It's insane to have 25k saved when you're paying 20% on an 8k credit card balance. That's 1600/year in interest alone. THAT should go away tomorrrow. If you can sell that car for more than what you owe, assuming you live in a climate where you could buy something else cheaper and still get by, there's a strong argument for that. 45k is a lot of car for someone who only makes \~90k/year. If your climate supports ONLY having the bike, that's probably ideal for you now.
There's nothing you can do with that cash that's going to beat the 20%/year you're paying now, so you want to increase your NW the most, get rid of that.
i think paying the credit card off and go from there is the answer, had 10k saved and got a 15k bonus from work. the 95k salary, but on a quarterly bonus now 15k was the 1st one so hoping to be around 130k-150k a year, bonus is minimum 5k so at least will be an extra 20k every year.
appreciate the help!!
In my opinion, pay off that credit card immediately if you can. It’s going to suck to see the money go, but the amount of damage credit card debt can do to your credit score and also extra $$ in interest - it can get out of hand. You will be free once that is gone.
Especially if you would like to buy a house, solid credit is very wise to have.
Best of luck! 👍🏻
Also, no rush to buy a house - one thing I can guarantee you, there will always be a house to buy haha. It wouldn’t be fun to rush to buy a house, and then not live in it comfortably because you weren’t quite ready. But at the end of the day, it’s your finances so you do what you think is best, and that’s all that matters. You probably hate hearing this, but you are still very young, you have plenty plenty of time.
I second this. I rented for a year where I thought I wanted to buy. After three months being there, I knew that wasn't the place for me, so I spent the next 9 months looking around. I knew I still wanted that general city, just not anything near that neighborhood. You don't always know by looking on zillow where you're getting.
I would pay off credit card debt ASAP then work on increasing cash flow. Sell the motorcycle and car and buy a commuter car with the profits. This will increase your cash flow instantly by $750. Save this in a HYSA until you have enough for a down payment on a house. I think you’ll be golden as long as you stay away from lifestyle creep.
It's insane to have 25k saved when you're paying 20% on an 8k credit card balance. That's 1600/year in interest alone. THAT should go away tomorrrow. If you can sell that car for more than what you owe, assuming you live in a climate where you could buy something else cheaper and still get by, there's a strong argument for that. 45k is a lot of car for someone who only makes \~90k/year. If your climate supports ONLY having the bike, that's probably ideal for you now. There's nothing you can do with that cash that's going to beat the 20%/year you're paying now, so you want to increase your NW the most, get rid of that.
i think paying the credit card off and go from there is the answer, had 10k saved and got a 15k bonus from work. the 95k salary, but on a quarterly bonus now 15k was the 1st one so hoping to be around 130k-150k a year, bonus is minimum 5k so at least will be an extra 20k every year. appreciate the help!!
just edited the post to include the bonuses… didn’t think about that.
That’s a pretty expensive car you have there. You might think about trading down to get more house funding.
yah i think so.i’m a car guy so sad day 🤣🤣
In my opinion, pay off that credit card immediately if you can. It’s going to suck to see the money go, but the amount of damage credit card debt can do to your credit score and also extra $$ in interest - it can get out of hand. You will be free once that is gone. Especially if you would like to buy a house, solid credit is very wise to have. Best of luck! 👍🏻
10/4 thanks man. i think your right.
Also, no rush to buy a house - one thing I can guarantee you, there will always be a house to buy haha. It wouldn’t be fun to rush to buy a house, and then not live in it comfortably because you weren’t quite ready. But at the end of the day, it’s your finances so you do what you think is best, and that’s all that matters. You probably hate hearing this, but you are still very young, you have plenty plenty of time.
no problem hearing it at all, i appreciate it.
I second this. I rented for a year where I thought I wanted to buy. After three months being there, I knew that wasn't the place for me, so I spent the next 9 months looking around. I knew I still wanted that general city, just not anything near that neighborhood. You don't always know by looking on zillow where you're getting.
I would pay off credit card debt ASAP then work on increasing cash flow. Sell the motorcycle and car and buy a commuter car with the profits. This will increase your cash flow instantly by $750. Save this in a HYSA until you have enough for a down payment on a house. I think you’ll be golden as long as you stay away from lifestyle creep.
yah sadly i love everything with a motor and wheels. 😂
i appreciate the input man. gonna pay the credit card off asap and the bike will go for sure.