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Discussion Starter · #1 ·
As many of you know...I have a 2012 cruze ECO MT. I bought this a little over a month ago, and I traded my LT in for this one. I was offered 15,800.00 for trade in allowance which helped me out tremendously with my new sale. What has really impacted me more than what I imagined is my car payment. Letting my car go is not really an option since I am able to do this easily...but each week to two weeks, I find myself short of cash about 100-200.00. I work 85 hours every two weeks at my auto parts job, making 8.50 an hour, plus 13.00 hr for OT. My car payment each month is 441.88 with a 7.344% APR......im suppose to put back 65.00 a month for insurance but haven't the last 3 months, plus my tags are 205.00 a year. Based off these numbers and my income...how do you think im doing? I don't have rent or any other major bills to pay. I live with my grandparents and just help them out whenever I can with a utility bill. Im checking into another job working for the union bringing home 6 figures a year but its not promising to me because my skills are very limited which sucks. What other options do you think I have?
 

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As many of you know...I have a 2012 cruze ECO MT. I bought this a little over a month ago, and I traded my LT in for this one. I was offered 15,800.00 for trade in allowance which helped me out tremendously with my new sale. What has really impacted me more than what I imagined is my car payment. Letting my car go is not really an option since I am able to do this easily...but each week to two weeks, I find myself short of cash about 100-200.00. I work 85 hours every two weeks at my auto parts job, making 8.50 an hour, plus 13.00 hr for OT. My car payment each month is 441.88 with a 7.344% APR......im suppose to put back 65.00 a month for insurance but haven't the last 3 months, plus my tags are 205.00 a year. Based off these numbers and my income...how do you think im doing? I don't have rent or any other major bills to pay. I live with my grandparents and just help them out whenever I can with a utility bill. Im checking into another job working for the union bringing home 6 figures a year but its not promising to me because my skills are very limited which sucks. What other options do you think I have?
I don't understand the pay structure in USA as it seems really low for your age. Cars here are more expensive but the pay is higher. Guys your age working in the warehouse where I work earn $20 or more per hour and if overtime is worked the rate is time and a half for the first 2 hours and then double time after that per shift, also you get $12 meal allowance which is tax free.
 
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Discussion Starter · #3 ·
Yeah it is quite different here lol. Basically...im needing a better paying job and/or a job that is closer to my home. I currently travel 50 miles one way to work. My eco gets 40mpg right now since its not broke in yet...and I spend more money on food and gas than what I really need to. Im always between 100-200 dollars short during the weeks til I get paid again. Not sure what the appropriate action is to take.
 

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pay it off quick . Then save .
 

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Yeah it is quite different here lol. Basically...im needing a better paying job and/or a job that is closer to my home. I currently travel 50 miles one way to work. My eco gets 40mpg right now since its not broke in yet...and I spend more money on food and gas than what I really need to. Im always between 100-200 dollars short during the weeks til I get paid again. Not sure what the appropriate action is to take.
Unless something changes you are going to get into a serious financial situation, you either need to find a job closer to home with slightly better pay, or find work that gives you an allowance for using your car? Both are hard to find so if your situation doesn't change you may have to sell your car and get a second hand one to lower your payments, before you reach the point of no return.
 

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Discussion Starter · #7 ·
Yeah I understand what your all saying here. I might of over did it a little. I really thought I could make this work if I worked overtime. I still can.....im just not cracked up about working 6 or 7 days a week. But if that's what it takes...then im all in. I made a commitment to this car loan and car that I would not fail at this because that makes me less of a person and responsible adult. If I can find a job closer to home...id be a lot better. Overall, how do you think im doing based off my noted income and situation?
 

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Yeah I understand what your all saying here. I might of over did it a little. I really thought I could make this work if I worked overtime. I still can.....im just not cracked up about working 6 or 7 days a week. But if that's what it takes...then im all in. I made a commitment to this car loan and car that I would not fail at this because that makes me less of a person and responsible adult. If I can find a job closer to home...id be a lot better. Overall, how do you think im doing based off my noted income and situation?
You are doing your best, just put your health, both physical and mental, first with any decisions you make.
 

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Discussion Starter · #9 ·
Im a youngen and will learn the simple values of the adult life. I guess the only thing I can do is keep my head up and stay positive and keep trucking along. Granite im only 22 years old and still have a lot to learn...but ive came along way in where I was 5 years ago in a financial situation.
 

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Just keep making it work, every month is one closer to being done paying for the car. Shocked I have made 16 payments on my car already.

I always try to put enough down on a car that the payment & insurance is around half what I make every two weeks or less, that way I still have money for gas, food and a roof over my head.
 

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Ok so I ran a few quick numbers based on what you put... first the amount of time you work including overtime comes to $1490.00. (total income before taxs and 401K) the amount you drive, (based off basic numbers) is $72.00 in gas, not any playing around just to and from work. if you car loan is $442.00 and $65 for insurance then math shows, $1490-$72-$442-$65 = $911 left over a month.

With that being said there are a few things you need to look at to help pay off bills and keep cash around. (trust me I have paid off alot in my past stupidity) 1st is look at your taxs and how many you are claiming. This is the money the goverment takes from you each year that at the end of the year you either get some back or have to pay some. If you get a large amount back each year you need to adjust how much they are taking out each paycheck by increasing the dependents. Then look at your Insurance costs and ultimately look at your gross income. That is what you actually take home after all deductions, this is the number you need to factor into your bills.

2nd is look at your spending. Figure out what you are spending money on to reduce the amount. If you are eating out each day you get a $4.00 meal that tastes ok, or are you buying the $10-$15 meal cause it tastes great. You would be surprised how cutting down on meal costs can save. (bringing left overs is a great way to cut this also) Look at what you spend going out to movies and other spending on things like cell phones and anything else that you can reduce.

3rd is what ever you do, DO NOT GET A CHICK PREGNANT.

Have you talked with your grandparents about this, remember if they are doing well enought to help you out they have probably learned a lot through the years about saving and living within your needs.
 

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Well you know how the answers would have gone if you would have asked before you traded in but I guess better late than never.

I think you're going to have to bite the bullet on this one and put in an extra day of work. Or 2 if the work is not too demanding. You don't want to burn yourself out trying to enjoy a nicer car.

See if you can get you're grand parents to Co sign for a better apr. I recommend pen fed. They offered me 1.7 apr to either refinance or use towards a new vehicle.

See if they can get you on their insurance. You might be paying a lot if you're on your own.

Like Ap said, find ways to cut back. I recommend writing everything down. You don't realize how much money you "throw away" until you actually see it. You can get a program like money but a simple xl sheet with a couple of formulas would suffice.

And most importantly, DON'T rely on credit cards. You should have one to buy small things you can pay off right away and build credit. But don't get sucked into the "I'll pay off this exhaust quick" abyss.

Hope some of that helps.

If you don't mind me asking, why did you trade your lt?






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Discussion Starter · #14 ·
Well you know how the answers would have gone if you would have asked before you traded in but I guess better late than never.

I think you're going to have to bite the bullet on this one and put in an extra day of work. Or 2 if the work is not too demanding. You don't want to burn yourself out trying to enjoy a nicer car.

See if you can get you're grand parents to Co sign for a better apr. I recommend pen fed. They offered me 1.7 apr to either refinance or use towards a new vehicle.

See if they can get you on their insurance. You might be paying a lot if you're on your own.

Like Ap said, find ways to cut back. I recommend writing everything down. You don't realize how much money you "throw away" until you actually see it. You can get a program like money but a simple xl sheet with a couple of formulas would suffice.

And most importantly, DON'T rely on credit cards. You should have one to buy small things you can pay off right away and build credit. But don't get sucked into the "I'll pay off this exhaust quick" abyss.

Hope some of that helps.

If you don't mind me asking, why did you trade your lt?






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I traded it because I wanted the eco model for the gas mileage and other styling features and the manual transmission. It fit me alit better than the LT did and the gas mileage would benefit me more in the long run. I knew I was going to have to work a little more because of the increased payment....which I was Okay with. At the time I wasn't really trying to trade mine in for the eco atleast until the end of the year but when I got a call from my finance manager and he told me I was approved for the eco...I was game on. I thought about it for a couple days for the finances I have and did some figuring and what I calculated...I was going to be okay on money. I mean you only live once so I thought why not enjoy something that I paid for with my own money. Because I may never ever get to buy another brand new car. That's just the cold hard truth. It sucks. This is why I rushed into buying a new car that I absolutely wanted....because you never know when your day is your last and I want more excitement and enjoyment out of life than not have anything to show for it.

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My wife works for a finance company in Sydney and you would have failed what they call "Capacity" which means the payments are too high for what you earn and the loan would of been denied.
 

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Ok, I''m not a financial guru yet but I am pretty money savy.

1) Always fund your 401k first. That lowers the amount you pay on taxes. Instead of taking home $.75-.85 / $1 you make, you stash the full $1 in the bank.

2) You put yourself in a position that a lot of people who work overtime do. I have a good friend that got himself in some trouble. He makes $55-60K / year regularly but with overtime it jumps to $70-80K. The trap you cannot get yourself into as an overtime worker is funding loan purchases based off your overtime salary. If you buy a house worth 2.5 times your salary (then general rule of thumb), you should look at a $150K house rather than a $200K house. Why? Overtime is not guarenteed and the hours are usually sporadic. In the months you find yourself not getting overtime you are in the hole. Think of overtime as a "bonus" rather than your regular pay.

3) There are two ways to create breathing room for yourself. That is.. bringing in more money or spending less. I usually don't avocate option one unless you are working part time vs. full time. A full + part time job is counterproductive in my opinion because you make less at your part time job and tire yourself out too much for your full time job. You will die early doing it this way. Make your strict budget, cut spending where you can, and take it form there.


My advice to you is to ditch your Cruze. If you are dead set on keeping a Cruze, go on auto-trader and find a used 2011 Eco MT. It will be 20% less than your Eco, which will help your payments go down even more than 20% thanks to the interest. Good luck!
 

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Wow. Well, with your numbers, your OK, you won't be able to pay rent until that thing is paid off.

You will have to do the following, and it is already mentioned:

1) Eating out will kill you
2) Always search for a cheaper insurance
3) Look for a job that pays better. If you try hard enough, you WILL find it. You need to network!
4) Erik mentioned this, i agree, find somebody that will either buy your car or take over payments, and get a cheaper option

I wanted the LTZ RS, pffft, forget that, when i got my Cruze i wanted a BMW or a 350Z, my car payments were going to be around $400 a month and i could do it, and i had your same hourly salary except i worked ~115 hours bi-weekly...

But i got an LS and thanks to my low car payment, my credit is EXCELLENT (700+), i was able to get married, furnish my whole apartment, and get into a nicer car with $0 debt (with the exception of 1 CC). Whats the point of this?

Simplify your life, and it will pay off later.
 

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That interest rate is killing you. Beg somebody with good credit to co-sign for you so you lower that interest rate. Even getting it cut to 4% would knock a good chunk off your loan payment.

Also, cut back on other things in life. Make your own lunch instead of eating out. Find a closer job if possible. Driving 80 miles a day is knocking a lot of money out of your pocket.
 
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Discussion Starter · #19 ·
That interest rate is killing you. Beg somebody with good credit to co-sign for you so you lower that interest rate. Even getting it cut to 4% would knock a good chunk off your loan payment.

Also, cut back on other things in life. Make your own lunch instead of eating out. Find a closer job if possible. Driving 80 miles a day is knocking a lot of money out of your pocket.
The thing about a co-signer is im not sure if they will let me add one. The paperwork is already been finalized...so do you think this is possible to do still?
 

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Discussion Starter · #20 ·
To everyone...My credit union loan officer called me this morning and we were talking about some financial things on what we can do to help me make my monthly payments more easier...and she said that they would be happy to let me pay it by-weekly if that would help, and said "Well it is a start for me, and I believe it will help". She asked me what my excess spending is and I told her its mostly food and gas, but every so often its also detailing stuff. Don't spend as much as I used to now that I have a car payment....But its mostly carwash soap and detailer sprays and glass cleaner and microfiber detergent.
 
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