Debt Dumpers 2021

[DLgal]

I thought I heard something about it possibly retroactive to the 2020 tax year and an option on a lump sum or spread out over the year, listening on some tax information update channels, and a quick article, but didn't look too far into it. Well, it'll be tossed around for a bit. Interesting if something does pass, seems to be two proposals floating, the Family Security Act and the American Family Act.

And it's tax season again. DH does our taxes and I maintain all the other financial aspects and bills, just something we've always done. But I was thinking I need to make sure I can access his Turbo Tax account just in case I need to file in an emergency. Does anyone know if you file married filing jointly with Turbotax, can you set up your own login access and see the historical data? Similar to for example having a joint bank account-we each have to have our own login (that's how the bank wants it, anyway, for example I've called on some occasions when I'm logged in under my DHs out of habit, and they say sorry, I can't tell you anything, it's not your login - even though it's a joint account- but I get it, and so I've got two logins one each set up for all our joint accounts one his, one mine). Anyway, can you do something like that in Turbo Tax?

I know that is frustrating.

No, they will use your 2020 return to determine eligibility for this new credit. This is why payments wouldn't start until July. If passed, you will have to opt into receiving payments. If you do nothing, when you file next year, you will see either a $3600 or $3000 credit per child for kids THROUGH age 17 (this part is new), instead of just $2000 for kids 0-16.

 

[afan]

Calling all car buyers. First off, don't hate on me or belittle me for these questions. I've had a crap morning. I'm grumpy. I'm looking for helpful advice. I don't need someone trolling me today.

Car repairs are going to be around $3k. This is on a 2012 Chev. with nearly 160K miles.

Options: 1. Repair car. Obviously the cheaper route. But considering the age and wear on the engine, this may be the beginning.
2. Buy a used car. 2019 Honda Pilot with every bell and whistle. 20.5k miles $32k
3. Buy a new car. 2021 Toyota Rav4 hybrid with every bell and whistle. 0 miles. $38k
4. Buy a new car. 2021 Toyota Rav4 hybrid with half of the stuff. $32k

I'm looking for any advice. We've prequalified for 2.4% on a new car loan. 3.04% on used. Toyota is not running any financing specials on hybrids, unfortunately. We're looking to switch because we don't see gas prices dropping anytime soon. Also looking at AWD vehicles because I've been stranded in the last two snow storms. And I know our insurance will go up. I'm trying to brace for impact here.

I'm certainly not happy about increasing our debt. That said, because we've worked so hard, our credit scores are wonderful and our loan rates will be okay. We haven't bought a new car since 1997. I know the school of thought is that their depreciation is so crazy, but they also have 3 year warranties. The last used car we bought was on a whim, my 2012 Chevy. Great car, but we didn't think the financing through. This time, it's about being wise.

While we don't have to make the decision in the next hour or two, I'd like to try and gather some opinions and schools of thought. Just so disappointed. But, that said, I know I can still pay off the CC debt by Oct. at zero percent. Going to get my hustle on.

If I can get a brand new car for the same or not that much more than a 2 yr old car with over 20k on it I'm going to buy new. I know how my dad drove his cars and wouldn't have wanted his hand me down even at 20k miles. You don't know how those miles were driven to me it's not worth the savings.

As for the hybrid, will what you save in gas cost offset the additional cost. Does it being a hybrid increase maintenance cost? Do batteries cost more, last longer in a hybrid etc.

 

[FQLover]

So sorry to hear this! I would be shocked and reeling, too. :-(

I am not arguing or trolling but just sharing another point of view. Since you are lucky enough to have a long-time, honest mechanic, I would pay him something to give your car a complete look-over and see what he thinks might be coming down the pike, in the next year or two, regarding other repairs. If he doesn't see something expensive looming (I know he doesn't have a crystal ball, of course), I would be tempted to pay the $3K for the repair and see if you can get 2-4 more years out of it. This gives you time to think (without time pressure) about what you want your next vehicle to be, as well as more time to save for a larger down payment. For myself, when I have had to make a decision quickly regarding a car, I have sometimes regretted my decision. YMMV on that, though.

 

[imbatman]

For myself, when I have had to make a decision quickly regarding a car, I have sometimes regretted my decision. YMMV on that, though.

No, I appreciate it. Not trolling at all! The life expectancy on that engine is 150k. It was a model that was plagued with recalls. I am looking for opinions because the last time we were pressured (buying said Chev), we weren't smart about it.

 

[pblack]

Calling all car buyers. First off, don't hate on me or belittle me for these questions. I've had a crap morning. I'm grumpy. I'm looking for helpful advice. I don't need someone trolling me today.

Car repairs are going to be around $3k. This is on a 2012 Chev. with nearly 160K miles.

Options: 1. Repair car. Obviously the cheaper route. But considering the age and wear on the engine, this may be the beginning.
2. Buy a used car. 2019 Honda Pilot with every bell and whistle. 20.5k miles $32k
3. Buy a new car. 2021 Toyota Rav4 hybrid with every bell and whistle. 0 miles. $38k
4. Buy a new car. 2021 Toyota Rav4 hybrid with half of the stuff. $32k

I'm looking for any advice. We've prequalified for 2.4% on a new car loan. 3.04% on used. Toyota is not running any financing specials on hybrids, unfortunately. We're looking to switch because we don't see gas prices dropping anytime soon. Also looking at AWD vehicles because I've been stranded in the last two snow storms. And I know our insurance will go up. I'm trying to brace for impact here.

I'm certainly not happy about increasing our debt. That said, because we've worked so hard, our credit scores are wonderful and our loan rates will be okay. We haven't bought a new car since 1997. I know the school of thought is that their depreciation is so crazy, but they also have 3 year warranties. The last used car we bought was on a whim, my 2012 Chevy. Great car, but we didn't think the financing through. This time, it's about being wise.

While we don't have to make the decision in the next hour or two, I'd like to try and gather some opinions and schools of thought. Just so disappointed. But, that said, I know I can still pay off the CC debt by Oct. at zero percent. Going to get my hustle on.

I would also probably go for option 3 or 4, especially since option 4 is the same price as option 2. I know it only has half the bells and whistles though. Is having all the bells and whistles important to you?

 

[slightly_obsessed]

Car repairs are going to be around $3k. This is on a 2012 Chev. with nearly 160K miles.

Options: 1. Repair car. Obviously the cheaper route. But considering the age and wear on the engine, this may be the beginning.
2. Buy a used car. 2019 Honda Pilot with every bell and whistle. 20.5k miles $32k
3. Buy a new car. 2021 Toyota Rav4 hybrid with every bell and whistle. 0 miles. $38k
4. Buy a new car. 2021 Toyota Rav4 hybrid with half of the stuff. $32k

I'm looking for any advice. We've prequalified for 2.4% on a new car loan. 3.04% on used. Toyota is not running any financing specials on hybrids, unfortunately. We're looking to switch because we don't see gas prices dropping anytime soon. Also looking at AWD vehicles because I've been stranded in the last two snow storms. And I know our insurance will go up. I'm trying to brace for impact here.

I really agree with the suggestion about talking to the mechanic to see if there are going to be big costs coming down in the next couple years. Maybe see what the resale value of your car would be before and after the repair? And check with your insurance agent about how your rates are going to increase - maybe you'll be surprised?

The new Rav4 (#4) would be less than the Pilot with the different interest rates, but I don't know anything about how good of a car the Rav4 is... I think Toyotas are usually great (I love mine but it's a Highlander), but so is the Pilot. Maybe google to see if you can find a comparison between the two? And see if any of the recent Rav4s had any major problems, or how this year is different than others? My parents always taught me not to purchase a car the first year it's out or had a major change - too often there are unforeseen problems.

Good luck on your decision. I'm so sorry you hit this speed bump but glad you will still be able to hit your CC payoff goal, even with the setback!
(Pun totally intended. Sorry about that )

 

[DisneyHardin]

Calling all car buyers. First off, don't hate on me or belittle me for these questions. I've had a crap morning. I'm grumpy. I'm looking for helpful advice. I don't need someone trolling me today.

Car repairs are going to be around $3k. This is on a 2012 Chev. with nearly 160K miles.

Options: 1. Repair car. Obviously the cheaper route. But considering the age and wear on the engine, this may be the beginning.
2. Buy a used car. 2019 Honda Pilot with every bell and whistle. 20.5k miles $32k
3. Buy a new car. 2021 Toyota Rav4 hybrid with every bell and whistle. 0 miles. $38k
4. Buy a new car. 2021 Toyota Rav4 hybrid with half of the stuff. $32k

The Pilot is a considerably larger vehicle than a Rav-4. If you feel like you will use that 3rd row and space, I would go with the Honda. If you really don't need a vehicle that big, I would go with the bell/whistle Rav4 - the difference in your monthly payment won't be that much more financing $6000 more and you will have exactly what you want.

 

[npatellye]

Calling all car buyers. First off, don't hate on me or belittle me for these questions. I've had a crap morning. I'm grumpy. I'm looking for helpful advice. I don't need someone trolling me today.

Car repairs are going to be around $3k. This is on a 2012 Chev. with nearly 160K miles.

Options: 1. Repair car. Obviously the cheaper route. But considering the age and wear on the engine, this may be the beginning.
2. Buy a used car. 2019 Honda Pilot with every bell and whistle. 20.5k miles $32k
3. Buy a new car. 2021 Toyota Rav4 hybrid with every bell and whistle. 0 miles. $38k
4. Buy a new car. 2021 Toyota Rav4 hybrid with half of the stuff. $32k

I'm looking for any advice. We've prequalified for 2.4% on a new car loan. 3.04% on used. Toyota is not running any financing specials on hybrids, unfortunately. We're looking to switch because we don't see gas prices dropping anytime soon. Also looking at AWD vehicles because I've been stranded in the last two snow storms. And I know our insurance will go up. I'm trying to brace for impact here.

I'm certainly not happy about increasing our debt. That said, because we've worked so hard, our credit scores are wonderful and our loan rates will be okay. We haven't bought a new car since 1997. I know the school of thought is that their depreciation is so crazy, but they also have 3 year warranties. The last used car we bought was on a whim, my 2012 Chevy. Great car, but we didn't think the financing through. This time, it's about being wise.

While we don't have to make the decision in the next hour or two, I'd like to try and gather some opinions and schools of thought. Just so disappointed. But, that said, I know I can still pay off the CC debt by Oct. at zero percent. Going to get my hustle on.

I would go with option 3. Over the long term, the difference in cost between 2 and 3 and between 2 and 4 is minimal and the RAV4 will last you for a very long time. IMO 2 isn’t worth it because it’s not enough of a savings between 2 and 3 to warrant a used car.

If you don’t need a third row, the RAV4 is an amazing car. My mom’s is 15 years old and has over 250k miles on it and runs amazingly well.

 

[ruadisneyfan2]

I am coming out of the woodworks with all this mortgage talk.. we are set to pay off our mortgage on Thursday! We are young (mid-late 30’s) and maybe it didn’t make the most financial sense as our interest rate was low, it brings so much peace of mind and freedom. My husband works in a volatile industry, so the thought that we now own our house completely should something ever happen to his income is a safety I am thankful to have. I am not telling anyone in my “real life” as I don’t want to sound braggy, but I knew my Dis friends would understand how happy this makes me !

I think the fact that you're worried about sounding braggy means you're not trying to be braggy at all. Congrats, that's really exciting! We can all be plenty excited and happy for you I know when we've off-handedly mentioned that we paid our student loans off to real life people we pretty much got brushed off or got flack over it (except my grandpa, he was happy for us) but everyone here will help you celebrate your wins!!

Congratulations Minniemoo and Amalone!!
This is sad that people can't just happily share good financial news with people they know. I was warned of this by a coworker whose house is paid off. She said it's been years for them but some family members still don't know and she'd never mention it or she and her husband would be constantly hit up to borrow $$ from so it's better to stay quiet.
It's a shame some people who are jealous I guess can't just be happy for someone's good fortune.
My bff went from a miserable childhood, abused by her siblings, both parents dead by age 16 and dropped out of HS at 16 and now she and her dh are multi millionaires with 5 adorable grandchildren. I am thrilled for her.

In non budget news:
Went to the doctor yesterday and got to see Peanut. Confirmed by ultrasound that it's a boy!! The girls are super excited to have a baby brother. And I'm pretty excited to experience being a boy mom.

Congratulations Tygerlilly!! Boys rock! Of course they're all I know so I can't compare.

Congrats Tygerlilly!!!!!!

Do you guys have any advice on good cards for balance transfer these days? The cc thread moves crazy fast so I thought I'd ask here to see what everyone is doing. We have some expenses from moving and now our washer is shot and we need a new dryer soon too so it looks like I'm buying a set. I don't have enough is savings to cover it all (probably about 5k total) and I'd rather not drain my savings anyway. I'm looking to put it all on my best card for cash back and then transfer the balance to something new so I can take my time paying it off. I saw a few options on Nerdwallet that look good but just wanted to get a second opinion/ advice here (Other than store credit cards for the washer and dryer- not opposed to the idea just want to explore my options). My Discover is giving my 9 months 0% which would be helpful and then I could move the balance again if I'm not done, but i want to explore other options. I've only done balance transfers once or twice in the past so any advice in general on the process would be awesome! DH and I both have excellent credit so we should (theoretically of course) be eligible for almost anything.

Other than that not much to report. Chipping away at DH's medical expenses and the move went well! Starting my new job next week!

We often get BT offers from our Discover cards and the latest one is 12 months at 0% and 3% BT fee. Since you already have a different offer from Discover, I'd look around for something better if you don't mind a minor hit on your credit score for opening a new account.

Calling all car buyers. First off, don't hate on me or belittle me for these questions. I've had a crap morning. I'm grumpy. I'm looking for helpful advice. I don't need someone trolling me today.

Car repairs are going to be around $3k. This is on a 2012 Chev. with nearly 160K miles.

Options: 1. Repair car. Obviously the cheaper route. But considering the age and wear on the engine, this may be the beginning.
2. Buy a used car. 2019 Honda Pilot with every bell and whistle. 20.5k miles $32k
3. Buy a new car. 2021 Toyota Rav4 hybrid with every bell and whistle. 0 miles. $38k
4. Buy a new car. 2021 Toyota Rav4 hybrid with half of the stuff. $32k

I'm looking for any advice. We've prequalified for 2.4% on a new car loan. 3.04% on used. Toyota is not running any financing specials on hybrids, unfortunately. We're looking to switch because we don't see gas prices dropping anytime soon. Also looking at AWD vehicles because I've been stranded in the last two snow storms. And I know our insurance will go up. I'm trying to brace for impact here.

I'm certainly not happy about increasing our debt. That said, because we've worked so hard, our credit scores are wonderful and our loan rates will be okay. We haven't bought a new car since 1997. I know the school of thought is that their depreciation is so crazy, but they also have 3 year warranties. The last used car we bought was on a whim, my 2012 Chevy. Great car, but we didn't think the financing through. This time, it's about being wise.

While we don't have to make the decision in the next hour or two, I'd like to try and gather some opinions and schools of thought. Just so disappointed. But, that said, I know I can still pay off the CC debt by Oct. at zero percent. Going to get my hustle on.

Sorry I can't help you decide which car is the better deal but just want to say I totally feel your pain. The check engine light came on this week in dh's truck so we dropped it off at our local Chevy shop last night and now they are estimating $6000. It started running very rough around the time the check engine light came on and they're saying it needs new cams and lifters. Whatever that is.
It's a 2011 Silverado 4x4 with 80-something thousand miles on it. These trucks are like tanks so mileage is low compared to how much life it still has in it. Even buying a new truck would be difficult because the need of repair would seriously devalue the truck as a trade-in. A new similar truck would be around $50k and we don't like shopping urgently.
So we are paying the ridiculous amount to get it fixed. I wish we had a great, honest mechanic that we could trust.
Makes me sick. We have 2 weeks left of paying off ds20's school costs and was looking forward to kicking out the mortgage by next Christmas. This will set us back another 2 months. Dh has a "slush fund" as he calls it, so we can tap savings to pay it but then later build that back up.
Considering the state of the world, it could be something a lot worse.
My humble opinion would be to choose the vehicle that you desire the most. At least then when you make car payments, you love the vehicle you're driving which helps soften the blow. You've had an incredibly difficult year and you deserve to get the one you love.

 

[ruadisneyfan2]

In happier news, we are going to WDW in March! With this never-ending snow, cold, freezing rain, etc. I've had enough and need some happy fun in the sun time. Flights are free so what the heck. Beach Club, here we come!!

 

[npatellye]

In happier news, we are going to WDW in March! With this never-ending snow, cold, freezing rain, etc. I've had enough and need some happy fun in the sun time. Flights are free so what the heck. Beach Club, here we come!!

Enjoy!!!

 

[Minniemoo15]

In happier news, we are going to WDW in March! With this never-ending snow, cold, freezing rain, etc. I've had enough and need some happy fun in the sun time. Flights are free so what the heck. Beach Club, here we come!!

Oh I am so jealous ... I just love the Beach Club!! What I wouldn’t give to be swimming around Stormalong bay these days... have fun!!

 

[Minniemoo15]

Thank you all for your kind words and wishes ... mortgage is officially paid off!! Dh and I celebrated with a nice steak dinner. It is odd and a bit thrilling to look around the house and realIze that it’s now “ours”! We’ve reallocated most of the payments now to topping up RRSPs, RESPs, TFSAs, etc (we are in Canada) and at first I was kind of bummed that nothing really will change in terms of our biweekly budgeting. Then DH reminded me that all the lump sums that we have been putting down these last few years - which has been quite a bit - will now become our “bonus” money. So I’m back to spending the money in my head... hot tub? Tent trailer? More DVC points ? A girl can dream!!

 

[slightly_obsessed]

Thank you all for your kind words and wishes ... mortgage is officially paid off!! Dh and I celebrated with a nice steak dinner. It is odd and a bit thrilling to look around the house and realIze that it’s now “ours”! We’ve reallocated most of the payments now to topping up RRSPs, RESPs, TFSAs, etc (we are in Canada) and at first I was kind of bummed that nothing really will change in terms of our biweekly budgeting. Then DH reminded me that all the lump sums that we have been putting down these last few years - which has been quite a bit - will now become our “bonus” money. So I’m back to spending the money in my head... hot tub? Tent trailer? More DVC points ? A girl can dream!!

congratulations!! That is so exciting!

 

[ruadisneyfan2]

Thank you all for your kind words and wishes ... mortgage is officially paid off!! Dh and I celebrated with a nice steak dinner. It is odd and a bit thrilling to look around the house and realIze that it’s now “ours”! We’ve reallocated most of the payments now to topping up RRSPs, RESPs, TFSAs, etc (we are in Canada) and at first I was kind of bummed that nothing really will change in terms of our biweekly budgeting. Then DH reminded me that all the lump sums that we have been putting down these last few years - which has been quite a bit - will now become our “bonus” money. So I’m back to spending the money in my head... hot tub? Tent trailer? More DVC points ? A girl can dream!!

That is wonderful! Congratulations! Hopefully you can celebrate with visit to BCV and SAB soon!

We would not be travelling if dh didn’t get a surprisingly soon vaccine appointment for Feb 14. He’ll get his 2nd shot on March 7th and my dad will get his 2nd shot on either the 15 or the 22nd of March. After that I can finally stop stressing so much.

 

[sara mom]

Calling all car buyers. First off, don't hate on me or belittle me for these questions. I've had a crap morning. I'm grumpy. I'm looking for helpful advice. I don't need someone trolling me today.

Car repairs are going to be around $3k. This is on a 2012 Chev. with nearly 160K miles.

Options: 1. Repair car. Obviously the cheaper route. But considering the age and wear on the engine, this may be the beginning.
2. Buy a used car. 2019 Honda Pilot with every bell and whistle. 20.5k miles $32k
3. Buy a new car. 2021 Toyota Rav4 hybrid with every bell and whistle. 0 miles. $38k
4. Buy a new car. 2021 Toyota Rav4 hybrid with half of the stuff. $32k

I'm looking for any advice. We've prequalified for 2.4% on a new car loan. 3.04% on used. Toyota is not running any financing specials on hybrids, unfortunately. We're looking to switch because we don't see gas prices dropping anytime soon. Also looking at AWD vehicles because I've been stranded in the last two snow storms. And I know our insurance will go up. I'm trying to brace for impact here.

I'm certainly not happy about increasing our debt. That said, because we've worked so hard, our credit scores are wonderful and our loan rates will be okay. We haven't bought a new car since 1997. I know the school of thought is that their depreciation is so crazy, but they also have 3 year warranties. The last used car we bought was on a whim, my 2012 Chevy. Great car, but we didn't think the financing through. This time, it's about being wise.

While we don't have to make the decision in the next hour or two, I'd like to try and gather some opinions and schools of thought. Just so disappointed. But, that said, I know I can still pay off the CC debt by Oct. at zero percent. Going to get my hustle on.

Something else to think about..Honda CRV. They are rated better than the Rav's by most websites we found. Honda is running .9% financing for 60 months and 0% for 48. For fun last week, my husband and I played the game of who can get a new car cheaper. He went through the internet sales person and I thought I would use the Costco car buying program. Ha- for the EX, the Costco price was 29,000+. I told them I would pay 28,400 and nothing more. I won, I bought a car that day (pick it up on Monday). I opted for the .9%. When I ran the numbers for financing 28,000- if I pay the normal amount every month, it would be $640ish in interest over the course of the 5 year loan. The .9, I can make extra principal payment quarterly, and pay it down.

 

[4 Ears]

Eek! Just got our income tax return this morning. Only a few $100 but put it right on the loan

 

[Eureka]

No, they will use your 2020 return to determine eligibility for this new credit. This is why payments wouldn't start until July. If passed, you will have to opt into receiving payments. If you do nothing, when you file next year, you will see either a $3600 or $3000 credit per child for kids THROUGH age 17 (this part is new), instead of just $2000 for kids 0-16.

Through age 17 means being 17 in 2020? Because DS turns 18 in 2021. We might not qualify anyway; we got only a small amount for the second stimulus.

 

[Eureka]

No, I appreciate it. Not trolling at all! The life expectancy on that engine is 150k. It was a model that was plagued with recalls. I am looking for opinions because the last time we were pressured (buying said Chev), we weren't smart about it.

I have a 2012 Rav 4 and love it. We bought it used three years ago (I think) with reasonably low mileage, and it’s served me very well. Of course I barely drive now but used to commute 400 miles a week.

 

[DLgal]

Through age 17 means being 17 in 2020? Because DS turns 18 in 2021. We might not qualify anyway; we got only a small amount for the second stimulus.

Yes. It means rather than capping the credit at those kids who were age 16 or younger in the tax year, they are proposing to extend it to those who turn 17 during the tax year.

This one isn't related to the income cap that the stimulus checks were. The child tax credit has a much higher ceiling. I believe it is $200,000 for single filers and $400,000 for married couples filing jointly. This proposal is an extension/enhancement of the existing Child Tax Credit.