@Anonymous wrote:
My wife and I are looking to buy a second car for me to use mainly to commute to school. I have $3500 deffered student loan and a $3000 Discover card that's maxed.
I share an $3900 Capital One CC with my wife that's also maxed. All in all My wife and I have about $10,400 in debt. Both our Fico's are in the mid 600's and we haven't applied for anything in about 3 years.
We were thinking about using our income tax refund to pay cash for the car, but we would like a newer vehicle maybe between 07' - '11 with ot that many miles. The problem is that most of those are way over what we can afford with cash. here are the question we have:
1. Will they take into account my deffered student loan when applying fo a used auto load?
2. Even tho it's deffered until 2019?
3. Will it be too hard for us to finance $2000 or $3000 with the current debt and scores we have?
Thank You.
Looking at your description of your financial condition you are in no shape to pick up additional debt. You are maxed out on your credit cards and you have a student loan in deferment. If you just had the student loans, then it would be fine to pick up a small car payment. However, you are having trouble now without any car payment at all.
You have an income problem - not enough income to meet your current expenses.
Put together a budget right away. You need to accomplish the following:
- Reduce your expenses so you aren't adding to your debt
- A amount to pay each card + your student loan debt each month. Even if you put the student loan payment into a savings account
- Figure out a way to increase HH income - because you are clearly short at least $600/month just based on your credit card debt alone.
- Figure out an emergency savings and then long term savings
- Then when all of the above are handled/paid down, think about getting a cash car while you are in school.
