I have been working hard to save and live on my own. I paid off a huge credit card debt ($20,000) and started saving to put down on a trailer to live in because the cost of a trailer payment and renting an rv spot are the same as renting an apartment. I have been looking for months and have been hesitant on purchasing one. This last weekend I had to fix my car which cost me way more then I thought as well as get new glasses. Now I have $2500 on my new credit card which makes me nervous. Then on Sunday I found an RV that was technically in my budget and checked off my wants and put 2,000 down and "bought it." The first loan option didnt go through and now I have to re sign and I havent picked it up yet. Now I am crunching the numbers. If I follow through with the loan it will take me 4-5 months to pay off my credit card instead of hacking away at current/new debt(33,000 in student loans, 10,000 car loan, and if i get the rv 17,000. Interest not included). I would also lose all of my savings because I would sink it into first and last month rent. I will also only have $450 extra towards debt and savings /month (once I pay off the CC). If I eat the 2,000 down (non refundable I found out and legal for them to keep in my state), I can make it up in 2 months and pay off my credit card now with what i have.
My sister said I can extend my stay/dont need to rush leaving. I am also considering trying living out of my car, something i might do in the future when I travel anyways.
My long term goal is to pay off my debt sooner rather then later, build a side hustle, and then travel with my side hustle. That or live off grid and work from home.
Do i eat the 2000, pay off the CC and stay at my sisters/live out of my car?
Or do i get my own place and slow down my debt payment.
Note: I already work 2 jobs, 6 days/week. Making more money would require a crazy new job offer (which i dont want, I like my main job) or a third side hustle which i am trying to build.
Made an impulse purchase: do i bite the $2,000 or do I follow through with the loan?
byu/jisawkward inpersonalfinance
Posted by jisawkward
1 Comment
You need to stop the impulse buying. You need to stop buying anything.
33,000 in student loans
10,000 car loan
17,000 RV — plus interest plus space to park and maintenance