'Personal' Loan with bad credit?

[nick1985]

You paid 21k for Chevy Malibu?

 

[DigitalCancer]

DigitalCancer, I read through this thread a couple of times before I decided to post. I do not mean to attack you or insult you in any way, I just want to be honest. I do not know you, but in real life I bet you're a nice guy, just as one member has already posted.

What I see you doing is living at the edge of your means, instead of inside your means.

Personally, what I would do is keep the car until your no longer underwater, and then buy a car that you can afford to just about pay cash for. Whether that car or truck cost $3,000, or even $4,000, save your money and finance as little as possible.

I have made lots of post in this forum about living without credit, and your situation is one of the reasons why I live well within my means. Forget the new cars, forget buying the best of whatever, save your money and pay cash.

I totally agree and that's what I've come to realize over the past few months now that I've been thinking about all of this. What's really brought on my thinking is that my aunt/uncle who raised me are starting to struggle. My aunt was a nurse forever and she just quit working about 3yrs ago now and is drawing disability. My uncle, he's a factory worker and is getting ready to retire next year. My aunt, not to speak ill of her, but she's made bad decisions by helping her family out WAYY to much and then letting them walk all over her. She's made no less than $30k/yr in her days and her last few jobs (she worked it about 10yrs) she made close to $70k/yr and she used every bit of it to help others in her family. My uncle has a 401k, so they're going to retire on roughly $32,000 and my aunts disability check which is $400-500/month. I should be able to help them out you know, I make decent money (not great, but I can't complain) and I just can't afford it most months. I hate it. Also, I don't want to end up like that when I'm retiring or can't work any longer. I'm in the same boat now where I have no retirement plan put together, I'm 27 and feel that I should have something put together already.
So...I'm going to start living well within my means, my wife will drive the Malibu, at least until we get it paid down to a reasonable amount to sell it off if we so choose to, but I don't want to get in over my head while I'm already trying to get rid of one car.

You paid 21k for Chevy Malibu?

Yes...unfortunately my wife did (before we were married) she was gyped...very nice car, but it was too much for it considering it's worth much less than that.

 

[FoBoT]

check with Louie down at the pool hall

 

[nick1985]

I totally agree and that's what I've come to realize over the past few months now that I've been thinking about all of this. What's really brought on my thinking is that my aunt/uncle who raised me are starting to struggle. My aunt was a nurse forever and she just quit working about 3yrs ago now and is drawing disability. My uncle, he's a factory worker and is getting ready to retire next year. My aunt, not to speak ill of her, but she's made bad decisions by helping her family out WAYY to much and then letting them walk all over her. She's made no less than $30k/yr in her days and her last few jobs (she worked it about 10yrs) she made close to $70k/yr and she used every bit of it to help others in her family. My uncle has a 401k, so they're going to retire on roughly $32,000 and my aunts disability check which is $400-500/month. I should be able to help them out you know, I make decent money (not great, but I can't complain) and I just can't afford it most months. I hate it. Also, I don't want to end up like that when I'm retiring or can't work any longer. I'm in the same boat now where I have no retirement plan put together, I'm 27 and feel that I should have something put together already.
So...I'm going to start living well within my means, my wife will drive the Malibu, at least until we get it paid down to a reasonable amount to sell it off if we so choose to, but I don't want to get in over my head while I'm already trying to get rid of one car.




Yes...unfortunately my wife did (before we were married) she was gyped...very nice car, but it was too much for it considering it's worth much less than that.

Yeah its a Chevy Malibu....for 21k. OUCH. I guess thats what happens when you let a woman shop for a car alone

 

[IceBergSLiM]

Question...kinda off topic...my wife has a 401k, can't we borrow against that as well? She only has like $3-4k in it I think, I have no idea how investments works as of yet since I've never had a 401 myself. I plan on investing my money in some RothIRA's once I get straightened out.

This isn't a bad idea. Especially if your plan allows you to continue to contribute while your paying back the loan. Essentially you are loaning to yourself at low interest 3-4%. The downfall is your missing out on any gains during the repayment period. However with the small amount you are borrowing the gains you are missing out on are trivial.

Withdrawal is generally a bad idea for all the reasons everyone else already stated.

 

[DigitalCancer]

This isn't a bad idea. Especially if your plan allows you to continue to contribute while your paying back the loan. Essentially you are loaning to yourself at low interest 3-4%. The downfall is your missing out on any gains during the repayment period. However with the small amount you are borrowing the gains you are missing out on are trivial.

Withdrawal is generally a bad idea for all the reasons everyone else already stated.

Yea, I'll have to look into it...I'm not sure it'll be worth it b/c I think my wife may only have about $6k, and you can only borrow 50% right? So, $3k would come out and get taxed correct? Leaving us actually getting about $2800 - whatever the fee's are to get the loan?

I guess if we get close to $3k, I'd only need to come up with $2k...might be doable and then just pay back the $3k loan quick as possible.

 

[gzervali2006]

Sounds like you know nothing about finances, and overspent. For me personally I don't buy something unless I can afford it.. which means I don't need a loan to cover it.


managed to save up a nice chunk of change 150k+ and a nice audi6 in the past few yrs and I'm only 26...

get your finances together brother cut down on spending and expenses.. even I'm moving into a place that is $600/month to cut down even more lol

 

[IceBergSLiM]

Yea, I'll have to look into it...I'm not sure it'll be worth it b/c I think my wife may only have about $6k, and you can only borrow 50% right? So, $3k would come out and get taxed correct? Leaving us actually getting about $2800 - whatever the fee's are to get the loan?

I guess if we get close to $3k, I'd only need to come up with $2k...might be doable and then just pay back the $3k loan quick as possible.

it is not taxed if its a loan. Taxed heavily if its a straight with drawal.

 

[IceBergSLiM]

Sounds like you know nothing about finances, and overspent. For me personally I don't buy something unless I can afford it.. which means I don't need a loan to cover it.


managed to save up a nice chunk of change 150k+ and a nice audi6 in the past few yrs and I'm only 26...

get your finances together brother cut down on spending and expenses.. even I'm moving into a place that is $600/month to cut down even more lol

you save 40k a year?

 

[DigitalCancer]

Sounds like you know nothing about finances, and overspent. For me personally I don't buy something unless I can afford it.. which means I don't need a loan to cover it.


managed to save up a nice chunk of change 150k+ and a nice audi6 in the past few yrs and I'm only 26...

get your finances together brother cut down on spending and expenses.. even I'm moving into a place that is $600/month to cut down even more lol

How much you do make a year though? ^_^

I agree that I do need to get my finances together though, I've just been being stupid and have made some mistakes that I've learned from especially recently.

Also, I assume you're not married? It seems a lot of our money goes into 'misc' as in, walgreens/walmart/etc. that's all un-planned spending. $10-15 here and there really adds up. =/

 

[jupiter57]

DC, you do whatever you need to do to survive.
Been there, done that.
A full 90%+ of ATOTers live with their parents, and most do not work, or work shit jobs, yet they are the first ones posting with financial (advice).
I have never seen so much BS in any one place in my life.

Outside the basement, we call them Pathological Liars. Sort of like the guys I used to work with who bragged about their house, savings, cars, boats, etc. but drove POS cars and always borrowing lunch money by Tuesday.

I feel (hope) I am beyond seeking financial advice, (No guarantee, hell, my Retirement account could go bankrupt, you never know!) but ATOT is the absolute LAST place I would seek it!

 

[DigitalCancer]

DC, you do whatever you need to do to survive.
Been there, done that.
A full 90%+ of ATOTers live with their parents, and most do not work, or work shit jobs, yet they are the first ones posting with financial (advice).
I have never seen so much BS in any one place in my life.

Outside the basement, we call them Pathological Liars. Sort of like the guys I used to work with who bragged about their house, savings, cars, boats, etc. but drove POS cars and always borrowing lunch money by Tuesday.

I feel (hope) I am beyond seeking financial advice, (No guarantee, hell, my Retirement account could go bankrupt, you never know!) but ATOT is the absolute LAST place I would seek it!

LMAO...well put.

I'm sure there's a lot of 'bad advice' floating around, you just have to sift through it a little to get the good stuff.

I've actually gotten some pretty decent advice from this forum over the years and most of the time it's worked out, but there's been a lot of bad advice that I've had to over-look as well.

There are a few good people on this forum that have IM'd me on this topic, a couple offering some sort of help and I deeply appreciate them for at least trying/offering something to me. I do not plan to take advantage of anyone, only looking to find a way out of the car but thus far I have not been successful in finding anything that will work out for me besides just continuing to pay on it and maybe getting a 2nd job in order to pay more on it to get it down to that $13k balance that I need to get rid of it.

 

[drebo]

I don't understand. You make $68k/yr living in Indianna and you can barely make ends meet splitting rent?

My wife and I make far, far less than that, living in California, living alone. I drive a 2006 Malibu I bought in 2007 (was a rental return) and she drives a 2009 Yaris we bought new 8 months before we were married. I did not cosign that loan and my wife had almost no credit...she still got 7.5% from the dealer. Once we were married, we refied to USAA and it dropped a lot more. My car's paid off next June, but I was never upside down on it.

I think you really need to look at where all that extra money is going. If my rent was only $490, I'd be saving $700+/mo without even looking at anything else. Two $400+/mo car payments is pretty excessive. Maybe try to refi with a different bank? One you already do business with? I just got a car loan offer from my bank for 3.2%. Could save you a pretty penny.

 

[DigitalCancer]

I don't understand. You make $68k/yr living in Indianna and you can barely make ends meet splitting rent?

My wife and I make far, far less than that, living in California, living alone. I drive a 2006 Malibu I bought in 2007 (was a rental return) and she drives a 2009 Yaris we bought new 8 months before we were married. I did not cosign that loan and my wife had almost no credit...she still got 7.5% from the dealer. Once we were married, we refied to USAA and it dropped a lot more. My car's paid off next June, but I was never upside down on it.

I think you really need to look at where all that extra money is going. If my rent was only $490, I'd be saving $700+/mo without even looking at anything else. Two $400+/mo car payments is pretty excessive. Maybe try to refi with a different bank? One you already do business with? I just got a car loan offer from my bank for 3.2%. Could save you a pretty penny.

Cost of living isn't that cheap around here where I live at for one. It's not terrible I guess but gas alone is $3.80-3.90 average where it's $3.60 most places.

Also, we just moved a month ago to this new arrangement...we were paying everything on our own previously ($800 rent, $100 utilities, $200 cable/internet, etc.) so that 'savings' hasn't quite kicked in yet...but I have been able to put back a few hundred in our savings account AND paid off our CC's (they were pretty small).

 

[nick1985]

Sorry, I still cant get over a 21K Malibu.

lol

 

[DigitalCancer]

Sorry, I still cant get over a 21K Malibu.

lol

Yea...the suggested value on it via KBB is $17k, so we're about $5k short on that one as well but, the wife loves it and it is a great car so we'll probably keep it and just drive it into the ground.

 

[Mermaidman]

Sorry, I still cant get over a 21K Malibu.

lol

You haven't been car-shopping recently. A new non-lux midsize car would run $19K - $30K depending on the options. Heck, even the compact Ford Focus can cost close to $30K!

 

[QueBert]

DC, you do whatever you need to do to survive.
Been there, done that.
A full 90%+ of ATOTers live with their parents, and most do not work, or work shit jobs, yet they are the first ones posting with financial (advice).
I have never seen so much BS in any one place in my life.

Outside the basement, we call them Pathological Liars. Sort of like the guys I used to work with who bragged about their house, savings, cars, boats, etc. but drove POS cars and always borrowing lunch money by Tuesday.

I feel (hope) I am beyond seeking financial advice, (No guarantee, hell, my Retirement account could go bankrupt, you never know!) but ATOT is the absolute LAST place I would seek it!

Wait so you're saying I shouldn't listen to and take advice from a 26 year old who's managed to save $150k+ and buy an Audi 6 over the course of a few years? That sounds totally reasonable if you ask me. He could be telling the truth, maybe he saved all that money by switching to Geico, you never know

 

[jupiter57]

Wait so you're saying I shouldn't listen to and take advice from a 26 year old who's managed to save $150k+ and buy an Audi 6 over the course of a few years? That sounds totally reasonable if you ask me. He could be telling the truth, maybe he saved all that money by switching to Geico, you never know

Uh, uh, yeah! That's the ticket!:biggrin:

 

[ss284]

You seem to be making enough to pay off everything. Stop buying so much crap and you will be fine.

 

[DigitalCancer]

Wait so you're saying I shouldn't listen to and take advice from a 26 year old who's managed to save $150k+ and buy an Audi 6 over the course of a few years? That sounds totally reasonable if you ask me. He could be telling the truth, maybe he saved all that money by switching to Geico, you never know

Yea...apparently you're making a ton more money than I...I can't put back $50,000/yr into savings. If I could, I don't think I'd be having an issue managing money right now?

 

[ponyo]

If you called Dave Ramsey Show he would call you stupid and tell you to sell everything and get a second or even third job. You didn't get into this mess in one day. It's not going to get solved in one day. Forget the idea of a loan and start working your asses off. Quit being lazy.

 

[DigitalCancer]

If you called Dave Ramsey Show he would call you stupid and tell you to sell everything and get a second or even third job. You didn't get into this mess in one day. It's not going to get solved in one day. Forget the idea of a loan and start working your asses off. Quit being lazy.

I know this already.

So tell me...how does one sell off a car that is upside down?? I still can't wrap my head around that one. I listen to his show quite a bit and have heard him tell everyone to sell their $30k car that they're making payments on (most people are going to owe more than the car's worth...it's what happens when you buy new). If they're in debt even with good credit they won't get a personal loan.

 

[highland145]

They can't. Nice catch 22.

Like said, keep paying, try and increase your income.

 

[nick1985]

What do you do for a living OP?

Recently I started putting ads on craigslist every couple of days advetising computer repair. In the last 30 days I have gotten 2 side jobs out of it, and made $200. Cleaned a virus for 1 person and installed sound/video drivers for another.

Granted, I have only been doing this for a month so I don't know what the average monthly income is as of yet, but still $200/mo is better than $0/mo. That could help you pay a bill or something.



*edit*

Obviously if you are not great with computers I'm sure you have some skill that people pay for. Market whatever you can do on Craigslist. You will probably get a few extra dollars a month out of it.