Pay off the home renovation loan. Have your son refinance the car loan. He should be able to get a better interest rate and shorten his term keeping the same payment. You need a couple of grand in an emergency fund. An emergency is not a trip to PCB. You need to work on paying your bills and reducing your debt. Look around and see what extra stuff you can sell to reduce your car loan. Take the money you pay the home loan with and pay that extra against the car. Pay off your car next and then pay off the kids car. Maintain the cars and drive them for years. save money for the replacement car.
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Advise on payoffs
- Thread starter BIGLEW
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Before COVID hit I was stupid with credit cards and ran up 3 of them. I was also hiding it from my wife. She of course found out and we nearly got a divorce, which was justifiable. However, it made us take a long look at our finances. I was laid off from my job, but working as a pizza delivery guy 7 nights a week, and still getting unemployment from my job I was laid off from. We took the COVID stimulus money and paid off 2 of the credit cards. We saved all the cash tips and paid off the last credit card. We then turned around and paid off my lawnmower. We are almost ready to pay off the last personal loan. The personal loan and her car loan are through a local credit union. Once the personal loan is paid off we can attack her car and have it paid off by February. The debt snowball works for sure. I am back at work now, and about to start a better job, but I still work at least 1 night at week delivering pizzas.
Just to throw another curveball out there, the Dave Ramsey stuff is great. But there are other factors.
You’ve probably screwed up your finances a bit already. And practiced some bad habits.
If you are using earned money to work the Dave Ramsey plan, I think that’s great.
But if you’re getting a windfall of money, from an inheritance, or something similar,I don’t know that it makes perfect sense to throw it all at the debt. You will end up broke again, and will most likely run up very similar debt again. Yeah yeah the plan sounds good, start saving all that money, but you’ve never done that before.
It takes discipline. Gatlinburg is not an emergency and you should not go into your savings for Gatlinburg trip.
So it’s most important to break the habit. Then you can actually move forward.
Did you say your son makes the car payment? Does he really make it all the time? If he does why not let him keep making that payment.
At the most I would pay off your home-equity loan. But only if you have equity in the house. What other loans do you have on the house? And how much is the house worth? If there’s no equity in the house, it’s not much different than the car. I would not throw a bunch more money into it. I would hold onto that money tight. It’s all you really have.
Basically what I’m saying is I think you should break the habit. Change your ways. And the only way to do that is to start by saving real money. The $1000 from Dave Ramsey’s plan is not really enough for any emergency. It’s just enough to start practicing the habit of saving money.
Why don’t you try to save all 20 K for at least six months. While making the other payments. Or at most pay off your home-equity, and keep all of the rest. If your son misses payments on the car, let them foreclose.
Don’t go into that savings for any reason other than life or death. And ammo storage is not life or death.
You need to practice saving money and increasing your savings every month and year. Otherwise you’ll surely be in the same position again.
A windfall of money is a blessing, and a gifted opportunity to start real change. I don’t think I would throw that at all of your past mistakes. You’ll just do the same thing again.
You’ve probably screwed up your finances a bit already. And practiced some bad habits.
If you are using earned money to work the Dave Ramsey plan, I think that’s great.
But if you’re getting a windfall of money, from an inheritance, or something similar,I don’t know that it makes perfect sense to throw it all at the debt. You will end up broke again, and will most likely run up very similar debt again. Yeah yeah the plan sounds good, start saving all that money, but you’ve never done that before.
It takes discipline. Gatlinburg is not an emergency and you should not go into your savings for Gatlinburg trip.
So it’s most important to break the habit. Then you can actually move forward.
Did you say your son makes the car payment? Does he really make it all the time? If he does why not let him keep making that payment.
At the most I would pay off your home-equity loan. But only if you have equity in the house. What other loans do you have on the house? And how much is the house worth? If there’s no equity in the house, it’s not much different than the car. I would not throw a bunch more money into it. I would hold onto that money tight. It’s all you really have.
Basically what I’m saying is I think you should break the habit. Change your ways. And the only way to do that is to start by saving real money. The $1000 from Dave Ramsey’s plan is not really enough for any emergency. It’s just enough to start practicing the habit of saving money.
Why don’t you try to save all 20 K for at least six months. While making the other payments. Or at most pay off your home-equity, and keep all of the rest. If your son misses payments on the car, let them foreclose.
Don’t go into that savings for any reason other than life or death. And ammo storage is not life or death.
You need to practice saving money and increasing your savings every month and year. Otherwise you’ll surely be in the same position again.
A windfall of money is a blessing, and a gifted opportunity to start real change. I don’t think I would throw that at all of your past mistakes. You’ll just do the same thing again.
Home renovation $14k balance/ $381.47 monthly.
Step son's car $4k balance/ $174.32 monthly
Your car $10k balance/ $364.98 monthly.
I would pay off the 2 vehicles and have your stepson continue paying you. That gives you $539.30 more capitol per month. Take that money and pay on the Renovation loan. $539.30 plus the $381.47 you're already paying on the Home Renovation loan is $920.77 monthly (over $12k for the year). Even if you just pay double the premium you'll be better off.
Say you pay $650 a month on the Renovation loan. That leaves $277.70 a month ($3300 for the year) that you can dump into savings.
Or you could use the full $920.77 and pay the Renovation loan back in 15 months. Not only does it reduce your principle faster, it also keeps you ahead of the curve in case you ever have to miss a payment for whatever reason. I suggest splitting that into 2 payments ($460) per month so your credit score reflects multiple payments and defeating interest.
That would leave you $6k. Put $2-3k into an account (because $1k isn't much of a rainy day fund). With the remainder... Spoil the family, buy a gun or 2, take a road trip, LARP, fill the bathtub with spaghetti sauce and pretend you're a meatball. Live a little!
Step son's car $4k balance/ $174.32 monthly
Your car $10k balance/ $364.98 monthly.
I would pay off the 2 vehicles and have your stepson continue paying you. That gives you $539.30 more capitol per month. Take that money and pay on the Renovation loan. $539.30 plus the $381.47 you're already paying on the Home Renovation loan is $920.77 monthly (over $12k for the year). Even if you just pay double the premium you'll be better off.
Say you pay $650 a month on the Renovation loan. That leaves $277.70 a month ($3300 for the year) that you can dump into savings.
Or you could use the full $920.77 and pay the Renovation loan back in 15 months. Not only does it reduce your principle faster, it also keeps you ahead of the curve in case you ever have to miss a payment for whatever reason. I suggest splitting that into 2 payments ($460) per month so your credit score reflects multiple payments and defeating interest.
That would leave you $6k. Put $2-3k into an account (because $1k isn't much of a rainy day fund). With the remainder... Spoil the family, buy a gun or 2, take a road trip, LARP, fill the bathtub with spaghetti sauce and pretend you're a meatball. Live a little!
That's awesome! Glad things worked out.
Just throwing it out there, but if you have full comp insurance and they chose to not total your car and do the frame repair then your insurance owes you a depreciated value check. If you only had liability, then this wouldn't apply.
Not having all the facts, I'm just guessing. But wanted to mention it in case you weren't aware of that possibility.
If it was worth 10 and is now worth 2 because of that repair, you are owed 8 in depreciation by your insurance... Just as an example.
Not having all the facts, I'm just guessing. But wanted to mention it in case you weren't aware of that possibility.
If it was worth 10 and is now worth 2 because of that repair, you are owed 8 in depreciation by your insurance... Just as an example.
Pay YOUR debt, highest interest rates 1st. Let your step son pay his, or some day he'll be saying he's a complete idiot with money.
Try mlcalc.com, enter loan amounts and interest rates, you need to see what you're paying to borrow that money!
Try mlcalc.com, enter loan amounts and interest rates, you need to see what you're paying to borrow that money!
Best thing my parents ever did for me was never hand me anything even though they could. I drove a beat up 96 Ford Ranger that I took care of and had pride for because I paid for it with my money. I was also working and saving money by the time I was 13 kids now days seem to think money just falls from the sky
Those interest rates! Holy ****!
Those are stupid high interest rates. Need to work on your credit score. By all means pay off what you can. Couple weeks ago I had to buy tires for kids car. Used Goodyear credit card. $200 rebate and 6 months same as cash. Got the first bill. After 6 months intrest rate is 28%. I will pay off way before then. Wonder how many people don’t.
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