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Crunk Abortion posted:I'll admit that I'm very new to personal finance, and there's a lot of things I don't know, but I don't feel like the approach I'm currently taking merits the degree of mockery I'm getting for it in this thread. I lend people money for 10% to 39.99%. Don't be one of those people. If the interest rate is in the double digits you shouldn't do it. Buying a 10 year old luxury car with a large number of parts with a design lifetime of 5 years is not good at all. That suggests a lot of maintenance costs. You will get mockery in this thread for spending $6k in interest when you didn't need to. That's $6k you wouldn't have in the future. Don't reduce your future spending power no matter how much you make.
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Apr 15, 2015 01:03
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Moneyball posted:I have been meaning to post something similar to this, but while I've made otherwise smart financial decisions in the past year (net worth has risen by 6k since new years), I've buried my head in the sand with my predatory car loan. A lot of US auto loans work like item 3. You'll need to check the fine print. Again same goes for answering 2. If you are lucky you might have a loan you can pay off early which would save interest. So you may or may not be able to refinance in a beneficial fashion. Often selling the car is a way out but you need to check for penalties that may apply and if the car loan is underwater you'll need enough cash to pay the difference between sale price and the outstanding loan. tl;dr if you can pay early/more than the minimum and have the total interest reduced then do so. Otherwise continue paying or sell the car.
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Apr 15, 2015 05:02
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Moneyball posted:So it's likely that not even refinancing can help... Excellent. It's worth checking but it's not certain that you'd get a better interest rate.
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Apr 15, 2015 05:23
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Crunk Abortion posted:Looking back on my decision making process leading up to signing for this loan, my mindset was 100% looking at "how can i get the thing that I want" rather than "is it responsible for me to do this, even though I have the ability to do it." That's definitely on me, and I'm trying to break myself of that habit. Consumerism is a bitch, and until I got called out in this thread, I honestly don't think it had dawned on me the degree to which I have been in the thrall of that mindset. The sad thing is, that whole behavior set is still "me being better with money than in the past". Ten years ago, I would have packed my poo poo up, moved two states away, and prayed that my creditors gave up looking for me. Quoting in part to note the toxx. You are allowed a little bit of consumerism but you shouldn't be spending all of your pay. The accumulated debts indicate you've been spending more than you earn. If you want to head towards FI it is a different mindset.
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Apr 15, 2015 08:49
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myself for good behavior. My next paycheck hits on the 27th. If I don't return to this thread within 3 days of then with evidence of at least a $500 extra payment on my car, I will let this thread choose a big red title for me, and buy it myself, since obviously I'm not doing anything more responsible with my money.
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SiGmA_X posted:Agreed. We all (hopefully) know this, but it can be hard to implement. I'm finally catching up (graduated a year ago at 28), and it feels great to contribute 20~25% of gross to retirement vehicles, plus 10~20% to cash savings. I wish I started when I was 18! Savings > spending. A lot of us wish we'd started earlier. I remember hearing about the 10% of income savings things when I was a kid. I had to have a look back at what I'd been doing with my money all these years. About 10-15% of my income went to debt serving due to student loan and debt consolidation after gradating. I stuck to the 10-15% but mostly it went to debts, then starting a business and then saving for a house. At least I built up my house deposit on interest rates 7-9% unfortunately the rates dropped, inflation stayed high and house prices took off. Technically I was doing the right thing except for the lack of retirement savings (but where I live we didn't have any retirement savings benefits or accounts until about 7 years ago). The reason why I'm not better off now is down to the expensive computer parts I'd buy, full price games and drinking at bars. All great fun but I could have been a bit more economic about it all and saved 20%+.
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Apr 15, 2015 19:26
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Knyteguy posted:Ah, so this is what rationalizations look like from the other side. Yep. It makes you scratch your head as to the decision making process involved. I know taxi drivers that finance their cars from Toyota for 15%. The difference is it's their business and they're still making money despite the interest rate.
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Apr 18, 2015 22:46
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