Too easy... wish I'd known sooner!

[jamiedavidg]

Not only that, but unless the OP can refinance this vehicle at a lower rate with a BK showing, the OP will be under water for years on this vehicle. Six years is too long for any car payment no matter what one's financial status is. While it's good the OP got the transportation, there may have been better deals out there and it doesn't take much for the dealership's slick tactics to put someone in a situation like this right out of BK. That is a bad interest rate and they are making a ton of money off the OP. We were able still in an active Chapter 13 to obtain the advertised, special deals on a GM vehicle back in 2006 and got zero percent financing and/or the rebate/lower interest financing offerred at that time. We just paid off the car this past April. We did not jump on anything and shopped around and avoided the slick tactics and high interest rates. It is also a good idea to obtain a good used car for a few years and then go for something better after one's credit rating is a bit better a few years after discharge.

LOL, I just hearing the lady from the debtor education class, strongly advise against a vehicle loan for that long of a term...and I don't wanna let her down and fall into those old trappings again.

[mkuki]

here's my 0.02cents...

while it's nice for a post-bk person to afford a $450+/month car note, that reasoning that it's "newer", "better styled" is all buncha crap,...and it's the same attitude that will get them into the same hole they just pulled out of in another 7 yrs.

Just because you can afford it "again now" does not mean you should get it.

Case in point. I make over 6 figure, but that does not mean I run to the dealer to grab the newest & greatest, just because I now have ZERO debt. In fact, I'm so leary of debt right now, that I have created a "sophisticated" saving systems to keep myself in check. I also put $3000+/month right into savings, totally unreachable unless I WALK into the bank (I have not done that in over 6 months). We, as a family, are now surviving on $2500/month that goes into one specific acct for rent,food,gas,insurance,utilities etc. surprisingly, we are making it quite fine.

I currently drive a 1999 buick, she rides a 2004 van, and they run just fine. if I get a 2010 car, and it costs me $500/month, that means I have $6000 less in my savings account by month 12, and that's not accounting for higher insurance/taxes/downpayment spent etc....sooo, not thanks, I'm doing just fine with my buick

[Amy26]

here's my 0.02cents...

while it's nice for a post-bk person to afford a $450+/month car note, that reasoning that it's "newer", "better styled" is all buncha crap,...and it's the same attitude that will get them into the same hole they just pulled out of in another 7 yrs.

Just because you can afford it "again now" does not mean you should get it.

Case in point. I make over 6 figure, but that does not mean I run to the dealer to grab the newest & greatest, just because I now have ZERO debt. In fact, I'm so leary of debt right now, that I have created a "sophisticated" saving systems to keep myself in check. I also put $3000+/month right into savings, totally unreachable unless I WALK into the bank (I have not done that in over 6 months). We, as a family, are now surviving on $2500/month that goes into one specific acct for rent,food,gas,insurance,utilities etc. surprisingly, we are making it quite fine.

I currently drive a 1999 buick, she rides a 2004 van, and they run just fine. if I get a 2010 car, and it costs me $500/month, that means I have $6000 less in my savings account by month 12, and that's not accounting for higher insurance/taxes/downpayment spent etc....sooo, not thanks, I'm doing just fine with my buick

Good for you! I hope you continue to do what makes you feel good and you think is in your best interest.

[mkuki]

No, you're not the only one that thinks that. Many people have conveyed those thoughts. I'm not one of them, however. I think you should pay whatever you feel comfortable with.
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The only thing I don't like on here is when people post a question or ask something and immediately the responses are OMG THAT'S INSANE WHY ARE YOU DOING THAT! But that's just me.

Good for you! I hope you continue to do what makes you feel good and you think is in your best interest.

Why do (or did) you feel the need to participate in these forums? was it to learn? was it to identify self-defeating patterns/fear and resolve them for the better?

I understand everyone is entitled to an opinion (hey! I already offered my 2 cents above), but I have felt that these forums helped me thru the bk process, and look harder into my credit issues before pulling the trigger on "whatever I desired"

my impression of your responses above is that you feel justified to get that you wanted, and whoever expressed a differing opinion, must not understand you.

The whole "do whatever you are comfortable with" line does little to ACTUALLY help a potentially problematic issue down the road. Remember, that line also got a lot people in trouble (can anyone say mortgage, 2004-2008, anyone) by over-extending themselves, only to lose jobs and "OMG, I cant afford this house anymore"

The reason you see people here getting horrified by these crazy high interest loans, straight out of a discharge is because of ONCE BITTEN, TWICE SHY...and yes, I am one of them. You may not be, so please go ahead an cuddle the snake again...I'm sure it makes you quite comfortable. As for myself, let me build up my reserves, because living in a snakepit is not in my comfort zone...

[Amy26]

Oh these forums helped me out quite a bit as well. And I responded the way I did to your post to avoid writing one like yours that was biased and judgemental.

You are entitled to your opinion and I and others have made our points as well. You feel that what you are doing is in your best interest and I and other people do what is in ours. If someone after understanding risks and pitfalls and benefits and opportunities then they should do what they feel is right.

Nothing you said in your post is inaccurate...but it also does not apply to everyone. If you look for some other threads that I posted in we have debated "the reason people had to file" time and time over. Some people did not have to file because they were overextended or made very bad loans etc.

I am not sure why you felt the need to attack me and ask why I came to these forums and to say things like "my impression of your responses above is that you feel justified to get that you wanted, and whoever expressed a differing opinion, must not understand you." I find that statement most interesting because you are doing just that. Thinking that I somehow do not understand you.

Most post was strictly congratulatory to you in that you have found a solution post bk that works for you... not sure why you chose to turn it into something else.

[mkuki]

Amy, let's give this a rest, but I will give you the courtesy of explaining what ticked me off...

1.) Congratulating someone who realized that they need to get their finances order is fine.
2.) Congratulations for getting discharged is fine too.
3.) Congratulations for taking an action that is in the list of leading indicators of potential future problems (i.e. getting a high interest loan on a depreciating asset) is not a good thing. (this is what you did)

We can agree to disagree, but we all know that giving an alcoholic a high-five after he takes his first shot is not likely to lead to positive outcome. Sure he may just take that single shot and be on his way, but the statistics do not support that observation.

Another example: congratulating a previously obese person for gulping down 5 cheeseburgers...NOT good. Is eating in the best interest of a person well being?, YES it is, but eating healthy is the key (not over eating, or in this case, high interest loan)

Your choice of words..."doing what is best for them"...does not seem to acknowledge that certain actions may not lead to success, even though initially, there is a sense of accomplishment given the stress/challenges/disappointments of going thru a BK.

In summary, to each, their own...I know I learnt mine.

[Amy26]

3.) Congratulations for taking an action that is in the list of leading indicators of potential future problems (i.e. getting a high interest loan on a depreciating asset) is not a good thing. (this is what you did)"

Umm what? I'm sorry, in your post did you mention that you did what you stated in #3? I just reread your post and I believe I was saying congrats on living within your budget and not buying a new car and staying with your 1999 buick... what on earth are you talking about that I congratulated you for getting a high interest loan... do you have a high interest loan I should know about?

And if you're referring to the OP, then you should have nothing to worry about because I wasn't talking to you. All anybody can do is do what they think is right and best for them... you can't run around poking people with a stick cause they don't do what YOU think they should do.

[mkuki]

yawwwn...I'm referring to the OP

my 1999 buick is paid for, so is the 2004 van. both vehicles have less than 80K and cost me less than $7k combined.

finally, I have no problem with a pat on the back to someone who learns from their mistakes (like myself, thank you very much). The OP needed a pep talk, not a pat on the back....but hey, that's just me.....the judgemental one.

No wonder Albert Einstein came up with the definition of insanity...to me it's insane to get a high interest loan on a depreciating asset AND expect an outcome different from that they just went through...thank you

[Amy26]

Well, as I said in another post the OP wasn't asking for advice or saying please help me figure out what to do... the post was merely information on how they obtained a better deal than what they had. If they did ask these kind of questions then perhaps it would be appropriate for people to put in their aura on the matter.

And yea the interest rate isn't so good, but I'm sure they can refinance it later. I was able to do so as well.

Again, calling someone insane on a forum who you do not know at all is what ticks me off. Its not only rude but uncalled for. Just because someone gets a car doesn't mean they are gonna be in a bankrupt situation. Just because you have no debts doesn't mean some catastrophe can't strike your life either.

There is also the theory of relativity to consider....

[LSUTiger32]

Dang Amy, you beat the drum for high car payments and credit cards all over the forums! Are you a debt collector in disguise or something?

Just teasing......don't shoot!!!!

[Amy26]

LOL! *poke*

You just saw that thread? Was like a month ago I posted that!

[LSUTiger32]

LOL! *poke*

You just saw that thread? Was like a month ago I posted that!

I try to get on from time to time but work has just been crazy lately. When I can get on I have to catch up!

[bella8286]

Wow havent been here in a while and didn't realize all the activity on this thread since I posted! In response to paying $550 for a car, w/o giving our entire life story... The payment made no impact whether better or worse on our finances. The whole point was that all the time I'd been leasing my car and throwing money away towards nothing, I was able to BUY a car, making comparable payments only NOW rebuilding my credit! A new, reliable car, under warranty and thus far, virtually no money in repairs or maintanance is enabling me to improve my credit score. At the time we were going through the approval process, several banks had an even HIGHER interest rate on used cars meaning older, maybe smaller vehicle for same money. Do I plan to keep the vehicle forever, probably not but going into it I knew I'd eventually have the option to refinance at a lower rate

[dumpinmydebt]

Don't feel the need to justify your personal financial choices to strangers on the internet. Only you can decide what is best for you. Hopefully you can get that lower rate soon!

[clevelandmom]

Okay - all the banter on this thread aside - I am SO HAPPY to hear that people were able to get a car just a few days after being discharged! We have a Ford we are way too upside down in, after having READ THIS BOARD I have learned that reaffirming would make me the EEOC requirement of this forum, so we are going to give it back. I still don't know how it works though - our schedule J is -$900 as it is, the Ford is included in the Schedle J, but if we have decided to give the car back, won't that change the Schedule J quite a bit? I know we are still going to have to have a 2nd car payment. We both need cars to get to work, and we have NO CASH to get a klunker. Both of us need reliable transportation for our jobs. Any advice is appreciated, but rudeness or sarcasm is not. Thank you!