so.......my friends....I am in a bind....

[Bskey]

I am laying some honest $h1t on the line here, so be kind, but I'd like you opinion here.

So, my wife and I were young and dumb in our early 20s, and managed to rack up nearly $50k in debt :p before we finally wrangled in our spending and irrational ways. Two years ago we finally cut up our credit cards, and have not put anything on credit in that time except for the purchase of my LGT. With the exception of my car, we now have that $50k down to $20k ($30k ~ not bad in 2 years). My grandmother passed about 1 1/2 years ago, and we found out this past weekend that it was her request to give us $25k down to our first home (we're currently in an apartment). However, my father, in honor of my grandmothers debt free lifestyle and wishes, has stipulated that we can only have that down payment if we are debt free outside of one car payment. Greta's car is payed off, but I cannot foresee paying off the rest of our debt before our lease ends in May of '08 while still making $370.00 monthly car payment and $230 extended warranty payment (through December). I am now faced with the reality that, for the long term benefit of my family, I need to sell my beloved LGT (hopefully for about $17k), part out the upgrades (which I estimate at a value at or above $2k), cash in the warranty balance (about $1.5k as of now), buy a junk car for less than $2k and start aggressively paying down our debt.

I was actually in tears when I first realized that this was a necessary course of action, as my car means more to me than it probably should, but I really think that this would be the best long term move. I guess there will still be an '05 RBP LGT's for sale when I get through this, and that by then there should be an after market for the new WRX, so I will always be able to come back, but this is still really a tough realization.

.....so, that's what I have been mulling over the last few days. I'd appreciate your take on it! I don't intend to disappear from the LGT scene anytime soon, as I am still, and probably always will be, madly in love with the car, but I am looking for the opionion of those who are as passionate about their cars as I am.

:Dunno::crying::scurred::headwall: :Dunno::crying::scurred::headwall: :Dunno::crying::scurred::headwall: :Dunno::crying::scurred::headwall: :Dunno::crying::scurred::headwall:

~Brett

[Dookie]

Wow Brett, sorry to hear about your situation. From the sound of it, it sounds like you guys are heading in the right steps, being able to knock off $30k in 2 yrs is very very awesome. In my line of work I see alot of couples with the same situation tring to buy a new home.

Here's a few things I tell my buyers.

Take your time paying off your bills, there's no need to stress over money. Your still young and have plenty of time to buy that house. The most important thing is for you and your wife to remain happy together and not let this situation take over your lives.

In regards to your LGT - I don't know anything about your current loan status, but have you thought about refinancing for a longer term which will help lower your monthly payment? The obvious is to selling it off which will give you more cash flow per month. I'm sure it's a tough decision to make, but make sure you do the math before you do. PM me if you need help.

In regards to buying a home - Make sure while your paying off your debt that your putting some money into savings. Best thing to do is start a new home savings account, with automatic transfer from you checking to savings. Budget at least a couple of $100 per month to be transfer, trust me you'll thank me later. Besides the $25k from your grandmother, there are other cost in buying a home, such as: Closing Cost, pre-paid taxes and insurance, move-in cost, furnishings, etc...

I've done alot of budgeting for several of my buyers, and if you need any help at all, just send me a PM. I'll be more than happy to help you guys out.

Good luck and I hope everything works out!!!

[Drift Monkey]

I think the real rational plan from a financial standpoint would be to get rid of the LGT to eliminate all debts and score the downpayment money as a bonus.

The car enthusiasts in me is crying though. :crying:

[SubieChik]

Buying both our Subarus cost my husband and I a nice house. We both personally love our car so much that we don't mind renting. Why not rent a house? I want to buy a house so bad but then I stopped and asked myself why am I in a hurry. I don't know how old you are but if it took you 2 years to payoff 30k just imagine where you will be in 2 more years and I'm sure you still be young :) My sister didn't buy her first house until she was 29 and she did fine.

Do whatever is in your heart. I know I would keep my car :D At least refinance it though.

[Bskey]

I think the real rational plan from a financial standpoint would be to get rid of the LGT to eliminate all debts and score the downpayment money as a bonus.
The rationalist in me keeps saying that, then my emotional side kicks in and disagrees.

why am I in a hurry.....I don't know how old you are
I am 25, and I know what you are saying, but I really want to take advantage of this housing market and the still average-historic-low rates that are currently available.

if it took you 2 years to payoff 30k just imagine where you will be in 2 more years
The $30k we paid off in 2 years was mostly done before I bought my LGT, so now our rate of paying down debt is much slower.
At least refinance it though.
I have a 6.5% apr on the car, so unless I can get a lower rate, I really dont want to refinance.

[SubieChik]

Wow geeze. LoL. I wouldn't refinance either....that is what both our cars interest rates are. And I can see now why your rate of paying off things is slower.....hmmm. At least you are sitll young :)

[Drift Monkey]

Do what's best for your future. Having a house will be nice and have much much more value than a car ever would. It's really hard to let go of cars though..

[Bskey]

DM, you're like the rational devil on my left shoulder :lol:

[Drift Monkey]

:lol: Sometimes you gotta do what you gotta do.

Do you still owe on the LGT at all?

[Bskey]

Yeah, that's my only car loan. The wife's car is paid off.

[SubieChik]

I wonder how many people are debt free outside of one carpayment? I didn't know that was possible....lol. But then again I have three cars in my name.....I'm probably not the best person to give financial advise :rolleyes:


Oooo Bskey can I be the dumb devil on your right shoulder?? I play the part well!!

[Drift Monkey]

I wonder how many people are debt free outside of one carpayment? I didn't know that was possible....lol. But then again I have three cars in my name.....I'm probably not the best person to give financial advise :rolleyes:


Oooo Bskey can I be the dumb devil on your right shoulder?? I play the part well!!
So no angels? :lol:

[Dookie]

Giving up my LGT would be the hardest decision I'll have to make. I feel you bro! On the other hand, my wifes car, I will sell it in a heartbeat.

[Bskey]

Not right now, there's devil in both side of the issue!

My father has lived by cash, debt free outside a mortgage since he was 22. He was in the air force and my mom was a stay at home mother and then a teacher, so they never made a lot of money, but managed it very well. They never bought anything if they didn't have cash for it, vehicles included. My fathers parents taught him this. My grandfather never made more than $13 per hour, and my grandma was always a stay at home wife, and they had 4 kids, and never had debt after they were 20, including their house in Pleasantville, NY (in a neighborhood with a bunch of Frank Lloyd Wright houses). Now, I got into $50k in debt before I turned 23, and you can imagine my fathers reaction! He wanted me to walk in his footsteps, and is encouraging that again.

So you can see why that is their expectation.

[Bskey]

just found this link to my grandmothers old neighborhood; it's called Usonia:

http://www.galinsky.com/buildings/reisley/index.htm

[KA82]

Giving up my LGT would be the hardest decision I'll have to make. I feel you bro! On the other hand, my wifes car, I will sell it in a heartbeat.


^ word

follow post #2

there will always be more legacy's down the road + more cars in the future

[Drift Monkey]

I'm debt free. There's a racist asian joke in there somewhere...

[Bskey]

Congrats & well done!

How old are you DM?

[SubieChik]

I am great at managing money. I am extremely organized and always pay my bills on time.....however, I don't know how to stop getting loans...LoL.

[Bskey]

hahah....I am actually really good at tracking my funds too. I have a huge spreadsheet that I update daily that projects my account balance out for the next year; I am a bit anal about it, but it's the tool that has helped us out of the hole.

[Bskey]

I am a bit anal ..... the tool that ....out of the hole.

Uh...I donno, I think I'm projecting subliminal something or other..... sorry y'all.

[SubieChik]

I do too! I have an exel spreadsheet for all of my balances and I have a spreadsheet that I update that has all of my monthly bills on them.

[Bskey]

Nice.....it provides peace of mind that I wouldn't have without it.

[Drift Monkey]

Congrats & well done!

How old are you DM?
22, my bday is monday though...:o

[Bskey]

Wow, 22 and debt free?!? Do you own a home?

[Drift Monkey]

Wow, 22 and debt free?!? Do you own a home?
Nope. That will probably be my only debt once I get one...living at home FTW...:lol:

[john]

Good luck, Brett. You can always get another car. And when you need your LGT fix, come on over to Castle Rock and I'll let you drive mine. :)

[Bskey]

:lol: Awww geeze.....now I have no excuse! Thanks john, I appreciate the offer!

DM, I'd live with my folks too if I weren't married and they didn't live in the middle of nowhere.

[TSi+WRX]

Sorry to hear, bro. :(

I don't really have much advice - I also went through this kind of stuff in my younger days, and I honestly don't feel that I'm the right person to preach. :o

Just know, instead, that you will be in my thoughts and prayers, and that I do have faith that you'll get through this tough patch of road, and be better for it, too. :tup:

I dug myself out, and I know you will, too. :)

Bskey, as with your father, I'm now a "cash only man" myself. Yes, I carry a debit/credit card, but I no longer finance purchases on a debt/pay-later basis. I've either got it in the bank, or I'm saving up for it.

It's good to close your eyes at night, and know that nothing's owed.

[Drift Monkey]

:lol: Awww geeze.....now I have no excuse! Thanks john, I appreciate the offer!

DM, I'd live with my folks too if I weren't married and they didn't live in the middle of nowhere.
Not married, and we live in Houston...so I guess I'm lucky. :o

[Bskey]

here's the potential part out thread: http://www.legacygt.org/forums/showthread.php?p=13921#post13921

:cry:

[Drift Monkey]

:crying:

[Dookie]

:cryingwithyou:

[NALegacy]

IF you need another rational person, I would be that person... My father is into a bit of investment real estate, so I usually am all for a person acquiring real estate. Your car will lose value faster than anything else you own..unless you drive a Mini Cooper or something, and you don't. Since you are 25, and given the opportunity to purchase a home, I would definately go for it. It may be the smartest decision you make. It will also be good for you to manage your finances, and not get yourself into trouble, AS LONG AS you decide you will not go on spending the way you do now...etc. I'm not saying that you are an extravagant spender, but if you were able to get into 50K in debt by 23, you definately need some advice:D. If you are able to own your own home at the age of 25, i would say you are very lucky, and have a real advantage to other individuals your age. Think of it this way: if you are able to pay down or pay off that house in the average 15-20 years that most people go for, or even the 30 years that most families opt for now...you will be just fine by the time you have children giong to college. The peace of mind you will have will be well worth it. My parents planned it so our house was paid off before I entered college. Of course my dad picked up loans for business ventures and real estate acquisitions, but everything alwasy paid for itself. That peace of mind you can have at that age, it's priceless. I am only a youngster, only 22 myself, but I plan on having a home paid off...by the time I'm 30. (It will help if my parents let me have their house:lol:). But anyway...me being a little tipsy didn't help this post get short. ROFL.

In short...
Buy the damn house and get rid of your LGT. Or how about you sell it to me for 10K?:D

[Drift Monkey]

Lowballing brown boy FTL.

[2.5sbd]

my father in law once said to my wife & I ... the correct path is usually the harder path.
good luck on choosing yours