Ever feel hopeless?
Find a Conversation
| Sun, 03-21-2010 - 6:29pm |
I have no credit card debt and I am proud of that, but now it feels like I am stuck. I feel like I am spinning my debt wheels. I have three loans in front of me.
Student Loan $164 a month minimum @ 3.75% with a balance of $22,953.00.
Medical Loan $315 a month minimum @ 13.90% with a balance of $12,300.00.
Car loan $418 a month minimum @ 1.9% with a balance of $18,950.00.
I keep tossing numbers and I just feel hopeless like I will never get over this next hurdle. I am getting depressed about it.
I have this wonderful opportunity that may fall into my lap in the next year or two. Our neighbors are selling their house and it is perfect in that it is right next to the house I grew up in and am currenlty living in with my mother right now. It would be perfect! It is a reasonable house in the $100,000 range, and plenty big enough for my daughter and I.
There in lies the problem. My credit is good 761 last time I checked but I don't have enough money left over out of my monthly income to fathom making a house payment. Unless I can get rid of a couple of these loans.
I'd love to get rid of the one that would make the most out of my monthly salary, give me the most bang for my buck. So that would be the car loan. If I put all my money toward that and got rid of it, that would be a massive chunk of money to put toward a mortgage every month.
My brain washed self though says get rid of the smallest balance first...the medical loan, which also has the highest interest rate....but that doesn't give me a lot of bang for my buck.
I am just ranting...sorry. I just wished I had never got myself into this debt mess. I don't regret buying the car, I had to have the surgery, and the student loan wasn't a choice either....but I just wish it would all go away!
I hate being a grown up!

Pages
Dear Dana...
I really hope you can get that house 100k for a house is awesome where I live even a little condo is at least 150k....
Please pay the debt with the highest interest first...makes no sense otherwise....
Duke
Hi, Dana.
It sounds like those were all necessary expenditures; please don't beat yourself up.
Right now things might not look like they'll work out for you to buy that house, but you know that things can change in an instant.
Dana, Dana, Dana,
I am not 100 percent sure what your situation is. You say I a lot and that are living with your mom so I am guessing you are single and trying to do all of this by yourself?
In this situation, I would try to break up your debt into chunks. Thinking about the total figure right now is going to really wear on you.
In my opinion, once you get rid of the medical debt you will feel a little bit more in control.It is a great thing you can live with your mom right now.
Living on your own is fantastic goal but you must be realistic. Perhaps you need to rent first? Opportunities are great but you sound really stressed and I don't think a mortgage payment is going to make you feel better. Do you have a down payment?
Can you renegotiate your student loan to pay less every month? Set up a plan for how long it will take you to pay off that medical debt then reevaluate things.If your could pay less on the student loan and flake to the medical debt I believe you would be better off. By that time your car loan will be down as well. Sometimes a student loan is easier to deal with in your head because it allows you to do the job you are currently and pay other debts. When the time is right you can go full boar on it.
Don't be hasty and set yourself up for disappointment. Do some math and set some realistic goals that will make you and your daughter comfortable.
These are just some thoughts. I know I feel overwhelmed as well. Smaller chunks is the key. Good luck.
I agree that you should work towards the medical debt first and then your car loan. It might help to think that once those two are gone you will be in such a better situation. It might seem like a really long time but once the medical bill is gone the car payment will go quickly. Eventually that money could be used to save for a down payment and a mortgage. I would also encourage you to enjoy living with your mom as long as possible because having a mortgage is not all that it is crack up to be in my oppinion :).
Liz
Student loan paid in full 2/2010
Car loan remaining balance
Liz
student loan paid off 2010
Bathroom remodel loan paid off 2013
Pending Car loan to be paid by the end of 2014!!!!!
Dana,
If the medical bill was "necessary" (eg not for cosmetic or other elective procedures) I would try to renegioate the terms with the financial/billing department.
good morning- i have one more idea, maybe someone else touched on it, i didn't read very closely above. the car loan is high balance even if the interest rate is low... are you upsidedown on the loan? if not- you might think about trading it in for a good used car that's cheaper. crunch some numbers and see what a slightly higher interest rate but lower balance car loan would put your payments at each month. example, my car was roughly 9000 with a payment of 180/month. if you pay that loan 415/ month it is done in 2 years or less. or you can take the extra ~235 difference and apply it to the medical loan.
does that make sense? i know it would be tough to part with the car, the interest rate and balance make me think it was brand new... but it could get you to your goal of home-ownership and living on your own faster.
HTH! good luck!
Thanks Duke. I did decide to pay the highest interest rate first and have been crunhing numbers a better part of this morning. I think I have a great plan that will allow me to pay it off in a year and a half I think.
Pages