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- May 24, 2011 at 11:35 pm #219827
I am going to outline my debt breakdown here, and try to get some advice on how I can take care of it. My goal is to pay off the upside down on my vehicles so I can sell both of them. I am looking for the smartest way to do this:
1. I recently took out a loan for $10,000 which has a monthly payment of $337. This was sent as a check to the creditor of my BMW. The loan now has a balance of $15,000 which is what I am going to try to sell the car for as soon as possible.
2. I have a $35,000 loan on my Jeep Cherokee I just bought 8 months ago. If I sell it today I might be able to get $23,000 for it.
3. I have $10,000 in cash in a rainy day fund.
4. I have $4,500 in cash in savings to pay for my 2010 taxes
Considering my goal, I was thinking of putting the $14,500 on to my Jeep and selling that vehicle, selling the BMW and then being left with a loan of $10,000 to pay off over the 3 years. But then I will owe the IRS around $5,000 that I’d need to put on a credit card.
Any thoughts on how I should tackle the debt?
I have 2 cars because I am going through a divorce. Yes I made a lot of stupid mistakes with money – let’s focus on what I asked, not what I did wrong. I am selling everything I own and moving to England, not interested in hearing about how silly it is to sell a new car etc etc etc.
PS. My 10k loan is simple interest. I can pay it off today with no penalty other than a $100 application fee to get it.
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