Help me spend my car payment!

[Anonymous]

Anonymous wrote:OK DCUM sages. I'm about 3 pay periods away from being in the prime position to having a paid off car. I genuinely want to plow that payment of $350 every pay period into a bill, and continue not seeing that money in my checking account, i.e. it gets automatically withdrawn like my car payment does.

Sorry I misread this - $700 a month then.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP how much is daycare for the 5yo per month?

I'm paying $1483 for the middle one, $900 for the younger. So nearly $2,400 when you factor in diapers for the little one.

In the fall, she'll be going to a center more in line with the higher payment, but we'll be dropping one payment obviously. So I'm looking forward to looking at just about $1,500.

Yes, I'm aware that the ones in school will need some sort of afterschool care.

This will be great for you, though. Aftercare usually ranges between 390-450 a month. Giving you another $450 to add on to the pile to pay this off.

I'm sorry you're getting a bit beat up, but you know...DCUM. I will tell you that I was in a spot like yours a while back (actually in 2001) and haven't been in debt since I paid it off. Once you get started and stay motivated it gets easier and easier as you see the balances go down.

I'm with the other PP, if you are brave, post all incoming/outgoing and you'll probably get a solid plan out of it.

Agreed, OP. I'm glad you're posting this.

I would write up a budget, looking at all of your fixed, flexible, and occasional expenditures. And then start trimming each budget line -- get rid of cable, gym, eating out lunches. Cut back on groceries and date nights. Call around for better insurance rates. You get the idea. Save up a minimum of $1000 in cash as an emergency fund and then take everything else left over and put it to the Amex, and then the next highest interest rate card, and then the last. While NOT using the cards again. Once you've paid them all off, start saving the cash in the emergency fund, getting it up to 3-6 months of expenses (based on your risk tolerance), and then save some for house maintenance and car replacement (so you don't need to use the cards or lines of credit again). Good luck, OP!.

[Anonymous]

How much is in the college savings account? Is it withdrawal restricted like a 529? If not you need to use that money to pay this off and then build savings

[Anonymous]

Anonymous wrote:How much is in the college savings account? Is it withdrawal restricted like a 529? If not you need to use that money to pay this off and then build savings

Bad idea unless there was some circumstance that led to the credit card debt (health issues etc.). If you're talking about someone who just spends more than they earn, they will use the 529 and be back in the same place next year.

[Anonymous]

You are paying more than $300 a month in interest. I would stop with college and retirement and pay off debt (unless you can consolidate it and get a low interest rate).

[Anonymous]

Omg. Credit card. Stop saving for college until you pay off your debt. Then make sure you are making out retirement. Then save for college.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Also, in the future don't buy a car with a $350/mo payment when you are $25k in the hole.

It's not. It was $240, but when I got an additional $100 with the tax cut, I plowed that into my car payment. In fact, the original payment was just $235, but I've ratcheted it up a tad.

There's no way the car payment had equivalent interest rates to the credit cards. If that's how you think, I agree with everyone recommending snowballing.
As for college, put your oxygen mask on first, then get to the kids.

I'm not, you're fixating on something that's really not relevant. The question at hand is how you would you spend an additional $700/month.

It is relevant in that it demonstrates your mindset and lack of financial knowledge. You got a $100 extra per month and wanted to put it towards debt (which is good) but plowed it towards what I am confident is you lowest cost debt (which is . . . not).

[Anonymous]

Also don't forget when your kid starts school you'll have summer camp to deal with so plan ahead for at least $300/week for 10 weeks.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Also, in the future don't buy a car with a $350/mo payment when you are $25k in the hole.

It's not. It was $240, but when I got an additional $100 with the tax cut, I plowed that into my car payment. In fact, the original payment was just $235, but I've ratcheted it up a tad.

There's no way the car payment had equivalent interest rates to the credit cards. If that's how you think, I agree with everyone recommending snowballing.
As for college, put your oxygen mask on first, then get to the kids.

I'm not, you're fixating on something that's really not relevant. The question at hand is how you would you spend an additional $700/month.

It is relevant in that it demonstrates your mindset and lack of financial knowledge. You got a $100 extra per month and wanted to put it towards debt (which is good) but plowed it towards what I am confident is you lowest cost debt (which is . . . not).

Except if I'm snowballing, I actually am paying off the smallest debt. You are correct, it is my smallest rate, but with about $1,500, I'm getting this monkey off my back asap.

[Anonymous]

Anonymous wrote:Omg. Credit card. Stop saving for college until you pay off your debt. Then make sure you are making out retirement. Then save for college.

I paused college savings, as stated in OP.

[Anonymous]

That CC debt is eye popping! Listen to everyone else and pay down the cards..wowza

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Also, in the future don't buy a car with a $350/mo payment when you are $25k in the hole.

It's not. It was $240, but when I got an additional $100 with the tax cut, I plowed that into my car payment. In fact, the original payment was just $235, but I've ratcheted it up a tad.

There's no way the car payment had equivalent interest rates to the credit cards. If that's how you think, I agree with everyone recommending snowballing.
As for college, put your oxygen mask on first, then get to the kids.

I'm not, you're fixating on something that's really not relevant. The question at hand is how you would you spend an additional $700/month.

It is relevant in that it demonstrates your mindset and lack of financial knowledge. You got a $100 extra per month and wanted to put it towards debt (which is good) but plowed it towards what I am confident is you lowest cost debt (which is . . . not).

Except if I'm snowballing, I actually am paying off the smallest debt. You are correct, it is my smallest rate, but with about $1,500, I'm getting this monkey off my back asap.

That's a big if, considering you wanted to save your "extra" money (hint: you have none) for a down payment. But it's good that you've learned a term from the thread, I guess?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Also, in the future don't buy a car with a $350/mo payment when you are $25k in the hole.

It's not. It was $240, but when I got an additional $100 with the tax cut, I plowed that into my car payment. In fact, the original payment was just $235, but I've ratcheted it up a tad.

There's no way the car payment had equivalent interest rates to the credit cards. If that's how you think, I agree with everyone recommending snowballing.
As for college, put your oxygen mask on first, then get to the kids.

I'm not, you're fixating on something that's really not relevant. The question at hand is how you would you spend an additional $700/month.

It is relevant in that it demonstrates your mindset and lack of financial knowledge. You got a $100 extra per month and wanted to put it towards debt (which is good) but plowed it towards what I am confident is you lowest cost debt (which is . . . not).

NP. I agree - the entire post demonstrates lack of financial knowledge. Just the title itself, "spending your car payment" demonstrates this. As opposed to saying "help me pay off my high-interest credit cards", "help me budget", you're still in the "spend, spend, spend" mindset.

[Anonymous]

Ormond says highest interest rate, Ramsey says smallest dollar amount. In your case - the two are one and the same, the Amex.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Also, in the future don't buy a car with a $350/mo payment when you are $25k in the hole.

It's not. It was $240, but when I got an additional $100 with the tax cut, I plowed that into my car payment. In fact, the original payment was just $235, but I've ratcheted it up a tad.

There's no way the car payment had equivalent interest rates to the credit cards. If that's how you think, I agree with everyone recommending snowballing.
As for college, put your oxygen mask on first, then get to the kids.

I'm not, you're fixating on something that's really not relevant. The question at hand is how you would you spend an additional $700/month.

It is relevant in that it demonstrates your mindset and lack of financial knowledge. You got a $100 extra per month and wanted to put it towards debt (which is good) but plowed it towards what I am confident is you lowest cost debt (which is . . . not).

NP. I agree - the entire post demonstrates lack of financial knowledge. Just the title itself, "spending your car payment" demonstrates this. As opposed to saying "help me pay off my high-interest credit cards", "help me budget", you're still in the "spend, spend, spend" mindset.

FU. Don't lecture me about things as useless as word usage. I came here seeking feedback on how to best use a soon-to-be monthly windfall, for lack of better word, and to those that provided it, it's been a benefit and I thank them for it.

Would a person lacking so-called financial knowledge be thinking 2-3 steps ahead in situations such as these?

You have no clue about my spending habits and are woefully wrong to presume I have a spend, spend, spend mindset. I'd love to show you the holes in my pants and shirts to prove it.