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I just caught up with the thread and I'm not going to beat you up on the things you overspent on. I was wondering what your latest thoughts are on your projected tax refund. This is something that you could be receiving in the next 45 days so it is a conversation that you and your wife need to have and to be very intentional about. If you are not careful, things will just sort of happen to it. If it were me, I would use it to facilitate the sale of your 17.95% car loan. You will get a better price selling it to a private party and whatever the shortfall is you will be able to write a check to the bank for the difference. I recall you saying you could be a one car family for the near/mid term future. I think you can easily afford this truck and even thought the rate is on the high side, the amount owed is not as crazy and I don't see a compelling need to sell it and get something cheaper. Anything left over I would beef up the emergency fund. You might have mentioned this, but how are you doing on those old Check systems debts and collection accounts? After you get rid of the car and beef up the emergency fund, I would offer settlements to clear up your bad debts and make sure you are never late with anyone ever again. Your credit will come back and time will heal the credit wounds if you never miss another payment. This is also referencing an old conversation, but I would not be opening any more cards/secured lines of credit. Your money is much better utilized in your emergency fund which will prevent late payments going forward than it is tied up in an account you can't use so you can have an extra trade line. Don't do anything because I or anyone else told you to do it, but if you have other plans for the refund, I would be curious to know what those are.
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Dec 30, 2013 17:37
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| # ¿ May 4, 2024 06:49 |
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dreesemonkey posted:That's 2/3 of the interest I pay on my mortgage with a balance that is $90k less. Ouch That hurts my eyes. OP, are you at all credit worthy where you could run down to the credit union and get a couple thousand signature loan? Is a cash advance even an option? Based on those principal payments, you are losing value faster than you are paying it down, you are more upside down every day. It would be better to owe $2000 at 29% than to owe $14,000 at 18%. Do I remember you saying that you could be a one car family for awhile?
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Jan 27, 2014 23:06
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Knyteguy posted:Yep one car is the plan for now. I'm not looking forward to it and neither is Janus but what can ya do? I doubt we're credit worthy enough to get any kind of loan right now, but I did apply for a small balance credit card from our credit union so if approved we'll take some cash out of the emergency fund for selling the car and use the card for an actual emergency if we have to. One month is a good plan and a the best way to invest this extra income you will get in February. If you have questions on the actual logistics of what the prospective buyer needs to do and what you need to do as the seller with regard to the payoff, getting the title, etc, let me know
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Jan 28, 2014 19:48
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Knyteguy posted:Thanks. There's definitely some information that I have no idea about (like how the buyer will pay and what their expected timeline is to actually plan the purchase and pay me to driving the car away with the title in hand). Mind if I PM you when we start the process? I can also post here of course. Where is your loan at? The process is going to be easier if there is a physical location where you can make payment. The process will look something like this. You will advertise your car on craigslist and find a prospective buyer. When you do you will contact your bank and ask for a payoff figure. The buyer will make a check for certified funds made payable to your bank, referencing your account number and loan number. You will then make a second check made payable to them for the remainder. You will need to keep in mind the daily per diem and it’s better to pay a bit extra to make sure the loan is entirely satisfied. Your bank will then send you the title free and clear, which you will sign over to the buyer, who will register the car. Once it is properly registered you then give them the keys and they drive away. It saves time if you can go into the bank together with your prospective checks, but if you can’t do that, ask for the overnight address and verify how the checks need to be made out and the method of payments that will allow them to release the title to you as quickly as possible. You will need to be upfront the buyer that you have a loan on it, you don’t have the title in hand, and the transaction won’t happen instantly. Some buyers will walk, but the ones who are intellectually honest realize that they are getting a better deal than if they went to the dealer, you are getting a better deal too, but the dealer does a lot of stuff behind the scenes to make the process easier. The cost of a private party sale is you need to invest the time to navigate through the title and registration process yourself. Let me know if any part of this doesn’t make sense to you.
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Jan 30, 2014 16:49
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Knyteguy posted:Thanks all for the knife advice. We'll probably pick up the Victorinox and then a sharpener later and go from there. They can't legally drive it until it's registered in their name. As far as the price goes, you don't need to be desperate trying to dump it ASAP, but you do want to price it competively. If it sits there for months, then you are pricing it too high, but it's up to you how long you want to wait. A few years back Cornholio sold his mini and priced it on the high side and had hardly any bites, but then after several months someone bit and paid exactly what he was looking for, so I'm not sure if there is a lesson to draw from that or not.
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Jan 30, 2014 17:39
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| # ¿ May 4, 2024 06:49 |
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spwrozek posted:$400 is good, if you had a $4000 return you could have so much more debt paid off and paid less interest during the year. You want your money, no reason to let the government hold on to it interest free. My goal at the end of the year is sub $100 return/owe in taxes. Yeah, you're right and all, but when the best money market doesn't pay more than 1%, the government paying 0% and it being truly forced savings that you can not touch under any circumstances, there is a case to be made for having a bit more than required taken out too. Knyteguy posted:Alright I'll keep that in mind. I'm worried that if it's priced too high the interest will negate any savings made. The blue book on the car in excellent condition is $11,500 and like $11,300 for good I think. Maybe if I price it at $11,500 OBO and take the offer at >= $11,000? Your interest is about $7.00 a day. Your car is also depreciating in the $150/range, which is a very real cost but one that you don't feel as much. But you have been keeping up with it, you can be a motivated seller, but you are not a desperate seller. You are still a few weeks away from listing it. Take this time to look at what dealers are selling your car for or what other people on craigslist and autotrader are selling it for. Maybe drive out to some of them and see what condition they are in. Once you list it, you don't need to be the cheapest one, but you can price it fair, and if someone comes back and offers $500 less, see if they will take $250 less.
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Jan 30, 2014 20:17
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