Help me get out of this car! - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

DClark20 · #1 (**permalink**) 04-25-2008, 06:22 PM

Hello,

First time on the forums. I searched for a reputable site for a while, and this appears to be it. So thanks for putting the site up and allowing degenerates like myself to come here and seek council.

My situation:

24 year old self employed soon to be married. In about $10,000 of debt not counting my car payment.

My problem:

When I bought my car in 2005 I was took. No one in my family has really ever had brand new vehicles so it was a complete learning experience for me. I'll never buy new again. Not for a while at least. Anyhow...

At the moment, 9% rate, 36 payments left, 443 a pop, roughly 15k still owed. Very upside down, and not a great deal of good credit. Can possibly have a cosigner if need be.

Do any of you individuals that have been around longer than I have, have any ideas to get out of this money pit. I don't care what I drive, what year model, whatever. I just have to get a more reasonable payment, or none at all. Any guidance would be greatly appreciated. If you need anymore information please ask. Thanks so very much.

-D

AllThingsPersonalFinance · #2 (**permalink**) 04-25-2008, 10:52 PM

Quote:

Originally Posted by DClark20

Hello,

First time on the forums. I searched for a reputable site for a while, and this appears to be it. So thanks for putting the site up and allowing degenerates like myself to come here and seek council.

My situation:

24 year old self employed soon to be married. In about $10,000 of debt not counting my car payment.

My problem:

When I bought my car in 2005 I was took. No one in my family has really ever had brand new vehicles so it was a complete learning experience for me. I'll never buy new again. Not for a while at least. Anyhow...

At the moment, 9% rate, 36 payments left, 443 a pop, roughly 15k still owed. Very upside down, and not a great deal of good credit. Can possibly have a cosigner if need be.

Do any of you individuals that have been around longer than I have, have any ideas to get out of this money pit. I don't care what I drive, what year model, whatever. I just have to get a more reasonable payment, or none at all. Any guidance would be greatly appreciated. If you need anymore information please ask. Thanks so very much.

-D

Just based on what you are telling me here, if you are not grossing at least $30k annually, I would get rid of the car.

Sell it and get something cheaper.

Your interest rate tells me that you have some issue with your credit. You should be about 5%.

Since cars lose value over time, don't finance your next one. Pay with cash. Or, don't finance for longer than 36 months.

maat55 · #3 (**permalink**) 04-26-2008, 09:48 PM

If possible, your best option is to sell the car and borrow to payoff the difference. You should try to save up enough to pay cash for a cheap car before you do. Dave Ramsey calls it paying "stupid tax". Get on a tight budget and spend nothing on entertainment until you clean this mess up. Good luck.