I make on average $1,600 a month. I have credit card debt, rent, and car payment. Not to mention maint., food, GAS, clothing, emergency. I can barely save. What do I do. How can I refiance my car if I have bad credit, but if I get rid of my car then I can save and get out of credit card debt. Or what do I do? Where do I go? I already participate in a debt consolidation program for my credit cards. It helps but I can not save. I need help, please consder this question as if you were in the situation.... THANKS!
2007-05-25 12:04:19 · 8 answers · asked by Lance D 1 in Business & Finance ➔ Credit
I am 21, I have three years left of car payments, I live alone.
2007-05-25 12:19:47 · update #1
On your salary, a $480 car payment is majorly frivolous! Do you drive a new or nearly-new car? The only thing you can do here is to sell your car and buy something that doesn't cost as much.
I make over $5000 a month and have a $280 car payment. It's not a bad car either, it's a '99 Honda Prelude. You should be able to find a nice car for much cheaper than what you're paying. Good luck!
2007-05-25 12:11:40 · answer #1 · answered by octolush 3 · 0⤊ 0⤋
I am in your situation. I make 3,000 a month (1,500 each pay check) 1,600???? a month with rent, car, gas, food, etc. I commend you!!!!! I have credit card debt that is managed thru debt counseling program as well. Try refinancing your car thru HSBC Auto FInance or Capital One they have decent rates for people with bad credit (I just refinanced with HSBC and it was a lower rate than my previous lender 16% to 11%). If you really want to get rid of your car you'll save a huge chunk, but if you're like most Americans they'll find something else to spend the extra money on. In my opinion you can't really save while in debt, but if you need to start ASAP try putting at least $25 aside from each paycheck in the form of a money order or cashiers check that way if you feel the urge to spend the money you have you'll have to wait in line at a bank and cash it (I hate waiting in line so this works for me). I know some debt consolidation don't allow you to lower your monthly pay't but try or when one card is paid off keep that money in your pocket instead of increasing your pay't to another creditor. Just some suggestions. Good Luck
2007-05-25 12:33:25 · answer #2 · answered by K.C. 5 · 0⤊ 0⤋
You could try applying for a credit card that is offering 0% interest on balance transfers, then transfer as much the new card allows to that one and arrange for the payments by Direct Debit. If you have extra cash then use it to pay off more than the minimum on the original card that is charging interest. This way you will clear your debt quicker. Most important - leave your cards at home - don't use them anymore.
2016-05-17 22:56:22 · answer #3 · answered by stella 3 · 0⤊ 0⤋
Carol is right on target.....this is a simple question to answer.
Get rid of the car and get an inexpensive used car. With the money you save, apply to your debts. You can't really expect to save when you have too much outstanding credit.
Obviously you may need to look for a second job. Yeah, I know, much easier said then done. But it's basic money management.....when you can't cut from one end (expenses/bills) then add to the other (income).
2007-05-25 12:56:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I have a difficult time answering/suggesting/etc because I just do not know enough....How old are you? married? how far from grocery store, etc. Do you need a car or is public transportation sufficient? You have made a first step and that is good. the first step you made was to recognize the problem. Secondly is to ANALYZE what went wrong... You would have to do that.. I could help but I just do not know enough. Do you have expensive tastes in clothes? Ares you trying to impress someone(date or otherwise?) For sure.. you have to really analyze your spending habits and look where you can cut back.. foolish spending, etc etc etc
2007-05-25 12:12:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋
With that car payment amount you better have a NICE ride, so go out and score some chicks and live it up ( use protection) . or its just going to waste.. really tho sell the car and buy a bucket that you can pay in full and just suck it up for a while.. cause you screwed up
2007-05-28 16:53:06 · answer #6 · answered by NONAME 1 · 0⤊ 0⤋
5k debt is NOT that bad these days. please do your best to not use credit and you WILL get it payed off. check into Dave Ramsey on the radio or on the web. he always has great info on this exact subject. best to you!
2007-05-25 12:16:35 · answer #7 · answered by Crab Hand 3 · 0⤊ 0⤋
Your screwed, go to the party and have a real good time your paying for it.
2007-05-25 12:10:38 · answer #8 · answered by Steel Rain 7 · 0⤊ 2⤋