Will they cut me off

[Anonymous]

Update!
I just checked my credit score(only with equifax) and im still 712 points so i guess im not in a bad situation

[Anonymous]

Don't get too caried away!

[Anonymous]

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@Anonymous wrote:
As i said....right now a canadian dollar worth 76 cents in the usa....so the amount might seems big to you guys but not so much in canada.also here in alberta the part of canada i live in everything is more expensive because of the money we earn.i am working at 42 an hour without the overtime.it was a bad idea to post on a american forum im sorry folks but thanks anyways for the advice!

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I certainly know the value of the CAD, and $90k CAD for a car still seems like a lot to me. That said, some people live for their cars and if it's making you happy and you can afford it then who am I to judge? It's your money and your life!

That said I'd question whether you can afford it given that you seem to be running up credit card debt. You should never pay a dime in interest on a credit card. From the numbers you posted it looks like you're having trouble making ends meet, and given you have a reasonable income, that's likely a spending problem. 

I'd cut back on spending significantly until those credit cards are all paid in full, and then be sure not to spend more on them than you can afford to pay off each month.

And you might want to think about whether one reason you're struggling to to pay in full every month is that you are finding it a challenge to make that car payment.... 

[longtimelurker]

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@Anonymous wrote:

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@SouthJamaica wrote:

I think you're spending too much, especially borrowing $90,000 to buy a car.

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SJ wins the understatement of the century award.  I think we can say that he wins even though it is only 2017 and we have another 83 years to go.

There's a real question of whether anybody needs to spend 90k on a car, even if he or she is a billionaire.  Warren Buffett drives an old Cadillac that cost 45k.  Mark Zuckerberg drives an Acura TSX that costs 30k.  Etc.

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People spend money on different things, so even on cars: to some, buying a new car for $15K sounds stupid when you can get a clunker for far less.    Now the question as to whether for OP this is excessive to income makes more sense, but to make a blanket statement that there is an upper limit that anyone should spend, nah!  

[garagebandking]

Clearing 80k/year...after taxes...isn't a bad wage.

I'm most curious as to what kind of car it is...as I love cars and can't really fault someone for spending big on a car if they can afford it.

As others have said...I'd look at paying down the debt...your score isn't bad but would probably look better once your utilization drops. Try not to go after anymore credit and focus on aggressively paying down your debt...I have no clue how aggressive some of the Canadian banks are with adverse action...but if you can start paying it all down...you will hopefully be okay.

[Anonymous]

Hey im glad to see im not the only one who love cars!i bought a dodge rebel 2016.now the bad thing about it is that i traded in two times in 3 years and thats why the loan is so high.i know it was not a good idea but i really lowered down my interest by doing that.going from 21% to 2 %.i can afford the payments and i can afford to pay 500 along with the car loan for my credit cards.

But now i know its time for me to stop using credit and pay back my loans.

[Anonymous]

The observation about billionaires who drive cheap cars is just to give us some context.  Certainly I was suprised to see that.  Like most North Americans, I just had this gut assumption that naturally a person would own a real fancy car if he could.  The fact that these guys could buy a new Lamborghini every year and it not even be a fleabite for them -- and yet they drive a 30k car -- was arresting.

My feeling is that if a person (a) is carrying any CC debt whatsoever and (b) he's not in addition saving a substantial chunk of his paycheck a month (toward retirement, a home DP, etc.) then in most cases that is a warning sign that he should be dialing back on luxury spending, whether it is jewelry, or fancy cars, or 20k vacations, etc. 

That's just a thought, and of course not one everyone has to share.  Just throwing it out there.

[happypill]

Well, a $90k car (is that about $70k USD) may or may not be a lot, depending on your income.  If you're making about $80k a year ($60k) USD, and borrowed nearly the entire amount for the car, then yes, it's a huge expense compared with your income.  It would be like someone making $60k in the US buying a $70k car and financing pretty much the entire amount.

Your other comment was that you can affod to pay about $500 a month towards your cards on which you owe about $21k.  Again, that is a huge ratio (regardless of whatever currency you're talking about).  You didn't mention your interest rates on those cards, but with an average APR, it could take you 7-10 years to pay off what you owe at $500 per month, even if you cut off spending entirely.

Bottom line, no matter what currency you're talking about, your debts are huge compared with your income.  Don't know enough about the issuers you have to make an educated guess on how they will handle the situation, but it's definitely a risk they could take AA.

[Anonymous]

Because i only use loc its a lower rate,im talking about 7%interest for the cards.the truck loan is at 2% interest...so bi-weekly truck payments along with 500$ for cards means 1000 a month into my loc.i have 7 years left on my truck and with 1000 a month for loc means 5 years to pay off.i will be done paying my loc before the truck!!!!

[Anonymous]

Update

To pay off my debt with my loc it would be less than 3 years