I’m seeking some advice on what I should do to help get out of debt

[AbuHossam]

The Question
I have read Dave’s book but am not sure where to start for my situation. My annual net income between my wife and I is around: $50,400

I have around 4 main debts at this point:

1 - 2021 Toyota Hybrid Camry with 30k miles on it, we owe about $32k on it - $564 per month

2 - a small unsecured personal loan worth $3900 - $163 per month

3 - newly acquired precomputed loan for $7850 - $263 per month

4 - My home loan of $33k - $277 per month for another 12 or so years.

My main question is what should I do? Should I sell my car and possibly take on negative equity?

I am in the process of trying to get my precomputed loan to become a secured simple interest loan to avoid a stupid amount of interest being charged to me by putting our other paid off vehicle as the collateral.

I’m kind of at a loss. I will be getting a significant amount back for taxes, and will also be gaining money from something’s I will be selling for the next few months. If all goes well I could get up to 8k from the sales. These are tickets to a local sports team.

Any advice would be greatly appreciated.

Thanks.

ANSWER 1
First, sell the car. If there's negative equity in it, then borrow the difference, and get you a cheap $3,000 car for the time being. That can be a small loan, because at least you're trading a large debt for a small debt. Next, start hammering away at the personal loan, then the other loan. Home loan will be last. Adjust your W2 so your tax refund isn't so much in 2024, and that should increase your take home pay, which will help. Once all the loans except the house are paid off, build up an emergency fund of 3-6 months of expenses, then attack the remainder of the home loan. Also sell as much stuff as you can, take on extra jobs, and stay laser focused on killing this debt like the cancer it is.


ANSWER 2
2,3,1,4 then snowball payment amount onto the next debt as each is paid off. Minimums on each except smallest. Throw everything possible at it until it’s gone then move up the line.


ANSWER 3
BS 7 If you can have the car and all smaller paid of in 2 years or so you can keep it other wise sell car al get a cheaper one and put the difference in a loan look a vehicle that will do you for a few years.



ANSWER 4
Sell the car, pay cash for a used yes used car! Save $1,000 for your starter emergency fund , list all the other debts small to large amount total then pay the min amounts on all except the smallest throw what extra you can at it and knock it out and take that money and use it for the next debt bill

[alwakrah]

Hi AbuHossam, thanks for sharing your experience about reducing debt and making more money. Here is what I did in a similar situation. I foremost took an effort and closed all my credit cards. Simultaneously, I started to save 20% of my salary and created an investor portfolio. About 20% of this portfolio I invested into forex trading, but not earlier than reading forex comparison and choosing the right broker. There are a few details that matter in this process.

[moroccos]

Thank you very much!