can send 20k (after tax) to debt, then they are thinking in proper direction, even though 100k gross is 70k or 60k net and 20k of 60k is a HUGE portion of income.

I suggesting living on 80% of gross which is probably close to 50% of net... again the 80% is 100-20 from above... and this is portion where taxes need to be considered.

[jIM_Ohio]

I totally understand what you mean, it makes perfect sence. I know i should sell the car but i really cant after all the money that i have already put in to it. Its a corvette and the car originally costed me about 50k and then i must have spent at least another 15k in modifications. If is sold it i would never see any of that money again. At the time when i purchased the car i was single and living with family. I have a sick obsession with this car, they been in my family since i was a little kid. I'm more than willing to cut back on other wants like restaurants and things like that. I'm also thinking of getting a side job to make up for those car payments. As soon as i have a log of expenses i'll post them up. thanks

You probably don't spend the amount at restaurants and other small luxeries as you do on the car.

The car is what some people look at as "low hanging fruit"- with one move you can make a HUGE difference where as 10 other small moves might barely make a dent into the problem.

[buzz]

Hi everyone,

I'm new to the site i wanted to see what you guys could recommend for for my debt. I'm 27 married with no kids. And i have 0 savings or investments. Selling the car is not an option for me. I wanted to know if its smarter to use my bonus towards the debt or invest it since the money i owe has low rates. I also have a relationship with boa and i have the ability to get a loan for about 30k at an 8.9%. I dont know anything about investing but if i could find a way to invest that money and get a return higher than 9% i could make some money and maybe pay off debt faster.



5576 monthly + about 15k bonus including tax refund

car loan 6.79% 28,696 536/month
camex 2.99% 42,660 1000/month 873 is min payment
*samex 12.9% 800 200/month This amex card is the one i use for day to day things. I always pay off any new charges plus send about 200 extra for the 800 dollar balance

300 insurance 2 cars
480 gas and both car get about 25 to 30 mpg
140 2 cell phones
215 train
1100 rent
30 wifes gym membership
50 my gym membership

If "*samex" is an Amex card, may I assume "camex" is also? I hope not, because if so, you are an inch away from being squashed like a bug by Amex. I see a rate increase and 2 closed accounts in your near future. Paying Amex may become the focus of your life for years to come. Please tell me that is not an Amex card.

[mike81]

Yes these are amex cards but those are fixed rates that wont ever change unless i miss a payment. So far i have always payed ontime.

[noppenbd]

Be careful. My understanding with most credit cards is that there is language embedded in the initial agreement that allows them to raise rates at any time for any reason (this may not be true for balance transfers).

[MoD]

Exactly.

[cptacek]

Can you change your plan on your cell phones? Take a look at your past bills and see what you actually use minutes (and text and ...) wise and see if you are really using all of it. We recently went through our cell phone bills and we are now saving $30 a month right there.

I would also suggest selling the car, butI don't want to pile on. You've already shot down that idea.

How about a second job?

Now, as for your wife working off the books. Isn't that ILLEGAL???!!!??? Pay up, bub.