31F, single, no kids, lives in US
Debt:
Without revealing too much personal info, I have $155k in loans from delinquent family members that I cosigned and am legally responsible for paying off. Nothing to sell assets-wise from these loans that I can use to help with this.
The $155k is two auto loans (seriously, these fucking dickheads) - one has $75k remaining with 4.7% APR, the other has $80k at 6%. They both are scheduled to end in Oct 2025 (69 more payments, nice) and the minimum monthly payment is ~$1300 apiece.
EDIT: Cars (and family members) are nowhere to be found. Selling them is not an option since I don't have possession of them or know where they are.
Financial situation:
Monthly take-home is $6500/month after taxes, insurance, and the minimum 401k contributions to get max company match.
Monthly essentials are $2000 for my rent/utils/groceries/ongoing medical stuff. No car, I live in a walkable neighborhood. I'm less than 2 miles from work, friends, and the few good members of my family. This "essentials" number seems high, but I'm in a rent-controlled place (with roommates). I could probably save $500/mo in rent by moving to a cheaper place, but it would take me to a neighborhood/city where I'd have to buy a car (offsetting most/all of the rent savings). Plus, my commute would go up 60-90 min, and it would effectively isolate me from friends/family/partner.
$6500 take home - $2000 essentials - $2600 for minimum monthly loan payments = $1900 leftover for fun money and paying down debts faster.
No other debts/obligations. $10K in checking. No savings. Retirement has $310k ($120k Roth IRA, $170k Traditional 401k, $20k Roth 401k). I'd estimate $60K of that is Roth contributions that are over 5 years old.
Expected to get a bonus in March of $3k (after taxes), and $2k-3k in state/federal tax returns around the same time.
Credit score is ~650. It was 780 until recently - the loans went 90 days without being paid (that's when the banks reached out to me and let me know that I was months behind, and I had to use half of my emergency fund to catch up on the missing payments + late fees). One of my credit cards has a feature where it estimates your credit score, and it says I'm at 650 now.
Questions:
Can I refinance this much in auto loans to get a better interest rate? Will my updated credit score screw me? Should (can) I roll them into a personal loan? Should use retirement funds to pay principal down? Finally, should I take out just the estimated $60k that's penalty-free or should I take out more than that?
Thank you lovely redditors, I'm struggling to accept with the fallout of all of this (massive debt, failing to realize how dumb cosigning loans is, basically losing relationships with family members over this), and I am extremely grateful for your advice on how to start fixing things :)
Submitted January 12, 2020 at 04:42PM by lavode9810 https://ift.tt/2silccJ
