Wwyd???

[vesta]

I'm posting under an alias.

I have quite a bit of CC debit due to a very extended layoff(2+yrs). DH is currently working at a fairly decent wage. It looks as his current job (banking industry) seems secure for the time being. I'm in school trying to get an additional degree and work part time. We have 2 cars that really are only suited for maybe 3 family members at a time...small truck and small compact like car. We are a family of 6 (3 teens and 11yo), our van died in Oct. We have been trying to make due; but honestly it is driving me up the walls to take two cars when we need to go some where. Not to mention both cars are stick and my bad back is screaming HELP!!!!

Since Oct I have managed to save about $2000. I'm trying to decide how to use it. Do I pay off some CC debit; but honestly $2000 won't make a huge dent. Or do I spend a little more maybe an additional $2000 max and find a reliable used Van. I'm really torn. Also, should add that the small truck is a 1999 with 100,000+ with broken AC and the heat isn't working very well and we live in the north.

OK...no flames. We aren't having an issue paying more then just the minimum on the CC and up to now any extra has gone toward the CC bill. I just can't decide if it is a good idea to try to get an additional car while I have at least half or more in cash right now; or keep my fingers crossed and hope the other two cars keep running and put it off.

 

[ceecee]

Double post...sorry!

 

[ceecee]

I would try to put up with the cars you have and not add another payment right now. If you only have saved $2000.00 in three months you don't have enough to buy a larger car/van. Can you fix the old van or is it not worth fixing? You don't say have much cc debt so I'm assuming it's more than you've saved. Start cutting back and see if you can save more, put it all into your car fund after you finish paying off the cc debt.

 

[Pigeon]

I wouldn't spend the money on a car, unless you could buy a used something for what you could get for the truck. I'm not understanding why you couldn't fit five in a compact car. It might be uncomfortable, but it's generally doable.

 

[carj]

First of all I would like to say that I hope that you do not get any flames. It is sad to me on this board when people are trying to ask questions, that the question gets ignored and the person is attacked based on previous posts.

How much more would you need to buy a larger, hopefully more reliable vehicle? I know how frustrating it can be to have bad cars but if you could just hold on for a couple more months, you might be in better shape.

Have you looked into the Dave Ramsey program? I realize that he is not for everyone. Don't feel like you need to sign up for the monthly service, just go to the website, borrow the book from the library, etc...

Dave advises people to follow the 6 baby steps.
Step 1 is a $1000 emergency fund.
Step 2 is to pay of your debts smallest to largest.
(This is where you would be.) During that time you should try to fund through cash, not credit cards or more debt, needs purchases like a car. I think that what you need to decide is if the new vehicle is a need. I know that you want one and I don't blame you.

I wish you the best of luck!

 

[JoiseyMom]

I wouldn't spend the money on a car, unless you could buy a used something for what you could get for the truck. I'm not understanding why you couldn't fit five in a compact car. It might be uncomfortable, but it's generally doable.

The OP said they are six. 3 of which are teens, where is she supposed to put the 4th child?? So even if her 3 teens are squished in the back, they still need to take the second car.

OP...not sure what you should do. I would try to save some more money to buy a larger reliable van. You want reliable since buying used can bring a nightmare of money issues. You should check out your local craigslist. You might be surprised by what you will find. Good luck.

 

[vesta]

I would try to put up with the cars you have and not add another payment right now. If you only have saved $2000.00 in three months you don't have enough to buy a larger car/van. Can you fix the old van or is it not worth fixing? You don't say have much cc debt so I'm assuming it's more than you've saved. Start cutting back and see if you can save more, put it all into your car fund after you finish paying off the cc debt.

1.I would be only buying a used car that was less then $4000.
2. Old van was not fixable.
3. There really is no where to cut. We don't eat out, we have internet but my dh and I both need it for work, cell phone if paid by dh's work, etc.
4. The debt will take many years to pay off, plan is in a year or so I should be in a career and making decent money and it should go quickly then.

I wouldn't spend the money on a car, unless you could buy a used something for what you could get for the truck. I'm not understanding why you couldn't fit five in a compact car. It might be uncomfortable, but it's generally doable.

1. I think the truck is only worth about $500 if we are lucky; no air no heat, leaky back window, work truck (so you can guess what the inside looks like)
2. The car is basically a 2 seater with a jump seat. The 11yr old fits ok but the older kids have to sit sideways and put their feet up on the other cushion. So, comfort really has nothing to do with it. We are a family of 6 and only 3 people fit in either car.

First of all I would like to say that I hope that you do not get any flames. It is sad to me on this board when people are trying to ask questions, that the question gets ignored and the person is attacked based on previous posts.

How much more would you need to buy a larger, hopefully more reliable vehicle? I know how frustrating it can be to have bad cars but if you could just hold on for a couple more months, you might be in better shape.

Have you looked into the Dave Ramsey program? I realize that he is not for everyone. Don't feel like you need to sign up for the monthly service, just go to the website, borrow the book from the library, etc...

Dave advises people to follow the 6 baby steps.
Step 1 is a $1000 emergency fund.
Step 2 is to pay of your debts smallest to largest.
(This is where you would be.) During that time you should try to fund through cash, not credit cards or more debt, needs purchases like a car. I think that what you need to decide is if the new vehicle is a need. I know that you want one and I don't blame you.

I wish you the best of luck!

1. Thanks for the flames comment.
2. I would probably need about another $2000; I was lucky with selling the stuff I have sold lately so it might take me longer then the last 4mths.
3. That's what I'm struggling with. I've read all the financial expert stuff. We should continue paying off but if I do I'm just taking a chance the cars hold out and if they don't then I'm stuck.

The OP said they are six. 3 of which are teens, where is she supposed to put the 4th child?? So even if her 3 teens are squished in the back, they still need to take the second car.

OP...not sure what you should do. I would try to save some more money to buy a larger reliable van. You want reliable since buying used can bring a nightmare of money issues. You should check out your local craigslist. You might be surprised by what you will find. Good luck.

1. Thanks for realizing that 6 people don't even if even if we had the type of car described.
2. If I bought used and that really is my only option it definitely would be checked by my mechanic.

Thanks for all the great thoughts and advice. I'm going to continue weighing the options.

 

[Carrie772]

What about 2nd jobs? Maybe your big kids could work some too, esp for their own needs/wants: clothes, shoes, etc.

 

[GaSleepingBeautyFan]

I would keep the 2,000.00 in savings and save up the other 2,000.00 to buy a decent van before doing anything other than paying the credit card minimums.

As you said, once you get done with school and get a full time job, the credit card debt will drop quickly.

It sounds to me like the priority is a decent vehicle that will work for your family.

Plus, it will help you to have the cash if you have an emergency and need it. Otherwise you would have sent the 2,000.00 to the credit card company and have to charge even more.

If the teens can get a job that they don't need to have a car to get to that could help.
When I was a teenager (13 and up) I had to buy everything for me. My parents just didn't have the money to buy me new shoes when I needed them or new jeans or even the type of personal products I preferred.

I babysat for people. All day during the summers and weekends every chance I could get.

If it wasn't for the babysitting jobs, I would have had to survive on too small shoes or shoes with holes and patched clothes. It sure gave me a great work ethic and when it came time to get a full time job, I had great references.

 

[mnasmom3]

I think I'd hold out for a bit more cash....at least the other $2000 along with an emergency fund.

Best of luck to you as you finish school and venture into a new career.

 

[mickeyluvr004]

I know how you are feeling we all need to crunch things. That said I know when we needed another car we went to a dealer and traded in one car and had only 2500 cash and stated to them that is all we had and would they take that (they wanted 5000 for the truck) and put the rest on paper with the trade and they did and we are very happy with the truck, its used but if you can trade the truck in and also some places will pay you (not much) for your junk car call them some times you can get 200.00 for the old van. Good luck

 

[dismom24]

We were in a simular situation. I went with the new (to us, very reasonable used car). We had gotten to the point where my car was requiring fixing every month and was going to need major work. It may not have been the best financial move and people may not understand, but for us we did what we needed to do and I still think it was a good move. We put down as much as we could and have a small payment. It might not be the advice I would have given, but living in the situation, we did what we needed to do and when I finish school we will be able to pay it off very quickly. Good luck!

 

[quentina]

We had the same problem. Here is what we did:

I called all credit card companies. Told them I could no longer afford payment (my husbands company went bankrupt and he was out of a job)...closed all accounts, got on a hardship program which gave us 0% - 4% interest on all cards. Only rule was that the payment had to come out of checking account directly.

For the past 1.5 years, we have paid our payments. Our credit score has started going back to a normal number and with low interest we can swing everything.

Our tax refund is VERY large this year (we adopted 2 kids and get a special credit) and we will be paying off the balances.

You would be surprised at how they will work with you...we had only one bad experience, American Express who did not have a plan.

Good Luck....keep your chin up, your one of many in the same position.

Kim

 

[kpadalik]

It sounds as if you are doing everything possible to crunch and save. I noticed you said you were working on another degree. Does that mean you already have one? Maybe you could put off a semester, work full-time until you are able to save a few thousand more? Just a suggestion, might not be feasible though.

I hope nobody throws flames - you are just asking a question and it's not fair when people throw in their opinions when they don't even know the situation. We were in quite a bit of debt until we paid it all off almost a year ago and it's been such a huge weight lifted off our shoulders. Never, never, never will it happen again. Good luck!

 

[vesta]

I think what I need to realize that there will always be good priced (cheap) used cars in good shape if you just look. I'm seeing some good buys and thinking that I should jump on it. Your advice is exactly what I wanted to hear. i knew it but need someone to kick me in the butt so to speak.

My kids do work during the summer but during the school year for various reasons other then babysitting or pet sitting they don't work. They do pretty much purchase their own clothing and stuff.

I don't want any payments so I think waiting for the cash is the best idea. Hey I'm half way there.

As far as talking with the CC companies...my interest is about 4%, we have a good score so I'm not messing with that....I'll just keep paying as much above the minimum that I've already plugged in my budget and save and additional plus ebay stuff.

I'm working quite a bit part time in addition to school and I've been a stay at home mom for most of the last 20yrs except some extra money jobs here and there...so no using my degree for any type of decent paying job.

Thanks again to all.

 

[Grumpy's Gal]

Since Oct I have managed to save about $2000. .

I don't have any advice but I want to say way to go for saving! there are many people having financial problems who are not able to save any at all.

Hang in there.

 

[reginaastralis]

I just wanted to give some support ... I know it's hard, and you're trying. I think everyone knows someone who's going through a really hard time, so hopefully people will begin to be understanding again.

My only thought for "extra" money is your income tax, if you get anything at all back ... it would make a nice dent in your car fund.

 

[tink2dw]

www.Craigslist.com we always buy used cars for there or from the newspaper. Ask around and see what is the Most Reliable kind of
Van.

We love chevy cavaliers automatic sedans, they Start every time, all the time. And are cheap to fix.

That is what you need to find in van. and prices are very good

 

[Tink-aholic]

I actually just finished reading an article about people purchasing used cars from dealers. It seems that many dealers are taking in vehicles as trades, promising to pay off the remaining loans, but are selling them again without paying off the original loan at all. Then, the dealership goes belly up and whomever bought the used vehicle gets the vehicle repossessed.

So, if you decide to buy another van, make sure the title is clear ahead of time. Probably the best financial decision we made was to purchase a very, very used car for $500 and use it for five years. When the thing finally wouldn't even start, we had the United Way come tow it away for a $700 tax credit!

Good luck.

http://news.yahoo.com/s/ap/20090201/ap_on_bi_ge/dealer_defaults;_ylt=Apuu6XrSwE0SSopw2EPzMT0DW7oF

 

[nunzia]

I actually just finished reading an article about people purchasing used cars from dealers. It seems that many dealers are taking in vehicles as trades, promising to pay off the remaining loans, but are selling them again without paying off the original loan at all. Then, the dealership goes belly up and whomever bought the used vehicle gets the vehicle repossessed.

So, if you decide to buy another van, make sure the title is clear ahead of time. Probably the best financial decision we made was to purchase a very, very used car for $500 and use it for five years. When the thing finally wouldn't even start, we had the United Way come tow it away for a $700 tax credit!

Good luck.

http://news.yahoo.com/s/ap/20090201/ap_on_bi_ge/dealer_defaults;_ylt=Apuu6XrSwE0SSopw2EPzMT0DW7oF

Excellent advice..my son worked for just this type of dealer (long story and he had no clue this was going on..in fact a car he owned he thought was sold is still not clear..but at least the dealer is still paying it..all kinds of lawsuits starting. Anyway..beware)
Congrats on your plan and dedication! I also have a degree that I don't use, and work way below my wage ability..but..and I don't know if this would work, but maybe if you have time you could get a second part time job. I work about 8 hours a week at an entertainment store and that amount certainly helps..would even cover a small car payment if you needed to do that for awhile. Or..could your DH do a little somethiing extra at night? Delivering pizzas or something?