2018 Debt Update

"Wobbles the Mind" (wobblesthemind)
07/06/2018 at 05:40 • Filed to: Personal Garage

Here is where I’m sitting in regards to debt now that we are past the halfway point of the year:

Kia Amanti - Paid Off

Jeep Grand Cherokee - $17,579.45

Jaguar XF - Paid Off

Personal Loan - $3,406.02

Student Loans - $2,733.10

*** Total Debt - $23,718.57 ***

The values of the cars in “Good” condition as of July 5:

Amanti: $900

WK2: $7,500

XF: $13,000

*** Total Values: $21,400 ***

I used all of my savings !!!error: Indecipherable SUB-paragraph formatting!!! and I’m very happy with the decision since it freed up $444 a month. I cant remember what the insurance savings came out to once I divided it across the months though.

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Nearly debt neutral but one thing I have learned is that even though the market prices may level off that doesn’t mean your car stops depreciating. That XF is very likely to lose another $4,500 by 2020 before it plateaus for a while.

Next, I’m going to pay off the Personal and Student Loans by early October. After that, I’m throwing all my attention of the WK2 in order to at least owe the value of the rig by July 2019.

I need to give you all a Career Update but I’m waiting to live with the changes a bit longer before I write about them.

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DISCUSSION (10)

RallyDarkstrike - Fan of 2-cyl FIATs, Eastern Bloc & Kei cars > Wobbles the Mind
07/06/2018 at 06:20

Kudos - good on ya! I still live at home at almost 32, which is pretty terrible (kudos to mom though), but I have my car (which was only $6900 CAD all-in anyway because base model with stick and NO options) paid off and also my Federal and Provincial student loans paid off....reason I am still here is no permanent, full-time job yet and I’m trying to save up for a house rather than moving into an apartment and wasting the money on rent. I’ve got a lot of money saved up so far because I put pretty much everything I earn *cough except around $8000 I’ve put aside for my import a FIAT 126p from Poland fund cough* towards my house savings...

pip bip - choose Corrour > Wobbles the Mind
07/06/2018 at 07:07

my car debt is AUD $0

however

house debt is AUD$97K

merged-5876237249235911857-hrw8uc > Wobbles the Mind
07/06/2018 at 07:47

Good work paying down the debt. It’s nice when it’s gone. I carried over 50k in student loans and when my wife and I got married I still had at least 30k, we buckled down to get it paid off in less than two years. It was a huge burden lifted. Debt is so crippling, I’m surprised people don’t discuss it more often and celebrate the elimination of it. We now only only have house debt and one vehicle at a time to carry payments. And if we want a new car, it’s got be able to be payed off in three years. That seems to work pretty well for us. Makes for some big payments, but at least the pain is only for a short period.

I assume you’re picking off the higher interest or higher payment debt first? That helps to avoid paying more interest than necessary, or if it’s close, then the higher payment gives you’re breathing room each month, like with the Jag.

Keep at it, it’s worth it when you get out the other side. Debt sucks.

E90M3 > RallyDarkstrike - Fan of 2-cyl FIATs, Eastern Bloc & Kei cars
07/06/2018 at 08:08

I’m trying to save up for a house rather than moving into an apartment and wasting the money on rent.

I never completely understood that mentality, where renting is always seen as throwing your money away.

Sampsonite24-Earth's Least Likeliest Hero > Wobbles the Mind
07/06/2018 at 08:16

we just finished paying off both the Cobalt and Explorer. so yay for no longer being underwater!

RallyDarkstrike - Fan of 2-cyl FIATs, Eastern Bloc & Kei cars > E90M3
07/06/2018 at 08:27

I’ve always looked at it this way:

It’s not being thrown away in the sense it gives me somewhere to live...

...but it is in the sense the money goes towards nothing with an intrinsic value I could gain some of back if needed. With a house I have the value or the house and property that I could later sell if need be to gain value back, if renting an apartment, I cannot retrieve any of that value (short of the deposit) because I cannot sell the apartment because it doesn’t belong to me, so the landlords get my money and the money is now gone from me completely with no way to retrieve any of the value back.

cbell04 > E90M3
07/06/2018 at 08:41

I rented for over ten years then I bought my 1st home lived there for 5 years and then sold it. Bought it for 130k usd sold it for 142k usd and that was during the recession where values were stagnant . I’m on my second home now and it’s value has risen over 30k usd while we’ve occupied it. Dont thin k anyone has ever made any money on renting . Also mortgages are cheaper than rent for the same size/location . I think that’s pretty much what people mean. On the other hand if disaster strikes I could pay tons or even lose everything so I get both sides. R enting is handing cash to someone and with zero potential to get it back compared to owning. Renting is great for the flexibility but even then your stuck with at least a years commitment or if in a month to month deal your rent is even higher. Loved some of my apartments they were small and cheap and allowed me to live where I couldn’t otherwise afford. Like I said I get both sides but you are tossing money into someone's else's bank account no matter what way you slice it.

WiscoProud > Wobbles the Mind
07/06/2018 at 11:19

How do you like the XF? I was admiring the XFRs the other day. Looks like you can get one for around $20k pretty easily. I would prefer an XKR, but its a lot easier to put a car seat in an XF

Wobbles the Mind > WiscoProud
07/06/2018 at 11:27

I like it a lot! Very pleased with my purchase and these old 2012s with the base 385 hp V8 go for $15k now. The larger XJs are also very low priced even in regards to the Supercharged and the 510 hp Supersport variants. I picked this base XF because it would be (and has been) extremely dependable and easy to care for.

WiscoProud > Wobbles the Mind
07/06/2018 at 11:52

Thats great to hear. The alternatives are either ridiculously priced (CTS-V) or ridiculously unreliable (M5).