03-21-2013 09:03 AM
I think that one thing to keep in mind is that credit does not solve solvency issues. It should merely be a tool for liquidity. At the end of the day, your financial health is a function of money in and money out. If that number is persistently negative, or barely positive that any unbudgeted events would put you in dire straits, the only solution that will fix your problem is by taking a look at all the money in and money out to figure out if it is sustainable.
Unfortunately, we are not like the federal government with unlimited spending power and money printing abilities. Take a look at your income - can it be increased? Can you take on a second job to help on the income side. Is there anything you can cut on the budget side? How much are you spending on food, going out, alcohol? How much do you spend on the car now? Would it potentially make more sense to live moderately under your means, save up for a year or two when you do have extra money, then buy the new vette? Perhaps with more financial flexibility, you will enjoy the car fully.
03-21-2013 09:08 AM
I know how the OP feels. I'm very passionate about cars too except I'm more of an import guy. But I used to always over extend myself to try to get the dream car I wanted. Then the BK happened (not all because of having a luxury car) and I had to sell my car. I just recently started looking at Infiniti's again (actually got approved too), but found then this website popped up and I ended up thinking more about my own credit score and shifted my priorities this way! It was some sort of awakening. I figured I would work hard on my credit worthiness, save up, and then get the dream car (within my means) at a very good rate.
This website woke me up and saved me from getting stuck with a large car payment and high interest rate.
03-21-2013 09:20 AM
For the OP,
OK, I think we get that you cannot/will not part with the Vette.
The only other suggestion, in light of all the other suggestions and one that I didn't see had been made, is to change your living situation to something more affordable. You stated early on that you don't own a house or have kids. Presumably then, you're renting something/somewhere. Try for something less expensive to save money. Take on a roommate(s) if that's an option. There's always options to one's financial situation. Since getting rid of the Vette is not an option for you, then you'll need to look elsewhere to make up the difference. The Bottom Line is you don't want to go down that BK route again.
03-21-2013 10:22 AM
03-21-2013 10:36 AM
Nope....I went for the all American muscle. Corvette ZR1. Just to clarify I never said I make 90k....I said approx 80k. To be exact I make 77.5k which if you divide into 26 paychecks per year comes out to $2,980.76. After good ol' Uncle Sam does his magic trick I clear roughly 2k per check. Subtract rent, utilities, cc bills, food etc I'm not left with much at the end of every month. I think I'm just gonna ride it out the rest of the year, use my tax return which is usual 4k to pay down my cards then apply for a consolidation loan to pay off the cc's after my bk clears. I just can't part ways with the car at this point in time.
So this means that you usually get a $4K tax refund? Well, first thing to do (providing you will apply the savings to your debt rather than unneeded expenses!) is to reduce your witholding, so you get this money every two weeks rather than providing an interest free loan to the Federal government. Unless they arise from special circumstances, or you need the financial discipline of getting a lump sum, tax refunds are things to avoid, a sign of poor financial planning.
03-21-2013 11:49 AM
You are living beyond your means and are digging yourself a big hole that you may not be able to get out of. Being able to pay your bills and be debt free is worth way more than having a $90k car. You have already had a bankruptcy, so you know what it is like to go through that and to recover from that. Why chance it again? What happens if you lose your job or get sick or you are in an accident and your insurance jumps up? You are already struggling with paying the minimum requirements each month. I think your best option is to sell the car while you have positive equity in it, pay off your credit cards and buy a cheaper car. I just don't think it is a good idea to be planning on waiting a year until you receive your next refund when you never know what can happen in that year.