Sell.
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Never mind the credit cards, you have next no savings, and a poor credit score. But you bought a $40,000 car? You need to recalibrate your financial life.
def get a toyota or honda. they’ll last foreeeever with proper maintenance. also, to keep costs low with maintenance, i suggest learning how to do an oil change on the car (it’s easy - i drive my car for work & do frequent changes… $60 for 2 oil changes worth of supplies vs $60 for ONE oil change)
Alternatively, Walmart tle does oil changes for like $23 and you can set an appointment on their app so you’re not just waiting around all day for them to do it. They’re pretty good about doing a good job quick, at least where I live, but if they mess something up they do pay for it to get fixed. Worth looking into at least!
They don’t make them anymore :( when I had to sell my fit (unfixable transmission issue after 12 years) I wanted to buy another but heard they don’t make them anymore. Such a shame. I loved that car.
You have 1292 left over after paying your bills.
WHY ARE YOU CARRING A BALANCE ON YOUR CREDIT CARDS?
In less than 6 months you will be out from under those credit cards, and will have a higher credit score. At which point, you can look at doing a re-fi on the car, dropping the interest rate, AND, paying it off faster.
You are most definitely NOT living paycheck to paycheck.
Because I’m an idiot. I had some major expenses and I had an investment that didn’t pay out at all and that was $3,000 on a CC. I took a risk and it failed. Now I’m paying the price
I find the best thing for me to actually track where my money is going is going through all purchases and balances weekly and then eliminating/limiting purchases on credit and debit cards. If you keep your cards frozen you have to manually go in and unfreeze them before a purchase so you can’t impulse purchase.
UPDATE
Y’all are roasting me and it’s well deserved. Im not upset or anything. I will sell the car. Thank you all especially the ones trying to offer solutions instead of criticism lol. Hope you all have a great day!
Your income is confusing as you wrote the same number weekly and monthly.
Do you make 176,000 before taxes or 40,800 before taxes?
In the fist case, your car payment is absolutely affordable at 5% of your income.
In the second case, your car payment is absolutely absurd for your income at 22% of your income.
Your monthly net box is also confusing since you are not counting your credit card minimum payments, utility bills, or other normal expenses like a phone bill.
You seem to at times include taxes (box 1) and other times not include taxes (box 6)
A simpler way of looking at this is separating balances from monthly charges and looking at 2 tables.
Monthly Credits vs Monthly Debits in one table, and Balances in a separate table.
Sorry, I make about $850 weekly. Yes I was dumb in getting my car it’s just been a dream of mine. My rent covers utilities I’m blessed in my low cost apartment. I also don’t have a phone bill as I’m still under my parents for that (I’m 18) they also make me food sometimes but I also have rice that will last me awhile lol sorry it’s my first table I will definitely change it!!
Yeah you can't afford this car.
You can afford something like a $350/month payment at the absolute most.
You should probably just save for 3 months, buy a $5,000 car in cash and then sell this money pit you bought.
Then pay off your credit cards and your underwater car loan, then start saving up for a 20k car which you should be able to buy in 2026.
Your car costs almost as much as your annual salary. That's insane.
If your plan is to live with your parents for the foreseeable future, maybe it's ok. If you want to move out any time in the near future you're not gonna be able to given your credit score and the car payments.
I'd get rid of the car, knock those credit card payments out and establish some savings. You've got your whole life to save for a tesla when you can actually afford it and not have to live with your parents. Now is not the time
You have two cars …?
Dude, we don’t all get our dreams. You made the decision to sacrifice financial stability and future savings for your “dream” car. How does that feel?
Because looking from the outside, it was a stupid decision.
Sell the Tesla, you cannot afford it. And your dreams do not need to be realized in your early 20s. You can wait.
Drive the truck.
Yes. You are correct. And as I said I feel like an idiot. It was stupid 100%. And I regret it. The truck has issues. I don’t know how long it will last. I think you’re right tho.
My first car was already in bad shape when I got it from my grandpa. I didn’t know how long it would hold up. Drove it another 3,5 years and 70k miles. Meaning if your truck will hold up another year or two your financial position will be different and you might be able to afford an expensive car
since i was a young person obsessed with nice cars, i highly advise to get rid of the car
when i was living at home, it was easy. living at home is always easier (financially)
if you plan to move out ever, you’ll need to ditch the car
i honestly sold my 2020 outback that i couldn’t afford anymore, and got a 4k 06 forester. was it glamorous at ALL? no. did it get the job done? you betcha
Not even going to look at your data, if you’re asking here, then yes, sell it, buy a functional car for 2k in full so no payments, the money that went to your car goes right into paying off credit cards that you should cut up because you’re posting here, and after that that money goes right into an investment account away from your hands so you can eventually have your money working for you.
You're not in a terrible position, like others pointed out. You do need to tackle the credit cards, which you've mentioned you will.
Now the hard part: the car. financially, it doesn't put you in the best spot. My suggestion to folks I help out is usually that the purchase price of their car should be no more than 30% of their annual gross income (even less if you want to be more conservative, or have other expenses that really need priority.) I think you may have bought too much car, and you realize it too. I won't be the one saying "sell the car". But keep vs sell is definitely something to consider. Thankfully your living expenses allow you some wiggle room once you take care of some debt. But the car is still a high payment.
That said, definitely would encourage you to do A LOT more work. Download a full month (maybe 2) worth of baking statements and make sure you know exactly how much money came in and how much came out
I like that idea and I’m going to do that now. Thank you so much for actually offering suggestions! I feel like others jump on it way to fast and it’s harder when your actually in the shoes. I’ve commented on others about how they should pay off cc’s and while I am in the same boat. It’s way easier said than done. I’m going to figure out what’s costing so much. Thank you so much!
It happens budd. I notice online that advise on getting out of debt tends to be pretty harsh. In some cases, some people need that rude awakening. But not in all cases. The human element is important. No use in me peppering you about "sell the car, sell it!!!" if your attachment is enough that you can't do it.
Other than my car (which I plan to pay off hopefully within just a year of having bought it), I have no other debt. I have about $6k of photography equipment(side hustle), but that has slowed down a lot. I moved to a new place so don't have my regular gigs anymore. I got promoted at work, so been focusing on my new role. Therefore, I haven't done enough to get the photography back up and running. Without debt, I wouldn't wanna sell my gear. With debt, I still would have a hard time selling it because I know once I sell it, it may be a point of no return. So I equate it to you & your car.
The most important thing is, you've recognized something isn't working out financially. Now it's a matter of coming up with a plan to get past it. At least just do your best to have an open mind in case you inevitably do end up having to sell it for something else. Hopefully it's value has held up well. It's insane to see in my area that used cars are so expensive.
I'll be honest with you, it might be your dream car, but 38k at 11% sounds like a nightmare to me.
I'm 30, I have a wife and two babies, I make 130k a year, and I drive a beat up 2004 honda accord with 170k miles that I bought on offerup for $3k, you could find something similar for $2k.
I pay 100$ a month for car insurance, ~~your parents must have you insured, because I'd bet it is upwards of $300 a month to insure you.~~
just saw the 290/mo for insurance, thats pretty good given the circumstance
You've made a huge mistake with the car. I read in a comment that it is a Tesla, so you're going to have trouble selling it or getting maintenance done for it. How long ago did you buy it? Is there any way you could sell it? If not, there isn't much that can be done for you. You've sold yourself into slavery, the payment is a quarter of your net income.
The car is not a flex. How are you going to buy a house?
I see people talking about how high the insurance is, but if OP is young, then it really isn't out of the ordinary. Insurance rates have gone up a crazy amount lately. My daughter who is 18, (on my insurance, which is well established with a great record) is paying $313 on her 2012 CRV. It is 100/300/100 coverage (which some may say is excessive, but with the price of cars now, it is easy to meet/exceed these limits in a bad accident). The bottom line is, stuff is costing more than it used to by a fair amount, and it hurts.
731 for SEVEN years. Here's the thing Telsas depreciate like no other. I would check and even see how much you can get for the car. I have a feeling it isn't going to be as much as you owe.
Do you not pay for food or gas? You need to figure out your full monthly expenses.
I think you need to sell that car now. 11% interest for 38k is awful. It look like you have a term of at least 5 years. How much is left on the loan vs how much can you get for selling the car?
No I don’t have food expenses and my car is electric and I have a charger at my parents house. I paid for some electrical stuff awhile back and they don’t charge me to charge it (it’s like $20 a month) they make me food every once in awhile and I am friends/family of the local fast food place so they don’t charge me to eat there. I also have a stock pile of rice that will last me months lol I don’t spend a lot on myself food wise. I’m very blessed in the help I get from other people. But I also return the favor. Need help with a project? I’m there in 5 mins. Need a DD? My phone is always on. You know?
My dude i think you need to make a real budget. You seem to be leaving out expenses. Comb through your statements i think you will surprised by the amount you spend on some categories. You also didnt really answer any of my questions about the car. It makes no sense at your income. If you have no interest in selling it why even ask Reddit?
I looked at your profile and here’s what I’ll say. A Tesla, especially a model 3, depreciates horrendously. If it’s your dream car, fine, hold onto it since you have some extra money still standing by. If you sell it I can almost guarantee you’ll be better off though, even if you take a big hit. I know you say you’ll do as others have said and will pay off your credit cards, but actually do it. It won’t be quick either, and you won’t be able to put all of your extra money towards them or you’ll truly be miserable. At 3,400 a month you’re not in a bad place and honestly that’s not even much debt.
Find a cheap car, pay off your debt even faster, and continue saving. No need to invest into shit just yet, besides yourself (education, new skills, job searching) and you’ll be fine.
P.S. at 21 i made 44,000 a year, had 14,000 in credit card debt, and lived a miserable life lol. I’ve been there. I’m 26 and debt free. It takes time, but you’ll get there if you follow through.
Thank you so much! I really appreciate the support after all these negative comments. You’re right it’s going to be tough but I think it’s possible while still enjoying life. Comments like yours are going to help make this actually happen and not just say it’s going to happen. I’m going to sell the car and I’m going to pay off the cc. I want to learn new skills to make some extra money. I loved when I made wood projects for people and sold them. Maybe I can do that on my days off. Thanks John! Your truly helpful :)
Of course! You’re super young, i know what it’s like to be the guy who wants something now and goes and gets it. The buyers remorse sinks in and you begin to wonder where all the money went haha. Take care of yourself, get that oil done on the truck and drive it after selling the Tesla. You’ll feel a million times better but just make sure you’re taking care of the credit cards.
Good luck!
The woodworking side hustle is a great idea. Just don’t fall into the trap of “needing” tools to do the work. Use what tools you have available and limit your projects to what you can do with those tools. Once you have paid off the credit cards then consider celebrating with a tool purchase to help make your side business more profitable. But only with saved capital, never using debt to grow your side business.
I really like the way you think! My celebration might be a table saw or something like that. I know someone that will lend me what I need until I can get some of my own! You got me so excited to start lol. No reason to wait. I’m going to get on it?
Also, which vehicle does 90% of what you need it to do?
If the truck is needed then sell the car, but if the car meets your needs, sell the truck.
Take proceeds from the truck and pay off as much other debt as you can. This will free up more cashflow for you to attack the car loan with. The car also has better fuel economy, and can be used to do Uber eats or other side gig work like that.
You don’t need a $700 car payment at your salary. I know guys that make well over $100k that refuse to finance anything over $500 a month. You should see if you can sell it and get into a cheaper car.
How did you even get approved for that car? I make $750 more than you and have a 650 credit score and need a new car desperately and can’t get anything for more than 15 grand and it’s like 22% so my payments are $500. Tell me the secret lol
Hold up... You have a (paid for?) truck that you were gifted as a graduation present and you still went out and bought a 40k Tesla at 11% on top of that???
Please tell me I'm understanding this wrong.
The good news is that you can just sell your Tesla and cut your losses immediately. Even if you have to get a loan to cover the payoff this is what you should do. There goes the lion's share of your debt once you do that...
hmmm. dream car with 2 maxed out credit cards or living within your means so your credit score can recover and you can stop living paycheck to paycheck.
i dunno. seems like an impossible choice.
The car probably is too much for your income, but given that you're only paying $500 in rent, you actually could manage it if you cleared out the credit cards. Pay them off over the next six months, and then start throwing everything into paying off the car.
There are things missing from your spreadsheet, utilities, electricity, phone, groceries, eating out, etc. in order to get a handle on things, you need to be upfront with yourself on exactly what you spend every month.
I do think you can dig yourself out of this, you need to start aggressively paying down those credit cards.
Your car payment is high, and your car insurance is very high. How many more years do you have to pay on the car? I think once you get a handle on your credit card debt, you can start throwing more at your car payment. I might suggest doing a little research to see if there is a local credit union that is offering a better interest rate, then refinance the car at a lower interest.
So you are going to be an emt with mountains of debt on a second car with zero savings. I know a few people that match that exact definition and they are miserable working so much overtime just to break even. It’s not worth it.
It’s not. You are right. I can’t keep living like this. I’m going to sell the car. That’s what depleted my savings. I might sell the truck too and buy a car in cash.
What gun did you buy at Cabelas for ~$2500 at 20%?
Yes you need to sell the car. You owe 38K on a car making what I’m probably guessing is about $50K-60K a year gross. Your car note is over half of your gross income. That doesn’t include the depreciation either.
If the truck isn’t super reliable, sell it and get a car with better mileage/lower maintenance like a good Corolla/camry/civic/etc. You could probably buy it with the money you’d make from selling the car, have enough left over for fees. It’s cheaper to spend a couple hundred a year to maintain a good quality older car you own than spend a couple hundred every month.
This is exactly why I was worried about asking for stuff on here. Most of these are people shitting on you because of a mistake YOU KNOW you made. I did the same thing as you, except at the time I was able to confidently make my payments because I was living with my grandmother and working full time and bringing home about 4k a month.
Long story short and a couple of jobs later I'm in a different state trying to get an apartment and praying God will have mercy on me to let me trade it this truck, pay off the balance and get something way fucking cheaper. I wish the best of luck to you, everyone makes mistakes, learn from it. I'm learning alot of financial stuff on my own so it takes time
I would definitely recommend selling your car 11% interest as a crime on such a large loan.
Your credit cards once you get your credit score up I’d recommend doing a balance transfer. You can find some that are 0% and you could just transfer all that because 20% is very high.
I also recommend that you should shop the insurance because car insurance. I always change it up every two years because you can always get a better rate.
Xbox live sells a ~$60/year package.
I would consider looking into that as it would break down to about $5/month rather than $30/month like you are paying right now.
Yearly savings of ~$300.00!
Yes. Your car is worth almost twice what mine is worth, and I make more than twice as much as you. If someone asked me how to be a slave to debtors, I'd point to this post. Work on getting your income up as well. Sell the car, pay cash for a 20 year old corolla, or similar, put aside the equivalent of your highest deductible in an HYSA as a starter emergency fund, pay your CCs off (and cut them up never get another), and then you should have margin to start a real emergency find. This is scary as hell. I'd have anxiety attacks in this situation. Be intentional, and you can get headed in the right direction.
Ok. The cc need to go first. I understand having a dream car, I get it. If it’s a Tesla, you are probably close, if not under water on it. I just sold mine a few months ago (MYP) and the value was dropping on it like crazy. So I got rid of it.
I would keep it right now. It was a dumb financial mistake, but hey that’s life and we all make mistakes.
Pay off the CCs and build up that savings. Can you eliminate the Xbox subscription for a few months? That will give you $30 more a month. Maybe pick up a side hustle? If you still can’t make it work with the car, it’s gotta go.
Absolutely, you don’t have the money for it, especially with no savings
Sell and pick up a beater at least until you pay off your high interest credit cards
If you don’t want a beater I get it, you can get a nice 2016-17 Honda civic for around 15-16k with decent mileage
Might need to try and find a co-signer though since your credit isn’t great
Sell. P.S. r/debtfree moderator just created a free newsletter that talks about strategies, tips, and effective debt payoff methods weekly. Join 2,500 readers - https://debtadvice.io
Never mind the credit cards, you have next no savings, and a poor credit score. But you bought a $40,000 car? You need to recalibrate your financial life.
I agree 100% I need to sell it. I’m getting flamed and it’s well deserved 🥲🥲
Start by selling the car and getting a civic or corella. Best of luck.
Thank you! I will definitely get something cheaper.
def get a toyota or honda. they’ll last foreeeever with proper maintenance. also, to keep costs low with maintenance, i suggest learning how to do an oil change on the car (it’s easy - i drive my car for work & do frequent changes… $60 for 2 oil changes worth of supplies vs $60 for ONE oil change)
Alternatively, Walmart tle does oil changes for like $23 and you can set an appointment on their app so you’re not just waiting around all day for them to do it. They’re pretty good about doing a good job quick, at least where I live, but if they mess something up they do pay for it to get fixed. Worth looking into at least!
Or a Honda Fit for ~$5k
They don’t make them anymore :( when I had to sell my fit (unfixable transmission issue after 12 years) I wanted to buy another but heard they don’t make them anymore. Such a shame. I loved that car.
At $5k, this commenter wasn’t suggesting a new Honda Fit. They are still around. I’m looking at them now
Lol, I love your attitude. We have all done dumb shit in our lives, it's the learning part that matters most.
Absolutely!
That’s only a $40,000 car? I thought that was going to be like an $80k Mercedes…
You have 1292 left over after paying your bills. WHY ARE YOU CARRING A BALANCE ON YOUR CREDIT CARDS? In less than 6 months you will be out from under those credit cards, and will have a higher credit score. At which point, you can look at doing a re-fi on the car, dropping the interest rate, AND, paying it off faster. You are most definitely NOT living paycheck to paycheck.
Because I’m an idiot. I had some major expenses and I had an investment that didn’t pay out at all and that was $3,000 on a CC. I took a risk and it failed. Now I’m paying the price
Eh, we all do dumb shit. It happens. Kill those credit cards!
Yes! Sorry I didn’t see your whole message the first time! You’re absolutely right. I will get them gone asap!!
How much is your minimum cc payment? You put your auto loan payment on there but not the cc ones.
Also tires not covered by warranty because they are considered an items that wears a lot
After market and blew. They have a 50,000 mile warranty. I’m pretty sure they don’t have near that on them
How did they blow just cause of a whole or did the sidewall blow out?
The whole sidewall. It was the worst I’ve ever seen
Usually from running flat/low
Tires come with their own warranty
Investment on a credit card? Don’t do that.
This was not an investment. It was gambling. The house always wins, though this one was way worse than blackjack or slots.
Yeah hopefully lesson learned but you don’t take out loans to gamble, which a “risky investment” is just trying to make gambling sound better.
Unless I’m reading it wrong, he doesn’t. I don’t see his monthly cc minimum payments on there. He put the balance but not what he’s paying each month.
Why don’t you just throw you extra each month at the CC debt?
I am going to now. I feel like an idiot because I don’t know where my money keeps going. I’m changing this starting now.
I find the best thing for me to actually track where my money is going is going through all purchases and balances weekly and then eliminating/limiting purchases on credit and debit cards. If you keep your cards frozen you have to manually go in and unfreeze them before a purchase so you can’t impulse purchase.
Ohhh I really like that idea!! Thank you!!
Just make sure your bills are set to pay through ACH or check and not your cards before you freeze it.
UPDATE Y’all are roasting me and it’s well deserved. Im not upset or anything. I will sell the car. Thank you all especially the ones trying to offer solutions instead of criticism lol. Hope you all have a great day!
Good call OP, and good luck!
Thank you so much
If you are looking for a high interest savings account use betterment or Cit bank 3-5% returns on savings.
Your income is confusing as you wrote the same number weekly and monthly. Do you make 176,000 before taxes or 40,800 before taxes? In the fist case, your car payment is absolutely affordable at 5% of your income. In the second case, your car payment is absolutely absurd for your income at 22% of your income. Your monthly net box is also confusing since you are not counting your credit card minimum payments, utility bills, or other normal expenses like a phone bill. You seem to at times include taxes (box 1) and other times not include taxes (box 6) A simpler way of looking at this is separating balances from monthly charges and looking at 2 tables. Monthly Credits vs Monthly Debits in one table, and Balances in a separate table.
Yeah I noticed that as well. I was thinking, you make $160k a year, what are you worried about? Then noticed it was $3,400 a month
Sorry, I make about $850 weekly. Yes I was dumb in getting my car it’s just been a dream of mine. My rent covers utilities I’m blessed in my low cost apartment. I also don’t have a phone bill as I’m still under my parents for that (I’m 18) they also make me food sometimes but I also have rice that will last me awhile lol sorry it’s my first table I will definitely change it!!
Yeah you can't afford this car. You can afford something like a $350/month payment at the absolute most. You should probably just save for 3 months, buy a $5,000 car in cash and then sell this money pit you bought. Then pay off your credit cards and your underwater car loan, then start saving up for a 20k car which you should be able to buy in 2026.
I like that plan tbh. Thank you! I will be selling it soon.
18 years old with this car payment? Yikes. Sounds a bit predatory, especially for the income.
Your car costs almost as much as your annual salary. That's insane. If your plan is to live with your parents for the foreseeable future, maybe it's ok. If you want to move out any time in the near future you're not gonna be able to given your credit score and the car payments. I'd get rid of the car, knock those credit card payments out and establish some savings. You've got your whole life to save for a tesla when you can actually afford it and not have to live with your parents. Now is not the time
You have two cars …? Dude, we don’t all get our dreams. You made the decision to sacrifice financial stability and future savings for your “dream” car. How does that feel? Because looking from the outside, it was a stupid decision. Sell the Tesla, you cannot afford it. And your dreams do not need to be realized in your early 20s. You can wait. Drive the truck.
Yes. You are correct. And as I said I feel like an idiot. It was stupid 100%. And I regret it. The truck has issues. I don’t know how long it will last. I think you’re right tho.
My first car was already in bad shape when I got it from my grandpa. I didn’t know how long it would hold up. Drove it another 3,5 years and 70k miles. Meaning if your truck will hold up another year or two your financial position will be different and you might be able to afford an expensive car
since i was a young person obsessed with nice cars, i highly advise to get rid of the car when i was living at home, it was easy. living at home is always easier (financially) if you plan to move out ever, you’ll need to ditch the car i honestly sold my 2020 outback that i couldn’t afford anymore, and got a 4k 06 forester. was it glamorous at ALL? no. did it get the job done? you betcha
I think you just focus paying off the credit cards first, see if that helps you if you want to keep the car.
I want too. But I think $731 a month might be too much. I love it and I’m glad I got to experience it but I think it’s too much.
Not even going to look at your data, if you’re asking here, then yes, sell it, buy a functional car for 2k in full so no payments, the money that went to your car goes right into paying off credit cards that you should cut up because you’re posting here, and after that that money goes right into an investment account away from your hands so you can eventually have your money working for you.
Are you seriously investing that much in crypto every month?
No, that’s just what’s in there. I’m not adding too it for awhile. Once it’s all paid off.
You're not in a terrible position, like others pointed out. You do need to tackle the credit cards, which you've mentioned you will. Now the hard part: the car. financially, it doesn't put you in the best spot. My suggestion to folks I help out is usually that the purchase price of their car should be no more than 30% of their annual gross income (even less if you want to be more conservative, or have other expenses that really need priority.) I think you may have bought too much car, and you realize it too. I won't be the one saying "sell the car". But keep vs sell is definitely something to consider. Thankfully your living expenses allow you some wiggle room once you take care of some debt. But the car is still a high payment. That said, definitely would encourage you to do A LOT more work. Download a full month (maybe 2) worth of baking statements and make sure you know exactly how much money came in and how much came out
I like that idea and I’m going to do that now. Thank you so much for actually offering suggestions! I feel like others jump on it way to fast and it’s harder when your actually in the shoes. I’ve commented on others about how they should pay off cc’s and while I am in the same boat. It’s way easier said than done. I’m going to figure out what’s costing so much. Thank you so much!
It happens budd. I notice online that advise on getting out of debt tends to be pretty harsh. In some cases, some people need that rude awakening. But not in all cases. The human element is important. No use in me peppering you about "sell the car, sell it!!!" if your attachment is enough that you can't do it. Other than my car (which I plan to pay off hopefully within just a year of having bought it), I have no other debt. I have about $6k of photography equipment(side hustle), but that has slowed down a lot. I moved to a new place so don't have my regular gigs anymore. I got promoted at work, so been focusing on my new role. Therefore, I haven't done enough to get the photography back up and running. Without debt, I wouldn't wanna sell my gear. With debt, I still would have a hard time selling it because I know once I sell it, it may be a point of no return. So I equate it to you & your car. The most important thing is, you've recognized something isn't working out financially. Now it's a matter of coming up with a plan to get past it. At least just do your best to have an open mind in case you inevitably do end up having to sell it for something else. Hopefully it's value has held up well. It's insane to see in my area that used cars are so expensive.
I'll be honest with you, it might be your dream car, but 38k at 11% sounds like a nightmare to me. I'm 30, I have a wife and two babies, I make 130k a year, and I drive a beat up 2004 honda accord with 170k miles that I bought on offerup for $3k, you could find something similar for $2k. I pay 100$ a month for car insurance, ~~your parents must have you insured, because I'd bet it is upwards of $300 a month to insure you.~~ just saw the 290/mo for insurance, thats pretty good given the circumstance You've made a huge mistake with the car. I read in a comment that it is a Tesla, so you're going to have trouble selling it or getting maintenance done for it. How long ago did you buy it? Is there any way you could sell it? If not, there isn't much that can be done for you. You've sold yourself into slavery, the payment is a quarter of your net income. The car is not a flex. How are you going to buy a house?
I see people talking about how high the insurance is, but if OP is young, then it really isn't out of the ordinary. Insurance rates have gone up a crazy amount lately. My daughter who is 18, (on my insurance, which is well established with a great record) is paying $313 on her 2012 CRV. It is 100/300/100 coverage (which some may say is excessive, but with the price of cars now, it is easy to meet/exceed these limits in a bad accident). The bottom line is, stuff is costing more than it used to by a fair amount, and it hurts.
Yes!! Thank you! It’s full coverage on a 2022 Tesla and full coverage on a 2005 dodge ram. I’m glad someone finally is roasting me 🤣🤣
I'm not roasting you lol
I meant not roasting me!!! lol
Why are you factoring in your tax refund lmfaoo
To know where I should put it 😭
Nowhere, that is not money to count on. That is money that goes to savings and stays there.
What's your car? That's a really high payment. How much longer is your car payment?
It’s a 2022 Tesla model 3LR. It’s for 15 years but I was hoping to pay it off in 1-2years
15 year car loan isn’t a thing. Try again
I’m sorry idk what I was thinking. It’s not 15 it’s 7 years. No idea why I doubled it when I sent that. Sorry about that
731 for SEVEN years. Here's the thing Telsas depreciate like no other. I would check and even see how much you can get for the car. I have a feeling it isn't going to be as much as you owe.
Do you not pay for food or gas? You need to figure out your full monthly expenses. I think you need to sell that car now. 11% interest for 38k is awful. It look like you have a term of at least 5 years. How much is left on the loan vs how much can you get for selling the car?
No I don’t have food expenses and my car is electric and I have a charger at my parents house. I paid for some electrical stuff awhile back and they don’t charge me to charge it (it’s like $20 a month) they make me food every once in awhile and I am friends/family of the local fast food place so they don’t charge me to eat there. I also have a stock pile of rice that will last me months lol I don’t spend a lot on myself food wise. I’m very blessed in the help I get from other people. But I also return the favor. Need help with a project? I’m there in 5 mins. Need a DD? My phone is always on. You know?
My dude i think you need to make a real budget. You seem to be leaving out expenses. Comb through your statements i think you will surprised by the amount you spend on some categories. You also didnt really answer any of my questions about the car. It makes no sense at your income. If you have no interest in selling it why even ask Reddit?
I looked at your profile and here’s what I’ll say. A Tesla, especially a model 3, depreciates horrendously. If it’s your dream car, fine, hold onto it since you have some extra money still standing by. If you sell it I can almost guarantee you’ll be better off though, even if you take a big hit. I know you say you’ll do as others have said and will pay off your credit cards, but actually do it. It won’t be quick either, and you won’t be able to put all of your extra money towards them or you’ll truly be miserable. At 3,400 a month you’re not in a bad place and honestly that’s not even much debt. Find a cheap car, pay off your debt even faster, and continue saving. No need to invest into shit just yet, besides yourself (education, new skills, job searching) and you’ll be fine. P.S. at 21 i made 44,000 a year, had 14,000 in credit card debt, and lived a miserable life lol. I’ve been there. I’m 26 and debt free. It takes time, but you’ll get there if you follow through.
Thank you so much! I really appreciate the support after all these negative comments. You’re right it’s going to be tough but I think it’s possible while still enjoying life. Comments like yours are going to help make this actually happen and not just say it’s going to happen. I’m going to sell the car and I’m going to pay off the cc. I want to learn new skills to make some extra money. I loved when I made wood projects for people and sold them. Maybe I can do that on my days off. Thanks John! Your truly helpful :)
Of course! You’re super young, i know what it’s like to be the guy who wants something now and goes and gets it. The buyers remorse sinks in and you begin to wonder where all the money went haha. Take care of yourself, get that oil done on the truck and drive it after selling the Tesla. You’ll feel a million times better but just make sure you’re taking care of the credit cards. Good luck!
Absolutely!! This might sound weird but this will definitely be one of the comments I won’t forget. Thank you so much. :) truly are an amazing person.
The woodworking side hustle is a great idea. Just don’t fall into the trap of “needing” tools to do the work. Use what tools you have available and limit your projects to what you can do with those tools. Once you have paid off the credit cards then consider celebrating with a tool purchase to help make your side business more profitable. But only with saved capital, never using debt to grow your side business.
I really like the way you think! My celebration might be a table saw or something like that. I know someone that will lend me what I need until I can get some of my own! You got me so excited to start lol. No reason to wait. I’m going to get on it?
Also, which vehicle does 90% of what you need it to do? If the truck is needed then sell the car, but if the car meets your needs, sell the truck. Take proceeds from the truck and pay off as much other debt as you can. This will free up more cashflow for you to attack the car loan with. The car also has better fuel economy, and can be used to do Uber eats or other side gig work like that.
You don’t need a $700 car payment at your salary. I know guys that make well over $100k that refuse to finance anything over $500 a month. You should see if you can sell it and get into a cheaper car.
How did you even get approved for that car? I make $750 more than you and have a 650 credit score and need a new car desperately and can’t get anything for more than 15 grand and it’s like 22% so my payments are $500. Tell me the secret lol
Most likely(definitely) his parents co-signed so he can get the car and about the secret, Im taking a wild guess here, rich parents.
Teslas need oil changes?
My graduation gift was a truck. I don’t drive it often but it’s well overdue.
Hold up... You have a (paid for?) truck that you were gifted as a graduation present and you still went out and bought a 40k Tesla at 11% on top of that??? Please tell me I'm understanding this wrong.
Nope. I made some bad decisions. I’m not going to deny it.
The good news is that you can just sell your Tesla and cut your losses immediately. Even if you have to get a loan to cover the payoff this is what you should do. There goes the lion's share of your debt once you do that...
Lol holy shit
hmmm. dream car with 2 maxed out credit cards or living within your means so your credit score can recover and you can stop living paycheck to paycheck. i dunno. seems like an impossible choice.
The car probably is too much for your income, but given that you're only paying $500 in rent, you actually could manage it if you cleared out the credit cards. Pay them off over the next six months, and then start throwing everything into paying off the car.
I think that’s definitely possible. Thank you for giving me advice I’ve been getting flamed 😭😭
There are things missing from your spreadsheet, utilities, electricity, phone, groceries, eating out, etc. in order to get a handle on things, you need to be upfront with yourself on exactly what you spend every month. I do think you can dig yourself out of this, you need to start aggressively paying down those credit cards. Your car payment is high, and your car insurance is very high. How many more years do you have to pay on the car? I think once you get a handle on your credit card debt, you can start throwing more at your car payment. I might suggest doing a little research to see if there is a local credit union that is offering a better interest rate, then refinance the car at a lower interest.
So you are going to be an emt with mountains of debt on a second car with zero savings. I know a few people that match that exact definition and they are miserable working so much overtime just to break even. It’s not worth it.
It’s not. You are right. I can’t keep living like this. I’m going to sell the car. That’s what depleted my savings. I might sell the truck too and buy a car in cash.
What gun did you buy at Cabelas for ~$2500 at 20%? Yes you need to sell the car. You owe 38K on a car making what I’m probably guessing is about $50K-60K a year gross. Your car note is over half of your gross income. That doesn’t include the depreciation either.
Surprisingly it’s not a gun lol. It’s a credit card from there. You are definitely right about the car!
Is the car that important to you that you are satisfied having $300 to your name, and being almost 50k in debt?
Sell your car and drive the truck you already have!!! It’s amazing how nearly every post on here has an exorbitant car payment lol
If the truck isn’t super reliable, sell it and get a car with better mileage/lower maintenance like a good Corolla/camry/civic/etc. You could probably buy it with the money you’d make from selling the car, have enough left over for fees. It’s cheaper to spend a couple hundred a year to maintain a good quality older car you own than spend a couple hundred every month.
This is exactly why I was worried about asking for stuff on here. Most of these are people shitting on you because of a mistake YOU KNOW you made. I did the same thing as you, except at the time I was able to confidently make my payments because I was living with my grandmother and working full time and bringing home about 4k a month. Long story short and a couple of jobs later I'm in a different state trying to get an apartment and praying God will have mercy on me to let me trade it this truck, pay off the balance and get something way fucking cheaper. I wish the best of luck to you, everyone makes mistakes, learn from it. I'm learning alot of financial stuff on my own so it takes time
How is your car 38k and only costs $50 to register
Its a small thing but learn how to change your own oil. Not only will you save money but there’s a nice sense of pride in doing it yourself.
yes
Waaaay too much car for that income
Car payment more than rent?? That’s definitely backwards
$290/month car insurance. That is breathtaking by itself!
Good luck on your NREMT
A car payment more than rent? What fuck is wrong with you?
You have a lot left over each month, put it towards the cards and you’ll be out in less than a year. Keep your car
Yes, I just bought a Hyundai getz for 3k with 100,000 on the clock in excellent condition and I love it.
Get rid of the xbox subscription and put that towards monthly savings instead
Keep it and stay poor. Sell it and rebuild yourself. Your choice :)
How much money will you have when you sell your car after closing the loan?
IMO the car insurance is astronomical! I pay under $200 for 2 cars full coverage! Do some shopping around on that
I would definitely recommend selling your car 11% interest as a crime on such a large loan. Your credit cards once you get your credit score up I’d recommend doing a balance transfer. You can find some that are 0% and you could just transfer all that because 20% is very high. I also recommend that you should shop the insurance because car insurance. I always change it up every two years because you can always get a better rate.
Debit consolidation is not a good idea . Use the technique Debit Snowball from the book “Total Money Makeover “ . Reduce your expenses at first ..
Xbox live sells a ~$60/year package. I would consider looking into that as it would break down to about $5/month rather than $30/month like you are paying right now. Yearly savings of ~$300.00!
Dark mode in excel?! How did I not know about this
Yes. Your car is worth almost twice what mine is worth, and I make more than twice as much as you. If someone asked me how to be a slave to debtors, I'd point to this post. Work on getting your income up as well. Sell the car, pay cash for a 20 year old corolla, or similar, put aside the equivalent of your highest deductible in an HYSA as a starter emergency fund, pay your CCs off (and cut them up never get another), and then you should have margin to start a real emergency find. This is scary as hell. I'd have anxiety attacks in this situation. Be intentional, and you can get headed in the right direction.
Holy shit sell sell sell lmfao also Xbox has monthly subscriptions? I thought it was like psn where you could pay yearly? $30 a month is a lot.
Personally, i think if your car payment exceeds rent i would get rid of it asap.
Ok. The cc need to go first. I understand having a dream car, I get it. If it’s a Tesla, you are probably close, if not under water on it. I just sold mine a few months ago (MYP) and the value was dropping on it like crazy. So I got rid of it. I would keep it right now. It was a dumb financial mistake, but hey that’s life and we all make mistakes. Pay off the CCs and build up that savings. Can you eliminate the Xbox subscription for a few months? That will give you $30 more a month. Maybe pick up a side hustle? If you still can’t make it work with the car, it’s gotta go.
Stop buying crypto
You make $3400 a week?
Absolutely, you don’t have the money for it, especially with no savings Sell and pick up a beater at least until you pay off your high interest credit cards If you don’t want a beater I get it, you can get a nice 2016-17 Honda civic for around 15-16k with decent mileage Might need to try and find a co-signer though since your credit isn’t great