I'm a credit "rookie" and I am looking for some other perspectives on my situation. For some background- I'm 25 and my credit history is approximately 6 years old. My TU score is 689, EQ is 667. My scores a bit lower than usual, I think because I bought a house in May 2011. My debts- $1030/mo mortgage payment, and $96/mo car payment. I owe about $1500 on credit cards and am paying about $200/mo to those. My gross income is approx. $50,000/yr. or $4150/mo. I have been at my job for 2 years.
I am considering trading in my current vehicle for a newer 2011 model. I will probably get between $6-7000 for my trade and I owe $3000 on this vehicle. The new car I'm looking at costs $24,000.
I am thinking of financing it for 60 mos, my payment should be about $400 if I assume a 5.5% interest rate to be safe ( my current rate is 4.0% with my credit union).
Is it a wise decision for me to take on this additional debt, or am I pushing my limits? It seems quite manageable to me but I'm unsure what is a generally acceptable to others is a similar situation. 
To add- I don't have any children (only 2 dogs), I am getting married this fall and my fiance makes around $40K, he has no debt other than his auto payments ($400/mo)
From what you've described, sounds like you should be fine. As a side note, I would suggest structuring your budget around your monthly take-home pay versus your gross pay. So just as a guesstimation, if the gross is $50k annually, your take-home pay might be just $35k after taxes and other payroll deductions. That translates to a monthly take-home income of about $2917.
Be sure to take into account all of your expenses. You've covered the mortgage payment of $1030/mo, a proposed new auto payment of $400/mo, and credit card payments of about $200/mo. If there truly is nothing else, then that's great. That comes to about $1630, only 55% of the $2917 you take home.Leaves you plenty for savings, retirements, and other discretionary spending.
However, you want to be sure you've taken into account all of your expenses though. For instance, what about gas and insurance? If insurance costs you $1200/year, you might want to stock away $100/mo as an "expense" so that when it comes time to renew, that $1200 bill isn't such a big surprise because you've already been saving for it all year long. What about groceries? Property taxes? etc. etc.
Congratulations on the engagement. I think you should be fine since you mention your fiance makes about $40k with no other debt other than the car payment. Might be a good idea to run through the finances one more time with a fine tooth comb though just to be sure!
Starting Score: EQ 773, TU 766
This is just my opinion: don't do it. You seem to be doing so well...don't push yourself too close to the edge of ever increasing debt.
You are getting married this fall and there are all kinds of changes coming. Adding the additional debt before you get married is just one more stressor to a new marriage.
You are nearly paid off with your current vehicle, why don't you try to pay that off and go without a car payment for the first year or two of your marriage? Take that payment you would have been making on a new 2011 vehicle and put it away in savings. Then if you still want a newer car you will have plenty to put down. You may even decide that you like not having a car payment!
One of the things you can do immediately, is pay down the cc debt to zero except for one card to report less than 9% (as you see everyone on here post). Then take the money you were going to put into those card payments and add that to your savings. There is no such thing as too much savings!
When it comes right down to it, if you manage your debt well (like you have been doing) and don't keep getting into increasing larger debt purchasing habits, then that is the important thing. Going into a new marriage with lots of savings is a whole different feeling than going in with debt.
@StartingOver10 wrote:This is just my opinion: don't do it. You seem to be doing so well...don't push yourself too close to the edge of ever increasing debt.
You are getting married this fall and there are all kinds of changes coming. Adding the additional debt before you get married is just one more stressor to a new marriage.
You are nearly paid off with your current vehicle, why don't you try to pay that off and go without a car payment for the first year or two of your marriage? Take that payment you would have been making on a new 2011 vehicle and put it away in savings. Then if you still want a newer car you will have plenty to put down. You may even decide that you like not having a car payment!
One of the things you can do immediately, is pay down the cc debt to zero except for one card to report less than 9% (as you see everyone on here post). Then take the money you were going to put into those card payments and add that to your savings. There is no such thing as too much savings!
When it comes right down to it, if you manage your debt well (like you have been doing) and don't keep getting into increasing larger debt purchasing habits, then that is the important thing. Going into a new marriage with lots of savings is a whole different feeling than going in with debt.
Guess we can have some differing opinions here What do you think about the OP's budget though? It seems like she should be fine. Monthly obligatory expenses, bills, etc. are only ~55% of their take-home pay, and that's just using her income.
You are right from a "calculated budget" POV. But, she just bought a new house - there are items for "decorating" and improving and otherwise making the house her home. She has an upcoming marriage and honeymoon that is a budget buster even if Mom and Dad pay for it!
There are items that happen during the month that sometimes don't end up on the budget. That is where a healthy savings comes in handy, If she has 8 months to a year of savings, then maybe you are right. She can buy with confidence.
In my opinion, when she is making a huge life change (marriage) it is better to go in with as large a cushion of cash savings as possible. She can always get a newer vehicle after she and her fiancee tie the knot and have established their new home. In this case, adding a substantial payment just before marriage seems to be risky, JMO.
