I Have $1,800 In Car Payments At 18% interest

[Music] Brought to you by the Every Dollar app. Start budgeting for free today. Me and my fiance, we're in a bind. So, we both have car payments and we're both upside down. So, combined, our car payments are about $1,800 a month. Yeah, I know. It's stupid. I know. And are you driving Lamborghinis? What are you drive? I'm I'm I'm curious. No, just basic, you know, a GMC Acadia and an F-150. And the F-150 is a 2015 and the Acadia is a 2021. Terrible interest rates. Did you get these at like a sub I mean, did you I mean, did you buy them off a lot? It's like a handshake deal off a lot somewhere behind the lot. No car dealership. It was just the credit was so bad. So, he had his truck before I got my car. My other car that was paid off. I loved it. It was just down in the dirt and the engine was smoking when I pulled into the dealership. Okay, Sarah, what I want you to separate these out. Tell me your car. How much How much is it worth? Is my Oh, I owe 32 on it still. Okay. Um, my payment is 1,100 because we got behind so we had to do this promise to pay thing. It was 8:15, but now it's bumped up to,00. Okay. the 2015 F-150. He still owes 20,000 on it and his payment is right at 700. How much do you make a year? So, combined we make Don't Me, myself, right around 55. Okay. How about him? Uh, he's about 52 53. Okay. What could you sell your car for today? What does Kelly Blue Book say? Uh, I think it's like 17. Have you looked? I have. Okay. And an individual, not dealer. So, not as an individual. I haven't. Okay. So, I would do that. So, I would give it a couple thousand more because you can usually get more from an individual. A dealer is going to buy it as close to wholesale as possible. Um, so what did you what was the first what the number you said for the dealership? Uh, 17. Okay. Let's just bump it up to 20 just for fun. Okay. Um, how much could he sell his for? I think his is valued at like eight from a dealer. From an F-150. Did he wreck it? No, he did not wreck it. It's just F150s are made of gold. So, both of our cars have about a 100,000 miles. His is about No, that's not I I I almost guarantee you a 2015 F. I'm going to Yeah. 12 to 15,000 or you think even more? I They're expensive. I buy I like trucks and they're so like they're it's like cartoon money,000. No. No, dude. I thought that's what it said. So, it's also a two wheel drive. I mean, there's going to be a bunch of nuances here and there, knick-knacks, and we have to go back and forth if it's extended cab or like a single like all that stuff. I could almost guarantee you I could be wrong that it's worth more than eight grand unless it's been wrecked. It was it was underwater. I will look into that. And private party, too. Yep. Okay. Even if there was somebody that owns a lawn crew that will roll up and give you 10 grand cash for it. Like it's I I haven't seen a truck worth $8,000 in a long long long time. Okay. So, yeah, we'll be a little bit more. And you're in Texas, you know, they like they like their They give you a truck with your birth certificate. Yeah. I haven't dug too much into Okay. So, Sarah golly. Okay. So, um man. Okay. So, for you, and I'm going to talk I'm going to I'm going to separate the two because you guys aren't married yet. Once you're married, we combine it all together and I'm right off into the winds. But for you specifically, yes, getting rid of this car is huge because it's more than half of your annual take-home pay. You know what I mean? Or half of what you make. Um, and so you are we have way way too much car, which I know this that's why you're calling because you're you're feeling it. Um, yeah. Well, we both are. So, all of our finances are combined. We have four kids together. Okay. Okay. Hang on the line. We're going to hold you over because I want to unpack this one. Yeah. And we'll we'll walk through some of this math with we're going to go to a break, but we'll be right back. All right. Welcome back. We have Sarah on the line from the last segment. She was calling in because their car payments and car loans. They are feeling it. So, she owes 32,000 on hers with $1,100 going out um every month in a payment. and her husband owes 20,000 or I'm sorry, her fiance owes 20,000 on his. Um he makes 52, she makes 55. And just kind of trying to figure out the math here to get them out of these payments. Does that sound right, Sarah? So far. Yes. Okay. Um and are both of your credits shot because you mentioned that. Okay, they are. Yeah. So, we have completely stopped paying on the credit cards cuz even the minimums is like, okay, well, we're not going to pay our rent. So, we rent right now for 2,000. Then daycare 700. It's everywhere. Okay. Um, your rent is 2,000. How much do you guys I mean, you're running your household as if you're married. So, I'm going to ask this. How much do you How much hits? They pretty much do. How much How much hits your checking account every month after taxes, after insurance, everything? I would say right about 8,000. 8,000 for both of you? Yes. Okay. Okay. Well, that's Yeah. Then the um the $2,000 rent, that's in line with it for being about a fourth of your take-home pay because that's what we're wanting um shooting for. So that's not completely out of control, but then again, you add in these car payments and everything else on top of it, it's a lot. So um have you guys have you guys gone down to maybe a local credit union or a local bank and talk through a loan process? Because the ideal situation, again, your credit's shot, so it may not work. Um, they will not refinance. But no, no, not a refinance. Just to get a get a personal loan and I would get a $25,000 loan for you and pay off the difference. Pay off the difference of 20. Go get a $5,000 crappy car for just the time being. Um, and your husband, you know, do the same. Um, if he's able to because I mean, I mean, honestly, what John was saying about trucks, I mean, I'm praying he can get more, but he may only need like a $6,000 loan um to get it paid off to get the difference if he can sell it. It's not a refi. It's just we're paying this thing off. We're done with Yeah. Yeah. Yeah. It's a But I would rather have a $20,000 loan than a $32,000, right? So, we're just kind of moving it but lowering it at the same time, which means you're getting rid of these cars and driving crappy cars. Do you guys have any You don't have anything in savings? No, nothing. So, we just started y'all's financial piece last week through our church. Oh, good. Okay. All the steps are hitting us and we're like, "Oo, yeah. Well, yeah. The thing I think you have to metabolize here is this is you've got these car payments. Y'all have done things that aren't wise with money. We all have. You'all have to metabolize to truly get out of this mess. It's going to be 36 months of not a lot of fun. Yeah. And if you're willing to do that, you can get out of this. And that might mean you're taking a second job. He's taking a second job. And you're like, I don't have time to that. And I would tell you, you don't have time not to because I can hear you drowning. And you're going to find yourself, this car is going to fail you before you pay it off. And you have to roll that guy has been in the shop. That's right. Already. You're gonna have to roll the negative equity. You're gonna end up owing $50,000 on a on a 79 used like whatever Volvo, right? So it's like at some point you and him have to say, "We're drawing a line here. We're not going to go out to eat. We're going to take second jobs. We're going to maybe move apartments. It's $1,500 instead of $2,000. We're going to do that for three years or two years so we can get out of this once and for all." And if you don't have that level of burn it to the ground and and grow something beautiful out of the ashes, if you don't have that, you're just going to keep playing a shell game. Yeah, that's right. Yeah, there has to be an extreme change. I mean, it's almost a 180 at the way you guys have been thinking about money, doing money. I mean, all of it. It's It's got to be a complete different shift. And you guys are in uh Financial Beast University, which I'm so thankful for. But we're also, if you hold in the line, Kelly's going to pick up and we're going to give you our allnew Every Dollar. Um, and we're excited about this because within the app, you're not only able to budget and create a monthly budget, which will be so great for you, Sarah, and um to sit down for you guys to look and be like, "Hey, we we are literally this is our plan for what we're spending on groceries, lights, rent, gas for the car, and that's it. Daycare, and insurance, and like we're paying for nothing else. We're not Amazoning. We're not going to Target. We're not going on vacation. We're not decorating anything." Oh, that looks nice. Doesn't matter. We're not doing anything. But we're literally putting every single penny we can find towards this debt. And when you start to have that motivation, it's incredible. And to have an app like Every Dollar that not only can you do the budget, but also it's going to look over your entire financial plan because with Every Dollar, we're adding in so many coaching elements and it's going to look over your entire financial picture. And people are finding thousands of dollars of margin in just 15 minutes. So, for all of you listening, we have a premiere coming about the allnew Every Dollar on September 25th where you get to see real success stories and how you can be the next one and how you can plug into this and start your money journey. So, if you want to turn on your YouTube notifications to get notified when the premiere drops, make sure to do that. And again, that is going to be September 25th is where the allnew Every Dollar premiere uh is here for you guys and we're really really excited about it. So Sarah again, Kellyy's going to pick up and we will hook you up for a year's worth of um that Every Dollar subscription to get you guys in and moving. So we are cheering y'all on. Create your free every dollar budget today. The simplest way to budget for your