I (F 23) just graduated this May and received a job at an engineering company. I’m making $74k a year. My next paycheck includes a $5k bonus.
Last year, I was furloughed and it took a couple of months for me to find a new job. I used one of my credit cards to survive in the mean time. During this time I had massive car issues and other unexpected fees. I paid for those and now there’s more problems (I need a new power steering system and more). The estimate was $1300. It’s a used Ford Focus (205k miles) and if I fix it now, then I paid more money to fix it then I did to buy it.
I managed to get a full ride after my first year, making my student loans only $9k. I have $4k in credit card debt.
My car is incredibly unreliable. The engine overheated the other day and the ignition chooses when it wants to work.
Would it be best for me to buy a car? I don’t want anything too fancy, I think this car scarred me. I just need something reliable. I’m looking into a Honda Civic.
Family members have told me to lease in order for me to try different kinds of cars. However, I don’t see myself changing cars every couple of years. I want something that will get me where I need to go without leaving me stranded on the highway.
My credit score is 668. It was higher but I’m currently filing a fraud report to get an account removed . It’s not the highest but I’ve seen people with low credit get brand new cars with proof of salary before they even started, their payments were just high (in my opinion).
The Civics I’ve seen have ranged from $18k to $22k
My plan was to get approved and use my bonus for the down payment. This would leave me at $13k-$17k left.
Next, pay off the $4k credit card by October.
My deferment period for my loans are over in October I believe. I hope to pay them off by this time next year. Then I can focus on paying the car off (hopefully I can get a low interest rate).
1st Car payment -> Credit Card -> Student Loans -> Finish paying off car
Is this a decent plan? I want to get rid of any major loans/debts before I’m 25 in order to focus on investing full-time.
Submitted July 05, 2021 at 02:36AM by Weird-Praline142 https://ift.tt/3jNiG6D
