- Joined
- Apr 14, 2006
- Messages
- 23,113
Wow! That's pretty steep. With whom did you finance? Most banks are lower than that for all but the worst credit scores (If you have excellent credit, USAA is currently at 3.29% for a 5 year loan) and dealers are substantially better than that. We bought a MINI last summer, financed through the dealer at 0.9% for 5 years. Could have paid cash, but 0.9% money is pretty attractive.
That said, it's too late now to do anything about it. I would second the advice to track every penny you and your wife spend. I still do, and I'm a lot older and more financially secure. Every time I update my spreadsheet, I'm forced to think "Do I really need that? Could I get it cheaper" You will be amazed at all the ways money leaks out of your pocket.
You also really need to cut out the credit card balances before you will ever be able to get ahead financially. First, stop using them; pay cash or write checks for what you need. Then, direct every spare dime to paying them off. It's a corny solution, but try this -- take an empty 1/2 gallon milk carton, fill it halfway with water and put it in the freezer. When it is solid, lay your credit cards on top and then fill it the rest of the way with water. Put it back in the freezer. You will still have your cards for emergencies, but you will be forced to wait for the ice to melt before you can use them. That might give you some time to think about whether the debt you are about to incur is truly for an emergency need.
