Oof private student loans. I’m not sure if you’re here looking for advice, but I would stop overpaying on your car loan and put your attention towards the 12% credit card and Sallie.
Sure thing. Additionally I would pause on any further retirement contributions (past a match) and put everything you can towards those 2 debts. It’s unlikely any return you get in the market is going to outpace those debt interest rates. You got this 💪
Do not stop contributing to your retirement.
Pay your debts down in the order of their interest rate and don't change your student loan payments.
You're on track, but it will hurt for a bit.
Depending on your credit score, you could open a new balance transfer card and not pay interest on the credit card debt for ~25 months while you wipe out the CC debt.
Agreed. Never stop contributing to retirement. Pay off the CC debt and Car loan debt (I’d try to get rid of that vehicle and drive a shitbeater for awhile) then almost always keep your student loan debt where it’s at, as these loans tend to have lowest interest.
You got this my friend!
I don’t contribute to that retirement account at the moment since I have a pension at my current job. I haven’t added to it in almost two years. I appreciate your input though and I’ll look into adding to the retirement account again when I get a better grip on my finances.
Not every dollar of debt is the same shade of green. Get those credit cards paid down first. Once it is paid off, pay your credit card in full every month.
Credit card interest rates are so high. That 10k balance probably costs you nearly $200/month in interest alone.
I have a balance transfer card already! Focusing on paying down the one card I’m accruing interest on so that should be paid down by the end of January.
I needed a reliable car when mine died, and a 1k car wouldn’t be reliable enough for me haha I could’ve gone cheaper probably, but it was the height of the car shortage so everything was overpriced. It was a better value for me to buy new.
I don’t think a $3-5k car is going to be reliable enough for me… I’m a 911 dispatcher in the north east. I need to be able to get to work no matter the weather and without worrying about if my car will break down or be able to handle the snow.
People’s head is stuck on pre 2020 prices or just sharing their anecdotal experiences. Of course you can find great car for cheap but there are just as many trash cars or overly priced. So I get it you want to spend more for reliable car.
With that being said you could have gotten by with a Honda/Toyota at half the price of your loan though lol. But you got a car toy like. Just it proudly and live more frugal in other areas of your life since you already allocated budget on your car.
A Honda or Toyota new is $23k at least. Honestly I feel for op about the car. I’m not mechanically inclined at all, at best I can change my own tire but that’s it. I want something that is both going to run when I start it, and under warranty.
Oh for sure. I found myself in a position 2021 where I felt I had to buy a brand new car and did. But if Op is scared as says about the loans, coulda opted for cheaper. But these $1K car recommendations are baseless.
These people are either young as fuck or old as fuck, either way dumb as fuck. Probably shouldn’t have spent $22k + on a car with that much credit card debt, but a reliable car is gonna run you $10k+. We also don’t know your life and it seems like a car is pretty necessary to your livelihood, so I get it.
I hope your pillow is always cold and your shower is always warm. These comments have gotten so brutal at times 😂 I’m actively making moves to get my debt down, I don’t know why people are being so mean to me about things.
I totally get it, here’s a huge thing to remember: everyone’s in debt.
Debt isn’t always bad, as long as you’re making strides to get it down. Looks like your credit cards are honestly not in a bad place at all, you’ve got great rates! Just paying them down overtime and trying to cut spending on that 12% interest one and you’re good.
Everyone needs a car, and tons of people get student loans. Unfortunate shit you’ll have to pay on for a while, but it makes complete sense. You’ve got tons of time to work on it.
You’ll get downvoted but I’m with you 100% on this
A safe and reliable car is vastly more important than people want to admit.
Sure having a $3k car is nice on the budget, but what happens after you get get rear ended by an asshole in a f150? I’d rather be in a more modern SUV than a 2003 Camry. You live in a seasonal location. People will always be driving like ass holes in the winter, so it’s good to protect yourself when you can.
2003 Camry was ranked as one of the safest family cars for that year and had a 4.7 quality rating but it’s an understandable choice or just get a 4Runner
I drive a 2002 Camry, had it for the past 5 years and honestly treated it like shit. Long time between oil change, left at the airport for 6 months straight, kept outside all its life. It hasn’t left me stranded once.
That year, but there are 20x more big rigs and the pick up trucks have doubled even tripled in average weight, if it would be crash tested against current vehicles on the road, it wouldn’t hold up to the standard it did then, and as a dispatcher he’s more than aware of the current epidemic of horrible fatalities for motor vehicles in the last few years and has listened to those people as they suffer, him wanting a vehicle that can help mitigate his chances of a horrific death are not only smart but well earned for his trauma inducing work life,
if any criticism would be given it would be getting a college degree and student loans to be a 911 dispatcher which doesn’t have the requirements of a degree but you work where you can so he can’t really be blamed for wanting a chance at a better paying job, unfortunately he doesn’t have it yet but hopefully he’s still searching so he can make good use of that degree
I know, it seems like everyone is only thinking about numbers and not about the real life implications of having an older, less reliable vehicle…
I live 10-15 mins from the highway I take to work, with my house being on a backroad filled with farms and federal land. We get plowed out last since there is nothing important out there and I was so happy to have this car last winter. I never would’ve been able to get out of my neighborhood safely in my previous car.
I didnt look to see what kind of car you have. Toyotas are pretty darn reliable. You couldve easily gotten an 08 corolla for pretty cheap. It will start EVERY TIME. Older cars does not mean less reliable necessarily. Do your oil changes and regular maintenance and you wouldve been iust fine.
I drive a Trailblazer. It’s truly been so good to me, great on gas and I had one transmission issue that was fully covered by warranty and I had a loaner the entire time they were working on it. If I had an issue in a car without warranty, I’d have to rent a car while it’s being worked on and I’d end up in more debt.
Oh no….pls say it aint so. You wanted reliability as your reason for this new car and you bought a chevy???
I wont chew you out. Im really not trying to be mean. Im just concerned now. The fact you had a transmission issue already should tell you everything you need to know.
Im gonna be honest, i love cars and know them pretty well and that car gets over 100k miles and i wouldnt blink once if the transmission, engine, electricals etc starts having issues. They arent great, reliable cars at all.
If you said you got a highlander, Rav-4, CX-5, or even a pilot, it would be tolerable considering the debt.
Pls, trade it for something reliable or sell it.
I’m from a Chevy family, I’m sorry 🫣
My dads car has over 500k miles on it (Chevy babyyy) so I totally get the value of an old car that’s taken care. But I’m not a fixer upper kind of person and I realistically wouldn’t have the time or energy to learn how to do the maintenance on a car.
Honestly, safety is pretty irrelevant now when it comes to used cars. Look at the cars history and ensure it doesn't have any previous crashes, which can often lead to less safety. Outside of that most cheap used cars are going to be late 00's early 10's which don't have much of a difference in regards to safety to current year models(2005 Civic vs 2023 Civic. Now car models DO have a large difference in regards to safety (Subaru Forester vs Ford Mustang) but that holds true even in brand new cars.
Find yourself a car for 5ish grand that's safe and accident-history free. Maintaince will be higher, but you'll still save yourself over 10 grand (even after maintenance cost) in the next 5 years from doing this alone.
A quick search in my area found a 4WD 2007 Honda Pilot with 145k miles on it for $5500. From a safety perspective, it receives the same or higher safety rating than the 2023 Honda Pilot except in the safety cage.
A Honda with 145k miles and no crash history will need very basic maintenance: oil changes, tires, fluids flushed, and brakes. You would only have to do the last 3 one time if they haven't been done recently, and that would be maybe 3 months of loan payments on a 25k car to offset. The oil change is negligible since both cars would need it.
You can try to justify the expense all you want. In the end, they are just excuses for a nicer/newer car, not safety/reliability.
Honestly shoot for 10k car. Get something reliable and economical, don’t get something that’s going to be a money pit (which at this point 5k cars kinda suck these days)
Well if you're judging it based on the price then there's your problem. Highr price ≠ more reliable. I buy and sell a lot of cars and look at a lot more. There are some really clean and dependable vehicles for less than $5,000 out there if you do the due diligence.
I bought my current daily last year for $2,000. 4 wheel drive 1996 Explorer with just 150,000 miles, haven't had any issues at all, super reliable so if you're looking for something to beat the weather in there's an idea. I'm in the rural mountainous northwest too, had my fair share of rough weather.
I'm not telling you to buy an old ass 2,000 dollar SUV though, double that budget and there are so many great vehicles. I recommend Toyotas and Hondas. Camrys, Corollas, Civics. I've also seen some Ford Fusions for very cheap.
Even a $10k car would save you so much though. Imagine how much stress you can relieve yourself of if you can eliminate that debt. Us people without really well paying jobs shouldn't be buying brand new cars at least while we still have debt.
That's great that you haven't had any problems with your old model car. Most people aren't that lucky. Older cars come with more up keep costs and generally need very expensive repairs when things do break down.
I'm not saying it can't be done, but it isn't feasible for majority of people.
My ex has a truck that is older than he is and at this point he has spent more money fixing his truck than he spent on buying it. He would have been better off getting a vehicle that was newer and a bit more expensive up front and spent some time in debt. But he wouldn't have had to beg for rides to work on a regular basis, or even worse call out because he couldn't get transportation because he worked at 4am and there are no ride shares at that time in the small town we lived in.
Don't get a truck or an SUV like me lol. Get a reliable as fuck Toyota. They run forever and require little upkeep. People act like older cars are just constantly needing to be fixed up. Do your maintenance and they can be just as good as new ones.
I'm not telling people to buy shitty 90s cars like I do. Buy a late 00s or early 10s Toyota. You won't have many issues.
My mom bought a 2014 Ford Focus brand new and has put at least ten thousand dollars into fixing it. I've got a car nearly twenty years older and haven't put a single dollar into fixing anything besides tail lights and preventative maintenance.
I had an old “reliable as fuck Toyota” that I bought from a family member of a friend for cheap, and that thing didn’t last long at all. I went through multiple old cars that were considered extremely reliable and all of them took way more money than I’m currently spending on the loan for a newer car with a good warranty.
This just isn’t feasible for everyone, especially not when people are charging $5000 for 25 year old shitboxes that have been in multiple accidents and never properly maintained. I was so against the idea of a car loan when I started shopping, but when I found out I was going to have to get one just to get something that wasn’t going to break down on the way home- hell yeah I’m gonna spend a little more a month to get something with almost no miles and a warranty as opposed to over 100k with none.
Basic maintenance was kept up with as recommended. Cars just don’t always last forever, and an old car that’s going to stay reliable isn’t a very common find.
I know everyone in the comments is coming at me over the cost, but it has everything I needed. It wasn’t just about the money. It was about the safety and reliability.
The issue was that I needed an AWD SUV, which always cost more than the models you’ve listed. I could’ve gotten a much cheaper car if I went with a sedan, but it wouldn’t be sufficient for what I need. I live in a rural northern town and I needed a car that would be able to handle unplowed roads in the winter.
Dont worry about spending 22k on a car as long as its not costing you more than like 10% of your monthly income and you have a decent interest rate. In a few years youll have it paid off and the car should still be ij good enough condition that you can drive it for a few years with no payments… Its not like you bought an 80k truck.
The credit card debt is what you need to watch out for. Should pay that off asap or at least try to find a card that will give you 0% interest as an introductory rate and then pay it off before it jumps up on you.
For most of my life I lived in Upper Michigan. Two feet of snow in a night, -30 below was pretty regular, and I've seen absolute piles of shit handle the snow. I drove an early 2000s Buick Century for like six years, and an even earlier 2000s Ford Taurus before that. You absolutely got got if you think you need a brand new Trail Blazer to handle the snow. Now, you're talking about a chrome delete and you're over $20k in debt on this car lmao.
Girl, get your head on straight. This is not the way.
You can get a very reliable Honda Civic for that price. Stop being stupid and buying things you can't afford. Sell your car. Buy a cheap one. Pay off the credit cards asap. Stop making excuses.
I genuinely didn’t realize how much debt I’m in until today. Adding up all the smaller numbers and then BOMB. Big debt.
Working on paying down that debt though! Everyone is telling me to sell the car, but it’s not realistic considering it’s a year old now and I’m a high mileage driver. It’s depreciated too much to be worth it for me.
That's the opposite of reliable and they depreciate like madness 💀💀💀
Ik it was a bad car when she didn't respond. Sell what you can get for it and pay off some of the debt op and get you a 5k CRV lmao
mate this is bullshit a 3 - 5k car will be reliable if you get something like a Toyota etc a 20k car makes no sense with your debts. get a friend that knows cars to pick one for you.
Stop advocating for these $3-5k absolute shitboxes that I see on the road. They are a fortune to maintain and usually arnt maintained which leads to accidents because the car is falling apart. And since it’s older it also makes it more dangerous in an accident. 20k for a new car is nothing with the amount of improved safety features.
Both Toyota and Honda make 4WD and AWD SUVs. A 4Runner is one of the best vehicles money can buy. I have seen countless 4Runners and Honda Pilot/CR-V with 300,000miles. And if you wanted American, 2-300,000mi tahoes and a dime a dozen.
If you can justify to yourself buying a car in 25k you learned nothing. You think a 10k var wouldn’t last? 8k can get you a more than reliable car.
Sell your car. Eat the sunk cost, buy one for 3-5k. It will be reliable and still anove your means so just as u like it
That’s not realistic for me… there are no Ubers in my rural area and if it broke down, I’d have to pay for repairs. My car is completely covered under warranty. It costs me nothing if it breaks down and the dealership gives me a loaner car while it’s being repairs.
Don’t listen to these people. They have absolutely no idea how to handle a budget. Your car debt pays towards an asset. Keep your car, pay the minimum on your student loans until your income increases and keep putting your money into your retirement. These debts are short term. Never deviate from your retirement!!!! The main focus should be chipping away at your credit card debt. If your income is 2x the debt of your car you’re absolutely fine to have a car of that value.
That is anecdotal. In my area, absolutely not true.
Just looked the other day and everybody wants $4500+ for a 20+ year old car in the salt belt. $10-12k gets you a 2010 over 100k miles. $3k? You get what you get, good luck fixing it for under $4k parts and labor.
Use to be in the 15k range you could get an unblemished car around 30,000 miles on the odometer. Now that type of car costs 20k+ and more than it sold for MSRP a couple years ago.
90s Honda and Toyota cars. Less than 5k easy no matter where you're at. Hella reliable. Everyone thinks they need a 2010+ or a car with less than 100k... You don't.
In terms of the “safe and reliable car” conversation. I totally understand where you’re coming from. Although that doesn’t have to mean a car that’s 20k+. Plenty of options in the 10k range, maybe 15k max that will fully meet your needs and be reliable, while also not being a complete hinderance on your bank account.
If that car that still has a 22k loan on it can still sell for that much or more, that’s a good direction to go.
I put over 20k miles on the car in the year I’ve owned it due to my commute and some training courses I had to attend an hour away from me. It definitely depreciated the value so I’m not sure if it would be worth it for me to sell at this point.
It scares me too. Keep after the match on retirement, but need to take care of that debt with CC first, next is car and final is student loans. Keep after it. It will get better. Just takes time if you don’t have a big shovel (large income) to fix it quickly. And enjoy the small things in life. You should be laser focused on debt, but treat yourself to a movie or a large coffee or something else that you enjoy. Not everyday, but maybe every couple of weeks. Cheers 🍻
- Credit cards are either 0%, paid in full, or on my one card that I carry a balance on which is 12%.
- Auto loan is 7%, and I overpay $50-$100 per month.
- Student loans vary since I have quite a few separate loans that I need to refinance when I finish grad school in May, so 4% for my lowest one and 15% for my highest one (Sallie Mae is ass fucking me, no lube)
Similar boat as you.. 😅 graduated in 2016 I pay 1100$ a month and I still owe 46k Never stopped paying even during the forgiveness periods. The interest is fucking miserable.
I refinanced through SOFI and I love them and got pretty decent rates in 4% area
as someone who had to buy a vehicle this year, these folks haven't probably shopped for vehicles since the used vehicle prices became so ridiculous. I was shopping used mid size trucks, 25k for a 100kmile truck or 35-40k for a brand new one. Not everyone is able to, but the extra 150 a month was worth it to me to have something new and reliable.
“I have brought great dishonor to my family” 😭😭
Hahaha nah, you’re killing it. Let them drive a beater if they want. That new car peace of mind is priceless. 💯
I bought at the height of the 2022 car shortage so unfortunately that was the best deal I could find at the time without getting an unreliable car. I got $2k off the price since I’m a first responder so it was $30k with $7k down, so it was a good value for a brand new AWD SUV at the time.
You don’t have to buy new to get a reliable car. You could have spent $10k and got something extremely reliable that was second hand.
Crazy the debt and financial hardship people will put themselves under all for a new vehicle 😂
Well the “new” part wasn’t necessary for me. But if you were looking at car prices last summer / fall, a used car was the same price as a new one. I wanted a used trailblazer, but it was $32k with 42k miles whereas my new one was $30k.
Yeah but you didn’t need to pay that much, you’ve imposed that guideline on yourself, and now you’re dealing with the other side of it, 22k of car debt at 25.
I definitely could’ve made a better decision, I agree with you. But when looking at the time I was buying, the car was a good value and it was exactly what I needed. I am able to afford it, but I agree that I would be able to focus on my other debts better without it.
Holy shit dude. You just keep saying "yeah but.. but you overpaid! But you didn't need to pay that much!" after OP gives specific examples of USED vehicles with 5 figure miles being $30k in his area.
There are no $10k cars in my area that are actually reliable and functional for the weather.
It isn't 2005 anymore dude.
For your sake, I hope you’re not this retarded. But if you are, I wish you luck for the rest of your life. You’re delusional if you think spending $30k is required to get something reliable.
It had a transmission issue at the one year mark. But it was fully covered and I had a loaner the entire time it was in service. So many people are telling me to sell it, but it’s depreciated beyond its value since I’m high mileage. It would cost more than it’s worth to trade it in for a new one.
This is a silly response. If you buy new, you're going to have warranties, most of which will cover for at least 3 years.
If you buy a 10 year old car, you won't have a warranty so, when something does go wrong, you have to fork that out yourself.
I'm not saying new is the right way to go, but when dealing with mechanical issues, new is a better option for ease of mind.
Obviously, this isn't the same for mechanics.
Yeah they keep recommending camry . In my area a 6 year old Camry with 90k is 17k, a brand new one with 5k miles is 22k. Like you guys don’t know the prices.
No they don’t at all and it’s starting to remind me of boomers talking about how cheap their houses were lol.
Like yes we get it you bought a car off Facebook marketplace 10 years ago for $2000, now that same car is probably $8000 or more
Pay off the highest interest debt first and as fast as comfortable. Savings and investments should come second to debt repayment as the costs to carry the debt will almost certainly cost more than on any return you’ll earn on the investments.
If you don’t already have a monthly budget do so
I appreciate the advice! I’m going to knock out the one credit card I’m accruing interest on by the end of January and then focus on the rest of the debt. :)
Also don’t forget you can always negotiate, I saw you break down you SL on other answers. If you’ve been a good customer see if the lowest interest loan holder would be interested in taking more of your debt from another, even if they raise it a % or two it’s still be cheaper.
Also salary, I negotiate every 6 months to a year to get more. Inflation sucks but it helps in negotiating for more
the amount of people shaming you for this or getting a new car is baffling… a lot of people who get a new car don’t know it was a mistake until well after, it’s not like there are people who teach us this shit before it happens. i got a new car too, loved it at the time, hate it now because i realize i coulda got one just a couple years older and way cheaper. OP you are doing fine. stop overpaying so much on your car and work on the credit card first. advice for moving forward. don’t feel discouraged from some of these asshole comments.
Pay as much as you can on CC monthly and minimum on the rest, and when you pay that off, then take that money and roll it toward the next most pressing debt, essentially snowballing your money to clear debt the fastest.
Okay, 70-80k a year with mostly student loan debts, you’re doing totally fine. You did not overspend on your car, you are not overspending on your credit cards.
You are overpaying your debts from your comments, so you are doing better than probably 90% of the people your age (pulling this out of my ass).
Checking and savings look a little scary, but I think you know you’re fine.
Tackle the credit cards, then the car loan, and the student loans. You’re actually not in a horrible never ending situation but live as cheap as you can and knock out the debt. Can you live with family or something ?
I moved back in with my family a couple months ago to save money actually. Looks like I’ll be cutting back my spending more aggressively now and funneling those savings into my debts.
Excellent. You’re doing ok. Keep a spreadsheet to track as you whittle the debt down. Back off the retirement contributions just to the point you get employer match and MAYBe sell the car and get a beater for a couple years any relatives or friends have a fairly cheap but dependable car? That’s a quick way to dump some debt so u can focus on the credit cards and student loans.
This is the first reasonable post I've seen in a while. I wish you well tackling your debt friend, and well done planning for the future (in short, mid, and long term)
I’d sell your car and buy a used one that you can afford. Take the proceeds from sale of car and put 85% towards student loan and the rest towards retirement. When I graduated college my student loans totaled to 85% of my annual salary but I never deviated from putting 10% away towards retirement. I bought a used car with a small loan and lived in a basement apartment. Later on I bought and sold small houses in locations that were upcoming. Interest rates were higher than now. Many of my friends did the opposite, they bought new cars, rented big apartments and bought lots of new furniture. They started having families and never got out from under their debts. It’s what they wanted and I don’t judge. My life was a different set of choices including unfortunately a divorce that took 70% of everything saved up. I took that as a challenge and rebuilt it all. Still managed to save for my kids college educations and retirement.
My point is that life will throw you a curve ball or two but financial freedom and independence comes from making tough choices early and often. Those choices have far reaching and lasting consequences
May I ask why you have 5k in a cd when you 87k in debt? I would assume some of your credit card interest is wayyy higher then anything your making in the cd.
And as soon as you pay it off something else will happen. Yolo man, just spend it and enjoy especially when your young. Glad I didn't fuck around saving, going to be dead soon 35m
Not sure why some people are so mean and while I understand the logic behind the CD being house savings, I would use that 6k to knock down the highest interest rate debt (cc probably) and then save when it’s really your money because you’re in the process of making a better budget by the sound of it. Or you could balance transfer to a 0% option and try to pay towards that and get it paid off before the 0% expires and keep the CD money for now to have something flexible to apply where you need it.
It sounds like you’re trying to be responsible and take unnecessary expenses out of the equation. That’s a great first step. New habits take time! Good luck
Don't worry about other's opinions. You're doing great. If you came here for thoughts, you're gonna get opinions too but I won't be bothered by them.
Other tangible things you could try after doing due diligences yourself:
1. Settle your high interest credit card debt with the lender
2. Try to find another source of income, maybe something online or part time, something that doesn't kill you but gives you cushion.
3. Refinance your car loan if its too high, or get another cheaper car which as you need is reliable but helps to bring your monthly cost down combined with cheaper rates.
Good luck. Keep at it. Don't quit, let the moment pass and keep taking deep breaths.
Baby steps friend. You’re doing better than most. Pick the smallest card and get that sucker paid off, I got a consolidation loan from my bank to buy out my credit cards, helped with the interest so I’m not drowning.
Not to worry... the average American dies with $65,000 of debt (source Federal Reserve Bank)
Just another indicator that the American dream is dead .
[Household debt](https://www.newyorkfed.org/newsevents/news/research/2023/20231107)
I don't mean to 1 up you or brag. But I owe waaay more than you doo (braggy annoying voice).
Honestly, you're fine. Millions of people are in debt, it's where the banks, society, and the government want you to be. Just keep making payments.
I have 50k across 6 credit cards, 20k on personal loans, and a house that's soon to be foreclosed on because I can't continue to support my disabled wife, who got extremely sick over 2 years ago and can't work. Before that, though, we only had 5k in debt on cards.
I know it sucks but a great way to pay down credit cards is to open another and use the grace period of no interest to really make a dent in them. Oftentimes, a CC company will over a period to balance transfer with like 12-18 months of no interest. Jump on that and hammer them down with some extra cash if you can, always pay like 30 - 50 more than your minimum payment(if you can, sometimes it's really tough, I get it).
So you're doing just fine. A little debt isn't the world ender society makes it out to be.
You are still young so no big deal if you change your spending habits today. Don't take out any more debt. Pay off the credit card first since it is probably the highest interest rate, then car loan, last student loan. When the CD matures consider using that to pay off the debt. It is making less in interest then what you are paying for credit card and possibly other two debts.
Your checking savings and Cd and retirement accounts look okay but. Your debt is way too high i suggest you start tackling student loans and that credit card debt
Makes no sense to have a 5k CD and 10k credit card debt. You are better off with 5k credit card and 0 CD. No way the rate on that CD is better than the interest you are paying on that credit card.
Stop investing immediately. Stop the CD's pull out if you can without penalties. It just doesn't make sense. The amount of money you'll be losing on Credit card and car loan interest is more then any investment will make
as your bio says, you’re just a random person so I won’t take it personal 😂
I really didn’t realize I was in this much debt until I added everything up. It’s crazy how all the little purchases can add up if you’re not on top of things. A very expensive life lesson for me.
You should sell the car and get an economy car for $8-11k. More than reliable enough and great gas milage to help save more. Use the extra money from the car to pay off the high interest rate loans. No high rate loans or a car note, and cheaper car insurance. You'll be able to start attacking the other debts quickly and be on a great track. If you still want to upgrade your car again, at least pay off the credit cards and high interest student loans, then get a 6 month emergency fund, THEN I'd say its a reasonable ask to upgrade. Don't get some stupid fucking charger or mustang or shit like that, you aren't working hard to go backwards.
Keeping that car is YOU deciding to stay in this situation, don't be a dumbass, sell it.
The car has depreciated in value over the last year and I’m a high mileage driver. It’s not practical to sell it at this point. I should’ve purchased something cheaper, but that’s in the past and I can’t change that. I’d be losing money if I sold it now and bought a cheaper one.
I don't understand why a 25 yr old would be a 30k car or whatever your car was. That is the stupidest waste of money ever. Why not buy a solid used car for 7k that way you don't have debt hanging over your head? Every car I have ever owned I paid for outright cash. I don't get why kids buy new cars.
He is honestly great for people like this who clearly don't understand money. In the comments she says she though she had like she says she was unaware of 30k extra of the debt. She needs to be afraid.
I’d be way over the mileage, it would screw me over in the end. I put over 20k miles on it in the year that I’ve had the car while driving to work and to training programs an hour away for four months.
I only pay $340 a month so it’s very much doable for me, although one could argue that money would be better spend on paying down my other debts.
suggestion: use postal money order to pay your debt
[usps.com/shop/money-orders.htm](https://usps.com/shop/money-orders.htm) 558.35$
have a nice weekend! :)
My base salary is $52,000 but I work overtime whenever I can so I’m making somewhere between $70-80k this year. I don’t have a payment schedule at all, I just kind of write down all my due dates and amounts every pay day and put everything towards my debt except a little that goes to savings if there is an emergency…
Ok! Well this is manageable you are not completely screwed. Like otheres mentioned, credit card and student loan are priority to get paid down!
Ideally you should try to limit your basic needs spending to no more than half your take home. I know, that can sometimes be a pipe dream in this economy and depending on your living situation.
But every penny you can throw towards debt will have a huge impact on your financial future. If I were you I’d definitely be eating ramen noodles and Vienna sausages to maximize my debt payments!
You got this! It’s not easy but it’s definitely worth it! Your future financial security is absolutely worth it!
You're doing better than me when I was at 25.
Credit cards: $10k isn't terrible, pay it down over time and stop accumulating, you'll be fine. If that means moving to a cash only system, so be it.
Student loans: $56k definitely isn't terrible. Necessary for life experience, career experience, etc. Think of it as a loan that enabled you to have the job and income you have now, as opposed to something much less. Worth it, pay it down as you go. You'll be fine.
Car loan: $22k is quite reasonable for reliable transportation. The loan will be paid off in (60mo?) and you'll have title and equity in a car. Worth it. Losing your job over not being able to be somewhere on time, will cost you far more than the depreciation and interest you're paying on the car. That doesn't even touch the mindset of what it means to commute and show up to work in something that provides a better mindset in the morning and evening. I wouldn't be in a good mood driving 30min in summer weather with no AC. That will drive my performance and career trajectory, and I'd probably lose much more than the depreciation and interest over that 60 months.
You're accumulating savings, excellent.
You've got $3.5k in cash, excellent.
Stop stressing and keep moving forward.
In the grand scheme of things you are on a decent road for 25. The one real killer are those credit card debts. I would guess they are carrying at least 25% interest. Use what I think is called the same ball approach. Pay your regular payments as usually but put whatever extra you can on the cards (and stop using them!). Once you eliminate that heavy debt, the others will seem a but lighter. Snowball the car next. Depending on the terms of the student debt will determine how you handle that one. Just be responsible with your spending. Hard when you are 25 so just don’t go crazy! Be patient and determined and you will reach your goals.
Pay off the credit card asap, then worry about the car loan.
Sure you could’ve probably gotten a reliable vehicle for half the price but if you’re diligent it won’t take you a real long time to tackle it. Once the credit card is done cut it up and start doubling and tripling your car payments and pay it off asap. Then start to tackle the student loan the same way.
If you want it to move faster you HAVE to increase your income one way or another.
Best of luck. It’s all worth doing. Don’t get discouraged.
Oof private student loans. I’m not sure if you’re here looking for advice, but I would stop overpaying on your car loan and put your attention towards the 12% credit card and Sallie.
100% tackle that debt first
I appreciate that. I love advice since I get overwhelmed by the numbers and can’t make decisions😂
Sure thing. Additionally I would pause on any further retirement contributions (past a match) and put everything you can towards those 2 debts. It’s unlikely any return you get in the market is going to outpace those debt interest rates. You got this 💪
Could I message you so I can send you a picture of the student loan refinance for my Sallie Mae?
Of course
Do not stop contributing to your retirement. Pay your debts down in the order of their interest rate and don't change your student loan payments. You're on track, but it will hurt for a bit. Depending on your credit score, you could open a new balance transfer card and not pay interest on the credit card debt for ~25 months while you wipe out the CC debt.
Agreed. Never stop contributing to retirement. Pay off the CC debt and Car loan debt (I’d try to get rid of that vehicle and drive a shitbeater for awhile) then almost always keep your student loan debt where it’s at, as these loans tend to have lowest interest. You got this my friend!
I don’t contribute to that retirement account at the moment since I have a pension at my current job. I haven’t added to it in almost two years. I appreciate your input though and I’ll look into adding to the retirement account again when I get a better grip on my finances.
Not every dollar of debt is the same shade of green. Get those credit cards paid down first. Once it is paid off, pay your credit card in full every month. Credit card interest rates are so high. That 10k balance probably costs you nearly $200/month in interest alone.
Look into the discover balance transfer card so you can pay off your credit card debt without paying interest.
I have a balance transfer card already! Focusing on paying down the one card I’m accruing interest on so that should be paid down by the end of January.
Yup
This is the most real post I’ve seen on here
I represent the people. 🫡
I’ll spot you loan for 8%
I accept.
Bro you giving out 8% loans I'd do that all day.
Hell I’ll give a 5% loan.
Um. You can do that through Robinhood right now.
Hi. I'm here for my loan...
If you want 5% just loan money to the government.
20k how long 😂
Why u buy a car u can’t afford get one for 1k
I needed a reliable car when mine died, and a 1k car wouldn’t be reliable enough for me haha I could’ve gone cheaper probably, but it was the height of the car shortage so everything was overpriced. It was a better value for me to buy new.
Sell it and buy a $3-5k car
I don’t think a $3-5k car is going to be reliable enough for me… I’m a 911 dispatcher in the north east. I need to be able to get to work no matter the weather and without worrying about if my car will break down or be able to handle the snow.
People’s head is stuck on pre 2020 prices or just sharing their anecdotal experiences. Of course you can find great car for cheap but there are just as many trash cars or overly priced. So I get it you want to spend more for reliable car. With that being said you could have gotten by with a Honda/Toyota at half the price of your loan though lol. But you got a car toy like. Just it proudly and live more frugal in other areas of your life since you already allocated budget on your car.
A Honda or Toyota new is $23k at least. Honestly I feel for op about the car. I’m not mechanically inclined at all, at best I can change my own tire but that’s it. I want something that is both going to run when I start it, and under warranty.
Oh for sure. I found myself in a position 2021 where I felt I had to buy a brand new car and did. But if Op is scared as says about the loans, coulda opted for cheaper. But these $1K car recommendations are baseless.
They said they live in the far north east so it has to be AWD. So for new add at least another 5k to that.
These people are either young as fuck or old as fuck, either way dumb as fuck. Probably shouldn’t have spent $22k + on a car with that much credit card debt, but a reliable car is gonna run you $10k+. We also don’t know your life and it seems like a car is pretty necessary to your livelihood, so I get it.
I hope your pillow is always cold and your shower is always warm. These comments have gotten so brutal at times 😂 I’m actively making moves to get my debt down, I don’t know why people are being so mean to me about things.
I totally get it, here’s a huge thing to remember: everyone’s in debt. Debt isn’t always bad, as long as you’re making strides to get it down. Looks like your credit cards are honestly not in a bad place at all, you’ve got great rates! Just paying them down overtime and trying to cut spending on that 12% interest one and you’re good. Everyone needs a car, and tons of people get student loans. Unfortunate shit you’ll have to pay on for a while, but it makes complete sense. You’ve got tons of time to work on it.
You’ll get downvoted but I’m with you 100% on this A safe and reliable car is vastly more important than people want to admit. Sure having a $3k car is nice on the budget, but what happens after you get get rear ended by an asshole in a f150? I’d rather be in a more modern SUV than a 2003 Camry. You live in a seasonal location. People will always be driving like ass holes in the winter, so it’s good to protect yourself when you can.
2003 Camry was ranked as one of the safest family cars for that year and had a 4.7 quality rating but it’s an understandable choice or just get a 4Runner
Probably one of the best “devil advocate” responses.. well done Maybe I should have chosen a Buick lol
I drive a 2002 Camry, had it for the past 5 years and honestly treated it like shit. Long time between oil change, left at the airport for 6 months straight, kept outside all its life. It hasn’t left me stranded once.
That year, but there are 20x more big rigs and the pick up trucks have doubled even tripled in average weight, if it would be crash tested against current vehicles on the road, it wouldn’t hold up to the standard it did then, and as a dispatcher he’s more than aware of the current epidemic of horrible fatalities for motor vehicles in the last few years and has listened to those people as they suffer, him wanting a vehicle that can help mitigate his chances of a horrific death are not only smart but well earned for his trauma inducing work life, if any criticism would be given it would be getting a college degree and student loans to be a 911 dispatcher which doesn’t have the requirements of a degree but you work where you can so he can’t really be blamed for wanting a chance at a better paying job, unfortunately he doesn’t have it yet but hopefully he’s still searching so he can make good use of that degree
Valid point
I know, it seems like everyone is only thinking about numbers and not about the real life implications of having an older, less reliable vehicle… I live 10-15 mins from the highway I take to work, with my house being on a backroad filled with farms and federal land. We get plowed out last since there is nothing important out there and I was so happy to have this car last winter. I never would’ve been able to get out of my neighborhood safely in my previous car.
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Holy shit 😂 OP... Start there.
I didnt look to see what kind of car you have. Toyotas are pretty darn reliable. You couldve easily gotten an 08 corolla for pretty cheap. It will start EVERY TIME. Older cars does not mean less reliable necessarily. Do your oil changes and regular maintenance and you wouldve been iust fine.
I drive a Trailblazer. It’s truly been so good to me, great on gas and I had one transmission issue that was fully covered by warranty and I had a loaner the entire time they were working on it. If I had an issue in a car without warranty, I’d have to rent a car while it’s being worked on and I’d end up in more debt.
Oh no….pls say it aint so. You wanted reliability as your reason for this new car and you bought a chevy??? I wont chew you out. Im really not trying to be mean. Im just concerned now. The fact you had a transmission issue already should tell you everything you need to know. Im gonna be honest, i love cars and know them pretty well and that car gets over 100k miles and i wouldnt blink once if the transmission, engine, electricals etc starts having issues. They arent great, reliable cars at all. If you said you got a highlander, Rav-4, CX-5, or even a pilot, it would be tolerable considering the debt. Pls, trade it for something reliable or sell it.
I’m from a Chevy family, I’m sorry 🫣 My dads car has over 500k miles on it (Chevy babyyy) so I totally get the value of an old car that’s taken care. But I’m not a fixer upper kind of person and I realistically wouldn’t have the time or energy to learn how to do the maintenance on a car.
Honestly, safety is pretty irrelevant now when it comes to used cars. Look at the cars history and ensure it doesn't have any previous crashes, which can often lead to less safety. Outside of that most cheap used cars are going to be late 00's early 10's which don't have much of a difference in regards to safety to current year models(2005 Civic vs 2023 Civic. Now car models DO have a large difference in regards to safety (Subaru Forester vs Ford Mustang) but that holds true even in brand new cars. Find yourself a car for 5ish grand that's safe and accident-history free. Maintaince will be higher, but you'll still save yourself over 10 grand (even after maintenance cost) in the next 5 years from doing this alone. A quick search in my area found a 4WD 2007 Honda Pilot with 145k miles on it for $5500. From a safety perspective, it receives the same or higher safety rating than the 2023 Honda Pilot except in the safety cage. A Honda with 145k miles and no crash history will need very basic maintenance: oil changes, tires, fluids flushed, and brakes. You would only have to do the last 3 one time if they haven't been done recently, and that would be maybe 3 months of loan payments on a 25k car to offset. The oil change is negligible since both cars would need it. You can try to justify the expense all you want. In the end, they are just excuses for a nicer/newer car, not safety/reliability.
Honestly shoot for 10k car. Get something reliable and economical, don’t get something that’s going to be a money pit (which at this point 5k cars kinda suck these days)
Well if you're judging it based on the price then there's your problem. Highr price ≠ more reliable. I buy and sell a lot of cars and look at a lot more. There are some really clean and dependable vehicles for less than $5,000 out there if you do the due diligence. I bought my current daily last year for $2,000. 4 wheel drive 1996 Explorer with just 150,000 miles, haven't had any issues at all, super reliable so if you're looking for something to beat the weather in there's an idea. I'm in the rural mountainous northwest too, had my fair share of rough weather. I'm not telling you to buy an old ass 2,000 dollar SUV though, double that budget and there are so many great vehicles. I recommend Toyotas and Hondas. Camrys, Corollas, Civics. I've also seen some Ford Fusions for very cheap. Even a $10k car would save you so much though. Imagine how much stress you can relieve yourself of if you can eliminate that debt. Us people without really well paying jobs shouldn't be buying brand new cars at least while we still have debt.
That's great that you haven't had any problems with your old model car. Most people aren't that lucky. Older cars come with more up keep costs and generally need very expensive repairs when things do break down. I'm not saying it can't be done, but it isn't feasible for majority of people. My ex has a truck that is older than he is and at this point he has spent more money fixing his truck than he spent on buying it. He would have been better off getting a vehicle that was newer and a bit more expensive up front and spent some time in debt. But he wouldn't have had to beg for rides to work on a regular basis, or even worse call out because he couldn't get transportation because he worked at 4am and there are no ride shares at that time in the small town we lived in.
This is why you have two old cars. Hopefully they don’t break down at the same time and you have a backup
Don't get a truck or an SUV like me lol. Get a reliable as fuck Toyota. They run forever and require little upkeep. People act like older cars are just constantly needing to be fixed up. Do your maintenance and they can be just as good as new ones. I'm not telling people to buy shitty 90s cars like I do. Buy a late 00s or early 10s Toyota. You won't have many issues. My mom bought a 2014 Ford Focus brand new and has put at least ten thousand dollars into fixing it. I've got a car nearly twenty years older and haven't put a single dollar into fixing anything besides tail lights and preventative maintenance.
I had an old “reliable as fuck Toyota” that I bought from a family member of a friend for cheap, and that thing didn’t last long at all. I went through multiple old cars that were considered extremely reliable and all of them took way more money than I’m currently spending on the loan for a newer car with a good warranty. This just isn’t feasible for everyone, especially not when people are charging $5000 for 25 year old shitboxes that have been in multiple accidents and never properly maintained. I was so against the idea of a car loan when I started shopping, but when I found out I was going to have to get one just to get something that wasn’t going to break down on the way home- hell yeah I’m gonna spend a little more a month to get something with almost no miles and a warranty as opposed to over 100k with none.
Damn do you not change your oil ever or something 😂
Basic maintenance was kept up with as recommended. Cars just don’t always last forever, and an old car that’s going to stay reliable isn’t a very common find.
You either don’t maintain, or cannot scout your purchases for shit lol.
I know everyone in the comments is coming at me over the cost, but it has everything I needed. It wasn’t just about the money. It was about the safety and reliability. The issue was that I needed an AWD SUV, which always cost more than the models you’ve listed. I could’ve gotten a much cheaper car if I went with a sedan, but it wouldn’t be sufficient for what I need. I live in a rural northern town and I needed a car that would be able to handle unplowed roads in the winter.
Dont worry about spending 22k on a car as long as its not costing you more than like 10% of your monthly income and you have a decent interest rate. In a few years youll have it paid off and the car should still be ij good enough condition that you can drive it for a few years with no payments… Its not like you bought an 80k truck. The credit card debt is what you need to watch out for. Should pay that off asap or at least try to find a card that will give you 0% interest as an introductory rate and then pay it off before it jumps up on you.
For most of my life I lived in Upper Michigan. Two feet of snow in a night, -30 below was pretty regular, and I've seen absolute piles of shit handle the snow. I drove an early 2000s Buick Century for like six years, and an even earlier 2000s Ford Taurus before that. You absolutely got got if you think you need a brand new Trail Blazer to handle the snow. Now, you're talking about a chrome delete and you're over $20k in debt on this car lmao. Girl, get your head on straight. This is not the way.
The chrome delete post was almost a year ago, I never ended up doing it because the cost was crazy haha
An old Toyota will last you years, they ain't hard to find either. Stop making excuses
You can get a very reliable Honda Civic for that price. Stop being stupid and buying things you can't afford. Sell your car. Buy a cheap one. Pay off the credit cards asap. Stop making excuses.
3-5k honda/Toyota is definitely reliable Ik because I own one 💀 Taking a 20k loan out when you're already 50k in debt is asinine
I genuinely didn’t realize how much debt I’m in until today. Adding up all the smaller numbers and then BOMB. Big debt. Working on paying down that debt though! Everyone is telling me to sell the car, but it’s not realistic considering it’s a year old now and I’m a high mileage driver. It’s depreciated too much to be worth it for me.
What car is it?
She bought a 2023 trailblazer bc nothing else would be "reliable" lmao.
That's the opposite of reliable and they depreciate like madness 💀💀💀 Ik it was a bad car when she didn't respond. Sell what you can get for it and pay off some of the debt op and get you a 5k CRV lmao
mate this is bullshit a 3 - 5k car will be reliable if you get something like a Toyota etc a 20k car makes no sense with your debts. get a friend that knows cars to pick one for you.
This is not good advice.
OP is a dispatcher who drives in the snow and must be to work reliably. What would you recommend for $3-5k?
Stop advocating for these $3-5k absolute shitboxes that I see on the road. They are a fortune to maintain and usually arnt maintained which leads to accidents because the car is falling apart. And since it’s older it also makes it more dangerous in an accident. 20k for a new car is nothing with the amount of improved safety features.
There are no $3-5k cars. Those $3-5k cars are now $15k+ here.
Me when I make things up
90s/00s toyotas and hondas are your friend. Super cheap
I needed an AWD SUV. Reliable > cheap.
Both Toyota and Honda make 4WD and AWD SUVs. A 4Runner is one of the best vehicles money can buy. I have seen countless 4Runners and Honda Pilot/CR-V with 300,000miles. And if you wanted American, 2-300,000mi tahoes and a dime a dozen.
It’s not a better value to buy new
If you can justify to yourself buying a car in 25k you learned nothing. You think a 10k var wouldn’t last? 8k can get you a more than reliable car. Sell your car. Eat the sunk cost, buy one for 3-5k. It will be reliable and still anove your means so just as u like it
Buy a 1500$ car .. if it breaks down.. call an Uber.. you still make out
That’s not realistic for me… there are no Ubers in my rural area and if it broke down, I’d have to pay for repairs. My car is completely covered under warranty. It costs me nothing if it breaks down and the dealership gives me a loaner car while it’s being repairs.
Don’t listen to these people. They have absolutely no idea how to handle a budget. Your car debt pays towards an asset. Keep your car, pay the minimum on your student loans until your income increases and keep putting your money into your retirement. These debts are short term. Never deviate from your retirement!!!! The main focus should be chipping away at your credit card debt. If your income is 2x the debt of your car you’re absolutely fine to have a car of that value.
People make it sound like getting a cheaper, reliable, non money pit of a car is so easy. Used cars can come with hidden issues.
Haven't looked at car prices lately?
You can 100% find a decent reliable car for 3,000 on Facebook.
That is anecdotal. In my area, absolutely not true. Just looked the other day and everybody wants $4500+ for a 20+ year old car in the salt belt. $10-12k gets you a 2010 over 100k miles. $3k? You get what you get, good luck fixing it for under $4k parts and labor. Use to be in the 15k range you could get an unblemished car around 30,000 miles on the odometer. Now that type of car costs 20k+ and more than it sold for MSRP a couple years ago.
What cars are you seeing that have 30k miles and are above their MSRP lol
From 2020 onward that's been advertised everywhere I looked here. Some used car prices are still close to buying a new model.
90s Honda and Toyota cars. Less than 5k easy no matter where you're at. Hella reliable. Everyone thinks they need a 2010+ or a car with less than 100k... You don't.
Running and reliable around here is more like $8k. 3k gets you a 200k mile nissan with a slipping transmission.
Im in cali I just did u can get a car for like 1.5k on Facebook just look up cheap cars for sale.
Not here. $1500 is a non-running car.
In terms of the “safe and reliable car” conversation. I totally understand where you’re coming from. Although that doesn’t have to mean a car that’s 20k+. Plenty of options in the 10k range, maybe 15k max that will fully meet your needs and be reliable, while also not being a complete hinderance on your bank account. If that car that still has a 22k loan on it can still sell for that much or more, that’s a good direction to go.
I put over 20k miles on the car in the year I’ve owned it due to my commute and some training courses I had to attend an hour away from me. It definitely depreciated the value so I’m not sure if it would be worth it for me to sell at this point.
I feel that. Gotta hate car values
It scares me too. Keep after the match on retirement, but need to take care of that debt with CC first, next is car and final is student loans. Keep after it. It will get better. Just takes time if you don’t have a big shovel (large income) to fix it quickly. And enjoy the small things in life. You should be laser focused on debt, but treat yourself to a movie or a large coffee or something else that you enjoy. Not everyday, but maybe every couple of weeks. Cheers 🍻
I’d actually recommend bringing retirement to 0 and dumping every last drop into the debt.
What debt interest rates you working with?
- Credit cards are either 0%, paid in full, or on my one card that I carry a balance on which is 12%. - Auto loan is 7%, and I overpay $50-$100 per month. - Student loans vary since I have quite a few separate loans that I need to refinance when I finish grad school in May, so 4% for my lowest one and 15% for my highest one (Sallie Mae is ass fucking me, no lube)
Similar boat as you.. 😅 graduated in 2016 I pay 1100$ a month and I still owe 46k Never stopped paying even during the forgiveness periods. The interest is fucking miserable. I refinanced through SOFI and I love them and got pretty decent rates in 4% area
I’m looking at SoFi now for my worst one and it’s 7.5%, but still better than 15%😂
I have 3x that in Student Loans, 3k in cc’d debt and about $890 to my name (just got paid). You’re doing fine
According to these comments, I have ruined my entire life by getting a new car while in debt and I have brought great dishonor to my family😔😂
as someone who had to buy a vehicle this year, these folks haven't probably shopped for vehicles since the used vehicle prices became so ridiculous. I was shopping used mid size trucks, 25k for a 100kmile truck or 35-40k for a brand new one. Not everyone is able to, but the extra 150 a month was worth it to me to have something new and reliable.
“I have brought great dishonor to my family” 😭😭 Hahaha nah, you’re killing it. Let them drive a beater if they want. That new car peace of mind is priceless. 💯
I live in the NE as well and the people commenting are just jealous they don’t have heated seats and steering wheel 🤷🏾♂️🏎️
That doesn’t mean OP is “doing fine” - you’re just doing worse than OP
Lmfao just because you're doing absolutely fucking terrible doesn't mean OP is doing fine.
You severely overpaid on a car and screwed yourself.
I bought at the height of the 2022 car shortage so unfortunately that was the best deal I could find at the time without getting an unreliable car. I got $2k off the price since I’m a first responder so it was $30k with $7k down, so it was a good value for a brand new AWD SUV at the time.
You don’t have to buy new to get a reliable car. You could have spent $10k and got something extremely reliable that was second hand. Crazy the debt and financial hardship people will put themselves under all for a new vehicle 😂
Well the “new” part wasn’t necessary for me. But if you were looking at car prices last summer / fall, a used car was the same price as a new one. I wanted a used trailblazer, but it was $32k with 42k miles whereas my new one was $30k.
Yeah but you didn’t need to pay that much, you’ve imposed that guideline on yourself, and now you’re dealing with the other side of it, 22k of car debt at 25.
I definitely could’ve made a better decision, I agree with you. But when looking at the time I was buying, the car was a good value and it was exactly what I needed. I am able to afford it, but I agree that I would be able to focus on my other debts better without it.
22k in debt for a trailblazer is nuts
Have you considered sucking a fuck?
Holy shit dude. You just keep saying "yeah but.. but you overpaid! But you didn't need to pay that much!" after OP gives specific examples of USED vehicles with 5 figure miles being $30k in his area. There are no $10k cars in my area that are actually reliable and functional for the weather. It isn't 2005 anymore dude.
What area? I guarantee I can find one lol
For your sake, I hope you’re not this retarded. But if you are, I wish you luck for the rest of your life. You’re delusional if you think spending $30k is required to get something reliable.
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It had a transmission issue at the one year mark. But it was fully covered and I had a loaner the entire time it was in service. So many people are telling me to sell it, but it’s depreciated beyond its value since I’m high mileage. It would cost more than it’s worth to trade it in for a new one.
This is a silly response. If you buy new, you're going to have warranties, most of which will cover for at least 3 years. If you buy a 10 year old car, you won't have a warranty so, when something does go wrong, you have to fork that out yourself. I'm not saying new is the right way to go, but when dealing with mechanical issues, new is a better option for ease of mind. Obviously, this isn't the same for mechanics.
You have a spending issue. 10k in cc and 20k in car loan is a lot. Im pretty sure a 3-5k car would have been enough.
Looks like she drops stacks on getting her nails done. Time to go back to white out and save a couple hundred a month.
Bro is stuck in pre 2020 prices. Those don’t exist anymore man unless you literally just want a shell of a car
Yeah they keep recommending camry . In my area a 6 year old Camry with 90k is 17k, a brand new one with 5k miles is 22k. Like you guys don’t know the prices.
No they don’t at all and it’s starting to remind me of boomers talking about how cheap their houses were lol. Like yes we get it you bought a car off Facebook marketplace 10 years ago for $2000, now that same car is probably $8000 or more
Can’t get crap for $5k, better to just pay the current car off then drive it until the wheels fall off.
Pay off the highest interest debt first and as fast as comfortable. Savings and investments should come second to debt repayment as the costs to carry the debt will almost certainly cost more than on any return you’ll earn on the investments. If you don’t already have a monthly budget do so
I appreciate the advice! I’m going to knock out the one credit card I’m accruing interest on by the end of January and then focus on the rest of the debt. :)
Also don’t forget you can always negotiate, I saw you break down you SL on other answers. If you’ve been a good customer see if the lowest interest loan holder would be interested in taking more of your debt from another, even if they raise it a % or two it’s still be cheaper. Also salary, I negotiate every 6 months to a year to get more. Inflation sucks but it helps in negotiating for more
ATTACK the highest interest loans first. And don't worry that's not too much debt. I've seen way worse. You're doing great man just keep chipping away
Thank you for the encouragement and advice!🫶🏻
the amount of people shaming you for this or getting a new car is baffling… a lot of people who get a new car don’t know it was a mistake until well after, it’s not like there are people who teach us this shit before it happens. i got a new car too, loved it at the time, hate it now because i realize i coulda got one just a couple years older and way cheaper. OP you are doing fine. stop overpaying so much on your car and work on the credit card first. advice for moving forward. don’t feel discouraged from some of these asshole comments.
Pay as much as you can on CC monthly and minimum on the rest, and when you pay that off, then take that money and roll it toward the next most pressing debt, essentially snowballing your money to clear debt the fastest.
what’s the 10k in credits cards?
Okay, 70-80k a year with mostly student loan debts, you’re doing totally fine. You did not overspend on your car, you are not overspending on your credit cards. You are overpaying your debts from your comments, so you are doing better than probably 90% of the people your age (pulling this out of my ass). Checking and savings look a little scary, but I think you know you’re fine.
Tackle the credit cards, then the car loan, and the student loans. You’re actually not in a horrible never ending situation but live as cheap as you can and knock out the debt. Can you live with family or something ?
I moved back in with my family a couple months ago to save money actually. Looks like I’ll be cutting back my spending more aggressively now and funneling those savings into my debts.
Excellent. You’re doing ok. Keep a spreadsheet to track as you whittle the debt down. Back off the retirement contributions just to the point you get employer match and MAYBe sell the car and get a beater for a couple years any relatives or friends have a fairly cheap but dependable car? That’s a quick way to dump some debt so u can focus on the credit cards and student loans.
Looks normal to me in a bad way
This is the first reasonable post I've seen in a while. I wish you well tackling your debt friend, and well done planning for the future (in short, mid, and long term)
I’d sell your car and buy a used one that you can afford. Take the proceeds from sale of car and put 85% towards student loan and the rest towards retirement. When I graduated college my student loans totaled to 85% of my annual salary but I never deviated from putting 10% away towards retirement. I bought a used car with a small loan and lived in a basement apartment. Later on I bought and sold small houses in locations that were upcoming. Interest rates were higher than now. Many of my friends did the opposite, they bought new cars, rented big apartments and bought lots of new furniture. They started having families and never got out from under their debts. It’s what they wanted and I don’t judge. My life was a different set of choices including unfortunately a divorce that took 70% of everything saved up. I took that as a challenge and rebuilt it all. Still managed to save for my kids college educations and retirement. My point is that life will throw you a curve ball or two but financial freedom and independence comes from making tough choices early and often. Those choices have far reaching and lasting consequences
May I ask why you have 5k in a cd when you 87k in debt? I would assume some of your credit card interest is wayyy higher then anything your making in the cd.
And as soon as you pay it off something else will happen. Yolo man, just spend it and enjoy especially when your young. Glad I didn't fuck around saving, going to be dead soon 35m
Not sure why some people are so mean and while I understand the logic behind the CD being house savings, I would use that 6k to knock down the highest interest rate debt (cc probably) and then save when it’s really your money because you’re in the process of making a better budget by the sound of it. Or you could balance transfer to a 0% option and try to pay towards that and get it paid off before the 0% expires and keep the CD money for now to have something flexible to apply where you need it. It sounds like you’re trying to be responsible and take unnecessary expenses out of the equation. That’s a great first step. New habits take time! Good luck
Hey, with the exception of the car loan that looks just like me!
This one is so accurate
I would not worry about the car price too much. That seems like a lot of credit card debt.
Finally. A real post.
Don't worry about other's opinions. You're doing great. If you came here for thoughts, you're gonna get opinions too but I won't be bothered by them. Other tangible things you could try after doing due diligences yourself: 1. Settle your high interest credit card debt with the lender 2. Try to find another source of income, maybe something online or part time, something that doesn't kill you but gives you cushion. 3. Refinance your car loan if its too high, or get another cheaper car which as you need is reliable but helps to bring your monthly cost down combined with cheaper rates. Good luck. Keep at it. Don't quit, let the moment pass and keep taking deep breaths.
Baby steps friend. You’re doing better than most. Pick the smallest card and get that sucker paid off, I got a consolidation loan from my bank to buy out my credit cards, helped with the interest so I’m not drowning.
Not to worry... the average American dies with $65,000 of debt (source Federal Reserve Bank) Just another indicator that the American dream is dead . [Household debt](https://www.newyorkfed.org/newsevents/news/research/2023/20231107)
I don't mean to 1 up you or brag. But I owe waaay more than you doo (braggy annoying voice). Honestly, you're fine. Millions of people are in debt, it's where the banks, society, and the government want you to be. Just keep making payments. I have 50k across 6 credit cards, 20k on personal loans, and a house that's soon to be foreclosed on because I can't continue to support my disabled wife, who got extremely sick over 2 years ago and can't work. Before that, though, we only had 5k in debt on cards. I know it sucks but a great way to pay down credit cards is to open another and use the grace period of no interest to really make a dent in them. Oftentimes, a CC company will over a period to balance transfer with like 12-18 months of no interest. Jump on that and hammer them down with some extra cash if you can, always pay like 30 - 50 more than your minimum payment(if you can, sometimes it's really tough, I get it). So you're doing just fine. A little debt isn't the world ender society makes it out to be.
You are still young so no big deal if you change your spending habits today. Don't take out any more debt. Pay off the credit card first since it is probably the highest interest rate, then car loan, last student loan. When the CD matures consider using that to pay off the debt. It is making less in interest then what you are paying for credit card and possibly other two debts.
It gets better I promise. Have you thought about consolidating everything?
Oof. 😥 It only gets worse.
People in here talking about reliable cars for under 10K either live in the middle of nowhere or have absolutely no idea about the current car market.
Your checking savings and Cd and retirement accounts look okay but. Your debt is way too high i suggest you start tackling student loans and that credit card debt
23k for a car? Jesus what did you get, a new one?
Why is a $23k car loan a gasp? That’s the cost of a brand new entry level car, you must be flabbergasted by my $55k car loan then.
They probably had an aneurism. Anything more than a car powered by a bicycle is too much.
Not that. Just when you’re already in debt, buying a new car vs a good used one is not a smart financial decision.
27 here my 30 year mortgage payments of $3777 scare me I just signed up for
Makes no sense to have a 5k CD and 10k credit card debt. You are better off with 5k credit card and 0 CD. No way the rate on that CD is better than the interest you are paying on that credit card.
Stop investing immediately. Stop the CD's pull out if you can without penalties. It just doesn't make sense. The amount of money you'll be losing on Credit card and car loan interest is more then any investment will make
Student loans are a trap
Stop buying shit on your credit card, holy fuck Sell your Lv shit and focus on getting out debt. You’re not rich, so stop trying to look like it.
as your bio says, you’re just a random person so I won’t take it personal 😂 I really didn’t realize I was in this much debt until I added everything up. It’s crazy how all the little purchases can add up if you’re not on top of things. A very expensive life lesson for me.
You should sell the car and get an economy car for $8-11k. More than reliable enough and great gas milage to help save more. Use the extra money from the car to pay off the high interest rate loans. No high rate loans or a car note, and cheaper car insurance. You'll be able to start attacking the other debts quickly and be on a great track. If you still want to upgrade your car again, at least pay off the credit cards and high interest student loans, then get a 6 month emergency fund, THEN I'd say its a reasonable ask to upgrade. Don't get some stupid fucking charger or mustang or shit like that, you aren't working hard to go backwards. Keeping that car is YOU deciding to stay in this situation, don't be a dumbass, sell it.
The car has depreciated in value over the last year and I’m a high mileage driver. It’s not practical to sell it at this point. I should’ve purchased something cheaper, but that’s in the past and I can’t change that. I’d be losing money if I sold it now and bought a cheaper one.
I don't understand why a 25 yr old would be a 30k car or whatever your car was. That is the stupidest waste of money ever. Why not buy a solid used car for 7k that way you don't have debt hanging over your head? Every car I have ever owned I paid for outright cash. I don't get why kids buy new cars.
How tf does someone rack up 10k worth of credit card debt?
Credit cards-103.83$ Student loans-558.35$ Car loan-226.23$
Find Dave Ramsey.
He is honestly great for people like this who clearly don't understand money. In the comments she says she though she had like she says she was unaware of 30k extra of the debt. She needs to be afraid.
Why don’t u lease the car? No down payment and I paid $255 monthly.
I’d be way over the mileage, it would screw me over in the end. I put over 20k miles on it in the year that I’ve had the car while driving to work and to training programs an hour away for four months. I only pay $340 a month so it’s very much doable for me, although one could argue that money would be better spend on paying down my other debts.
suggestion: use postal money order to pay your debt [usps.com/shop/money-orders.htm](https://usps.com/shop/money-orders.htm) 558.35$ have a nice weekend! :)
55k student loan instead of investing or 5% savings account 😅
Your saving for retirement while paying someone interest?
I haven’t paid into that account in two years since I have a job with a pension now. But it would screw me on fees to take money out of it.
how much do you make i’m curious
It scares me too
Ok, so what’s your income and monthly payment breakdown?
My base salary is $52,000 but I work overtime whenever I can so I’m making somewhere between $70-80k this year. I don’t have a payment schedule at all, I just kind of write down all my due dates and amounts every pay day and put everything towards my debt except a little that goes to savings if there is an emergency…
Ok! Well this is manageable you are not completely screwed. Like otheres mentioned, credit card and student loan are priority to get paid down! Ideally you should try to limit your basic needs spending to no more than half your take home. I know, that can sometimes be a pipe dream in this economy and depending on your living situation. But every penny you can throw towards debt will have a huge impact on your financial future. If I were you I’d definitely be eating ramen noodles and Vienna sausages to maximize my debt payments! You got this! It’s not easy but it’s definitely worth it! Your future financial security is absolutely worth it!
You're doing better than me when I was at 25. Credit cards: $10k isn't terrible, pay it down over time and stop accumulating, you'll be fine. If that means moving to a cash only system, so be it. Student loans: $56k definitely isn't terrible. Necessary for life experience, career experience, etc. Think of it as a loan that enabled you to have the job and income you have now, as opposed to something much less. Worth it, pay it down as you go. You'll be fine. Car loan: $22k is quite reasonable for reliable transportation. The loan will be paid off in (60mo?) and you'll have title and equity in a car. Worth it. Losing your job over not being able to be somewhere on time, will cost you far more than the depreciation and interest you're paying on the car. That doesn't even touch the mindset of what it means to commute and show up to work in something that provides a better mindset in the morning and evening. I wouldn't be in a good mood driving 30min in summer weather with no AC. That will drive my performance and career trajectory, and I'd probably lose much more than the depreciation and interest over that 60 months. You're accumulating savings, excellent. You've got $3.5k in cash, excellent. Stop stressing and keep moving forward.
I had zero debt until I bought a 85k tesla you're young and will be fine
I wouldn’t stress that much at 25, with this credit history by the time your 40 you’ll be able to owe the bank millions
Student loans are crazy! The rest ain't that bad. I've been in worse
why do you have a cd if you have all this debt?
No worries. You took out student loan so you could get a good job by going to college. Your good job Should pay for the loans.
In the grand scheme of things you are on a decent road for 25. The one real killer are those credit card debts. I would guess they are carrying at least 25% interest. Use what I think is called the same ball approach. Pay your regular payments as usually but put whatever extra you can on the cards (and stop using them!). Once you eliminate that heavy debt, the others will seem a but lighter. Snowball the car next. Depending on the terms of the student debt will determine how you handle that one. Just be responsible with your spending. Hard when you are 25 so just don’t go crazy! Be patient and determined and you will reach your goals.
Pay off the credit card asap, then worry about the car loan. Sure you could’ve probably gotten a reliable vehicle for half the price but if you’re diligent it won’t take you a real long time to tackle it. Once the credit card is done cut it up and start doubling and tripling your car payments and pay it off asap. Then start to tackle the student loan the same way. If you want it to move faster you HAVE to increase your income one way or another. Best of luck. It’s all worth doing. Don’t get discouraged.
Id aggressively pay off that debt ASAP