Cookies are required for login or registration. Please read and agree to our cookie policy to continue.

Newest Member: LonelyandUnsure

Off Topic :
Update on my car situation

This Topic is Archived
default

 idkam (original poster member #18375) posted at 6:11 PM on Friday, July 25th, 2014

Well went to the dealership yesterday: i'm $14.000 upside down now.....thanks asshat......sooo the sales person told me i need to find a new car with a big rebate....another option is to save $5000 and try to get it refinanced and put the $5000 towards the loan.....so i had to do something i dreaded doing which was borrow money from my 401K... over 5 yr term 60 month period $47 comes out of each pay check ....

What do you all think about this??? I really hated to do this but i felt like i have no other options....i cannot afford to pay $583 plus ins.....

I pray that my credit union will refinance it for me.....

2015 It's time to get Fit, Fine, and more Fabulous. Come and join me.

posts: 2046   ·   registered: Feb. 26th, 2008   ·   location: Texas
id 6885605
default

Faithful w/Love ( member #33128) posted at 8:38 PM on Friday, July 25th, 2014

Wow, I am sorry you had to do that. I had to give my car back because I couldn't afford due to the separation. It sucks I know. I had to get a older car... but it gets me where I need to be for now.

But, I know what you mean having no other options.

BS(ME)41 WH(HIM)38
DD 21 and DS 16
Separated Aug 2012
Moved back home Oct 31 2013
Separated again June 2014. Heading toward divorce.
False R. Still Lying.

"You never know how strong you are until being strong is all you have left"

posts: 2947   ·   registered: Aug. 17th, 2011
id 6885819
default

 idkam (original poster member #18375) posted at 10:46 PM on Friday, July 25th, 2014

Thanks faith...

Giving the. Car bavk was one option but i do not want to ruin my credit.....

I pray the bank will refinance it..

2015 It's time to get Fit, Fine, and more Fabulous. Come and join me.

posts: 2046   ·   registered: Feb. 26th, 2008   ·   location: Texas
id 6886007
default

gahurts ( member #33699) posted at 10:50 PM on Friday, July 25th, 2014

I think borrowing from your 401 is the best kind of loan you can get. You don't decrease your assets in the long run because you are paying it back. Usually the interest rate is lower than what you can get from a bank or credit union. You are borrowing the money from yourself and you pay interest to yourself so in a way you are making money off of yourself. If you need a loan and a 401K loan is available then I say this is the best way to go.

Of course everything in moderation and typically most plans have a limit to how much you can borrow so that you don't get carried away

"Strength does not come from physical capacity. It comes from an indominable will" - Mahatma Gandi

"Courage is being scared to death and saddling up anyway." - Aubrie

posts: 3991   ·   registered: Oct. 22nd, 2011   ·   location: Georgia
id 6886012
default

HFSSC ( member #33338) posted at 10:54 PM on Friday, July 25th, 2014

I turned in the car I LOVED after our 2nd S because I could not afford the payments. They sold it at auction and billed us the difference. I was able to work out a payment plan for the balance and the company has truly been wonderful to work with. No interest and right now we are paying $50 a month to pay it off.

Me, 56
Him, 48 (JMSSC)
Married 26 years. Reconciled.

posts: 4971   ·   registered: Sep. 12th, 2011   ·   location: South Carolina
id 6886017
default

 idkam (original poster member #18375) posted at 6:15 PM on Tuesday, July 29th, 2014

Thanks my SI friends....

The credit union termed me down for refinancing, wanted to give me a 10% interest rate..my credit score is 623 and its too low...

I will try my bank next..

2015 It's time to get Fit, Fine, and more Fabulous. Come and join me.

posts: 2046   ·   registered: Feb. 26th, 2008   ·   location: Texas
id 6889814
default

Whalers11 ( member #27544) posted at 7:32 PM on Tuesday, July 29th, 2014

Most people will tell you borrowing from a 401k is a bad idea, because in the long run, you are probably losing out on the compounded interest you could be earning over time.

But honestly, if you are in a dire financial position, I still think it's better to borrow from yourself than getting a loan elsewhere...

The bigger concern, for me, is if you lose your job, you will be required to repay the full loan almost immediately. If you can't, you will have to deal with paying taxes/ penalties.

So I understand why people think 401k loans are a bad idea, but if you are experiencing a hardship, do what you have to do!

posts: 3358   ·   registered: Feb. 11th, 2010
id 6889956
default

 idkam (original poster member #18375) posted at 8:45 PM on Tuesday, July 29th, 2014

Well my bank termed me down..

I got an appt at CarMax this friday....i asked the finance co where my loan if i pay &5000 towards my loan would it lower my payments and she said it'll only lower the how long i would pay it..

2015 It's time to get Fit, Fine, and more Fabulous. Come and join me.

posts: 2046   ·   registered: Feb. 26th, 2008   ·   location: Texas
id 6890055
default

norabird ( member #42092) posted at 9:10 PM on Tuesday, July 29th, 2014

Get rid of this car--your credit will recover. You can buy a used one for far less than a new one.

Sit. Feast on your life.

posts: 4324   ·   registered: Jan. 16th, 2014   ·   location: NYC
id 6890100
This Topic is Archived
Cookies on SurvivingInfidelity.com®

SurvivingInfidelity.com® uses cookies to enhance your visit to our website. This is a requirement for participants to login, post and use other features. Visitors may opt out, but the website will be less functional for you.

v.1.001.20250404a 2002-2025 SurvivingInfidelity.com® All Rights Reserved. • Privacy Policy