Weaseling My Way Out of Debt.- Mtbr.com
Results 1 to 65 of 65
  1. #1
    mtbr member
    Reputation:
    Join Date
    Jun 2008
    Posts
    1,176

    Weaseling My Way Out of Debt.

    So I put my truck up for sale that I still owe $19,000 on to hopefully get some bills payed off.

    My First move is to just pay cash for a >$4000 Vehicle.

    Any Suggestions? I would like it to have less than 70,000 miles on it... if possible. My Girlfriends grandmother has an '03 Ford Taurus with about 36,000 miles on that I could probably buy for about $4,000. But I would like to explore my options. I used to be "Only US cars for me" but at this point I don't really care.

    p.s. It has to look good with a roof rack!
    adam michigan karate monkey

  2. #2
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    I can help, but I would need to know what you intend to use it for.

  3. #3
    mtbr member
    Reputation:
    Join Date
    Jun 2008
    Posts
    1,176
    Mainly Driving.

    Well I live in Michigan so the we get a few days out of the year where the roads are VERY icy and snowy. I would like to have seating for four, and it will be getting a roof rack with 4 trays on it. It doesn't need to be anything fancy, just dependable.
    adam michigan karate monkey

  4. #4
    mtbr member
    Reputation:
    Join Date
    Aug 2008
    Posts
    4,999
    Seems like "Only US cars" are the only ones with low mileage for low price.

  5. #5
    mtbr member
    Reputation:
    Join Date
    Dec 2005
    Posts
    2,440
    i would think there would be tons of options. i would just start scanning the ads and mentally picturing bikes on the roof

  6. #6
    mtbr member
    Reputation: DavidR1's Avatar
    Join Date
    Jul 2008
    Posts
    1,696
    Look for a Jeep Cherokee. Pretty dependable (for an Am car) vehicle and will easily meet your needs. With that kind of budget your really going to be limited though.

  7. #7
    mtbr member
    Reputation: spazzy's Avatar
    Join Date
    Aug 2004
    Posts
    1,570
    I think you will have a hard time finding a low mileage car with that budget. My 2000 chevy blazer with 120k on the clock is worth just about that much.

    Id try shopping around, craigslist, autotrader, carsoup ect. If nothing pans out, that 03 taurus with 36000 on it is looking prime.

    If you are concerned about driving in the snow an extra set of rims and snow tires are cheap compared to what you are driving now

  8. #8
    mtbr member
    Reputation: karpiel666's Avatar
    Join Date
    Jan 2005
    Posts
    1,124
    What did those wheels cost you?
    Quote Originally Posted by Qatarbhoy
    I have to ask for them to do a "Number two" on my head

  9. #9
    mtbr member
    Reputation:
    Join Date
    Jun 2008
    Posts
    1,176
    Wheels and tires were $2400
    adam michigan karate monkey

  10. #10
    Gigantic Hawk
    Reputation: dubthang's Avatar
    Join Date
    Apr 2009
    Posts
    1,582
    Good luck on selling the truck. I think it'll be a hard sell at the price you are asking.

    Do you have 4 grand now to spend on a car? If not, financing 4 g's generally works out to about a $150 a month over 4 years. You may be better off (if you have the cash now) spending it on your truck, and then getting the loan refinanced at a better rate.

    I have an '06 Silverado that I'd love to not make payments on, but the truth is that I'll be better off in the long run to pay it off, and keep it. Make a debt plan for yourself that spans the next few years. You may have to skimp on some stuff, but it'll work out for the better. I should be almost debt free in 3 years with careful money spending. It just takes some good planning.

  11. #11
    mtbr member
    Reputation:
    Join Date
    May 2004
    Posts
    8,223
    Quote Originally Posted by ADDam
    Wheels and tires were $2400
    Yeah, hindsight...but at least you have perspective!

  12. #12
    pants on head retarded
    Reputation: yurtinus's Avatar
    Join Date
    Jun 2009
    Posts
    256
    Skim Craigslist-- you'll get a good feel for what's out there.

    Subarus always look good with bike racks and at least around here can be had pretty cheap. Not sure what Cherokees are running these days either, but smaller sport utes aren't bad.

    Good luck! Always good to see folks find their way out of debt

  13. #13
    mtbr member
    Reputation: Flat Ark's Avatar
    Join Date
    Oct 2006
    Posts
    1,645
    You can often times find Scion XB's on Ebay for around $6000. Excellent vehicles. I should have kept mine.

    When I was just a kid the president of a local bank said to me, "car payments are what keeps the average man average". In a lot of ways he was exactly right. I've been debt free before and it was awesome! Now my dumbass is trying to get back there again.

  14. #14
    mtbr member
    Reputation: DJ Giggity's Avatar
    Join Date
    Sep 2008
    Posts
    1,228
    I am fixin to sell my 98 Ranger 4x4 that has 80K miles. As near as I can tell it is worth about $4500. It has been the most reliable car I have ever owned. You may look for one of those.
    Only two infinite things exist: the universe and stupidity. And, I am unsure of the universe
    - Albert Einstein

  15. #15
    Bicyclochondriac.
    Reputation:
    Join Date
    Jan 2004
    Posts
    13,876
    Quote Originally Posted by ADDam
    So I put my truck up for sale that I still owe $19,000 on to hopefully get some bills payed off.

    My First move is to just pay cash for a >$4000 Vehicle.

    Any Suggestions? I would like it to have less than 70,000 miles on it... if possible. My Girlfriends grandmother has an '03 Ford Taurus with about 36,000 miles on that I could probably buy for about $4,000. But I would like to explore my options. I used to be "Only US cars for me" but at this point I don't really care.

    p.s. It has to look good with a roof rack!
    Well, if you can give up 4-wheel drive, and are OK with a car rather than a truck, that will get you a lot more car for the money.

    Honestly, I am not a fan of the Taurus, but $4,000 for a 7 year old car with 36K from someone's grandmother (as in a REAL grandmother, not of the ones that used car salesmen talk about) seems pretty good, albeit not very sexy.

  16. #16
    mtbr member
    Reputation:
    Join Date
    Jun 2008
    Posts
    1,176
    TRUCK SOLD!!!!!!!!!! Wooo hoo!! Guy gave me what I was asking for. What a great day.
    adam michigan karate monkey

  17. #17
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    Quote Originally Posted by ADDam
    TRUCK SOLD!!!!!!!!!! Wooo hoo!! Guy gave me what I was asking for. What a great day.
    Congratulations. That is truly amazing.

    Quote Originally Posted by ADDam
    Mainly Driving.

    Well I live in Michigan so the we get a few days out of the year where the roads are VERY icy and snowy. I would like to have seating for four, and it will be getting a roof rack with 4 trays on it. It doesn't need to be anything fancy, just dependable.
    If you don't have any other requirements, I would think that the newest Japanese-built Honda Civic (probably a 4-door) that you can afford would work well. The simpler the better. If you don't need a power moonroof, A/C, power windows, etc., then don't buy them.

    The Japanese ones will have the letter "J" in the first digit (the world identifier VIN position) of the VIN.

    Make sure it passes a throrough pre-purchsase inspection conducted by a Honda factory-trained technician.

  18. #18
    mtbr member
    Reputation:
    Join Date
    Jun 2007
    Posts
    371
    Congrats on getting rid of the truck. I don't know why anyone signs up for payments on a rapidly depreciating asset.

    Anyway, I owned a Taurus for years and it was great -- cheap to buy, relatively cheap to run, very cheap to fix, never had any major issues with it. It is large (safe), comfortable and powerful. That Taurus will be a much better deal than a miled-up Japanese car for the same price.

  19. #19
    mtbr member
    Reputation:
    Join Date
    Jun 2008
    Posts
    1,176
    What do you guys think of the Jettas? Specifically an '03.

    90k on this one, $3700.
    Attached Thumbnails Attached Thumbnails Weaseling My Way Out of Debt.-14877767069.274720235.im1.02.565x421_a.562x421.jpg  

    adam michigan karate monkey

  20. #20
    Gigantic Hawk
    Reputation: dubthang's Avatar
    Join Date
    Apr 2009
    Posts
    1,582
    Stay away! Unless you can find an '05 or newer, stay away. These cars have a ton of recalls, and many electrical issues. I had an '01 that eventually needed an entirely new wiring harness. Lucky I was able to get rid of it without shelling out $2500 for the harness.

    Otherwise, they are really nice cars. They drive well, look nice, and their interiors are top notch. If you really want one, find an '05 with a 2.0l (more reliable,) smaller wheels (non 17's,) and as many options as possible for the interior (sun roof, heated seats, etc.)

  21. #21
    mtbr member
    Reputation: spazzy's Avatar
    Join Date
    Aug 2004
    Posts
    1,570
    The 1.8 turbo that is in the jetta is nice too. My buddy drives an 05 GLI and he loves it. But as stated above make sure you get an 05 or newer, they had gremlins rooting about under the hood in everything older than an 05.

  22. #22
    mtbr member
    Reputation:
    Join Date
    Nov 2004
    Posts
    4,126
    Quote Originally Posted by ADDam
    What do you guys think of the Jettas? Specifically an '03.

    90k on this one, $3700.
    Hate to say it, but no. VWs are fun to drive, but have inconsistent quality / durability / reliability issues, and are more expensive than average to fix. This one could be OK, or you could be a step away from a repair equal to the price of the car.

    I'd go with Ris's suggestion on a plain vanilla Honda Civic, or an older Toyota Corolla. One of the reason these things hold their value is both consistently approach 200,000 miles with routine maintenance. Be sure to check maintenance records for regular oil changes and timing belt changes. The timing belt service is not cheap, but needed.

  23. #23
    ballbuster
    Reputation: pimpbot's Avatar
    Join Date
    Dec 2003
    Posts
    12,717

    Cool!

    Quote Originally Posted by ADDam
    TRUCK SOLD!!!!!!!!!! Wooo hoo!! Guy gave me what I was asking for. What a great day.
    I hope you didn't take too much of a bath on it.

    The Jetta is a great car, but if its a turbo, make sure the timing belt was done. Its not a cheap job, and it HAS to be done every 70k miles or so. If you throw the timing belt, its new engine time. Also, be sure the previous owner only used synthetic oil. Dino oil cokes up in the oil lines and the turbo.

    The electrical is actually pretty dang reliable except for the coil packs... and VW had a recall on those. If it hasn't been done, they will still do them. You can do them yourself to the tune of like $30 each (x4).

    The 'tons' of recalls are mostly because VW recalls everything. Its proactive customer service. They don't tend to sit on a problem until the gubmint makes them do something, unlike Ford, GM, Chrysler or Toyota.

  24. #24
    mtbr member
    Reputation:
    Join Date
    Jun 2005
    Posts
    41
    My brother in law (former VW service advisor, with KIA now, ) has told me many times to stay away from VW's, especially used ones....he won't drive one himself if that tells you anything.

  25. #25
    Gigantic Hawk
    Reputation: dubthang's Avatar
    Join Date
    Apr 2009
    Posts
    1,582
    Quote Originally Posted by pimpbot
    Also, be sure the previous owner only used synthetic oil. Dino oil cokes up in the oil lines and the turbo.

    The electrical is actually pretty dang reliable except for the coil packs....
    The synthetic oil thing is not relevant to 1.8t Jettas. Passats were the VW's that suffered from sludging due to an engine layout issue.

    There is way more wrong with the electrical system in these cars than just the coil packs. The problem is that probably 1 out of 3 suffer from issues so that some people think they are great cars. It's just a matter of time before something goes wrong... unless you get all the recalls done, follow the t.s.b's, and swap out to the newer coolant sensor.


    I agree with the above about getting a Civic. They are great, low maintenance cars. You should be able to pick up an older truck on the cheap too. I got 70k out of an '85 GMC before I got my current Silverado. The truck was awesome, and had very few issues over the 3-4 years that I owned it.

  26. #26
    mtbr member
    Reputation:
    Join Date
    Jun 2008
    Posts
    1,176
    OK, So I'm just going to put my financial business out there, because I need advice.

    I have about 9K in credit card debt, Chase just kindly sent me a letter saying they would be raising my APR to 25%

    Should I try and get a personal loan, or Debt consolidation loan to pay off my (2) credit cards (Chase & REI)? I WILL be cutting up one of the cards and reducing my limit on the other.

    Any advice would be greatly appreciated, from what I've read here on the boards, a lot of you are pretty financially stable. It's "cash only" for me from now on, credit cards are a gift from satan.
    adam michigan karate monkey

  27. #27
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    You need to kill that credit card debt right now, before it kills you.

    Pay off the highest interest one first, then the other one.

    Extreme measures may be needed. Find someone that will let you crash on their couch for a few months while you pay off your cards. Ride the bus. Commute by bicycle. Do what it takes.

    Credit cards may be a tool to some, but to most, they are a very slippery slope.

  28. #28
    mtbr member
    Reputation:
    Join Date
    Nov 2004
    Posts
    4,126
    Quote Originally Posted by RIS
    You need to kill that credit card debt right now, before it kills you.

    Pay off the highest interest one first, then the other one...

    Agreed. One thing you might do before canceling them both, is see if you can roll the debt over to a lower interest card. Capitol 1 used to have really great rates. Once you roll the debt over, then cancel the old cards, and do not use the new card! Just pay it down as aggressively as you can. If you get behind on a new card, the low rate goes away.

    One tip for not impulsively using the credit card is to not only not carry it, but freeze it in a block of ice in tupper-ware in the freezer. That way you've got it for a big emergency.

  29. #29
    ballbuster
    Reputation: pimpbot's Avatar
    Join Date
    Dec 2003
    Posts
    12,717

    I dunno....

    Quote Originally Posted by dubthang
    The synthetic oil thing is not relevant to 1.8t Jettas. Passats were the VW's that suffered from sludging due to an engine layout issue.

    There is way more wrong with the electrical system in these cars than just the coil packs. The problem is that probably 1 out of 3 suffer from issues so that some people think they are great cars. It's just a matter of time before something goes wrong... unless you get all the recalls done, follow the t.s.b's, and swap out to the newer coolant sensor.


    I agree with the above about getting a Civic. They are great, low maintenance cars. You should be able to pick up an older truck on the cheap too. I got 70k out of an '85 GMC before I got my current Silverado. The truck was awesome, and had very few issues over the 3-4 years that I owned it.

    ... msn autos rates it 5 out of 5 in reliability. My mom has a 2004 Wagon with 70k miles on it, and its dead reliable. Not one single issue at all, and you would be hard pressed find evidence it has been driven off the lot.

    http://autos.msn.com/research/vip/Re...etta&trimid=-1

    I have a bud with a 99 Jetta with 120k miles and still in great shape. He has had the 'possessed sunroof' issue, which is an easy DIY fix.

  30. #30
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    Quote Originally Posted by HarryCallahan
    Agreed. One thing you might do before canceling them both, is see if you can roll the debt over to a lower interest card. Capitol 1 used to have really great rates. Once you roll the debt over, then cancel the old cards, and do not use the new card! Just pay it down as aggressively as you can. If you get behind on a new card, the low rate goes away.

    One tip for not impulsively using the credit card is to not only not carry it, but freeze it in a block of ice in tupper-ware in the freezer. That way you've got it for a big emergency.
    Harry, I'm going to respectfully disagree with you.

    Although the tactics that you mention sound appealing and could work for some, there are huge risks when real people try to apply them to real situations.

    Taking out more credit cards to try to solve a credit card problem is dangerous. One slip-up, and you're toast. Many have tried exactly what you're recommending, and ended up with their new cards AND their old cards maxxed out. Talk about going from the frying pan in to the fire...

    And I have learned that there are no big emergencies that are best solved with a credit card. An ER doctor will stop uncontrolled arterial bleeding without one, and using one has pretty much the same effect on you as uncontrolled arterial bleeding anyway. What could you possibly need to buy so bad that you'd be willing to keep paying for it over and over and over for the next 30+ years?

  31. #31
    mtbr member
    Reputation: Eric Z's Avatar
    Join Date
    Sep 2008
    Posts
    1,496
    Quote Originally Posted by ADDam
    OK, So I'm just going to put my financial business out there, because I need advice.

    I have about 9K in credit card debt, Chase just kindly sent me a letter saying they would be raising my APR to 25%

    Should I try and get a personal loan, or Debt consolidation loan to pay off my (2) credit cards (Chase & REI)? I WILL be cutting up one of the cards and reducing my limit on the other.

    Any advice would be greatly appreciated, from what I've read here on the boards, a lot of you are pretty financially stable. It's "cash only" for me from now on, credit cards are a gift from satan.
    good job getting rid of some of your other bad debt (truck)! i agree with the others stating doing whatever to pay off your credit card debt. some think it's not possible if you're living check to check. it is possible, but you have to do things like ris recommends. in an apartment? move in with someone or find a cheaper one. obviously if you're single some of these things are easier. sell stuff on craigslist. like to go out to eat? stop it immediately. buy cheaper food, but don't just go crazy on ramen and pasta unless you have a fast metabolism or exercise a lot. it's not good to be fat and in debt!

    have cable at home? cancel it. have a cell phone with crazy minutes and texting and internet? just get the basic plan (if you can with your contract of course). have a land line? cancel it.

    i'm not totally against using one lower interest credit card to pay off others; however, as ris says, it's very risky. i agree, there isn't any emergency where you need a credit card right away- it all depends on how you define emergency though. and it's not a killer deal on a new wheelset.

    in your original post, you talked about getting a roof rack on your new $4k car. don't do it if you can't afford it. until your debt is paid down, don't buy anything new (even if it's a good deal). deal with taking the wheels off and fitting it in the trunk/backseat.

    it is so important to pay off your debt- i can't stress that enough. it is good you are laying all of this out here because it is a very slippery slope where soon you can be $20k-$30k in debt and then you can easily be in debt for life! i work with people who think it's time to buy something or go on a trip if they get a bonus or extra money in savings- sometimes that's fine, but not a good idea if you're throwing money away to credit card companies in interest. these are the same people that think it's okay to have 2 car payments and just a little credit card debt- one said, "it's normal to have some debt." yeah, maybe a house- and that's it. i know it's not realistic for everyone right away, but it's good you want to get on the right track! i'll get off my high horse in a sec, but debt is a huge things that's wrong with the world- many feel they are entitled to nice cars, new bikes every year, huge houses, etc. i would like to have that too but it's not realistic. it's all about priorities.

    okay. rant over. good luck- hang in there. it's a huge change to not want to spend money, but it can be done. keep us updated. later. ez
    - 1995 Giant ATX 870
    - 2011 Salsa El Mariachi XL
    - 2011 Kona Unit (singlespeed) XL

  32. #32
    mtbr member
    Reputation:
    Join Date
    Nov 2004
    Posts
    4,126

    Idea!

    Quote Originally Posted by RIS
    Harry, I'm going to respectfully disagree with you.

    Although the tactics that you mention sound appealing and could work for some, there are huge risks when real people try to apply them to real situations.

    Taking out more credit cards to try to solve a credit card problem is dangerous. One slip-up, and you're toast. Many have tried exactly what you're recommending, and ended up with their new cards AND their old cards maxxed out. Talk about going from the frying pan in to the fire...
    ...
    Ris,
    I see what you are saying, but you kind of changed my advice. I'm absolutely not advocating taking out more credit cards, I'm saying to roll over high interest to lower interest, eliminate the old card, and don't use the new card. If there is some way for the OP to re-finance his current credit debt to a lower interest rate without doing that, that would be a good way to go. In fact ...

    ADDam, check the fine print on that Chase account. If you cancel it now, can they still impose the higher interest on the current balance?

    Eric Z has some great advice. Lots of ways you can shave back expenses when you look into it. I make coffee at home and bring a travel mug to work, brown bag my lunch, cook meals at home, and try to buy stuff I like in bulk. I take care of my stuff and make it last. Buy quality for stuff you need and keep, but shop and buy smart. I've become a big fan of the public library.
    Last edited by HarryCallahan; 02-22-2010 at 01:37 PM.

  33. #33
    mtbr member
    Reputation:
    Join Date
    Jan 2004
    Posts
    17
    Agree with HarryC, is the change in your interest rate due to today's changes in the requirements of the credit card industry? Think they have an obligation to leave old debt at the old rate, they are probably just writing to tell you the new rate from here forward. Not sure, but isn't that the new rate from 45 days from now? Not really clear on the new credit card rules. Check the small print.

    HTH

  34. #34
    yorkshire mud monkey
    Reputation: sausagedog's Avatar
    Join Date
    Aug 2009
    Posts
    186
    what you need is to save ya money and find a old audi 90 5cylinder 10valve or even better 20valve.now tha will run foreven and dont let anyone tell u otherwise.ive had quite a few audis and they are the best i have had my 90 20valve has 240k on the clock serviced every 6k and doesnt miss a beat.check out youtube user s2cya and hear the sound
    dont go for newer audis stick around 10-20 year old ok it might be old for you but hell what car can u drive for 5 years and only do services and minor fixes eg cam belts pads disks etc, the 5 cylinder engine is bulit proof parts are soo cheap and for the little problems they do get its a easy fix no pluging into computers like new ones.
    as steve said "As long as the rotor/rivets clears the fork, a miss is as good as a mile"

  35. #35
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    Quote Originally Posted by HarryCallahan
    Ris,
    I see what you are saying, but you kind of changed my advice. I'm absolutely not advocating taking out more credit cards, I'm saying to roll over high interest to lower interest, eliminate the old card, and don't use the new card. If there is some way for the OP to re-finance his current credit debt to a lower interest rate without doing that, that would be a good way to go. In fact ...
    Harry-

    He currently has two cards.

    If he takes out a lower interest "new card" so that he can roll his balance over to the new lower interest card, he will then have three credit cards.

    That would be my definition of "taking out more credit card(s)".

    He (like many people) may attempt to follow your advise and may not INTEND to use all three cards, but in actual practice, most people with credit card problems WILL use the new AND the old cards, and end up in an even bigger mess than before.

  36. #36
    mtbr member
    Reputation:
    Join Date
    Nov 2004
    Posts
    4,126
    Quote Originally Posted by RIS
    Harry-

    He currently has two cards.

    If he takes out a lower interest "new card" so that he can roll his balance over to the new lower interest card, he will then have three credit cards.

    That would be my definition of "taking out more credit card(s)".
    ..
    Again, I see what you are saying. I think it's good of you to point out the danger. And that's why it is essential to cancel one or even both of the old accounts. I think I mentioned that in my previous posts. The net result is you start with two cards, and end with two, or even one card. If you can drop the interest rate on your debt from 25% or even 18% down towards 12%, you can pay down your debt a lot faster.

    I guess whether this works depends on the person. Maybe like compulsive gamblers, there are compulsive spenders. ADDam here seems really serious about working his way out, and I'm offering him a suggestion that has worked for others, myself included, if you can impose some personal self-discipline.

  37. #37
    Gigantic Hawk
    Reputation: dubthang's Avatar
    Join Date
    Apr 2009
    Posts
    1,582
    Quote Originally Posted by pimpbot
    ... msn autos rates it 5 out of 5 in reliability. My mom has a 2004 Wagon with 70k miles on it, and its dead reliable. Not one single issue at all, and you would be hard pressed find evidence it has been driven off the lot.

    http://autos.msn.com/research/vip/Re...etta&trimid=-1

    I have a bud with a 99 Jetta with 120k miles and still in great shape. He has had the 'possessed sunroof' issue, which is an easy DIY fix.
    The wagons are not the same. They are made in a different place. As for your buddy, he got a good one, but it depends on what motor it has too. The 2 liter cars are much more reliable.

    As for researching cars, the best places to look are at model specific forums. This is where one can find the real gremlins with most cars.

  38. #38
    The Brutally Handsome
    Reputation: Sizzler's Avatar
    Join Date
    Sep 2009
    Posts
    1,257
    I'll add my personal situation for some perspective on your own. . . I drive a nice toyota camry that cost me $1600 which I paid for upfront, almost 50k later has been one of the best cars I have ever owned, comfy, 30 mpg, roof rack, 25$ monthly insurance and never once a problem. Compare that to the payments most people make on an expensive vehicle and consider if there are any benefits to paying hundreds of dollars a month to own something 10 years newer. I defy anyone to explain how an expensive car is really any nicer or more cost-effective.

  39. #39
    mtbr member
    Reputation:
    Join Date
    Oct 2005
    Posts
    399
    ADDam,

    Way to go selling the truck and attempting to get out debt. I have serious respect for your endeavor.

    In Canada here, there is free credit counseling. I think they help figure out how to lower interest rates. 25% is criminal. Hopefully you can get a loan to pay it off at a lower interest rate.

    Whenever I buy a car I check a book called "The lemonaid guide." It is Canadian, but would apply to the US. It is pretty objective and describes each vehicle. It lets you know what to expect and which ones to avoid. The best part of buying a used vehicle is you can learn from others experiences.

    Good luck!

  40. #40
    Gigantic Hawk
    Reputation: dubthang's Avatar
    Join Date
    Apr 2009
    Posts
    1,582
    Quote Originally Posted by Sizzler
    I'll add my personal situation for some perspective on your own. . . I drive a nice toyota camry that cost me $1600 which I paid for upfront, almost 50k later has been one of the best cars I have ever owned, comfy, 30 mpg, roof rack, 25$ monthly insurance and never once a problem. Compare that to the payments most people make on an expensive vehicle and consider if there are any benefits to paying hundreds of dollars a month to own something 10 years newer. I defy anyone to explain how an expensive car is really any nicer or more cost-effective.
    Can't argue this. I am currently paying off my truck, but I miss the days when I didn't have a monthly payment. On the other hand, I don't miss random break downs. Even the best maintained vehicles will eventually need some things replaced at high costs.

    I think we are now entering an era where there are plenty of solid used cars available. Quality has been stepped up quite a bit making it easy to get a good car for little money.

  41. #41
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    A little OT, but:

    DWDW, books like that are simply a compilation of information that you can get for free elsewhere, along with some advice from the author, presented as if it were "magic" or something. I don't think that the book is completely without value, but the book is more about selling books than it is about helping car consumers. For someone who is starting from square one, it may be one place to start, but there are no "secret" warranties. They are just programs that most people are unaware of, and competent dealership personnel won't hide these things from you.

    For example:

    Tim and Gert Boyle used to be among my fleet customers. They were 100% focused on their business (Columbia Sportswear), and didn't even really know how many cars they owned. They trusted me with a "blank check" sort of deal to take care of all of their cars. Once a week or so, I'd go over to their corporate headquarters and look through their parking garage for cars that they owned, take them back to my shop, and do whatever maintenance and/or repairs that I deemed appropriate. Among this work was five complete paint jobs on Suburbans that they owned, that I charged Chevrolet for, 100%. Tim and Gert didn't even know that they owned the Suburbans, much less that there were tiny signs of paint defects, and they certainly didn't know that they were very close to the time limits of the paint coverage. I saved them several thousand dollars on each of those five cars.

    That's one of the reasons that you should take your cars to a dealership. Anywhere else would have just charged them for the paint jobs.

  42. #42
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    Dubthang and Sizzler sound like pretty smart guys.

  43. #43
    Gigantic Hawk
    Reputation: dubthang's Avatar
    Join Date
    Apr 2009
    Posts
    1,582
    Quote Originally Posted by Sizzler
    I'll add my personal situation for some perspective on your own. . . I drive a nice toyota camry that cost me $1600 which I paid for upfront, almost 50k later has been one of the best cars I have ever owned, comfy, 30 mpg, roof rack, 25$ monthly insurance and never once a problem. Compare that to the payments most people make on an expensive vehicle and consider if there are any benefits to paying hundreds of dollars a month to own something 10 years newer. I defy anyone to explain how an expensive car is really any nicer or more cost-effective.
    Can't argue this. I am currently paying off my truck, but I miss the days when I didn't have a monthly payment. On the other hand, I don't miss random break downs. Even the best maintained vehicles will eventually need some things replaced at high costs.

    I think we are now entering an era where there are plenty of solid used cars available. Quality has been stepped up quite a bit making it easy to get a good car for little money.

  44. #44
    mtbr member
    Reputation: jetta_mike's Avatar
    Join Date
    Feb 2007
    Posts
    484
    My advice for you is to head to your bank and get a consolidation loan...hell even a line of credit will have a lower interest rate. Then you can pay off your two cards. Credit cards aren't bad, you just have to use them to your advantage. I have had a credit card for about 12 years now and I have never paid interest. Every month I clear it off. I only spend what money I have. Now here is how you get the credit card companies working for you. Find a card that has a rewards programme. My card gives me a $25 gift card for every $3000 I put on the card. Because of that my wife and I buy EVERYTHING on the credit card whether its the phone bill, gas bill, groceries, 82 cent slurpee......everything. Right now we have about $800 in gift cards saved up and it hasn't cost us a cent.\

    As far as a vehicle is concerned, get something with a 4 cyc to help reduce your monthly costs, thus getting you back on track faster....oh and fuel up at a gas station that has a points card so you can save up points for free gas....and use your points credit card to buy it other times...double whammy!!

  45. #45
    mtbr member
    Reputation:
    Join Date
    Oct 2005
    Posts
    399
    Quote Originally Posted by RIS
    A little OT, but:

    DWDW, books like that are simply a compilation of information that you can get for free elsewhere, along with some advice from the author, presented as if it were "magic" or something. I don't think that the book is completely without value, but the book is more about selling books than it is about helping car consumers. For someone who is starting from square one, it may be one place to start, but there are no "secret" warranties. They are just programs that most people are unaware of, and competent dealership personnel won't hide these things from you.

    For example:

    Tim and Gert Boyle used to be among my fleet customers. They were 100% focused on their business (Columbia Sportswear), and didn't even really know how many cars they owned. They trusted me with a "blank check" sort of deal to take care of all of their cars. Once a week or so, I'd go over to their corporate headquarters and look through their parking garage for cars that they owned, take them back to my shop, and do whatever maintenance and/or repairs that I deemed appropriate. Among this work was five complete paint jobs on Suburbans that they owned, that I charged Chevrolet for, 100%. Tim and Gert didn't even know that they owned the Suburbans, much less that there were tiny signs of paint defects, and they certainly didn't know that they were very close to the time limits of the paint coverage. I saved them several thousand dollars on each of those five cars.

    That's one of the reasons that you should take your cars to a dealership. Anywhere else would have just charged them for the paint jobs.
    RIS,

    Sounds like you work for Chevy in some capacity. I'm not sure how your story relates to this situation. I find the lemon aid guide great when buying to avoid the lemons. I haven't used them for any 'secret warranties.' I have found the info there to be the most objective information available. But again, I am pretty far removed from the industry. What else do you suggest? I will eventually have to buy another vehicle.

    BTW, I borrow them from the library... another way to save money

  46. #46
    mtbr member
    Reputation: rocks'r'friends's Avatar
    Join Date
    Mar 2007
    Posts
    567
    Definately look into a consolidation loan or line of credit. These options will definately cut your interest rates way down. I like the idea of keeping one card with a low limit, no more than $500 - $1000, just enough to make online purchases (which you have the cash to pay for when the bill arrives).

  47. #47
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    Quote Originally Posted by rocks'r'friends
    I like the idea of keeping one card with a low limit, no more than $500 - $1000, just enough to make online purchases (which you have the cash to pay for when the bill arrives).
    A safer plan is to use your debit card for that. It has all of the protections and convenience of a credit card, with none of the risks.

  48. #48
    mtbr member
    Reputation: cobi's Avatar
    Join Date
    Apr 2008
    Posts
    1,854
    Lot's of good advice here!

    Many moons ago I had significant debt (credit cards, 2 car payments, house)... and basically no savings. It takes a new line of thinking to end the viscous cycle. It's imperative that you make a budget and stick to it. Also, keeping a spreadsheet that shows what you are paying in interest every month is a great way to see how much money you are wasting and help keep you motivated. I track all of my income/expenses/savings in a spreadsheet.

    Tracking my spending and cutting back allowed me to pay off my debt in about a year and a half. I then worked to pay off our cars early, then created a nice emergency savings account as well as a separate "vacation fund". Not to mention I paid cash for 2 mountain bikes last year, bought new furniture, etc... It's amazing what you can do when you aren't paying hundreds or thousands of dollars a year in interest. It's allowed us to have my wife stay home with the baby and not work as well. I have friends that I know make more than me, and are saddled with debt (refinancing their house to pay off cards, etc...) and can't get ahead even with both spouses working. But they have a house full of "stuff" and a new car every 2 years!

    We now only pay interest on the house, and I try to pay extra on that every month as well!

    Credit cards are a wonderful tool if used properly (paying them off every month). I get hundreds of $ per year in reward checks without ever paying a cent in interest!

    And don't forget to think about your future! 401K, etc....

    I highly recommend reading any of the books by David Bach. I picked up "The Automatic Millionaire" for something to read on a flight and it really opened my eyes regarding retirement savings (and other things)! If his other books are the same, they are quick, easy reads.

    http://finishrich.com/shop/shop.php

    If you don't feel like buying a book, there's plenty of great FREE advice to be had in various forums like:
    http://www.savingadvice.com/forums/
    Last edited by cobi; 02-24-2010 at 04:57 PM.

  49. #49
    mtbr member
    Reputation: MTB1986's Avatar
    Join Date
    Aug 2005
    Posts
    861
    A credit or debt card are definitely a good idea. If your going to be using the credit card a lot make sure you have the money to pay the bill in-full when it comes in. CC's are really useful things as long as your reasonable imo...
    Remember, "We're not here for a long time, we're here for a good time".-D.Ritchie

  50. #50
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    Quote Originally Posted by cobi
    Lot's of good advice here!

    Many moons ago I had significant debt (credit cards, 2 car payments, house)... and basically no savings. It takes a new line of thinking to end the viscous cycle. It's imperative that you make a budget and stick to it. Also, keeping a spreadsheet that shows what you are paying in interest every month is a great way to see how much money you are wasting and help keep you motivated. I track all of my income/expenses/savings in a spreadsheet.

    Tracking my spending and cutting back allowed me to pay off my debt in about a year and a half. I then worked to pay off our cars early, then created a nice emergency savings account as well as a separate "vacation fund". Not to mention I paid cash for 2 mountain bikes last year, bought new furniture, etc... It's amazing what you can do when you aren't paying hundreds or thousands of dollars a year in interest. It's allowed us to have my wife stay home with the baby and not work as well. I have friends that I know make more than me, and are saddled with debt (refinancing their house to pay off cards, etc...) and can't get ahead even with both spouses working. But they have a house full of "stuff" and a new car every 2 years!
    We have similar experiences. I got off the finance interest treadmill in 1998. Within just a few years, I had paid off everything. Now, my young wife doesn't have to work, we have cash in the bank, we own our vehicles outright, and we don't owe a penny to ANYONE. If I want something, I just pay cash for it. We paid cash ($7,000) for our Disneyland vacation last year, I paid cash to buy my daughter a brand new Kawasaki KX motocross race bike for Christmas, and just bought my wife a new 20 pound $5000 Yeti AS-R full-suspension cross-country race bike. My retirement funding is on track, and in another 11 years, we plan to pay cash for a sailboat and retire to the Caribbean.

    BTW, I'm just a 40 hour a week blue-collar working stiff, and I don't even have a high school diploma.

  51. #51
    mtbr member
    Reputation: spazzy's Avatar
    Join Date
    Aug 2004
    Posts
    1,570
    I am a poor college kid so I do have some debt (but only to my folks right now). And I do appreciate them fronting me money for school so its pretty much a zero interest loan. I chose not to have a credit card at least right away when I started college., I use my debit for online purchases and pretty much every big purchase (grocerys books ect). Although I am thinking of getting a CC with a low limit ($500 ish) so i can build my credit and I have more than enough in the bank to pay that it back every month.

    To the OP good for you for getting back on the right financial track.

  52. #52
    mtbr member
    Reputation: GEARHEAD_ENG's Avatar
    Join Date
    Jul 2009
    Posts
    358
    Good job selling the truck! Thats a smart move, as I'm sure the payments weren't cheap (not to mention gas). I helped my friend buy a 00' Nissan Altima w/ 80k miles for $2800 last year. Its been a good car, I put on a new serpentine belt and gave it a tune up and that's all. Only problem with it was a few cosmetic issues on body.

    I highly recommend you read Dave Ramsey's book Total Money Makeover .

    I've read his book and have been to his 13 week class, Financial Peace University, which only cost $100. His book guides you on starting a budget, building an emergency fund, dumping debt, etc. He recommends using a process he calls the Debt Snowball to pay off credit cards and loans. You basically make a list of all your debts from smallest to largest and pay off the smallest and then take the payment you were making from that one and add it to the next debt. When you are paying $700 a month on a credit card, it goes down pretty fast. Good luck and update this thread every now and then to let us know how you are doing.

  53. #53
    mtbr member
    Reputation:
    Join Date
    Jan 2010
    Posts
    43
    deleted

  54. #54
    mtbr member
    Reputation:
    Join Date
    Jun 2007
    Posts
    371
    You need to take drastic action. Buy the cheapest running beater you can afford and put every last cent into getting that credit card paid off. 25% is nuts --- get a cheaper loan if you can but pay off all the debt before you think of getting a nice car. My buddy bought a used Crown Victoria for $1000 and put 100k on it with normal maintenance. It's an ugly beater but they are cheap to buy and cheap to fix, with no expensive front-end parts that front drivers have.

  55. #55
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    Quote Originally Posted by canuckjgc
    Buy the cheapest running beater you can afford.
    The cheapest car is quite often NOT the least expensive. The cheapest car is usually the cheapest for a very long list of very good reasons. And those reasons will often cost you an a whole bunch of money.

  56. #56
    mtbr member
    Reputation:
    Join Date
    Jun 2008
    Posts
    1,176
    Thanks for all the AWESOME advice guys. Hopefully this wont upset anyone, but I bought a Fusion today, payment are about $200 a month, so that will save me $150 a month... and then gas, hopefully another $100+ Saved there. I am being extremely conservative with my spending. I have beefed up my savings account as well. I am going to Credit Union tomorrow to get a personal loan to pay off the cards, I believe they said they would give me a 9% rate on the loan that hopefully I will pay off this year.

    I was talking to my father about getting a "beater car" and he was very against the idea. His solution, Give me a hefty down payment on a Fusion as an early Birthday present. Thanks Dad.
    adam michigan karate monkey

  57. #57
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    Quote Originally Posted by ADDam
    Thanks for all the AWESOME advice guys. Hopefully this wont upset anyone, but I bought a Fusion today, payment are about $200 a month, so that will save me $150 a month... and then gas, hopefully another $100+ Saved there. I am being extremely conservative with my spending. I have beefed up my savings account as well. I am going to Credit Union tomorrow to get a personal loan to pay off the cards, I believe they said they would give me a 9% rate on the loan that hopefully I will pay off this year.

    I was talking to my father about getting a "beater car" and he was very against the idea. His solution, Give me a hefty down payment on a Fusion as an early Birthday present. Thanks Dad.
    It doesn't "upset" me.

    Probably not the best solution, though. The steepest part of the depreciation curve happens right after a new vehicle is sold.

    I'm going to assume that you bought the Fusion new, just as you bought your truck new. So you lost the largest amount of money possible on your truck, and sold it just when it's value was starting to stabilize. You basically flushed $3000 worth of wheels and tires, as well as the muffler, the computer programmer, and anything else you did to it, along with your original down payment and all the money that you spend on every car payment for the last four years.

    Then you bought the new Fusion, and went right back into financial free-fall. At this point in time, the new Fusion is depreciating faster than the four year old truck.

    You would have lost less money if you had just kept the truck.

  58. #58
    mtbr member
    Reputation:
    Join Date
    Jun 2008
    Posts
    1,176
    Quote Originally Posted by RIS
    It doesn't "upset" me.

    Probably not the best solution, though. The steepest part of the depreciation curve happens right after a new vehicle is sold.

    I'm going to assume that you bought the Fusion new, just as you bought your truck new. So you lost the largest amount of money possible on your truck, and sold it just when it's value was starting to stabilize. You basically flushed $3000 worth of wheels and tires, as well as the muffler, the computer programmer, and anything else you did to it, along with your original down payment and all the money that you spend on every car payment for the last four years.

    Then you bought the new Fusion, and went right back into financial free-fall. At this point in time, the new Fusion is depreciating faster than the four year old truck.

    You would have lost less money if you had just kept the truck.
    Nope, Bought the Truck used, Paid $19,500, Sold it almost a year later for $19,500. As far as the wheels go, I paid $2400 and sold the Stockers for $1000. The Programmer and Muffler were both gifts.

    I bought the Fusion Used, its an '06 Price was 12k, hope to pay that off in the next few years as well.
    adam michigan karate monkey

  59. #59
    mtbr member
    Reputation: spazzy's Avatar
    Join Date
    Aug 2004
    Posts
    1,570
    Quote Originally Posted by ADDam
    Nope, Bought the Truck used, Paid $19,500, Sold it almost a year later for $19,500. As far as the wheels go, I paid $2400 and sold the Stockers for $1000. The Programmer and Muffler were both gifts.

    I bought the Fusion Used, its an '06 Price was 12k, hope to pay that off in the next few years as well.
    12k isnt outrageous for a car loan, it should serve you well for 6-8 years, by then you should be debt free and have a better job (hopefully anyway). My roomie owes 28k to his folks on a 09 mazda speed3. What kind of broke-ass college kid wants an almost thirty thousand dollar car???

    And actually you made out like a bandit on your truck. $1400 to own a (relatively) new truck for a year, plus gas of course. In addition to the mods you did.

  60. #60
    RIS
    RIS is offline
    banned
    Reputation:
    Join Date
    Nov 2009
    Posts
    1,681
    Quote Originally Posted by ADDam
    Nope, Bought the Truck used, Paid $19,500, Sold it almost a year later for $19,500. As far as the wheels go, I paid $2400 and sold the Stockers for $1000. The Programmer and Muffler were both gifts.

    I bought the Fusion Used, its an '06 Price was 12k, hope to pay that off in the next few years as well.

    Good. I'm really glad that I guessed wrong.

  61. #61
    mtbr member
    Reputation:
    Join Date
    Nov 2004
    Posts
    4,126
    Quote Originally Posted by ADDam
    Thanks for all the AWESOME advice guys. Hopefully this wont upset anyone, but I bought a Fusion today, payment are about $200 a month, so that will save me $150 a month... and then gas, hopefully another $100+ Saved there. I am being extremely conservative with my spending. I have beefed up my savings account as well. I am going to Credit Union tomorrow to get a personal loan to pay off the cards, I believe they said they would give me a 9% rate on the loan that hopefully I will pay off this year.

    I was talking to my father about getting a "beater car" and he was very against the idea. His solution, Give me a hefty down payment on a Fusion as an early Birthday present. Thanks Dad.
    Way cool! Best of luck to you!

  62. #62
    mtbr member
    Reputation: cobi's Avatar
    Join Date
    Apr 2008
    Posts
    1,854
    Quote Originally Posted by ADDam
    Thanks for all the AWESOME advice guys. Hopefully this wont upset anyone, but I bought a Fusion today, payment are about $200 a month, so that will save me $150 a month... and then gas, hopefully another $100+ Saved there. I am being extremely conservative with my spending. I have beefed up my savings account as well. I am going to Credit Union tomorrow to get a personal loan to pay off the cards, I believe they said they would give me a 9% rate on the loan that hopefully I will pay off this year.

    I was talking to my father about getting a "beater car" and he was very against the idea. His solution, Give me a hefty down payment on a Fusion as an early Birthday present. Thanks Dad.
    I personally probably would have spent less on a vehicle, but you may drive more than I do. Anyway, sounds like you will be saving some money and hopefully getting a debt consolidation loan..... so here comes the important part:

    DO NOT START CHARGING BACK UP THE CREDIT CARD.... I probably wouldn't even carry it in your wallet until you can get your loan paid off.

    Since you have a budget figured out now (right?).... USE EVERY LAST POSSIBLE CENT to pay down your new loan. Making the minimum payments is NOT enough. Not sure how your loan is structured but make sure you can pay extra to pay it off early and make 2 or 4 payments a month (corresponding to when you get paid). Even if there is some sort of early payoff penalty, it's probably a lot less than the interest you will pay.

    Good luck... this should be a financial turning point for you. Life is so much better when you actually own your stuff and have money in the bank!

    PS - After your loan is paid off and you have adequate emergency savings.... get that car paid off early next! Every cent you save on interest is money in your pocket! Believe me, it adds up!

  63. #63
    mtbr member
    Reputation:
    Join Date
    Jun 2007
    Posts
    371
    Not true -- the cheapest cars are those that are totally out of style. Look at the Ford Crown Victorias out there. Driven my old men, very few miles on them, sell for peanuts because nobody wants them, and they last forever (cops and taxi drivers use them for this reason).

    You can find a cheap "beater" without having to put up with mechanical issues.

    To the OP: you really seem to like making payments. A few years (4?) of $200 per month is $9600. You could have bought a reliable beater for $1,500, put $1,500 in repairs if necessary and been way ahead. Or taken the down payment gift and bought a beater with repair money in the bank and you would have been $9,600 ahead of the game. Coincidentally, that would have covered all your outstanding credit card debt.

    The key to success is staying out of debt and getting rid of payments. With a constant drain on your bank account that is hard to do. If you have to make payments, you simply can not afford it and you are living beyond your means.

    Quote Originally Posted by RIS
    The cheapest car is quite often NOT the least expensive. The cheapest car is usually the cheapest for a very long list of very good reasons. And those reasons will often cost you an a whole bunch of money.
    Last edited by canuckjgc; 02-26-2010 at 04:34 PM.

  64. #64
    Single Speed Junkie
    Reputation: crux's Avatar
    Join Date
    Jan 2004
    Posts
    3,111
    Quote Originally Posted by spazzy
    My roomie owes 28k to his folks on a 09 mazda speed3. What kind of broke-ass college kid wants an almost thirty thousand dollar car???
    $30k For a small sized econo box? WTF are the dealers attempting to cram down everyones throat? We have a Mazda 3 in the family. Paid $14K for it with a little under 11K on the vehicle. Few months earlier it sold for $21K. So some one took a $7K or greater loss on the car. Other auto is a 96 jeep and have considered getting something else as we have had to dump a few hundred perhaps a grand into repairs, but it still runs ant the dealers are smoking crack for anything new or even used. Keep what you got and drive the wheels off.

    Rarely a new vehicle makes fiscal sense.

  65. #65
    Gigantic Hawk
    Reputation: dubthang's Avatar
    Join Date
    Apr 2009
    Posts
    1,582
    The Fusion is a great choice, congrats. This is the car that helped turn Ford around. You'll face a slightly higher depreciation with this car since it is no longer the current production model, but who cares. $200 isn't all that bad. Plus, you'll be able to sell if for a little bit of cash if you so choose.

    The biggest problem with buying a super cheap beater is that you now own a super cheap beater. There is generally a good reason why said vehicle was for sale in the first place. I've owned many cheap rides in the past. Unless you get a collector type car, or a well known reliable car, they typically end up only getting you $200 at the scrap yard when you are done with them.

    Enjoy the Fusion.

Members who have read this thread: 0

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

THE SITE

ABOUT MTBR

VISIT US AT

© Copyright 2019 VerticalScope Inc. All rights reserved.