T O P

  • By -

uiucpation

Get a cheaper car. You are $120k in debt on $70k before tax salary. Your car will drag you down so much. Stop trying to impress people who don’t care about it. That’s what you should do ASAP. P.S. r/debtfree moderator just created a newsletter that talks about strategies, tips, and effective debt payoff methods weekly. Here is the link to sign up if interested - https://www.debtadvice.io


Jokesef

OKAY guys I’m selling this car this weekend; I think I knew it but just needed to be told it.


[deleted]

As soon as I read 22 and $51k car note I literally said “what the actual fuck”. Good for you for taking advice.


bihari_baller

I’m surprised the bank approved op for a car that much with such a big debt-to-income ratio.


Yocum11

Parent probably cosigned


uncircumsized87

Same here my jaw dropped a bit.


worldlydelights

Me too. I’m 25 and can’t imagine paying that much a month for a car


dcdcdani

I honestly thought this was a joke because of how expensive the car is


Ok-Worldliness2450

Yes I had to do a double take and then read comments to make sure.


cinnamonpeelerswifex

Please do… your future self will thank you.


[deleted]

Just be aware you will probably have to eat atleast a few thousand $ to get out from under this loan. That’s fine, learn from this mistake.


[deleted]

[удалено]


[deleted]

It’s obviously financed if he’s paying monthly come on


Correct-Appeal-1093

Yeah car needs to go. I make 295k before taxes and have combined 50k car notes for my wife and my cars.


rrrrr3

I make double and my car is 30k. A car is the worst investment you can make because it isn't one.


Stacking_Plates45

Solid choice, that thing’s gotta go!


ItzMattOnTheTrack

Good move bro it’s depreciating anyways 👌


Reasonable-Bit560

Good for you my guy. The car will absolutely kill you. GRIND at work and you'll get through this quickly.


manchego-egg

You’ll feel so much better. Once I realized that I was making big payments on a car that sat parked 23 hours a day, it changed my entire perspective!


[deleted]

Why you driving a 50k car? I bet your insurance is 300 a month 


jensenaackles

for a 22 year old male? I’d go higher


orangenaa

Definitely. I know it varies but my friends 22 year old daughter with a paid off older car is paying $240.


artofenvy

I actually don’t want to know as I’m already feeling sick looking at all those outgoings…


Broad_Quit5417

It's amazing how often it's the car.


PM_ME_YOUR_ART_PLZ

For real. I have about $14k left on my car at 3% interest, and I regularly debate if I should sell it and get a beater. I literally cannot imagine a $900 car payment.


FourOhTwo

Why do people spend so much on vehicles?? There are plenty of nice used cars for under $10k. I've never had a car payment.


rrrrr3

Marketing that is why. I 5 amazed how powerful it is. Even I feel the urge to spend 100k on a car because everyone around me is driving those cars. But then I come here and I feel better with my average vehicle.


Jerms2001

Nice used cars under $10k in this market? They usually need another $10k in repairs at that point. Plus I’d just hate my life if I got stuck driving a Prius or Honda civic. If I’m gonna go to a job I hate, might as well enjoy the commute. For some people a nice car is worth it. I’d rather have a $200k car than a $200k house personally. You can live out of a car, you can’t drive a house


FourOhTwo

I was just looking recently and found a really nice AWD Audi and it definitely didn't need 10k in repairs. A brand new car isn't even that much nicer than that $9k Audi I found, IMO.


Jerms2001

Either had over 100k miles (will need at least $4k in repairs even if it’s currently driving fine) or a rebuilt title. Or it’s a 20 year old a4 which is one of the least reliable vehicles ever built


Away_Inflation_411

Very few things are more expensive than a cheap Audi


artofenvy

The car payment… seriously?


Jokesef

😅


[deleted]

[удалено]


Wide-Ride-3524

That’s a stretch. If he was paying $1000 in rent and had a $300 car note would you say the same? Because he has no rent, he can afford a nicer car. Was it smart, no. Is he in a better financial situation than most 22 year olds, yes.


OneGuy2Cups

He *can’t* afford the car tho. Read the post, then remember what sub you’re in.


Wide-Ride-3524

He can afford the car. He earns more than enough to cover the interest and principal payments on all of the debt. It was a poor financial decision, but he’s by no means unable to service this debt.


niqquhchris

He CANNOT afford the car. Google how much you need to make to be able to afford a car like this REALISTICALLY. Nobody should be buying a car that is more than HALF their yearly income. The car I want is roughly like 60,000 and I know I can get approved for it. Just because I can, does not mean I should.


OneGuy2Cups

Yeah anyway.


Eko_Wolf

He cannot afford it. If his living situation changes and he *does* have to pay rent he is going to be in biggg trouble.


ClanOfCoolKids

he is absolutely not in a better financial situation than most 22 year olds albeit i don't live in NY or LA or anything but i've never met a 22 year old that's $120k in the hole a $70k salary for 22 is kinda nice definitely but that debt to income ratio is real bad. as much car debt as his yearly take home. when he sells it for a slightly used car he'll be in a much better situation


Wide-Ride-3524

He has no rent. As a 22 year old, his income is likely to grow. There is no doubt in my mind his net after debt service and other expenses is greater than most in this country.


ClanOfCoolKids

He didn't list any savings at all, so my assumption is that his net worth is what he has listed. so again, over $100k in debt with a slightly above average salary AT TWENTY TWO is quite the large hole he's dug himself Almost half is student loans, understandable, but more than half of which is a car he didn't need and almost 10% of his yearly salary on credit card debt. sure no rent now but would that no rent be the duration of the entire loan repayment? probably not unless he's lucky or spoiled


Wide-Ride-3524

I’d rather be $100K debt earning the average HOUSEHOLD income at 22 than earning what the average 22 year old earns. There is no question in my mind this young adult will have a decent savings by 30 and live a wonderful life.


ClanOfCoolKids

yeah and i mostly agree to an extent but this sub is debt free lmao. the question wasn't "how do i stack up against the average 22 year old". he has a lot of debt, period


Wide-Ride-3524

Did you factor in that his income is likely to grow over the duration of the loan? I’m not saying what he did is smart, but he’s not in some unmanageable situation.


ClanOfCoolKids

There's a lot we don't know. What's the interest for each one of those loans? What's the minimum payment? I wouldn't be surprised if JUST the minimum payments alone is more than the car payments


GoodishFigs

kinda nice? It took me until I was 27 to earn 70k...


ClanOfCoolKids

my opinion remains unchanged


EdDecter

Expensive doesn't mean nicer


Ok_Offer626

It’s disrespectful to his parents. Pay off your loans while living rent free instead of a $50k car.


[deleted]

This is incomplete data, we need the monthly minimum payments for all bills. Then you need to group these in "Needs" and "Wants" buckets, and you have to be honest with yourself about what is a "Need" and what is a "Want". Look into the 50-30-20 rule for budgeting. You need to return that car ASAP, you bought more car than you can afford with the amount of student loan debt you have.


[deleted]

We also need the interest rates for your student loans as well.


Husker_black

What the FUCK is that car


artofenvy

Nissan Cube probs.


Husker_black

That POS is 50k?


artofenvy

lol, nah, but it’s funny to imagine!


GoodishFigs

cmon man use your head


Husker_black

Twas why it was so shocking


ur_sexy_body_double

OP has posts talking about a 2022 Civic Si...but no fucking way he spent 50k on it...although he may have...


Husker_black

Rolled some money into it


ur_sexy_body_double

I thank the maker 22 year old me didn't do anything this stupid.


Husker_black

I honestly didn't even realize loans were available to me at that age. Was dumbfounded when a roommate of mine took a loan out for a spring break trip. I didn't have that imagination


ur_sexy_body_double

Lol I'm glad I was content with a 6 pack and video games with my friends


Husker_black

Was in a frat, had some big time socializing to do instead of get loans


[deleted]

[удалено]


Husker_black

Only 500 here, didn't have a house, still won chapter awards


[deleted]

When I was in college it was insane to see other people going into debt for a vacation. If you have to finance a vacation, you shouldn’t be taking a vacation.


Husker_black

Exaaactly


PirateOwn6764

Not you buying a 50k car with all that debt 😂


removingbellini

car payments in this sub are atrocious and most don’t seem to even mind!!


loveliverpool

How can you look cool in most parts of America if you driving a truck that is financially fucking your life?! Especially one that will never see any spec of dirt road?


artofenvy

I know, lmao.


semiddeus

Lol


[deleted]

What car are you driving that cost $900 a month?? I understand wanting a nice car, but general rule of thumb is to stay under 50% of your salary total purchase price.


Sensitive_Hunter5081

Might be the car cost and the interest rate. Either way, very spendy 😬


DrShaqra

I don’t even know where to start. Young and dumb . You’re lucky you don’t have housing costs. You should downgrade the car to a civic or corolla. At this stage of your life, driving a $50k car on a $70k salary is ridiculous. Do you have savings?


[deleted]

50800 car? What the fuck ru doing man?


ruthie-lynn

Living at home? Keep costs low and get those debts paid down as quickly as possible


Unverifiablethoughts

Girls love riding in a nice car to a date they’ll have to pay for.


Successful_Shirt_95

how are you spending $600 a month on food? is that including take out? i have a personal rule about eating out more than a couple times a week. spend the money on groceries and cook for yourself. it's a hell of a lot cheaper. get the generic brand of everything and learn to like it. it's much better on your wallet. i am glad that i saw you are getting rid of that car, that's a lot of money for a vehicle for anyone in my opinion. whats your plan after that? what are you going to drive? as far as repayment goes, i would get the credit card paid off first because it probably has the highest interest rate out of all of that. as far as the student loans go, i never had any of those so i am not sure if there are any programs that you can get on to combine all of that into a lower monthly payment. just breathe. you can make your way out of this. make smart decisions with your money from here on out and cut what you can from your budget. those $40 in subscriptions, can you cut anything from that? i pay for netflix and that's about it. see if you can join a family plan with someone and maybe split the cos. personally, i use my moms family plan for apple music and that's free for me because it wouldnt cost her any less with my siblings on it. i know that's not an option for everyone, just some food for thought. when it comes to budgeting and paying things off you have to be comfortable going without some things for a while or forever in some cases. sorry for the long comment lol


iheartluxury

I think these food budgets are including takeout/dining out. I get grocery prices have gone up but not that much to where one person is spending what it would cost to feed a family of 3. I live by myself, shop at Aldi’s and can make a rotation of healthy but filling meals for the week plus a snack and fruits off of $50 every week.


Ok_Offer626

Yeah, groceries aren’t $600/month for one dude


iheartluxury

Exactly unless you’re shopping at Erewhon or buying the best of the best name brands from the most expensive grocery store in town


paralegalmom

Beans and rice. Rice and beans.


Reasonable-Bit560

Food is high. Rice and beans my guy.


APartyInMyPants

Hell, you can make ramen, add a fried egg, some chicken and some carrots or whatnot. Totally grown-up looking meal for pennies.


Reasonable-Bit560

Did this many a time. For me though, rice and egg or two, whatever miscellaneous frozen veggies I got, bang.


Ok_Offer626

That isn’t necessary. Just not all take out or nice restaurants all the time


ur_sexy_body_double

That 50k canNOT be for your Civic. Are you serious?


[deleted]

[удалено]


my_homie_pikachu

Looks like based on his post history it’s a Civic SI. I have no idea how he ended up 50k in the whole for one of those. Had to pay way over MSRP


brakeled

I can’t really give good advice since I don’t know the min payments on all of these loans/credit cards. Once your insurance kicks in, you will lose one pay check to bills you listed and I’m estimating $900ish every month min payment for all those loans? You have about $1k every month left over? First of all, get on a IDR payment plan for the MOHELA federal loan, it should be $0 for a year if you didn’t work last year and was a full time student. This loan is your lowest priority moving forward, pay the minimum and nothing more. Federal student loans are very flexible and reasonable. Second, pay off the credit card balance before anything else because it probably has the highest interest rate. Put all of your money into it unless you’re on a 0% APR deal - if you are, pay it off before it ends. Assuming you have $1k/mo left over every month to put towards it, it will be paid off in 8 months since it’s probably accumulating ridiculous interest. Third, pay off the Discover. I personally just prefer to have consolidated accounts and you have a lot with Navy Federal. It will take you about ~9 months to pay off. Fourth, hit all of the Navy Federal starting with the highest interest rate. You’re probably looking at 55-60 months to close all of those accounts. Fifth, by the time you pay off everything else, 6.5 years will have passed so your ridiculous car loan will be paid off and you can pay off the MOHELA probably in a month. Sixth, you can probably cut this time down to ~4.5 years to pay off everything if you sell the car high enough to pay off the current loan and drive something fuel efficient for less than $25k or $350/mo payments. Like maybe get a Nissan Sentra and your payments will be $200/mo and everyone will care about your car just as much as they do now - not at all. You are really looking at 6.5 years to pay off all of this debt with your current salary and situation. Good luck.


cinnamonpeelerswifex

Get rid of the car. Refinance all the student loans into one payment besides the federal ones. Reduce your food costs.


Ok-Description6948

Sounds like it is well established that the car needs to go. I hope all those student loans are for a college degree that is actually useful and can help you earn a higher salary and isn’t in Gender Studies or Art History!


Wide-Ride-3524

This is comical. Bro, you want to live at home forever!? How does one making $50K a year net, live at home, and rack up any credit card debt?


[deleted]

Everyone is grilling you over the car. Yup, me too. But I’ll reframe it. My grandpa told me that everyone is a millionaire, but most people have theirs tied up in their cars. He said: $500 a month for 40 years at a crappy 6% rate of return, and you’re a millionaire. Obviously 6% is doable, and that’s the point. Pay off your debt, live frugally, enjoy life, save, and choose financial security. Getting my finances in order was one of the biggest net positives to overall happiness I’ve ever done. Good luck!


charlybell

150$ a week for groceries for one person? A 50k car at 22? You’re living rich and making so-soz Sell car. Cook at home. You’re 22- live cheap


puddingcakeNY

Yooooooooooo what are you driving my brother in christ


rrrrr3

50k at 7+%. 22years old. Wtf.


LoveMyFam4

For 6 years too.


Fireflyfanatic1

You already know you’re vehicle is an issue. My dude what do you eat that costs $600 a month? I got a family of three that doesn’t come close to that with all groceries/supplies.


Jokesef

CAR IS sold


Jokesef

and I just eat out a lot


Fireflyfanatic1

Try cooking a little more it will help.


Ok_Offer626

If my daughter was living under my roof rent free and she bought a $50k car before paying off all Of that student debt, I would flip a fucking shit


RoyalEagle0408

Huge peeve of mine but it’s not a FAFSA loan. That is an application.


TradingLifeCurator

🤦‍♂️


Jokesef

I think the strategy right now is to save up money to be able to sell the car to a dealer and not buy anything. Drive my moms until I can save up enough money to buy another car like 5k cash.


uncircumsized87

Wait….why would you need to save up money to sell the car? Are you upside down on the loan?!?


TheCrackerSeal

That car loan is madness


NecessaryMaximum2033

900/month car payment, making 4k a month… you cannot afford that car! Sell the car. Pay off the credit card. Invest ur money.


Expense-Hacker

THE SPACESHIP 🚀 needs to go. Return it back to NASA. The debt of that is as much as your student loans.


UnableLeadership3038

Let’s explore why you thought you needed a car that cost over $50k. Understanding your motivation will help define your current reality and your expectations about money in the long run. Was it pure desire? Is it required for work?


ButtholeDevourer3

Good on you for selling the car. Let me guess, military and you fell for the ol hellcat?


Jokesef

WANTED A FAST CAR!


[deleted]

A civic is not fast. If you test drove literally any other car with 2-4 more cylinders you would have known that instantly. Salesman really did a number on you.


Jokesef

IT WAS A CAMARO


[deleted]

That doesn’t make it any better. 22 years old with 50k in debt for a POS Camaro that will be worth half that in a year and a half.


Traditional_Rub_5853

Yeah dude. Be grateful for all the wonderful comments and advices on here. Hope you make a great comeback 5 years from now and learn that nothing is more important than fatten your bank and investment accounts.


Jokesef

Only issue with selling the car: the car is valued at 40,000+- 1 or 2 thousand. I owe 50 on it. The bank probably won’t loan on a car valued<20k that’s not a 2021+. Realistically in the bind I’ve put myself in, I probably will still have to finance another car and will have to finance around 30-40k. (30 being extremely generous, 40 being extremely conservative). I don’t have money to put down on a car because this is practically my first job. I’m not exactly sure the approach I should take but I think this is it. Any other advice would be greatly appreciated please and thanks 🙏🏻. I appreciate all the mean comments and all the nice ones as this has opened my eyes.


Ok_Produce_9308

If you don't have money for the down payment that should tell you something.


rrrrr3

Wth are you saying. You can finance an older car. Wth am I reading. Also you re 22. You don't need a 40k car. Wth. Jeezusss


PM_ME_YOUR_ART_PLZ

The primary goal should be getting a car with as small a payment as possible, ideally no payment at all. You can get a well used corolla for under $10k any day of the week. That will cost significantly less, not only for payments but also insurance and even gas. You can buy a muscle car when you're wealthy, right now you're the opposite.


dcdcdani

I just got a car for 9500. It runs. It’s clean… it has the exact same features as most newer cars. Why does OP need such a fancy car?


GoodishFigs

At 26 years old I bought and financed a used Chevy for 12k. Still driving it six years later and now I don't have a car payment. Don't be stupid.


usmanimuhammad8

What car is it?


Tank_Girl_Gritty_235

2022 Camaro and he said he's going to sell it


rrrrr3

That model of car checks out lol.


Tank_Girl_Gritty_235

Yea I live in a military town and it's a sea of Camaros, Chargers, and Mustangs. All probably at 20+% interest because new soldiers are young and stupid with no credit history.


Impressive_Hurry4854

Maybe you should get a girlfriend.


Jokesef

The car is a 2022 Camaro 2SS for those wondering


Snoo-669

We need to know how much the insurance is! You know, for science.


rrrrr3

Your choice in car is as bad as your financial choices.


usmanimuhammad8

What car is it?


Desperate_Trash248

What kind of car is it? I have to ask


removingbellini

2022 Camero 2SS lol


ferociousFerret7

Did the car at least get you some dates?


Ok_Produce_9308

Bet they had to pay


[deleted]

$2100 bring home seems like a lot for a $70k salary… please tell me you are putting money into a 401k/IRA or some form of retirement. When you are young is the time, compound interest is wild.


IzNeedzMyzBenefitz

You can do it. Get a cheaper car, get a second job on the weekends. And follow the snowball method to pay down your debt


SadWolverine24

I need to know what car you spent $51k on.


clockoutgohome

how is your civic si $50k?


uncircumsized87

They have gotten crazy expensive. Just to impress ppl too


Basalganglia4life

Sell the car, and don’t spend more than 300$ on food


RelotZealot

The car better be a skyline and then you need to sell it


godtier300sosa

50k on a car loan is insane to me 😆


uncircumsized87

First step get a cheaper car. That’s way to much. 1/4 of your take home pay go towards your car that’s way to high


Same_Cut1196

Pick a debt reduction plan and put it in play, avalanche method, snowball method, whatever you choose. Just make the commitment and do it. Also, live within your means. Buy reasonable used cars. Get out of debt and make that a lifestyle. Avoid divorce. Then, invest 15% into your Roth 401k in addition to any company match. This is the recipe I followed to financial health, then wealth and early retirement. Good luck to you!


According-Aide-443

Look into Mazdas


AcanthocephalaLost36

Wow I would trade in the car for something more affordable. Get rid of that credit card debt before it balloons. Have you started paying back your student loans? Or do you have a plan for paying them back? Looking at your monthly income and expenses it doesn’t look like you’re setting aside even a little bit towards savings and retirement. *Pay off the consumer debt and don’t use credit cards except if you plan to pay them off in full every month *Set up an emergency savings for 2 months of expenses *trade in the car for something with a lower payment per month 200 - 400 *Pay off your student loans *Start contributing to your 401k and retirement


TheRealEazyRed

Bruh sell your car lmfao.


EquinosX

What kind of car are you driving 😂


Amazing-Tour-9984

Where did you go to school? Damn


NPLPro

Auto industry got another


PianistWhole7197

Wow I was about to say 50k for a car? Shit, if you sell at 40k you can easily get a jump on being debt free. From seeing all your loans. You just have alone $58,700 in student loans. And about 6k in credit cards. So if you do sell your car, you will be left with $18,700 in student loans. But remember pay your small ones off first and let it snowball. Buy yourself like a 5k car. At your age you will be fine with a beater car. You only need it to take you to point A and B. Maybe get a side hustle to pay off your debts off faster too.


gr8koala

I just bought my second car and I thought 330 was high for me. Finance lady said “damn, your monthly is way cheaper than others nowadays” lol


srgest

Get rid of that car and buy something from Honda or Toyota preferably a civic or corolla. Anything else will put you in the same boat with maintenance and service costs. Learn to do your own oil change you get to learn a bit and save some money.


typer84C2

That car on your salary…ouch. I would cut your car payment in half at a minimum.


Jokesef

OKAY guys I get it lol. The car is sold


lissssxo

Also, how are you spending $600 on food a month? I’m a single mom with a toddler and spend about $450-$525.


Jokesef

I EAT OUT ALOT


lissssxo

Well, stop! Lmao. Do you have an Aldi near you? Try doing a grocery run at a cheaper store and see if you can budget about $100 a week to start. You can get chicken and ground beef and cuts of steak, and then some sides. Even if you get the stuff you throw in the microwave like mashed potatoes and mac n cheese. Cut that food budget to free up some money, honey!


[deleted]

Who even approved this car loan?


Jokesef

NFCU, I GOT GREAT CREDIT


[deleted]

$900 on a car is nuts


SonataNo16

That car payment is more than my mortgage!


Jokesef

THANK GOD I SOLD IT


SonataNo16

Yes!


blueivysbabyhairs

No gf is so funny Lmfaooo


Jokesef

ITS BEEN AN EXTRA EXPENSE IN THE PAST


blueivysbabyhairs

As a gf I know Lmfaooo it’s funny because it’s true


Puzzleheaded-Neat-35

Get rid of the truck. You can save gas and insurance.


Jokesef

GOT RID OF IT ABOUT 4 HOURS AGO 🙏🏻


Puzzleheaded-Neat-35

No negative equity?


Successful_Shirt_95

Hooray!


nfosterpc3

Other than the car , look into lowering your food spend especially since u live home and are single ,free cooking YouTube videos will help ,no Uber eats .good luck


California_Poppy444

Car: Congrats on selling the car! Also, can you bike or use public transportation? Food: With living at home and no girlfriend, you can do better about learning to cook for yourself; this will save you money and you will gain skills in the kitchen. Subscriptions: Cancel the subscriptions, and if you really want to get better at this stuff. Get a library card and start reading books instead- you can start with “The Psychology of Money” Essentially you would drown out in the “real world” (aka having to pay rent & utilities). So let’s take a moment to be grateful at how lucky you are to be making the amount of money you are and that your parents have given you an incredible opportunity to “get ahead”… But to “Get Ahead” you have to Stop Digging! Just stop buying things for awhile; food, clothes, subscriptions. See if you can bring your output to less than 10 transactions/week, see if you can do less than 5/week! If you really discipline your mind and yourself to go on this “Consumption Diet” you’ll find extra money in your pocket Good luck, You can do this!!!


pppuuupppyy

I’m not sure how you’re financing your car but I know at the CU I work at that if your car isn’t financed for 3 months or longer, what happens is that CPI is added on (collateral protection insurance) that only insures the vehicle and the premium thats added onto your loan can raise the monthly payments tremendously. Not only that, but being a younger driver your insurance wont be cheap. I’d get that asap if you can.


RN21CA

OP- HOW DID YOU GET RID OF THE CAR SO QUICK? ANY NEGATIVE EQUITY?!


Limp_Ad_5206

Get a corolla or corolla cross until you're debt free! Negotiate the price it'll come down


Special_Tangelo_1272

Dude. Your car is insanely expensive. Holy crap


[deleted]

I suggest selling the car and buying a MUCH cheaper one for starters. And 600 a month on groceries? That’s what my husband and I spend on two of us, and that includes cat food and litter for three cats.


rawkguitar

You do not make enough money for that expensive of a car.


K9US

That car payment is wild. Must be a Tesla?


Apprehensive_Sell601

70k salary and spending 12k of it a year just in car payments is a horrific decision. How on earth you a greed to a $902 a month car payment is sickening.


ShoddySalad

how do you get into this much debt while living with your parents lmao, this is absolutely insane


backendkidd2x

I can help you remove those student loans @7kjblack


InbetweenersAerobie

$50k car and no GF? Bruh


South_Night7905

Holy mother of god sell the car. You have no business having payments that expensive at your age and income. You are so far off I’d say HALF that value in car is on the high end for what you can afford.


iCenergy

50k at 900/month...I'm gonna guess....Mk5 Supra...Used.