Reply to What to do first? Debt vs Savings/Retirement

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Can I get a strategy for getting rid of the expensive car that is underwater WITHOUT it ending up as a repossession on my credit report? [/quote]

How “underwater” are you and how is your credit? You trade it in for a much cheaper car. Then, you either roll the existing loan amount into the new loan (not a great idea but if you don’t have a choice you don’t have a choice) or, preferably, pay off the balance with cash. But even rolling 5k remaining after trade-in nto a much cheaper loan at a lower rate will save you so much money. You can cut that payment at least in half.[/quote]

I owe 30 and the car is maybe worth 24K and that's assuming I trade it into a dealership and not sell it via private party. [/quote]

Advertise it on Craigslist and take a little time to sell it, and get more than $24K for it.  Maybe aim for $26 or $27K.   Get it as high as you can.  Use your bonus to make up the difference, and to pay cash for a reliable used car for under $5000.

Use the rest of your bonus to pay down the highest interest credit card debt.

How much do you guys own in student loans?

I think $3,000 a month in rent is fine at your income level, but right now you guys are broke.  I'd consider moving to a place that is only $2000 a month which would give you a lot more wiggle room.[/quote]

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