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Hello!

I need some help with tackling some debt. I currently owe $68K on 2 car loans. $35K and $33K.

I make $130K/yr without bonuses. I typically land bonuses of $4K/qtr.

I have $26K liquid with another $380K in investments. I am currently contributing 15% to my 401K. I am 35 with a wife and child - and expecting another in May. Outside of the car loans I have no other debt besides my mortgage.

I'd like to knock out the $68K in car debt ASAP. Would you recommend throwing most of my $26K at one of the car loans, stop contributing to the 401K, and throwing everything at that debt?

If I throw $20K at the $33K that leaves me with $13K left. I will throw another $5K at it with tax returns, but that allows me to pay that off in less than 6 months. I can then tackle the other $35K.

Is this the right approach? With a child on the way should I keep my savings of $26K around in case I lose my job or something? It would be hard to part with that emergency fund.

Thoughts?
 

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Hey, man! The topic is quite interesting. Recently, I was faced with a question by type, and whether I should take a car on credit. And after studying many sources of information, I realized that it is best suited if there is no desire to overpay extra interest. Car loans often involve the use of certain state support. This also allows you to take funds at reduced interest rates. I decided to look for specialists in this field and find the best option for myself. On the advice of a friend, I got to Mortgage Advice Derby and I realized that this is exactly what I need. I hope that my experience will be useful to you, because thanks to their company.
 
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