Hi everyone this is my very first time on the forum, Have read both Steve’s books over and over agian, (I surpose I’m one of those people to scared to do anything incase its the wrong thing). I need advise here is my situation. I want to get an investment property but like most people have debt. Savings $7,000.00 but still have a credit card owing $3,500.00, a personal loan $13,000.00 that we are paying $50.00 more a fortnight, And I have a car that is 1 yr old, (still owe $24,000.00) that I’m quiet happy to get rid of it if need be, I have my brothers car with us at the moment that is very reliable he’s moved over to WA and I’m just looking after it until he wants it. I’m sure if I asked he would let me have it for about a year. My husband has a new car as well but his business pays for that (however its still in both names)Don’t have a house of our own (renting).Fortnightly we can manager to save between $300.00 to $500.00 depending on work as I’m studying at the moment as well. Can someone advise what we should do, so we can start our dream of getting an investment property and become financial independant.
Thanks everyone
[blush2]
regards Trish
P.Stickels
Hi Trish,
I think you already have a pretty good idea of what you need to do, you just feel like you need the reassurance that what you think is right.
You sound like my wife. I never did understand why she saved money, and had it sitting there earning interest, and have personal debt being charged upto 4 times the interest that she was getting on the savings. – her answer – she was tying to establish a savings history. – my response – but you’ve got a personal loan that you are proving that you are capable of paying off.
Unless, someone needs a car for work, i.e they are on the road a lot and its a business deduction, I have no idea why people get into so much debt with something that they know is going to lose value. – I’m a bit bias though because I’m not a car person.
1st suggestion – pay off the Credit Card from the savings, the repayments that you don’t have to pay on the card, should go into the Personal Loan, this will pay it off much faster.
Leave the rest of the saving there, it will help knowing that you have savings, and it’s not as hard to get started again.
2nd- if you don’t need the car, get rid of it, or downgrade. – this is a hard one though, for people that are car lovers of see the type of car they drive as a status symbol.See you didn’t need anybody elses suggestions did you. Good luck, you will achieve what you want, as soon as you’ve worked out the difference between good debt and bad debt.
Mal
Getting out of your comfort zone, can help you become comfortable
Hi Mal,
Thanks for advise
regards Trish
[blush2]P.Stickels
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