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Advise on payoffs

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BIGLEW

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AKA: BIG PRETTY - BDR1
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I am a complete idiot with money. There, I said it. I think I have a plan but want to run it through this forum.

I am about to get a settlement maybe next month and I have some debt I would like to take care of with it. Last time I spoke with my attorney, he thinks I will walk away with about $20k. That more money than I have ever been given at one time, and I'd like to be as smart as possible with it.

I currently have two personal loans out and also have a car loan. One loan is a personal loan we used to get my step son a car, the second is a personal loan I used to renovate the house. Like I said, I am stupid with money.

The home renovation loan still has a $14k balance and I still have 50 payments left. The interest rate is 15.24% and the APR is 18.07% and the monthly payment is $381.47.

The loan for my step son's car still has a $4k balance and I still have 31 payments left. The interest rate is 23.05% and the APR is 27.71% and the monthly payment is $174.32. My step son makes that payment monthly.

My car loan still has a $10k balance and I still have 35 payments left. The interest rate is 10.64% and the monthly payment is $364.98.

Here is what I am thinking; take the settlement and pay off the two personal loans for the home renovation and my step son's car. But I am still going to have my step son continue to make the payments and put that money into a savings account he can have to take with him when he goes to college.

But I am also thinking maybe pay off my car loan instead of the home renovation loan so I can have it free and clear, and continue paying the renovation loan payment but double up on it to pay it off quicker. I think that might be the way to go in case I were to lose my job or get hurt and not be able to work, I would at least still have transportation.

I am completely embarrassed about my past decisions, but thought complete disclosure would help any of you financial wizards give me some solid advise. My main desire with this money is to pay off this debt as smartly as I can. What do you guys think?
 
Set aside $1k in a savings account that you don’t touch, for your starter emergency fund.

Pay off HELOC & put the rest toward your car, & stop co-signing loans. If the bank thought the your step son would pay the loan, they wouldn’t need you to co-sign.

Soak up all the Dave Ramsey that you can:

https://www.youtube.com/c/TheDaveRamseyShow
 
Pay off the highest interest rate loans first. It is like get that rate of return on an investment. 23.05% is robbery. Then the rest.
Save what is left if any in an IRA.
And the hardest part is don’t borrow money again except for a mortgage. The rest save up and/ or do without.
After that a Glock on ODT. What an investment.
 
This is very simple. Pay the highest interest loans off first and don’t worry about saving any of the cash due to extremely high interest you are paying on these loans. Consider talking to a credit union to refi you car loan. Best of luck to you!

I have thought about that, but when my wife rear ended someone, they had to straighten out the radiator mounts and entered it as a frame pull on the car history report. So now, I am basically stuck with that loan as it sits as no one wants to touch it cause it comes back to only having a $2k value.
 
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