Get out of debt brehs

hu3ypdadon

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Debt is only real if you looking to buy a house or a car from the dealer..other than that you should be going into debt to get rich
 

JLova

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My young bul had a similar situation, charged off cc debt taken to court. Told him to see if they'll settle and he got a pretty decent settlement plan. Bktcy should be last option. If able to either pay down debt or settle i would go for that option. Filing bktcy gonna add 7 yrs of negative credit info on your report and will affect employment, trying to obtain credit etc.

I had 35k+ of cc debt 5yrs ago. Down to almost 5k. Gonna take dedication but it's possible. Read through this thread and read how brehs did it, wealth of knowledge in here.

Good luck breh :salute:

Yikes. How do you pay down $35k credit card debt? That’s a lot of money and a lot of interest you’re competing with.
 

JLova

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A little at a time. Guess i used the snowball method until it was manageable then started paying off the high interest balances.

Did you balance transfer to a 0 or low interest card and pay it off? That’s what I’d suggest. At least you have 10-12 months to work on paying it down and not have to deal with interest. I had my wife do that when we started putting our financial situations out there. She had much less debt than that though but I hate debt and I hated how she was trying to “pay it off”. Still a work in progress but she’s much better at managing her finances….because I do it for her 😎
 

dora_da_destroyer

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not 100% the right thread but i don't want to make a dedicated thread - how TF people navigating car prices right now? i'm seeing how used car note hitting for over $580 (average), and the most people ever paying $1000/month for a new car...I never thought I'd be team frugal on a whip, but that just seems absurd for a depreciating asset :wtf: but my options are either keep riding my moms car (she can't drive, been in a wheelchair the past two years) or pay crazy money for a car, that just seems like stupid debt given i'm gearing up to buy a home
 

winb83

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not 100% the right thread but i don't want to make a dedicated thread - how TF people navigating car prices right now? i'm seeing how used car note hitting for over $580 (average), and the most people ever paying $1000/month for a new car...I never thought I'd be team frugal on a whip, but that just seems absurd for a depreciating asset :wtf: but my options are either keep riding my moms car (she can't drive, been in a wheelchair the past two years) or pay crazy money for a car, that just seems like stupid debt given i'm gearing up to buy a home
If you can avoid car debt why not do so? I know a lot of people like to say otherwise but for the majority car debt is a way to live outside their means. Past a basic cost a car should be considered a toy and if you can’t or don’t want to write the check and buy it outright without blinking or thinking twice about it then it’s not a good purchase. One of the few things I agree with Dave Ramsey on.

I bought more car than I needed. Financed $10K for 5 years and paid $10K cash upfront. It’s a mistake I don’t plan to make again. Even paying a trivial $164 a month in payments feels bad. In 2 years the car will be mine outright and I’ll likely drive it until it falls apart.
 

adexkola

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not 100% the right thread but i don't want to make a dedicated thread - how TF people navigating car prices right now? i'm seeing how used car note hitting for over $580 (average), and the most people ever paying $1000/month for a new car...I never thought I'd be team frugal on a whip, but that just seems absurd for a depreciating asset :wtf: but my options are either keep riding my moms car (she can't drive, been in a wheelchair the past two years) or pay crazy money for a car, that just seems like stupid debt given i'm gearing up to buy a home

It makes very little sense to buy a car straight cash if you can get a low interest loan.

A car is a necessity. A quality car that is comfortable and reliable is worth the cost. As long as you can reasonably afford the monthly payment+ maintenance, it's not a bad decision to get a car note.
 

winb83

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It makes very little sense to buy a car straight cash if you can get a low interest loan.

A car is a necessity. A quality car that is comfortable and reliable is worth the cost. As long as you can reasonably afford the monthly payment+ maintenance, it's not a bad decision to get a car note.
Cars are one of the biggest waste of money people engage in. If you're going to finance something you'd be better off financing something that goes up in value and makes you money than a toy that goes down in value and cost you money. People will argue this all day because they "love" cars but that's all marketing and brainwashing. I look at a car the same way I look at a toaster. I never bought into that marketing crap wrapped around cars.

The majority of people should be able to get a car that meets all their basic needs for a price they can actually afford in cash. If they do have to finance then for a price they can finance and pay off in a year or two. The actual problem is people aren't really buying just what they need they're buying what they want. You start adding wants to a car and the price range quickly balloons. Once you hit a price range that has you thinking "I'd rather not spend the cash on this or the cash doesn't make sense to spend on this" there is a good chance you're well past need.

A car is simply tool to get you and/or your family from point a to b. At the same time there's a level of entertainment value and a toy like nature to them as well. There's nothing wrong with having toys but toys that cost $10s of thousands of dollars to $100s of thousands of dollars are a bit much for most. Now if you're buying a car and it's well under 5% of your net worth and you have the cash to easily pay for it even if you finance it still it's really inconsequential. I guess the question is who is out there financing inconsequential amounts of money on purchases they can easily afford?
 

adexkola

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Cars are one of the biggest waste of money people engage in. If you're going to finance something you'd be better off financing something that goes up in value and makes you money than a toy that goes down in value and cost you money. People will argue this all day because they "love" cars but that's all marketing and brainwashing. I look at a car the same way I look at a toaster. I never bought into that marketing crap wrapped around cars.

The majority of people should be able to get a car that meets all their basic needs for a price they can actually afford in cash. If they do have to finance then for a price they can finance and pay off in a year or two. The actual problem is people aren't really buying just what they need they're buying what they want. You start adding wants to a car and the price range quickly balloons. Once you hit a price range that has you thinking "I'd rather not spend the cash on this or the cash doesn't make sense to spend on this" there is a good chance you're well past need.

A car is simply tool to get you and/or your family from point a to b. At the same time there's a level of entertainment value and a toy like nature to them as well. There's nothing wrong with having toys but toys that cost $10s of thousands of dollars to $100s of thousands of dollars are a bit much for most. Now if you're buying a car and it's well under 5% of your net worth and you have the cash to easily pay for it even if you finance it still it's really inconsequential. I guess the question is who is out there financing inconsequential amounts of money on purchases they can easily afford?

I disagree. I stated that you should buy a car if you can comfortably afford the monthly payment + maintenance. Beyond that threshold, it's about your overall financial goals, not just the car.

If you do not live in New York or a few other metropolitan areas in the US, a car is a necessity, not a luxury. It is a depreciating asset but it's presence in your life can provide you with more opportunities and leave you better off than if you didn't have the depreciation, but was limited to a crappy bus route.

Given that a car is a necessity, the last thing you need a car to be is unreliable. Cheap cars that have a lot of miles on them will more often than not fukk you over and have you paying a lot in maintenance fees. Should you option the car out? Life is too short to buy things just for function, and most people spend hours of their day inside their vehicle, so if you can option a car out within your means, and it makes you feel good, then why not?

Now should you finance a car or pay it off? It depends. I'd rather put as much money as I can in long term investments that average 10% per annum. So if I have a car loan with a 5% APR, I am better off financing the car than buying it outright, because my long term investments have me coming out ahead in the long run. And I would argue that for most people that can get a decent car loan rate, they are better off building an emergency fund, flooding their 401ks and Roths and investment accounts, and investing in themselves, rather than rushing to pay off a depreciating asset to save cents in interest and gain a "feel good factor".

Now if the option is between paying your car off and blowing the extra money on bullshyt, then yes, pay off your car. But if those are your two options only then you probably don't have the financial maturity to buy a car.
 

phcitywarrior

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Bout to pay off my car, anyone familiar with the payment process for large sums >10k?

Just pay it off, usually you can ask for the pay off amount and just pay it off in one go, just make sure there isn't an early payment fee. And even then, you'd probably save a lot on the interest.
 

phcitywarrior

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How's everyone's journey coming along? Rising IR are making that CC debt much more expensive, especially if you're heavily leveraged.
 
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