NT Financial Gurus, Guide me.

[luckyluchiano]

Would you guys say that clearing all debt before moving on to another type of Loan is the best way to handle things?
For example.

My new Job, I want to get a more reliable car soon because my job may require me to travel according to business needs.

I just graduated in May and have about 15k in student loans from my Freshmen year of college because I didnt have any scholarships.

Would you guys recommend knocking out the Student Loan first and then getting the car?

In regard to the car, I know alot of you guys say pay it all off in cash, but Wouldnt paying off a financed car before I turn 25 (I`m 22 now) do wonders for my credit score?

If I do finance a car I planned on paying well above the car note every month.

Thoughts?

 

[luckyluchiano]

Would you guys say that clearing all debt before moving on to another type of Loan is the best way to handle things?
For example.

My new Job, I want to get a more reliable car soon because my job may require me to travel according to business needs.

I just graduated in May and have about 15k in student loans from my Freshmen year of college because I didnt have any scholarships.

Would you guys recommend knocking out the Student Loan first and then getting the car?

In regard to the car, I know alot of you guys say pay it all off in cash, but Wouldnt paying off a financed car before I turn 25 (I`m 22 now) do wonders for my credit score?

If I do finance a car I planned on paying well above the car note every month.

Thoughts?

 

[jordanhendrix]

no big deal here, if you can handle both and have a decent cash flow that wont keep you too strapped for cash go for it. Paying off a car wont do much for your credit in the grand scheme of things, miss a couple payment or send em in late and thats over, look for a a real loan (for a house) and they wont care that you paid of a measly car.

Do it if you can afford it only. no expert advice needed here

 

[jordanhendrix]

no big deal here, if you can handle both and have a decent cash flow that wont keep you too strapped for cash go for it. Paying off a car wont do much for your credit in the grand scheme of things, miss a couple payment or send em in late and thats over, look for a a real loan (for a house) and they wont care that you paid of a measly car.

Do it if you can afford it only. no expert advice needed here

 

[ghenges]

Drive the car you have until it dies on you and continue to gradually pay off your student loans while saving up for a new car.

Pay for the car with cash if possible. It's a lot cheaper. Putting money into a savings account and then using it to purchase a car will probably be better for your credit score than financing a car and trying to pay it off over a period of time. The banks won't tell you that because they want to make money off the interest and will tell you it's "good for your credit score" in order to get you to take out a loan with them.

 

[ghenges]

Drive the car you have until it dies on you and continue to gradually pay off your student loans while saving up for a new car.

Pay for the car with cash if possible. It's a lot cheaper. Putting money into a savings account and then using it to purchase a car will probably be better for your credit score than financing a car and trying to pay it off over a period of time. The banks won't tell you that because they want to make money off the interest and will tell you it's "good for your credit score" in order to get you to take out a loan with them.

 

[6 Rings G.O.A.T.]

Good advice. .

 

[6 Rings G.O.A.T.]

Good advice. .

 

[luckyluchiano]

Originally Posted by Ghenges

Drive the car you have until it dies on you and continue to gradually pay off your student loans while saving up for a new car.

Pay for the car with cash if possible. It's a lot cheaper. Putting money into a savings account and then using it to purchase a car will probably be better for your credit score than financing a car and trying to pay it off over a period of time. The banks won't tell you that because they want to make money off the interest and will tell you it's "good for your credit score" in order to get you to take out a loan with them.

yea I got a 97 Camry, when I got an oil change at about 250k miles dude said I had a good car and it should last till like 300k, I`m at 270k right now, Student loans wont hit me till about Nov which is 6 months after I graduated, but I believe they will stop once I enter Graduate school the following year I believe right? (anyone thats in Gradschool chime in), luckily my job has tuition reimbursement.

I was looking at 07-08 EX Honda Accords, which avg from what I seen 14-18k for under 45k miles on them.

 

[luckyluchiano]

Originally Posted by Ghenges

Drive the car you have until it dies on you and continue to gradually pay off your student loans while saving up for a new car.

Pay for the car with cash if possible. It's a lot cheaper. Putting money into a savings account and then using it to purchase a car will probably be better for your credit score than financing a car and trying to pay it off over a period of time. The banks won't tell you that because they want to make money off the interest and will tell you it's "good for your credit score" in order to get you to take out a loan with them.

yea I got a 97 Camry, when I got an oil change at about 250k miles dude said I had a good car and it should last till like 300k, I`m at 270k right now, Student loans wont hit me till about Nov which is 6 months after I graduated, but I believe they will stop once I enter Graduate school the following year I believe right? (anyone thats in Gradschool chime in), luckily my job has tuition reimbursement.

I was looking at 07-08 EX Honda Accords, which avg from what I seen 14-18k for under 45k miles on them.

 

[crcballer55]

Originally Posted by LuckyLuchiano

Originally Posted by Ghenges

Drive the car you have until it dies on you and continue to gradually pay off your student loans while saving up for a new car.

Pay for the car with cash if possible. It's a lot cheaper. Putting money into a savings account and then using it to purchase a car will probably be better for your credit score than financing a car and trying to pay it off over a period of time. The banks won't tell you that because they want to make money off the interest and will tell you it's "good for your credit score" in order to get you to take out a loan with them.

yea I got a 97 Camry, when I got an oil change at about 250k miles dude said I had a good car and it should last till like 300k, I`m at 270k right now, Student loans wont hit me till about Nov which is 6 months after I graduated, but I believe they will stop once I enter Graduate school the following year I believe right? (anyone thats in Gradschool chime in), luckily my job has tuition reimbursement.

I was looking at 07-08 EX Honda Accords, which avg from what I seen 14-18k for under 45k miles on them.

Although you won't be required to pay the loans when you're a full time graduate student, the interest on the outstanding amount will continue to accrue.  Pay your loans off as fast as possible.  I paid off $18,000 in 2 years and only ended up paying about $2000 in interest.  If you paid only the minimum over the lifetime of the loan, you would end up paying twice the original amount.

With the car... drive it into the ground.  Cars are depreciating assets anyways.  If you finance a new one you would be paying a premium for the privilege of driving something that's only going down in value.  The argument that by financing the car you're only building your credit is not a good reason.  The only thing your credit does is affect your monthly payments to the bank.  If you don't have any payments your credit score does absolutely nothing for you.

 

[crcballer55]

Originally Posted by LuckyLuchiano

Originally Posted by Ghenges

Drive the car you have until it dies on you and continue to gradually pay off your student loans while saving up for a new car.

Pay for the car with cash if possible. It's a lot cheaper. Putting money into a savings account and then using it to purchase a car will probably be better for your credit score than financing a car and trying to pay it off over a period of time. The banks won't tell you that because they want to make money off the interest and will tell you it's "good for your credit score" in order to get you to take out a loan with them.

yea I got a 97 Camry, when I got an oil change at about 250k miles dude said I had a good car and it should last till like 300k, I`m at 270k right now, Student loans wont hit me till about Nov which is 6 months after I graduated, but I believe they will stop once I enter Graduate school the following year I believe right? (anyone thats in Gradschool chime in), luckily my job has tuition reimbursement.

I was looking at 07-08 EX Honda Accords, which avg from what I seen 14-18k for under 45k miles on them.

Although you won't be required to pay the loans when you're a full time graduate student, the interest on the outstanding amount will continue to accrue.  Pay your loans off as fast as possible.  I paid off $18,000 in 2 years and only ended up paying about $2000 in interest.  If you paid only the minimum over the lifetime of the loan, you would end up paying twice the original amount.

With the car... drive it into the ground.  Cars are depreciating assets anyways.  If you finance a new one you would be paying a premium for the privilege of driving something that's only going down in value.  The argument that by financing the car you're only building your credit is not a good reason.  The only thing your credit does is affect your monthly payments to the bank.  If you don't have any payments your credit score does absolutely nothing for you.

 

[roc4life24]

good advice given, so given this good advice the universe will bring you a amazing tempting deal.  keep calm pay the feds off. 

 

[roc4life24]

good advice given, so given this good advice the universe will bring you a amazing tempting deal.  keep calm pay the feds off. 

 

[2lipslegit]

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

Originally Posted by Ghenges

Drive the car you have until it dies on you and continue to gradually pay off your student loans while saving up for a new car.

Pay for the car with cash if possible. It's a lot cheaper. Putting money into a savings account and then using it to purchase a car will probably be better for your credit score than financing a car and trying to pay it off over a period of time. The banks won't tell you that because they want to make money off the interest and will tell you it's "good for your credit score" in order to get you to take out a loan with them.

yea I got a 97 Camry, when I got an oil change at about 250k miles dude said I had a good car and it should last till like 300k, I`m at 270k right now, Student loans wont hit me till about Nov which is 6 months after I graduated, but I believe they will stop once I enter Graduate school the following year I believe right? (anyone thats in Gradschool chime in), luckily my job has tuition reimbursement.

I was looking at 07-08 EX Honda Accords, which avg from what I seen 14-18k for under 45k miles on them.

Although you won't be required to pay the loans when you're a full time graduate student, the interest on the outstanding amount will continue to accrue.  Pay your loans off as fast as possible.  I paid off $18,000 in 2 years and only ended up paying about $2000 in interest.  If you paid only the minimum over the lifetime of the loan, you would end up paying twice the original amount.

With the car... drive it into the ground.  Cars are depreciating assets anyways.  If you finance a new one you would be paying a premium for the privilege of driving something that's only going down in value.  The argument that by financing the car you're only building your credit is not a good reason.  The only thing your credit does is affect your monthly payments to the bank.  If you don't have any payments your credit score does absolutely nothing for you.

listen to this man.

advice

 

[2lipslegit]

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

Originally Posted by Ghenges

Drive the car you have until it dies on you and continue to gradually pay off your student loans while saving up for a new car.

Pay for the car with cash if possible. It's a lot cheaper. Putting money into a savings account and then using it to purchase a car will probably be better for your credit score than financing a car and trying to pay it off over a period of time. The banks won't tell you that because they want to make money off the interest and will tell you it's "good for your credit score" in order to get you to take out a loan with them.

yea I got a 97 Camry, when I got an oil change at about 250k miles dude said I had a good car and it should last till like 300k, I`m at 270k right now, Student loans wont hit me till about Nov which is 6 months after I graduated, but I believe they will stop once I enter Graduate school the following year I believe right? (anyone thats in Gradschool chime in), luckily my job has tuition reimbursement.

I was looking at 07-08 EX Honda Accords, which avg from what I seen 14-18k for under 45k miles on them.

Although you won't be required to pay the loans when you're a full time graduate student, the interest on the outstanding amount will continue to accrue.  Pay your loans off as fast as possible.  I paid off $18,000 in 2 years and only ended up paying about $2000 in interest.  If you paid only the minimum over the lifetime of the loan, you would end up paying twice the original amount.

With the car... drive it into the ground.  Cars are depreciating assets anyways.  If you finance a new one you would be paying a premium for the privilege of driving something that's only going down in value.  The argument that by financing the car you're only building your credit is not a good reason.  The only thing your credit does is affect your monthly payments to the bank.  If you don't have any payments your credit score does absolutely nothing for you.

listen to this man.

advice

 

[luckyluchiano]

My loans were Govt Loans, so I dont think they accrued interest until I graduated.

so you guys really telling me paying a car off does nothing for youre credit

 

[luckyluchiano]

My loans were Govt Loans, so I dont think they accrued interest until I graduated.

so you guys really telling me paying a car off does nothing for youre credit

 

[destination kicks]

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

Originally Posted by Ghenges

Drive the car you have until it dies on you and continue to gradually pay off your student loans while saving up for a new car.

Pay for the car with cash if possible. It's a lot cheaper. Putting money into a savings account and then using it to purchase a car will probably be better for your credit score than financing a car and trying to pay it off over a period of time. The banks won't tell you that because they want to make money off the interest and will tell you it's "good for your credit score" in order to get you to take out a loan with them.

yea I got a 97 Camry, when I got an oil change at about 250k miles dude said I had a good car and it should last till like 300k, I`m at 270k right now, Student loans wont hit me till about Nov which is 6 months after I graduated, but I believe they will stop once I enter Graduate school the following year I believe right? (anyone thats in Gradschool chime in), luckily my job has tuition reimbursement.

I was looking at 07-08 EX Honda Accords, which avg from what I seen 14-18k for under 45k miles on them.

Although you won't be required to pay the loans when you're a full time graduate student, the interest on the outstanding amount will continue to accrue.  Pay your loans off as fast as possible.  I paid off $18,000 in 2 years and only ended up paying about $2000 in interest.  If you paid only the minimum over the lifetime of the loan, you would end up paying twice the original amount.

With the car... drive it into the ground.  Cars are depreciating assets anyways.  If you finance a new one you would be paying a premium for the privilege of driving something that's only going down in value.  The argument that by financing the car you're only building your credit is not a good reason.  The only thing your credit does is affect your monthly payments to the bank.  If you don't have any payments your credit score does absolutely nothing for you.

Yep, so many people make the mistake of deferring payments while they're in Grad School and then are stuck just paying their interest on student loans for years.

Lucky- You never got a call back from up here?

EDIT: If you had a government subsidized loan then I believe you are correct, the govn. will take care of the interest while you're in Grad. School. But I would still check with the authorities.
    

 

[destination kicks]

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

Originally Posted by Ghenges

Drive the car you have until it dies on you and continue to gradually pay off your student loans while saving up for a new car.

Pay for the car with cash if possible. It's a lot cheaper. Putting money into a savings account and then using it to purchase a car will probably be better for your credit score than financing a car and trying to pay it off over a period of time. The banks won't tell you that because they want to make money off the interest and will tell you it's "good for your credit score" in order to get you to take out a loan with them.

yea I got a 97 Camry, when I got an oil change at about 250k miles dude said I had a good car and it should last till like 300k, I`m at 270k right now, Student loans wont hit me till about Nov which is 6 months after I graduated, but I believe they will stop once I enter Graduate school the following year I believe right? (anyone thats in Gradschool chime in), luckily my job has tuition reimbursement.

I was looking at 07-08 EX Honda Accords, which avg from what I seen 14-18k for under 45k miles on them.

Although you won't be required to pay the loans when you're a full time graduate student, the interest on the outstanding amount will continue to accrue.  Pay your loans off as fast as possible.  I paid off $18,000 in 2 years and only ended up paying about $2000 in interest.  If you paid only the minimum over the lifetime of the loan, you would end up paying twice the original amount.

With the car... drive it into the ground.  Cars are depreciating assets anyways.  If you finance a new one you would be paying a premium for the privilege of driving something that's only going down in value.  The argument that by financing the car you're only building your credit is not a good reason.  The only thing your credit does is affect your monthly payments to the bank.  If you don't have any payments your credit score does absolutely nothing for you.

Yep, so many people make the mistake of deferring payments while they're in Grad School and then are stuck just paying their interest on student loans for years.

Lucky- You never got a call back from up here?

EDIT: If you had a government subsidized loan then I believe you are correct, the govn. will take care of the interest while you're in Grad. School. But I would still check with the authorities.
    

 

[luckyluchiano]

Originally Posted by Destination Kicks

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

yea I got a 97 Camry, when I got an oil change at about 250k miles dude said I had a good car and it should last till like 300k, I`m at 270k right now, Student loans wont hit me till about Nov which is 6 months after I graduated, but I believe they will stop once I enter Graduate school the following year I believe right? (anyone thats in Gradschool chime in), luckily my job has tuition reimbursement.

I was looking at 07-08 EX Honda Accords, which avg from what I seen 14-18k for under 45k miles on them.

Although you won't be required to pay the loans when you're a full time graduate student, the interest on the outstanding amount will continue to accrue.  Pay your loans off as fast as possible.  I paid off $18,000 in 2 years and only ended up paying about $2000 in interest.  If you paid only the minimum over the lifetime of the loan, you would end up paying twice the original amount.

With the car... drive it into the ground.  Cars are depreciating assets anyways.  If you finance a new one you would be paying a premium for the privilege of driving something that's only going down in value.  The argument that by financing the car you're only building your credit is not a good reason.  The only thing your credit does is affect your monthly payments to the bank.  If you don't have any payments your credit score does absolutely nothing for you.

Yep, so many people make the mistake of deferring payments while they're in Grad School and then are stuck just paying their interest on student loans for years.

Lucky- You never got a call back from up here?

EDIT: If you had a government subsidized loan then I believe you are correct, the govn. will take care of the interest while you're in Grad. School. But I would still check with the authorities.
    

nope.

All my loans were Subsidized, besides one that was 2.5k out of the 15k total.

 

[luckyluchiano]

Originally Posted by Destination Kicks

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

yea I got a 97 Camry, when I got an oil change at about 250k miles dude said I had a good car and it should last till like 300k, I`m at 270k right now, Student loans wont hit me till about Nov which is 6 months after I graduated, but I believe they will stop once I enter Graduate school the following year I believe right? (anyone thats in Gradschool chime in), luckily my job has tuition reimbursement.

I was looking at 07-08 EX Honda Accords, which avg from what I seen 14-18k for under 45k miles on them.

Although you won't be required to pay the loans when you're a full time graduate student, the interest on the outstanding amount will continue to accrue.  Pay your loans off as fast as possible.  I paid off $18,000 in 2 years and only ended up paying about $2000 in interest.  If you paid only the minimum over the lifetime of the loan, you would end up paying twice the original amount.

With the car... drive it into the ground.  Cars are depreciating assets anyways.  If you finance a new one you would be paying a premium for the privilege of driving something that's only going down in value.  The argument that by financing the car you're only building your credit is not a good reason.  The only thing your credit does is affect your monthly payments to the bank.  If you don't have any payments your credit score does absolutely nothing for you.

Yep, so many people make the mistake of deferring payments while they're in Grad School and then are stuck just paying their interest on student loans for years.

Lucky- You never got a call back from up here?

EDIT: If you had a government subsidized loan then I believe you are correct, the govn. will take care of the interest while you're in Grad. School. But I would still check with the authorities.
    

nope.

All my loans were Subsidized, besides one that was 2.5k out of the 15k total.

 

[crcballer55]

Originally Posted by LuckyLuchiano

My loans were Govt Loans, so I dont think they accrued interest until I graduated.

so you guys really telling me paying a car off does nothing for youre credit

Yes, getting a loan and paying it off will help your credit.  Your score is based SOLELY on your interaction with debt.  Going back to my last point, you're just paying a "tax" to build your credit score.  If you're willing to finance a car with a premium spent at the end just to have an asset that's worth about 2/3 of the original price then go for it.

Personally, I paid off my student loans and don't have a car payment.  Every month I set aside some money for a newer car once mine is no longer reliable.  No, I don't care for my car very much but it gets me from point A to point B fine and it's the same one I've had since I moved to college 8 years ago.  I'm not really too concerned with my image or credit score either (although it's in the top tier).

Regarding the student loans, even if they aren't accruing interest, there is no feeling like being debt free.  I was in the same situation with my wife's wedding ring.  We got 0% financing for the first year.  Although it wasn't costing us anything extra it was an awesome feeling to have that payment done with!  It's something that you really can't describe and will have to experience for yourself to understand.  Yes, the math may point to investing the money and possibly earning more money, but it's really not worth it once you've been there.

 

[crcballer55]

Originally Posted by LuckyLuchiano

My loans were Govt Loans, so I dont think they accrued interest until I graduated.

so you guys really telling me paying a car off does nothing for youre credit

Yes, getting a loan and paying it off will help your credit.  Your score is based SOLELY on your interaction with debt.  Going back to my last point, you're just paying a "tax" to build your credit score.  If you're willing to finance a car with a premium spent at the end just to have an asset that's worth about 2/3 of the original price then go for it.

Personally, I paid off my student loans and don't have a car payment.  Every month I set aside some money for a newer car once mine is no longer reliable.  No, I don't care for my car very much but it gets me from point A to point B fine and it's the same one I've had since I moved to college 8 years ago.  I'm not really too concerned with my image or credit score either (although it's in the top tier).

Regarding the student loans, even if they aren't accruing interest, there is no feeling like being debt free.  I was in the same situation with my wife's wedding ring.  We got 0% financing for the first year.  Although it wasn't costing us anything extra it was an awesome feeling to have that payment done with!  It's something that you really can't describe and will have to experience for yourself to understand.  Yes, the math may point to investing the money and possibly earning more money, but it's really not worth it once you've been there.

 

[luckyluchiano]

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

My loans were Govt Loans, so I dont think they accrued interest until I graduated.

so you guys really telling me paying a car off does nothing for youre credit

Yes, getting a loan and paying it off will help your credit.  Your score is based SOLELY on your interaction with debt.  Going back to my last point, you're just paying a "tax" to build your credit score.  If you're willing to finance a car with a premium spent at the end just to have an asset that's worth about 2/3 of the original price then go for it.

Personally, I paid off my student loans and don't have a car payment.  Every month I set aside some money for a newer car once mine is no longer reliable.  No, I don't care for my car very much but it gets me from point A to point B fine and it's the same one I've had since I moved to college 8 years ago.  I'm not really too concerned with my image or credit score either (although it's in the top tier).

Regarding the student loans, even if they aren't accruing interest, there is no feeling like being debt free.  I was in the same situation with my wife's wedding ring.  We got 0% financing for the first year.  Although it wasn't costing us anything extra it was an awesome feeling to have that payment done with!  It's something that you really can't describe and will have to experience for yourself to understand.  Yes, the math may point to investing the money and possibly earning more money, but it's really not worth it once you've been there.

I have no plans on buying a new car, like I said Im looking at a 07-08 Honda Accord.  With Student loans, they just ask you to make payments or do they do somekinda minimum payment stuff?