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Post Divorce Money Advice

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Anonymous
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Post Divorce Money Advice

Divorce is about to wrap up. Currently living in apartment will be buying house. 2 kids shared custody no child support but help pay for part time nanny.

 

What to do with proceeds from sale of house?

 

Current debt is leased truck that I am positive on and can easily sell. It is $500 a month payment 2 credit cards total 15k average $400 month

 

I have 20k in proceeds. Make about 70k a year on average.

 

Will be buying house at end of year. Nothing crazy something simple and well within budget. With that it will reduce the amount needed to help pay nanny from average of 800 month down to 400 or so since I can have kids on my days off and they wont have to be watched anymore while their mom is at work.

 

The credit card debt was racked up while spouse was in reduced work hours. I do not ever use cards anymore.

 

House down payment is set aside already not to be touched.

 

My thoughts were to sell the truck, buy one in cash. I can locate a nice used truck for 8–10k easily in the metro area I live. Pay off the big credit card at 10k and let the other one ride as I pay it off over next 6 months ensuring I have some extra there in the event I need it.

 

Second thought is to sell truck, buy one in cash, put 5k towards big credit card and still have a decent amount left in bank to have for savings while also having manageable credit card payments.

 

Third thought was to pay off both credit cards and act as if I still had them and use what would have been payment and use it as nanny payment. Keep truck.

 

Open to ideas and thoughts.

Go!

Message 1 of 6
5 REPLIES 5
tcbofade
Super Contributor

Re: Post Divorce Money Advice

How do you sell a leased truck?

 

If that really is an option for you, I'd do that.

 

Buy a cash truck as you mentioned, pay off the biggest card and make payments on the other.

 

Good luck!

02/01/24 Fico 8: EX 757, EQ 803, TU 783.
Fico 9: EX 760 12/16/23, EQ 790 02/04/24, TU No idea.

Zero percent financing is where the devil lives...
Message 2 of 6
Anonymous
Not applicable

Re: Post Divorce Money Advice

Im positive on equity and my lease termination fee is only $500. Its leased through a 3rd party. Also if I buy a cash truck through a dealership I can trade the leased truck for even more little penatly. Ive leased 6 vehicles through this company so Im a preferred customer and with that comes certain finance perks.

Message 3 of 6
Anonymous
Not applicable

Re: Post Divorce Money Advice


@Anonymous wrote:

Im positive on equity and my lease termination fee is only $500. Its leased through a 3rd party. Also if I buy a cash truck through a dealership I can trade the leased truck for even more little penatly. Ive leased 6 vehicles through this company so Im a preferred customer and with that comes certain finance perks.


Maybe I'm wrong, but I'd think the roundabout method of terming the lease early, paying off the remaining lease, having the dealership buy the truck from the bank, and then finally counting it as a trade for you would quickly gobble up whatever equity you have. Maybe I'm wrong and not understanding (I don't have a lot of experience with leases). Preferred customer or not, everyone in the chain is going to make sure they, at least, don't lose money on the transaction. 

Message 4 of 6
Anonymous
Not applicable

Re: Post Divorce Money Advice

You are correct in a sense. Most likely ill be trading the truck in somewhere unless I find a private party truck that I cant pass up, and with trading ill only owe a $500 early term fee. Ive done this before already on trading a previous lease vehicle through them in on another vehicle years ago so Im familiar with how they do things. So trading the truck is obviously the easiest way to get rid of it if need be. Im just trying to see what of my 3 ideas is logically the most sense.

Message 5 of 6
Anonymous
Not applicable

Re: Post Divorce Money Advice

after thinking on it for a few days, it seems most logical to do was tcbofade said above. Pay off one, get rid of truck buy one in cash and pay rest towards other card to get it jump started on killing it off.

Message 6 of 6
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