Wanting Financial Freedom, but A New Car Is My Current Goal

[kaharris05]

Quote:

Originally Posted by MichaelB How did you manage to set aside $4k and also be late on your car payments? If you have those funds, can ou call your lender and ask to renegotiate?

The $4,000 is my tax refund. I can call my lender tomorrow.

[jclarksnakes]

Do not worry so much about your credit score. From where you are now there is nothing that will improve it quickly (except maybe paying off all your debt). A credit score is just a tool that the lenders use to decide which suckers are the best risk. If you will work at paying off your debt instead of even considering borrowing more money your credit score will eventually improve. Your longterm goal should be to live below your means and save and invest so that some day you are financially independent and you will not even care what your credit score is.

[Keim]

Quote:

Originally Posted by kaharris05 The $4,000 is my tax refund. I can call my lender tomorrow.

A $4k tax refund is ridiculous when your monthly expenses are so tight. Interest free loan to the gov't. Adjust your withholdings and get more in your monthly paycheck.

[chasesfish]

The OP probably doesn't have much in the way of withholdings to adjust, the " refund" is likely a payment of the earned income credit and child tax credit

[kaharris05]

Quote:

Originally Posted by chasesfish The OP probably doesn't have much in the way of withholdings to adjust, the " refund" is likely a payment of the earned income credit and child tax credit

Yes, my refund was credits for education, EIC, and the child tax credit.

[JoeWras]

Quote:

Originally Posted by kaharris05 Yes, it does. Cramped, but 2 car seats will definitely fit.

Then stick with it. Buying another is just a waste, and another months or years of FI delayed. Interest on car payments can eat you alive.

My parents -- your grand or great grand parents -- stuffed kids in cars like you wouldn't believe. Only the families with 5+ kids had station wagons in my neighborhood. Everyone else piled into Chevy Novas and Ford Tempos. I know we didn't need car seats so you could pile 3 or 4 kids in there. Yes, it was a death trap. But that extra kid back then counts as the seat, so it was the equivalent of 2 with car seats today.

They dealt with it. Didn't seem to be any other way, it just was. I'm amazed, actually, at how little stuff our parents had to raise kids.

[Accidental Retiree]

Quote:

Originally Posted by kaharris05 I will try to make this quick. I want a new car, because I feel my current car is too small for my growing family. I am looking at a used Hyundai Santa Fe. I won't spend over $12,000.

Refinance your current car, if you can, and put your refund into savings.

[Todd-O]

Sorry, but I'm not getting this. Lately there have been many people posting, at least what seems to me as, extremely outrageous clamis.

I'm not trying to be nosey but how exactly are you:

1. a fulltime student
2. work 1 full time job and
3. work 1 part time job

All while 5 months (I think you said) pregnant

I just don't see how all of that is possible.

[Texas Proud]

Quote:

Originally Posted by Keim A $4k tax refund is ridiculous when your monthly expenses are so tight. Interest free loan to the gov't. Adjust your withholdings and get more in your monthly paycheck.

Quote:

Originally Posted by chasesfish The OP probably doesn't have much in the way of withholdings to adjust, the " refund" is likely a payment of the earned income credit and child tax credit

Quote:

Originally Posted by kaharris05 Yes, my refund was credits for education, EIC, and the child tax credit.

You can still adjust your withholding for the credits.... that is unless you had nothing withheld and all $4K are credits...

[kaharris05]

Quote:

Originally Posted by Todd-O Sorry, but I'm not getting this. Lately there have been many people posting, at least what seems to me as, extremely outrageous clamis. I'm not trying to be nosey but how exactly are you: 1. a fulltime student 2. work 1 full time job and 3. work 1 part time job All while 5 months (I think you said) pregnant I just don't see how all of that is possible.

Unfortunately, it's true.

Full-time student: my school offers classes that are 8 weeks long (a semester is 16 weeks long), and I take two classes at a time. So, since full-time status is 12 credit hours, I take 4 classes a semester (3 credit hours each), so I am full-time. I go to class on Monday evenings and Wednesday evenings (6-9pm).

I work Monday - Friday 8 AM -5 PM at my full-time job. I work Saturday and Sunday at my part-time job (I am a server, so the hours vary).

So, yes, it is possible.

ETA: Being 5 months pregnant has not changed my ability to work or go to school. My pregnancy has been completely normal, with no complications, so that doesn't really affect anything. The only impact my pregnancy is currently having is I get tired quicker. That's not a reason to prohibit me from working or going to school though.

[kaharris05]

Quote:

Originally Posted by Texas Proud You can still adjust your withholding for the credits.... that is unless you had nothing withheld and all $4K are credits...

I need to do more research on withholdings. I thought I filled that form out (the W-9 I'm assuming) correctly. I'm not sure how else it was supposed to be done. If I remember correctly, I had two deductions: 1 for myself, and 1 for my child.

[kaharris05]

Quote:

Originally Posted by Accidental Retiree Refinance your current car, if you can, and put your refund into savings.

Thanks for everyone's advice about refinancing! I just did an application on lending tree. I am waiting for results now.

[growing_older]

That I never would have expected. How can you refinance a $3000 car on which you owe $8800?

[kaharris05]

Quote:

Originally Posted by growing_older That I never would have expected. How can you refinance a $3000 car on which you owe $8800?

So far I keep getting denial emails so the lending companies share your sentiment...

I am going to call my current lender during my lunch break about my payments. I noticed that about $10-$20 a month is going toward principle, the rest (of a $360.55/month payment) is for interest. I don't mind giving them the $4,000 tax refund, as many have suggested, but I do not want to pay $4,000 on interest. I want all of that money applied to principle. I hope that's possible...

[Texas Proud]

Quote:

Originally Posted by kaharris05 I need to do more research on withholdings. I thought I filled that form out (the W-9 I'm assuming) correctly. I'm not sure how else it was supposed to be done. If I remember correctly, I had two deductions: 1 for myself, and 1 for my child.

It's the W-4.... from the instructions...


"Tax credits. You can take projected tax credits into account in figuring your allowable number of withholding allowances. Credits for child or dependent care expenses and the child tax credit may be claimed using the Personal Allowances Worksheet below. See Pub. 505 for information on converting your other credits into withholding allowances.
"

[rbmrtn]

There is an online calculator for the W-4. Also if you got a full refund and owe no taxes you can claim with holding exemption

2013 Withholding Calculator

[kaharris05]

Thanks! I just got a new W-4 from HR. I will fill this out today.

[FinanceDude]

When the 2nd child is born, your costs to run the household will go up substantially from today. Have you budgeted for that? You can move the 3 year old from the $250 a week place to the $150 a week place, but when you add in child number 2 you will be back at $250 a week..........

There are a few questions I would like to ask but they are none of my business......

[kaharris05]

Quote:

Originally Posted by FinanceDude When the 2nd child is born, your costs to run the household will go up substantially from today. Have you budgeted for that? You can move the 3 year old from the $250 a week place to the $150 a week place, but when you add in child number 2 you will be back at $250 a week.......... There are a few questions I would like to ask but they are none of my business......

I'm still working on figuring out how the budget will change when child #2 is born. One of the grandmothers has offered to watch baby #2 for free (she doesn't watch my daughter, because I don't want her sitting around watching tv all day). At least if she watches the baby for a few months that will give me time to get a better job (hopefully...).

If you want to ask more questions that will help me, please go ahead. I'm learning a lot from this forum, so any additional help is appreciated.

[REattempt]

Quote:

Originally Posted by kaharris05 I don't mind giving them the $4,000 tax refund, as many have suggested, but I do not want to pay $4,000 on interest. I want all of that money applied to principle. I hope that's possible...

Google is your friend...how to pay on principle only and what to ask for from current lender:

http://www.bankrate.com/brm/news/debt/20050520a1.asp