This year as we were buying a house and fridge at the same time, we also bought my wife a new car. I can already hear you cringing, so let me explain.
The house and fridge were something we expected, the house didn't come with a fridge, and you need a place to keep shit cold. We financed the Fridge because it was on 0% interest, and I knew we could pay it off quickly (paid in full July 17th)
My wifes car, was not planned. It was a 2001 with 172k on it, no heat or AC or window tint. This all matters because we live in Texas. She had gone last year without AC and we were planning on making the car last until September or so... then the Headgasket was on it's way out. I checked her oil as I was about to change it, and it was a mix of water and oil, and so was her coolant. It wouldn't last another texas summer.
Essentially, our credit was in the 640 range when we bought the car, and the recent credit hits hadn't helped things. We got financed at 9k @7.25%, 60 months, 215$ payment.
We already paid Conns off, and we are taking the 120$/mo we were paying to that, and rolling it into the rings, which should be paid off by September. By roughly July of next year, we should have most if not all of our CC's paid off, and therefore (hopefully) have a much better score, and much better ability to pay the loan. Is it worth getting the car refinanced this time next year? Or should we wait longer?
Also, I've considered trying to balance transfer some of our cards, but at our current credit score it just isn't feasible
Net every two weeks income:
Myself: 1419.31
Wife: 982.20
Total: 4803.02/mo
We are both salary so this shouldn't change. I contribute 8% to my 401k, my wife doesn't contribute at all yet. We will probably start an IRA for her once we finish all our debt except the house. We don't have kids, and aren't trying/expecting/wanting any soon if at all.
Our debt (what is left):
Mortgage - 149,000 (4.5%) @ 1211.10/mo
Her car loan - 9,000 (7.25%) @ 215/mo
Her school loans - 7,123 (6.8%) @102.91
Kays (wedding rings) - 488.55 (unsure) @100.00
Conns (Refrigerator) - 655.15 (14.99) @ 52.48 (already paid in full now)
Chase CC (revolving 400, gets paid in full every month) - 400.00 @ 22.99 (none of it ever accrues as it is PiF)
My Cap1 - 1848.70 (19.99) @ 53.00
Her Cap1 - 2432.76 (24.99) @ 74.00
Internet (no cable) - 50.00/mo
Electric - ~180/mo
Water/Gas- 80/mo
Groceries- 600/mo
Car Insurance - 110/mo
Cell phones - 60/mo
Submitted August 06, 2015 at 08:33AM by throwaway50912 http://ift.tt/1eUkUM6 personalfinance
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