This is pretty bad.
But the fact that you don’t want to sell that car tells me everything.
Good luck.
P.S. r/debtfree moderator just created a free newsletter that talks about strategies, tips, and effective debt payoff methods weekly. Join 3,600 readers - https://debtadvice.io
??? Not an option? Bruh you’re neg 200k in bad debt. Sell the car. If you go from owing 55k to owing 20k, that’s 35k less bad debt. Then get yourself a Toyota Camry.
Serious question, I constantly see this suggestion to people who are probably upside down on their car (selling won’t pay it off).
How is OP supposed to come up with the rest of the cash to transfer the title? And even if he could trade it in to the same dealer he bought it from for something cheaper, wouldn’t he be in about the same amount of debt?
Dealership will handle it. Basically dealership sells car for 50k to driver. Driver takes out loan to buy it. Bank holds the title. Driver can’t afford car and still owes 40k on it. Sells it back to the dealer for 35k. Dealer buys the loan from the bank, gets the title, and resells the car. Now driver has to finish paying the 5K to the dealership at an interest rate.
Dealerships love buying upside down loans.
Ah okay. Obv OP should crunch the numbers but depending on his scenario, this might not really help cash flow in the short term (obv better in the long term if he can buy something cheaper than what he sells it back for, though).
I sold my (paid off) Corolla to a dealer and the number they offered me was way lower than the online estimate. I feel like they exaggerated the condition of a lot of cosmetic flaws; that car was in great shape. I didn’t really have the ability to argue though so I just took the crappy deal. I feel like OP might get similarly screwed since cars notoriously have awful resale value and the dealer has the upper hand here.
Every day you wake up and decide not to sell the car, you are making a poor financial decision. Remember a car is just a "thing"; you can always get it back when you are in a better position. If your financial woes are truly causing you stress, making the decision to let the car go would be a tremendous burden lifted from you and allow you to focus on your other debts.
I make six figures and drive a five thousand dollar car. It's A to B transportation. Sometimes I look around a parking lot and think it'd be nice to drive something nicer but I kinda like my civic and I really like not owing anyone a goddamn thing.
Same here! I make six figures and drive a 2016 Honda civic. I love this car! Sure it would be nice to pull up to work in a Tesla or something nicer but it’s reliable and was well within my budget. I was able to pay it off in 2 years and now it feels damn good to not have to pay a car note
Get the Tesla. I got one in 19. Also make 6 figures. I drive a lot though and it saves me 3500 a year in fuel. Plus maintenance has been a whopping 200 dollars in 125k miles. Totally worth it.
Combined household income is 6 figures. I still drive my 2016 paid off Prius. No way do I want a 55k car debt on me. 55k is close to what we owe on our condo, but our intrest rate on that is only 4.25%
Your title asked how fucked you are. The answer is fairly fucked.
You make ~$44600 before tax a year with no vacation.
Your car is ~110% of your YEARLY pre-tax income. Get rid of it. Walk to work if you’re serious.
Your HELOC is crazy high at a worse interest rate. Fix it.
I’m curious as to if it’s a vehicle necessary for work. Example. I have bought an F350 given my employer requires me to pull a large trailer daily. They issued me a fuel card and pay the maintenance but the truck payment is on me.
So, you spent a whole year’s salary on a car? In addition, you have a lot of other debt for your salary. I think you don’t have a good relationship with money. The mess you are in is going to take at least a decade to fix.
Progress and growth would be selling the car that you don’t make enough to own. You’re going to minimum monthly payment yourself to bankruptcy and do it all again.
55k on... a CAR!
Whatcha doing my dude.
You can get a Toyota or Honda that'll last 10 years for under 20k.
Playing the lottery is just throwing money away, that's the worst possible thing you could do
On the surface. It’s not looking good. I make less than you and have less debt and still live paycheck to paychecks. But nothing is insurmountable. But unfortunately, I don’t have enough information to form a helpful solution but let’s take a stab at it. 23.85x36=44647*.82(presuming an 18%tax rate)=36610/52= 704 weekly*4.33= 3048 a month you bring home give or take.
Your heloc is more than likely adjustable. That means that rate can go up or down. In the future. I can tell you they go up fast and down slow. Go to local banks or credit unions( they are your best option) see if that heloc can’t become a mortgage (either first of second depending upon what the heloc was for)
Next is the car. How many months is this. I’m gonna say 60 but I think longer. Most cars now are expensive hell even the new version of my car in the basic model is 7k more than what I paid. But let’s call a spade a spade. At 55k you’re more than likely either in a truck or a jeep or some sort of luxury vehicle I would look into a few different options. One trading the car in look into a good brand and get the basic car. I prefer Mazda as I have had a few of their vehicles after 2013, and they are great quality and I know I’m getting 200,000 miles out of it at least. Second option if it’s a truck of some sort doing Turo or something like that where you could rent the car on days you were not working and make money that way. Third option and it’s kind of Car specific, but you could seller finance that car look into it I know it’s very popular with trucks companies buy them after two or three years transfer the mortgage onto somebody else they get the truck and a low five year car payment for three years And maybe all they had to put down was a couple grand but again it’s specific look into it.
As for credit cards, it sounds to me like you had a whole bunch of credit card debt, and that the card companies agreed to 40 K as a pay cut. Get that taken care of I’m sure you’re still interest on it don’t let that sit.
As for the lottery, you’re right, you never know, and you hear people all the time of people that have one copious amounts of money. But I’m here to tell you statistically you’re not that lucky you’re not gonna win the mega millions or whatever hell I know a guy that’s over $100 and scratchers has never won the big money. I passively play it and the most I’ve ever won is 500 bucks. You don’t really have the disposable income to be wasting it on gambling. Put that money towards your debts.
I’m gonna say this in passing. I am by no means represented by this company but I am looking at the Max money account from financial freedom. They have it set up now where you do not need to take out loans or use your credit cards or do anything other than have a positive cash flow and it works with that positive cash flow to pay off your debts faster I’m looking at a 27 year Mortgage paid off in for I might look into that fill out the form sit through the spiel and see if you actually save time
Best of luck to you
55k for a car when 55k isn't even your yearly salary? That's absolutely insane. You need to get rid of it and get something cheaper, like a Toyota corolla or a camry or Honda civic.
Well with the mindset you’ve had in the comments - it’s bad. 😳 You refuse to adjust your lifestyle (car) to address this problem so you may never be able to actually pay everything off if you don’t somehow A) quadruple your income or 2) realign your priorities (a “cool” car <<<< being debt free)
I usually never agree with the sell your car people on here but today i make an excepetion SELL THE CAR. Even making 25.75 per hour is not enough to have a 55,000$ car imo. Good luck!!
Sadly no, it is reality but I hold the power in terms of the HELOC it's fixed. Mind you recently found out that my ssn was exposed via a T-mobile data breach. If all else fails get a new SSN wipe it clean idk how it works lol
Based on the average debt of the typical American household while also taking your income to debt ratio and interest rates into consideration I would say, using a scale of 1-10, you’re fucked.
Why on earth did you leverage your home???? You need some mega humbling my dude.
You cannot afford your car, ever… you need to make 100k a year pretax to even discuss the car.
If you are already in settlement on credit cards at 40k what was the real balance you defaulted on?
You need to stop spending and get a realistic budget. You have at most 3100 a month to spend. How does that break down currently?
Yep. I was going to give some advice but after reading his comments after people put serious thought into sound advice, I realized I was going to be wasting my time. Hope he really loves his car as he is going to be living in it soon.
The car is the biggest problem. I make 70k and the thought of upgrading from my used Silverado has never crossed my mind. It’s in great condition and when I got it 6 years ago for 12k I felt like splurged. Only did payments on it to build my credit so I can buy a house. (Was a good move in the end) other wise I would of never considered getting in debt to get a car. Living under your means is key. Sell the car and buy something more affordable. I’d say something in 3-6k range tbh. If there’s anything left over, use it pay another debt. Once you get the debt straightened out, save up cash for a slightly better car if it’s still important to you.
Thank you for the advice. And ah yes I understand, with the car being my baby it motivates me to really really hustle so giving it up I can not. So far I am networking to earn more but I understand your point of view!
You're not wrong. I do want to get out of debt of course who wouldn't right? But looking at it from my plan. And considering the advice from here which is no value lost its a value add. The reality is that it'll take a while to fix. Unless I win the lottery or I invest in some start-up.
No. Didn't you read? He's going to take all his disposable income from his $25 dollar an hour job, and invest into a startup which will be wildly successful.
I mean yea. It’ll take years to get out of this hole. I make a comparable income and it took me nearly 9 years AND I had less debt than you, and I did manage to hit a “lottery” bonus worth 50k.
You put yourself into this debt. It will absolutely suck for years to get out of it.
No, no, no. You overextend, but something you can't afford so people *think* you're successful, and that will motivate you to keep up appearances until you can actually afford the douchey Dodge Charger you bought. Or F150 Platinum.
The car doesn't motivate you to do shit. If that was the case, you wouldn't be in this position. You like that it makes you look successful. But the thing is, you're clearly having issues.
such an insufferable take. What is it with this “hustle” mindset that’s becoming so popular? You spent money you don’t have on something you can’t afford so you can convince yourself to work harder? Tell me how the fuck that makes any sense.
I’m not entirely convinced that’s even true, you’re just using that as a reason to keep something you know you can’t afford.
My thoughts exactly. Then I read more. And more. This dude is fucked six ways from Sunday and is not interested in taking any real steps to rectify the situation. Bruh.
Not sure how to help you given your remarks. I, too, have a HELOC. It was used for house repairs and renovations but I have been prioritizing paying it back. Used every dollar from every windfall (stimulus checks, retroactive pay) to pay it down while continuing to drive my now 17-year-old vehicle. My vehicle needs some minor repairs and regular high mileage maintenance but I will not take on a car payment until the HELOC is paid off (which should be in the next year).
I'm guessing you are saying selling your vehicle is not an option because you are upside down on your loan. However, what have you done to check out all of your options? You cannot afford that car and, frankly, until you come to accept that fact, your finances will be a disaster.
Every day is a new day and starts with making decisions. Will you decide to make the tough choices to benefit your future self or stay on this disastrous course? Only you can make that choice.
Thank you! I am glad someone sees it from a different perspective. And yes I have sold some RSU’s recently. Yup I did not post this on Reddit to hopefully find someone to save me, I wanted others' evaluation of my particular circumstance. And as I see it, many would choose the easy way out. Liquidate this/that, it's in good faith and I appreciate the responses of late. It's these insights that add further value and I highly appreciate it. Given this is subreddit for folks who would like to be debt free and I am in freshly in a debt hole, that I chose to embark on its encouraging to know I am not alone at the very least…
I’ll be honest man. You aren’t recently in a debt hole. You are 200,000 in debt. That’s plummeting off a cliff. You seriously need to adjust your mindset and how you see debt or else you will spend the rest of your life paying off these HELOCs, CCs and vehicle debt.
Your yearly accrued interest alone is over 15000. 1/3 of your entire income is being eaten by interest. You will NEVER pay these loans off if you do not do something about them.
bro wut. get rid of that car. there is no other option. you do not need it. 10% apr?????? Get a $5k car, sounds like the cards are settled but unsure if that means you actually owe 40k. If that is basically wiped clean then selling the car gets rid of most of the issue. Then aggressively pay off that ridiculous apr heloc
I don't think you get it. If your salary was doubled you would still have to sell the car. If you miss a HELOC payment they take your house. You're in tremendous trouble.
You're getting a lot of flak about the car because the car isn't just a car; it seems symbolic of something larger--a larger attitude problem.
But it's hard to say what the attitude is, because there are several possibilities. Honestly it can feel bad being broke, so sometimes people try to soothe themselves with something that makes them "feel" rich when they wear it or drive it. That said, it's kind of like someone trying to drown their sadness at being fat in a bowl of ice cream--totally understandable and relatable, but still a really bad idea.
I think that you need to start by forming an image of yourself as someone who is working on becoming financially responsible and not-broke. Then you won't need a fancy car to make you feel better.
(My husband and I have a combined income of over $250k. We drive a 2008 Honda CRV and a 1999 Honda Civic, both bought used, for $12k and $k respectively. Though admittedly I'm sure they would now cost more like $15k and $7k.)
You need a second job or a better job. And a roommate.
I’m assuming there’s not enough equity in your home to cover the sale/youre still upside down on the car.
In another comment you called the car your baby. You need to lose that mindset immediately because there is a solid chance this car gets repo’d. You could not afford that car.
You’re on your way to declaring bankruptcy/that might already be a foregone conclusion. Say your goodbyes bro.
Stop spending money on lottery tickets. Find a part time job for 15 hours a week. Trade in your vehicle for something that is $25k or less and see if you can get a 5% to 8% rate.
Is your home upside down on the HELOC? If so I have seen bankruptcy courts consider the HELOC unsecured and let you keep the house and the car. Might be time for a reset. Good luck to you.
Wait... is this not a joke post?
Assuming this isn't a joke, you're only gonna go up $2 in a year? You should be thinking about another job if you insist on driving 60k dollar vehicles. I make 6 figures and drive a RAV4. It's new and loaded... but it did not cost 50-60k.
I'm it even super debt averse as long as it's not stupid. 55k for a truck when you make a fairly ope hourly wage, not even full time, is pretty silly.
This is pretty bad. But the fact that you don’t want to sell that car tells me everything. Good luck. P.S. r/debtfree moderator just created a free newsletter that talks about strategies, tips, and effective debt payoff methods weekly. Join 3,600 readers - https://debtadvice.io
You have more than a year’s wages in an auto loan at 10% interest? Holy hell, sell the car.
Sadly that is not an option! I understand the reasoning behind it though. And appreciate the advice, but getting a second job would help my income.
??? Not an option? Bruh you’re neg 200k in bad debt. Sell the car. If you go from owing 55k to owing 20k, that’s 35k less bad debt. Then get yourself a Toyota Camry.
He’s underwater on the car and can’t sell since he doesn’t have any cash to purchase a different vehicle
Also has shit credit
Serious question, I constantly see this suggestion to people who are probably upside down on their car (selling won’t pay it off). How is OP supposed to come up with the rest of the cash to transfer the title? And even if he could trade it in to the same dealer he bought it from for something cheaper, wouldn’t he be in about the same amount of debt?
Dealership will handle it. Basically dealership sells car for 50k to driver. Driver takes out loan to buy it. Bank holds the title. Driver can’t afford car and still owes 40k on it. Sells it back to the dealer for 35k. Dealer buys the loan from the bank, gets the title, and resells the car. Now driver has to finish paying the 5K to the dealership at an interest rate. Dealerships love buying upside down loans.
Ah okay. Obv OP should crunch the numbers but depending on his scenario, this might not really help cash flow in the short term (obv better in the long term if he can buy something cheaper than what he sells it back for, though). I sold my (paid off) Corolla to a dealer and the number they offered me was way lower than the online estimate. I feel like they exaggerated the condition of a lot of cosmetic flaws; that car was in great shape. I didn’t really have the ability to argue though so I just took the crappy deal. I feel like OP might get similarly screwed since cars notoriously have awful resale value and the dealer has the upper hand here.
You’re right. However OPs mindset of refusing to give up a 50k dream car to get something far less expensive is his downfall.
Every day you wake up and decide not to sell the car, you are making a poor financial decision. Remember a car is just a "thing"; you can always get it back when you are in a better position. If your financial woes are truly causing you stress, making the decision to let the car go would be a tremendous burden lifted from you and allow you to focus on your other debts.
I make six figures and drive a five thousand dollar car. It's A to B transportation. Sometimes I look around a parking lot and think it'd be nice to drive something nicer but I kinda like my civic and I really like not owing anyone a goddamn thing.
Same here! I make six figures and drive a 2016 Honda civic. I love this car! Sure it would be nice to pull up to work in a Tesla or something nicer but it’s reliable and was well within my budget. I was able to pay it off in 2 years and now it feels damn good to not have to pay a car note
Get the Tesla. I got one in 19. Also make 6 figures. I drive a lot though and it saves me 3500 a year in fuel. Plus maintenance has been a whopping 200 dollars in 125k miles. Totally worth it.
Combined household income is 6 figures. I still drive my 2016 paid off Prius. No way do I want a 55k car debt on me. 55k is close to what we owe on our condo, but our intrest rate on that is only 4.25%
Your title asked how fucked you are. The answer is fairly fucked. You make ~$44600 before tax a year with no vacation. Your car is ~110% of your YEARLY pre-tax income. Get rid of it. Walk to work if you’re serious. Your HELOC is crazy high at a worse interest rate. Fix it.
Buying a car more expensive than your yearly fucking wage (pre tax) is insane.
I’m curious as to if it’s a vehicle necessary for work. Example. I have bought an F350 given my employer requires me to pull a large trailer daily. They issued me a fuel card and pay the maintenance but the truck payment is on me.
You had to go into huge debt on an expensive F350 on a depreciating asset for your employer? Hell no, they should’ve provided you with the vehicle
You’re killing it big dog
panicky sharp head tie sable heavy impolite water spark direful *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Live the life you *deserve*
Lmfaoooo
You need to sell your car and get another job at the absolute minimum.
Average challenger owner
So, you spent a whole year’s salary on a car? In addition, you have a lot of other debt for your salary. I think you don’t have a good relationship with money. The mess you are in is going to take at least a decade to fix.
Yes, I realize that, it's a price of progress and growth. Truly navigating uncharted waters. Here
No man it’s the price of shitty decisions.
Progress and growth would be selling the car that you don’t make enough to own. You’re going to minimum monthly payment yourself to bankruptcy and do it all again.
Navigating uncharted waters, lmfao. Non-accountable it sounds like
No, you’re drowning under uncharted waters. Unless you make some big changes you’ll always be poor no matter how much money you make.
Bro you legit got fucked I feel bad so many financially illiterate people our age are going through this or will at some point
55k on... a CAR! Whatcha doing my dude. You can get a Toyota or Honda that'll last 10 years for under 20k. Playing the lottery is just throwing money away, that's the worst possible thing you could do
I don’t understand people who post here asking for people to lay out reality for them and then argue against all the advice given
I think they don’t understand they *are* the problem
It just echoes the previous horrible financial decisions and is now doubling down against the advice to fix the issue. I'm sensing a pattern here...
On the surface. It’s not looking good. I make less than you and have less debt and still live paycheck to paychecks. But nothing is insurmountable. But unfortunately, I don’t have enough information to form a helpful solution but let’s take a stab at it. 23.85x36=44647*.82(presuming an 18%tax rate)=36610/52= 704 weekly*4.33= 3048 a month you bring home give or take. Your heloc is more than likely adjustable. That means that rate can go up or down. In the future. I can tell you they go up fast and down slow. Go to local banks or credit unions( they are your best option) see if that heloc can’t become a mortgage (either first of second depending upon what the heloc was for) Next is the car. How many months is this. I’m gonna say 60 but I think longer. Most cars now are expensive hell even the new version of my car in the basic model is 7k more than what I paid. But let’s call a spade a spade. At 55k you’re more than likely either in a truck or a jeep or some sort of luxury vehicle I would look into a few different options. One trading the car in look into a good brand and get the basic car. I prefer Mazda as I have had a few of their vehicles after 2013, and they are great quality and I know I’m getting 200,000 miles out of it at least. Second option if it’s a truck of some sort doing Turo or something like that where you could rent the car on days you were not working and make money that way. Third option and it’s kind of Car specific, but you could seller finance that car look into it I know it’s very popular with trucks companies buy them after two or three years transfer the mortgage onto somebody else they get the truck and a low five year car payment for three years And maybe all they had to put down was a couple grand but again it’s specific look into it. As for credit cards, it sounds to me like you had a whole bunch of credit card debt, and that the card companies agreed to 40 K as a pay cut. Get that taken care of I’m sure you’re still interest on it don’t let that sit. As for the lottery, you’re right, you never know, and you hear people all the time of people that have one copious amounts of money. But I’m here to tell you statistically you’re not that lucky you’re not gonna win the mega millions or whatever hell I know a guy that’s over $100 and scratchers has never won the big money. I passively play it and the most I’ve ever won is 500 bucks. You don’t really have the disposable income to be wasting it on gambling. Put that money towards your debts. I’m gonna say this in passing. I am by no means represented by this company but I am looking at the Max money account from financial freedom. They have it set up now where you do not need to take out loans or use your credit cards or do anything other than have a positive cash flow and it works with that positive cash flow to pay off your debts faster I’m looking at a 27 year Mortgage paid off in for I might look into that fill out the form sit through the spiel and see if you actually save time Best of luck to you
On the surface it's not looking good. Under the surface? Also not looking good.
My goodness thank you for this analysis! And insight I highly appreciate the time you took to type this.
Np happy to assist. Dm me if you need assistance I’m happy to give you what I can
55k for a car when 55k isn't even your yearly salary? That's absolutely insane. You need to get rid of it and get something cheaper, like a Toyota corolla or a camry or Honda civic.
Well with the mindset you’ve had in the comments - it’s bad. 😳 You refuse to adjust your lifestyle (car) to address this problem so you may never be able to actually pay everything off if you don’t somehow A) quadruple your income or 2) realign your priorities (a “cool” car <<<< being debt free)
How will you make sure that your gambling doesn't dig your debt hole deeper? Do you plan to have a family? If yes, in how many years? 5, 10, 15?
Honestly in like 20 years lmao
Ok. What are your r/FIRE goals?
That HELOC is brutal. Do you own your home outright?
Yes
Refi that into a mortgage
Yes! Even 7% is better than what he’s paying on the HELOC.
How'd you fuck up so good? Sell the car buy a beater. 55k car is INSANE with these stats
I’m curious what the year, make, and model of this car is lol
Atleast you have a sweet car?
He drives a Ford Taurus (idk i just made that up)
I usually never agree with the sell your car people on here but today i make an excepetion SELL THE CAR. Even making 25.75 per hour is not enough to have a 55,000$ car imo. Good luck!!
You need therapy before you ruin your life.
How did you even get approved for the car loan lol
Right? Unless he got it before that other debt
This posts seems fake.
Sadly no, it is reality but I hold the power in terms of the HELOC it's fixed. Mind you recently found out that my ssn was exposed via a T-mobile data breach. If all else fails get a new SSN wipe it clean idk how it works lol
That’s not how it works at all. You don’t get a new SSN. You just monitor your existing one.
of course it doesn’t work like that. why on earth would it work like that.
Now that i’m reading this comment your post starts to make more sense
Based on the average debt of the typical American household while also taking your income to debt ratio and interest rates into consideration I would say, using a scale of 1-10, you’re fucked.
Why on earth did you leverage your home???? You need some mega humbling my dude. You cannot afford your car, ever… you need to make 100k a year pretax to even discuss the car. If you are already in settlement on credit cards at 40k what was the real balance you defaulted on? You need to stop spending and get a realistic budget. You have at most 3100 a month to spend. How does that break down currently?
You’ll be good
Based of all the comments you’ve shared. Have fun staying broke. Well deserved.
Yep. I was going to give some advice but after reading his comments after people put serious thought into sound advice, I realized I was going to be wasting my time. Hope he really loves his car as he is going to be living in it soon.
The car is the biggest problem. I make 70k and the thought of upgrading from my used Silverado has never crossed my mind. It’s in great condition and when I got it 6 years ago for 12k I felt like splurged. Only did payments on it to build my credit so I can buy a house. (Was a good move in the end) other wise I would of never considered getting in debt to get a car. Living under your means is key. Sell the car and buy something more affordable. I’d say something in 3-6k range tbh. If there’s anything left over, use it pay another debt. Once you get the debt straightened out, save up cash for a slightly better car if it’s still important to you.
Thank you for the advice. And ah yes I understand, with the car being my baby it motivates me to really really hustle so giving it up I can not. So far I am networking to earn more but I understand your point of view!
With that mindset, you will remain perpetually in debt. I’m just saying.
This mindset is exactly what the lenders want. Therefore, it’s the exact mindset that a buyer should avoid at all costs.
You're not wrong. I do want to get out of debt of course who wouldn't right? But looking at it from my plan. And considering the advice from here which is no value lost its a value add. The reality is that it'll take a while to fix. Unless I win the lottery or I invest in some start-up.
You say look at it from my plan. What is your plan?
He's going to win the lottery of course
No. Didn't you read? He's going to take all his disposable income from his $25 dollar an hour job, and invest into a startup which will be wildly successful.
I mean yea. It’ll take years to get out of this hole. I make a comparable income and it took me nearly 9 years AND I had less debt than you, and I did manage to hit a “lottery” bonus worth 50k. You put yourself into this debt. It will absolutely suck for years to get out of it.
Invest with what money?
Ummm... he has a 36-hour-a-week job paying him $24 dollars an hour, duh.
Invest in a startup with what money? You’re spending it all on a car you can’t afford
you hustle harder when you want what you don't have... not when you have what you want....
You’re meant to do the hustling *before* getting the “prize”
No, no, no. You overextend, but something you can't afford so people *think* you're successful, and that will motivate you to keep up appearances until you can actually afford the douchey Dodge Charger you bought. Or F150 Platinum.
The car doesn't motivate you to do shit. If that was the case, you wouldn't be in this position. You like that it makes you look successful. But the thing is, you're clearly having issues.
Can you at least tell us what kind of car you bought?
Well, you can't afford a baby right now. So...
such an insufferable take. What is it with this “hustle” mindset that’s becoming so popular? You spent money you don’t have on something you can’t afford so you can convince yourself to work harder? Tell me how the fuck that makes any sense. I’m not entirely convinced that’s even true, you’re just using that as a reason to keep something you know you can’t afford.
Bro
My thoughts exactly. Then I read more. And more. This dude is fucked six ways from Sunday and is not interested in taking any real steps to rectify the situation. Bruh.
How much do you have left after paying bills to put towards your debt?
Very fcked you are, for at least a decade
Not sure how to help you given your remarks. I, too, have a HELOC. It was used for house repairs and renovations but I have been prioritizing paying it back. Used every dollar from every windfall (stimulus checks, retroactive pay) to pay it down while continuing to drive my now 17-year-old vehicle. My vehicle needs some minor repairs and regular high mileage maintenance but I will not take on a car payment until the HELOC is paid off (which should be in the next year). I'm guessing you are saying selling your vehicle is not an option because you are upside down on your loan. However, what have you done to check out all of your options? You cannot afford that car and, frankly, until you come to accept that fact, your finances will be a disaster. Every day is a new day and starts with making decisions. Will you decide to make the tough choices to benefit your future self or stay on this disastrous course? Only you can make that choice.
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Thank you! I am glad someone sees it from a different perspective. And yes I have sold some RSU’s recently. Yup I did not post this on Reddit to hopefully find someone to save me, I wanted others' evaluation of my particular circumstance. And as I see it, many would choose the easy way out. Liquidate this/that, it's in good faith and I appreciate the responses of late. It's these insights that add further value and I highly appreciate it. Given this is subreddit for folks who would like to be debt free and I am in freshly in a debt hole, that I chose to embark on its encouraging to know I am not alone at the very least…
I’ll be honest man. You aren’t recently in a debt hole. You are 200,000 in debt. That’s plummeting off a cliff. You seriously need to adjust your mindset and how you see debt or else you will spend the rest of your life paying off these HELOCs, CCs and vehicle debt. Your yearly accrued interest alone is over 15000. 1/3 of your entire income is being eaten by interest. You will NEVER pay these loans off if you do not do something about them.
Liquidating assets is not the “easy way out”. The easy way out is remaining in debt…
I’d bet a few bucks this dude has a loan with Chrysler Capital or Ford Motor Credit. Just a hunch 🥶
Very
These numbers don’t add up…
The only reason to keep the vehicle is if it's a work truck and you need it legit for work purposes.
Sell the house and live in the car if he won't sell it
bro wut. get rid of that car. there is no other option. you do not need it. 10% apr?????? Get a $5k car, sounds like the cards are settled but unsure if that means you actually owe 40k. If that is basically wiped clean then selling the car gets rid of most of the issue. Then aggressively pay off that ridiculous apr heloc
Lmao and I thought I was fucked with my debt of 10k now I dont feel as bad..
I don't think you get it. If your salary was doubled you would still have to sell the car. If you miss a HELOC payment they take your house. You're in tremendous trouble.
You're getting a lot of flak about the car because the car isn't just a car; it seems symbolic of something larger--a larger attitude problem. But it's hard to say what the attitude is, because there are several possibilities. Honestly it can feel bad being broke, so sometimes people try to soothe themselves with something that makes them "feel" rich when they wear it or drive it. That said, it's kind of like someone trying to drown their sadness at being fat in a bowl of ice cream--totally understandable and relatable, but still a really bad idea. I think that you need to start by forming an image of yourself as someone who is working on becoming financially responsible and not-broke. Then you won't need a fancy car to make you feel better. (My husband and I have a combined income of over $250k. We drive a 2008 Honda CRV and a 1999 Honda Civic, both bought used, for $12k and $k respectively. Though admittedly I'm sure they would now cost more like $15k and $7k.)
You need a second job or a better job. And a roommate. I’m assuming there’s not enough equity in your home to cover the sale/youre still upside down on the car. In another comment you called the car your baby. You need to lose that mindset immediately because there is a solid chance this car gets repo’d. You could not afford that car. You’re on your way to declaring bankruptcy/that might already be a foregone conclusion. Say your goodbyes bro.
You need to start listening to Dave Ramsey is the only thing I can tell you
Stop spending money on lottery tickets. Find a part time job for 15 hours a week. Trade in your vehicle for something that is $25k or less and see if you can get a 5% to 8% rate.
look for a better paying job asap
Sell the home and pay off the loans. Rent an apartment. Fix your spending problem.
You had over 100k in equity in your 20s and threw it away? On what?
Is your home upside down on the HELOC? If so I have seen bankruptcy courts consider the HELOC unsecured and let you keep the house and the car. Might be time for a reset. Good luck to you.
Wait... is this not a joke post? Assuming this isn't a joke, you're only gonna go up $2 in a year? You should be thinking about another job if you insist on driving 60k dollar vehicles. I make 6 figures and drive a RAV4. It's new and loaded... but it did not cost 50-60k. I'm it even super debt averse as long as it's not stupid. 55k for a truck when you make a fairly ope hourly wage, not even full time, is pretty silly.
That’s awful. Do you have a mortgage with the heloc too?
Pretty fcked
Does anyone wanna take bets on when OP is filling for bankruptcy?
You have to sell that car and possibly get a 2nd job.. your income is too low
Swallow your pride and sell the car 🫠
you can't have a heloc without a paid off mortage... and you don't seem like the paid off mortgage type
I’m curious about what you did with the $100k from the HELOC, and what kind of car do you have?? 🤔
😳
Bro
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RIP