So my apartment complex lost my rent that I dropped off in the drop box and gave me a choice- Pay rent today (yesterday) or get evicted. Now I have no problem writing them another check and having my bank take care of the other, except that I have 2 roommates who paid with a money order.. Western Union money orders take 60 days to be refunded.. so thats $800 tied up. I decided to not get evicted and not have my credit ruined so I paid for 100% of the rent this month.

This puts me near broke for the next 2 weeks and I have bills that are due coming very soon.

I called my bank (USAA) to ask about a personal loan, and they introduced me to the idea of just adding whatever amount I borrow to the total of what I owe on my S2000. They also said that I would be able to extend the payoff date on the S, and lower the interest rate to 5% if I am qualified.

After much yelling and debating with my apartment managers, and speaking to their supervisor (good thing he was in town for their quarterly audit) they have decided that I only have to pay my 1/3rd of the rent, and that they will take the amount from the money orders when they arrive in 60 days.


Now the question...

I am much closer to the limit on my credit cards than I would like to be, and the idea of getting a personal loan of $2500 to spread evenly across my 3 cards is tempting. But is it worth adding $2500 more to what I owe on my S?

 

If the interest rate is lower on the auto loan and you won't jack your credit card balances right back up to where they were before, you should take the deal USAA is offering you and use the money to pay down your credit cards. Just don't go charging hard on them again because then you'll owe an extra $2500 on your S and have the same CC balance.

 

I think you need may need an intervention, sounds like you might be living outside your means, at least based on the limited info in your post.

First you need to reign in the spending, especially if your working 3 cards which have some type of balance.

If you not making any headway in paying down your CC AND they have a higher rate than your car loan, I would take the loan and pay off the CC with the highest rates - - - don't spread it evenly across them. Once the CC is paid off, pull the card out of your wallet and stick it in your sock draw.

You mention they will roll the $2,500 into your car loan AND extend the payoff date. I would try to suck it up and keep the same end date, if possible. If they roll you into another 4, 5 or 6 year loan, you will be paying quite a bit of financing on a depreciating asset that will most likely be worth less than the loan.

Lastly (and this is an assumption), if your car get totaled for some reason (theft/accident) you will likely be up-side down on the loan --- owing more to the bank than the insurance will give you.

 

[QUOTE=RUGBY,Aug 11 2010, 05:15 AM] I think you need may need an intervention, sounds like you might be living outside your means, at least based on the limited info in your post.

First you need to reign in the spending, especially if your working 3 cards which have some type of balance.

If you not making any headway in paying down your CC AND they have a higher rate than your car loan, I would take the loan and pay off the CC with the highest rates - - - don't spread it evenly across them.