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Help With Loans what is right..

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Valued Member

Help With Loans what is right..

I'm a college student trying to get by, however I've had things happen that created the issues I'm in now but others was related to the job I work at and it's not really a real job, some self-bussiness owned people gave me the job when the other guy wasn't able to work there anymore, but I'm going to attempt to run down my dept below and I've made some bad decisions, but things happen when your young I suppose.

 

PENFED CU: $8100.00 > PER/M: $160 - $170 APR: PROMO 4.99%/12M
ARROWH CU: $ 450.00 > PER/M: $25 APR: 12.99%
PAYPAL: $ 300.00   > PER/M: $50.00 APR: 26.24%
BOFA: $ 150.00        > PER/M: $25.00 APR: (N/A - NO STATMENT Right Now)
CITI: $ 100.00          > PER/M: $25.00 APR: 25.24%
USBANK: $ 40.00    > PER/M: $30.00 APR: 18.24%

 

CC DEBT TOTAL: $9040.00

 

CARS

 

CAR1: $18,467.06 > PER/M: $370 - $380 APR:2.24%
CAR2: $8,623.80   > PER/M: $150 - $180 APR:4.24%

 

TOTAL CAR LOANS :$27,090.86


Saving: About $8000

 

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Message 1 of 8
7 REPLIES 7
Contributor

Re: Help With Loans what is right..

are you willing to part with your savings to get out of debt?
do you currently have an income?
do you really need two cars?

 

Message 2 of 8
Frequent Contributor

Re: Help With Loans what is right..

Welcome to the community, JetOneTV! Good to have you here!

 

I'm not seeing a question in your post, but the answer to most questions that you probably should be asking based on the information your provided include this: (1) Sell the $18k car for whatever you can get for it (even if you're underwater on it), and it get out from under (at least most of) that payment. (2) Stop spending anything on the credit cards (at least you'll be out from under those in a matter of months even if you just make minimum payments).

 

Good luck to you, and I hope it gets better.

Message 3 of 8
Valued Member

Re: Help With Loans what is right..

To be honest, there the CAR2 is the girlfriends/future wife's car. (I don't make the payments myself for that one.)

Most of this debt came from helping family members (my brothers.) which they never paid me back for.

Yes, I do have a income, just had to cut down hours due to college.

 

Honestly I was trying to keep the money as a emergency..  incase I get let go from this (J.O.B.) or whatever happends in the future and get a real normal job.

 

I still have ways to go before I finish my degree.. 1 - 2 classes for AS degree then a few for CSU Cert to transfer for Cyber Security I think.

 

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Message 4 of 8
Valued Member

Re: Help With Loans what is right..

Thank You for the welcome! 

 

(1) Sell the $18k car for whatever you can get for it (even if you're underwater on it), and it get out from under (at least most of) that payment.

Response: I thought of this myself honestly,  - Just like this for example, I went to the website "Carvana". - https://i.imgur.com/WeEGVS5.png

 

Doing this means I would have to pay "$5400 est" from the savings" to get rid of it, and still have the credit card debt + CC DEBT TOTAL: $9040.00 meaning the savings would go to "$2600 est." and no car to go to school and work.

 

(2) Stop spending anything on the credit cards (at least you'll be out from under those in a matter of months even if you just make minimum payments).  - Response: I'm aware of the "STOP USING THE CC's!" lol trust me I understand that, however it was only used in emergency issues like when I didn't have enough to pay both "Car Insurance" & "Car Reg" - Remember I'm speaking from California tax laws of course lol.

 

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Message 5 of 8
Moderator Emeritus

Re: Help With Loans what is right..

What income do you have right now?  Makes little sense to try to do this analysis without knowing how much you have coming in.

 

Also frankly, from what you describe you have 4 months left in the semester (unless you're in that strange Cali CC that does a quarter system to be cool cats like most of the UC I guess), pick up some more work in the summer and then switch to part time school for a year and just make the finances meet that way.

 

Other than that 8k that's on promotion none of that debt is really potentially bad other than the aggregate payment and arguably the underwater car, and if you can make the payments then just do so.  I would kill anything over 10% APR right now from your savings, and then do the math on what the remaining payments were vs. income.  

 

Dumping that car when you're 5k underwater anyway, I wouldn't rush to that decision just yet especially if you need some car for work / school which in many places in Cali is sadly a requirement.




        
Message 6 of 8
Valued Member

Re: Help With Loans what is right..

Income 1... $2000est a month (not inculding Financial Aid for school.) - 

Income 2... $1700est for the "girlfriend/future wife". (not inculding Financial Aid for school.) -

 

My college goes like this >

 

| LAST YEAR  |    CURRENT     |    UPCOMING    |

|  FALL 2018    | SPRING 2019 | SUMMER 2019 |

 

I thought of doing like the following solutions each of them include using the savings, I forgot to add that the $8000 in savings is actually a INTEREST YTD at 2.20%

 

OPTION A: Use the $8000 for either the CAR1 making the car basically around $10,000 then refinance the auto loan, however I know that the APR will go up from it's current rate of "2.24%", unless there is good rates going on in the future, which leaves us with a lower car payment and still all the CC Debt.

 

OPTION B: Use the $8000 for the CAR2 for the "girlfriend/future wife" and we would basically have paid that car off then the money from that could be used to tackle the CAR1 loan of $18,467.06 & CC DEBT TOTAL: $9040.00 together. (her pay is above as stated before in this post.)

 

OPTION C: Or use the $8000 for the CC DEBT TOTAL: $9040.00 - (would obivously still have some CC Debt, but you get the point here.) this option does not change anything with the car payments however.

 

(not sure if these is my only options but I'm in need of advice... wish I could have a financial accounting assistance lol.)

BankAmericard® Better Balance Rewards Platinum Plus Mastercard $25K | Arrowhead Visa® $15K | BankAmericard® Visa Platinum Plus: $15K | PenFed Promise Visa® Card: $10K | U.S. Bank Cash+™ Visa Signature® Card: $15K | Citi Simplicity® Card: $9.6K | Chase Freedom® Card: $5.4K | Amazon Prime Rewards Visa Signature Card: $4.2K | U.S. Bank Cash 365™ American Express® Card: $8.2K | Citi® Double Cash Card: $6.25K | PayPal® Credit Digital Credit: $4K | 1st CC since 2007 | Last Updated: 10/28/19
Message 7 of 8
Contributor

Re: Help With Loans what is right..

consider leaving the car payments as is, as it seems you rely on them for school/income. there is no quick/inexpensive way to get out of them.

 

use your savings to pay off the balances < $500 and pay PEN down to a $5000 balance. why?

 

that will leave your savings at almost half what it was, $3860 (emergency fund). paying $428 mo should pay off that 5000 in 12 mo. plus $380/car1, plus $180/car2 sets you at $988 of your $3700 combined income, DTI ~27%. obviously do not spend any more on the cards, budget wisely, and anything extra you have left at the end of the month you can dump into extra payments or rebuild your savings.

 

income$3,700
pen($428)
car1($380)
car2($180)
balance$2,712
  
savings$3,860

 

understand that there is no "right" answer, only one that you are most comfortable with.

Message 8 of 8
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