Is anyone here debt free?

[Kroze]

I bring home about $1200/biweekly after taxes, health insurance, 8% retirement, unuion dues, etc...


I want to be debt free and want someones input. My mortgage is only $500/m and I have a $200/month car payment.

I reAlly want to be debt free. So is it better for me to sell/ keep the car and start paying more on the mortgage?

My mortgage balance is only
$38k btw and I put an extra 200 every month for principle.

The thing is I really like the car and don't wan to get rid of it 2009 Honda fit sport.

 

[Jadow]

I'd shift the extra 200 on the mortgage payment to the car asap.

WTF how did my post become the top?

 

[IronWing]

What are the interest rates on the mortgage and car loan?

 

[Demo24]

Pay off the car, then pay off the house. Unless you just don't need the car, then sell it.

 

[cheezy321]

I would up the payment on the car. If you can survive putting $500 towards the car each month, you will pay it off quickly. Once you pay off the car, continue making the same payment towards the house. This will make it so you are paying the same amount out of each paycheck which will help you balance your budget a lot easier.

1st paycheck = pay off mortgage
2nd paycheck = pay off car

 

[Kroze]

Oh I forgot to mention I have enough money in my emergency fund account to pay the car off. I just don't want to clear my emergency account in one shot

 

[Kroze]

Originally posted by: ironwing
What are the interest rates on the mortgage and car loan?

Mortgage is 5.8125
And car is like 6.5

 

[Vette73]

Only "real" debt I have is student loan (being paid off by Fed Gov as I work) and the home loan.

Cars we pay cash and pay off CC's weekly as we use.

 

[zerocool84]

Woah woah woah how do you only have a $500 mortgage??? That's the real question.

 

[summit]

pay off car with payments as much as you can. in this economy it is important to maintain a rainy-day fund. put the extra 200 toward the car, and once it is paid off. use carpayment + 200 and apply that towards mortgage. = win

 

[Pliablemoose]

You mentioned selling the car... Can you get along without one or are you trading down?

 

[Kroze]

Originally posted by: zerocool84
Woah woah woah how do you only have a $500 mortgage??? That's the real question.

50k downpayment ok a 95k loan.

So I only borrowed 45k

 

[xanis]

The only debt I have is a federal student loan. Everything else I pay for in cash.

 

[Kroze]

Originally posted by: Pliablemoose
You mentioned selling the car... Can you get along without one or are you trading down?

I'll be trading down. The reason why I bought it in the first place is I need something reliable, great on gas, and have a pot of room to carry stuff. And something that I don't have to worry about breaking down for the next ten years. I really don't want to sell it.

 

[Jadow]

Originally posted by: Kroze

Originally posted by: Pliablemoose
You mentioned selling the car... Can you get along without one or are you trading down?

I'll be trading down. The reason why I bought it in the first place is I need something reliable, great on gas, and have a pot of room to carry stuff. And something that I don't have to worry about breaking down for the next ten years. I really don't want to sell it.

Just stick with the car, you'll get reamed trading it down. You paid 50k down on a 95k house, go ahead and stay with the car, you're doing fine.

 

[IEC]

The car lost a lot of value once you drove it off the dealer's lot. No point trying to sell it, just shift the extra $200 on the mortgage to the car.

I wish my rent was $500...

 

[Kroze]

So just stay the same? $700 monthly mortgage (500 + 200 principle)
And 200/month car payment for 5 years.

 

[JS80]

Am I in 1980?

 

[Kroze]

It is going to be forever for me to be debt free at this rate. This sucks

 

[Kroze]

Originally posted by: JS80
Am I in 1980?

LOL why you say that

 

[InflatableBuddha]

Originally posted by: Kroze

Originally posted by: JS80
Am I in 1980?

LOL why you say that

Because 95k where I live (and I assume for many others here) would buy a damp cardboard box with a newspaper awning, 1.5 hours outside of downtown.

 

[Kroze]

95k in Midwest will buy you a very nice house with 2 car garage.

 

[JJChicken]

Originally posted by: Kroze
95k in Midwest will buy you a very nice house with 2 car garage.

As others have said,


* keep your rainy-day funds in case the shit hits the fan
* pay the minimum towards your house and try and pay off your car because its costing you more in interest
* keep the car and don't downgrade because over the long run it will be cheaper (lower gas costs/less maintainence) - BTW I have a Honda Fit 09 as well - GREAT CAR!

Look all of us are going to be in debt cause of our mortgage - that's okay because at the end of the day you will have a house fully paid off - thats the biggest investment we make in our lives. Just pay off the car and you're good to go :thumbsup:

 

[JJChicken]

Originally posted by: Kroze
It is going to be forever for me to be debt free at this rate. This sucks

Cheer up, it looks like you've got a steady head on your shoulders and don't have too much debt How old are you btw?

 

[bctbct]

open a HELOC for your rainy day fund...pay off the car.