Looking for serious advice.. Should I sell my Truck? Struggling.....

Don’t give up on the 401k match, if your employer offers it. Wasting free money.

 

I’m also curious about the debt to income ratio question.


Maybe just get a better paying job?

Worked for me but took almost two years to find it...

Good luck OP and I’m with you on debt-sucks.

 

i haven't read through everyone else's stuff but i'd stay start attacking things one at a time (that said you don't have a ton of debt it seems like). i'd refi the student loans, there's probably lower rates than what was available when you took them out. pay those off quickly since it's only 6k, then pay more towards the truck monthyly

 

@Kamille.bidan.

First let me just say that I feel for the economic pinch you’re going thru, having been there myself in years past I know what it’s like. In my case I got out of it by working at my full-time job, a part time job and for myself on any free time, usually on Sundays.

But everyone’s situation is different and economic circumstances change. In your shoes, I would continue with the employer matching, its the best free money you can ever earn.

Having said that, I’d make sure its not all in the market right now or the company stock I work for at 100% of it. many hearts have been broken and will again. I’d be 75% in treasury cd’ or fdic insured cds with 25% in us treasury bonds. I know there are rules in 401k plans and they constantly change, but this would be my goal. I feel the same way as you about the market’s next move and timing it is the only way you will ever get-out alive or win.
Right now I’m 100% liquid until I get a solid trend signal at which time I may short the S&P 500 or bonds as rates rise. I’m flexible and don’t fight the trend, the trend is your friend.

You can get into a fuel pincher Rav4 for $250-300 Mo lease, but depending on your equity you might just be able to buy it (better) instead.
Don’t know how the family will fit but I would try it before, you can rent one for a couple days. We have one in the family and even though they’re small they are quite safe. Ask me how I know. And remember this will not be the last vehicle you will ever own.
You maybe able to make do if you have to, in other parts of the glove this would be a large suv. The German families used to cram everyone into a VW bug and so did my older brother lol!

Also remember, non of the critics will ever pick up any of your car notes.

Working for Uber will increase your cash flow but will not make you any money unless you play it smart, but it takes knowledge and experience, until then you will barely break even after year end taxes, added expenses like insurance, gas wear & tear and what not. IDK about the other you mentioned.

I think you’re fine under the circumstances, you’ve got a good head on your shoulders, you think smart and you will get over this and move ahead, which btw you already are in comparison to the rest of the herd.

Good luck!

 

^ This is a terrible idea. Don't take a loan against your 401k to pay off a depreciating asset. Tax deferred space/gains and time is precious. Don't take a step backwards in this area.

If you are struggling that bad sell the truck and buy something used/cheaper that you can afford. Live on a budget to get the other debts cleared as well.

 

Depends on the rates, if truck higher rate the student loans, the focus on paying off the truck, because student loan interest is a tax deduction.

 

Canceling the 401k contributions was not a good choice. Start that back up asap, you're leaving free money on the table If the market does down the next year, or the year after or 5 years .. Who cares you're nothing retiring for 30.

Sell the truck, pay off the truck loan, get a fuel efficient car that you can make extra cash in with about $10k of that $15k. Live and learn.

And go get a vasectomy because your finances can get more squeezed.

Edit: the standard deduction next year is going up (I think ) so you might not even deduct the student loan interest anyway (I am not a tax expert though so I reserve the right to be wrong on that ).

 

I'm not going to read any of this and just say yes you should sell it

 

I back the 401k loan idea to consolidate debt. This market can’t ride this high forever, eventually all things (interest rates included) will come back to earth.

Essentially you would be pulling back to some of your positions at a high, sheltering that cash from a crash and then accelerating your buy back of those positions when prices are lower.

While I would never advocate living beyond your means, let’s be honest, it’s the best value vehicle you can get and anything else would be a downgrade in reliability when it matters the most.

 

Am I the only one that thinks he should spend some of that money on a vasectomy?

 

His employer matches 50%. That is a 50% return on your money instantly. Not maxing that out would be insanity. The market could crash 33% and he would still be at break-even. Whatever you do dude, max that match. If it does crash, ride it out, look at the market peak in 08 compared to today, in the money at a reasonable rate. Timing markets is a suckers game.

Hard to say what you should do with the truck without all of your financial info.

 

Yup 24k for married filing jointly. And your state tax and local taxes (most peoples biggest deduction) are limited to 10k, so good luck getting to 24 if you are the average person. Although student loan interest isn't deducted in the itemized deductions, still a good tidbit of info.

Not to mention saving 30 cents on a wasted dollar is still wasting 70 cents.

 

Sorry, I forgot to say that with the payoff of his debts with the 401k loan also includes instating payroll deductions again.

But like you said, without hard numbers it’s tough to make assumptions.

Part of me worries that dumping the truck to jump into a beater only opens up more unexpected expenses and opens up the treadmill of crap versus just sticking it out for a few years.

 

Here is the best advice you are going to get....don't seek financial advice on TacomaWorld. Go talk to a financial advisor. Not a single person here knows your monthly income, so everyone is talking nonsense. Debt means nothing on its own, it's all about debt to income.

 

Seems like you're going to need more room anyway. I'd sell it and find an 03-09 4runner with 7 seats. Nice to drive, reliable, can be had with a v8.

 

Never borrow from your 401K... it

Great advice to seek the help from someone that actually understands finances. I can't believe people are suggesting taking money out of a 401K for a freaking vehicle... Such horrible advice.

 

Somehow this might be the most constructive comment posted.

 

Sell 2 of the 3 kids to raise cash and pay off the Taco? Can always make more when your income improves.

 

The Dow closed at 25k today, apparently enough time has passed since we saw 6,800 in 2009. You don’t need an MBA to wrap your head around how ridiculous that is (but it helps if you’re having trouble). Also, the fed has been reluctant on pulling rates back up because they know the snowball effect it will have.

I’m not going to talk economics on a mid sized truck forum. But this is pretty simple shit dude.

But yes, in a pinch, I would pull from a 401k loan when the market is at a screaming high to consolidate debt.

Feel free to bump this thread in a year and tell me how wrong I was when the dow continues this trajectory and hits 40k.

I got a hunch that the OP isn’t financially irresponsible and can get past this truck hurdle which will pay for itself in the long haul if he doesn’t have a revolving door of shit boxes.

 

Debt sucks.

Do what’s comfortable for you. Buying a car with a $550 payment likely wasn’t your true decision, given your story. Don’t let The Jones’ keep you down.

Money isn’t made to be owed. It’s made to succeed.

I wouldn’t go an Uber route, whatsoever.