ok, so my husband and I have some money to pay off debts with. My husband thinks we NEED credit cards to have a good credit score. I disagree and had him listen to the cds and explained my thoughts, but whatever, he can't get over it. So we've compromised and already paid off and closed three cards and have three remaining, which are each paid down to at least 30% of the limit.
Anyway, we planned to pay down his motorcycle and our car, reamortzie both loans to lower the payments and have extra money to place in savings. Our car lender said they don't offer that service. We also learned that both our car and his motorcycle are approximately $5,000 upside down each :(
We are trying to come up with a plan to save us money each month that we can stash away to build up our 6 months of income savings. So, what would you do?
Our list of ideas:
Pay off (but not close) the last three credit cards and pay the motorcycle to where it is no longer upside down. They will reamoritize the loan to save us about $90/month.
Pay the car to where it is no longer upside down and refinance with our credit union for a lower interest rate and lower payment.
Take the money we would use to pay on the car to a dealership and get a smaller, gas efficient car, saving us on our weekly $80 gas costs, our car payment and potentially our insurance. (my husband leans toward this, but I'm nervous because it's getting a new loan)
Stash all this money in savings, bringing us to a little more than half of his 6 months income, keping our current bills where they are and working hard to pay off/save.
I'm open to other ideas too. Please help talk me through this :) I hope I gave enough info!
Asked by Anonymous at 12:48 PM on Aug. 21, 2013 in Money & Work
Answer by wendythewriter at 1:04 PM on Aug. 21, 2013
Answer by silverthreads at 1:32 PM on Aug. 21, 2013
Answer by 2kids2dogs2cats at 2:06 PM on Aug. 21, 2013
Answer by howe2dance at 1:41 PM on Oct. 16, 2013
Next question in Money & Work
Has anyone ever had success with selling Shaklee products?
Next question overall
(Just for Fun)
Where's the wedding line drawn? Stripper dancing down the aisle to Buckcherry?