# young and stupid finance troubles (Oz)



## electicdoe (29 Jun 2008)

ok im totaly stuck
My base rate of income is au$1200 through to 1700 because of shift work a fortnight
MY expenses are when i move out will be

FORTNIGHTLY
Car  $450
Repayment of another loan: $60
Insurance $200
Rent $400
food $200
Credit card $100 (I owe $4000)
Fuel $200

that equals to $1710 a fortnight roughly



i have a crap credit report rating and i would like to get rid of my car but i have had it for only a year:
Bought for $48 000  and probly have just about paid of the interest. It is costing me too much in fuel and i want to get rid of it. But i have ahad it such a short amount of time. 

im young and dumb and would like some peoples advice on which way would be best to tackle the situation.

thanks everyone im so stuck


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## extopia (29 Jun 2008)

*Re: young and stupid finance troubles*

Your listed expenses only come to 1610, so you're 100 better off already 

You're right - the car is your biggest problem, seems to account for 55% of your take home pay (assuming the insurance you mentioned is car insurance). Without the shift work, you wouldn't be able to eat or pay rent. (How on earth did you manage to get financing for this car, with your income and "crap" credit report?)

Soudns like ou need to take the hit and get rid of the car - problem is you'll probably be unable to sell it for what you owe on it, so you won't have the funds to buy a new car.

Is getting a bus to work an option?


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## electicdoe (29 Jun 2008)

*Re: young and stupid finance troubles*

thanks mate. i can get another car cheap as chips. but the problem is getting rid of this car and cutting my losses i just dont know how to do it.
thanks


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## extopia (29 Jun 2008)

You do know this is an Irish site, on which Irish financial affairs are discussed?


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## rmelly (29 Jun 2008)

*Re: young and stupid finance troubles*



electicdoe said:


> thanks mate. i can get another car cheap as chips. but the problem is getting rid of this car and cutting my losses i just dont know how to do it.
> thanks


 
How did you buy it, what is the term of the loan? Did you put any cash towards it yourself, or did you borrow the entire 48k?


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## so-crates (29 Jun 2008)

electicdoe said:


> ok im totaly stuck
> My base rate of income is au$1200 through to 1700 because of shift work a fortnight
> 
> MY expenses are *when i move out* will be
> ...


 
Why are you moving out? Is your rent likely to increase to $400 or is it currently at that level? Do you have an option to stay where you are (at parents?) Would it be cheaper to do so? At least for a while it might be worth considering. 

As another poster pointed out, this is an Irish financial website so it may not be the most productive forum in which to post a query regarding your car. 

Are you only paying the minimum amount on your credit card? Are you still using your credit card? Your car is expensive and is undoubtedly the heaviest burden you are carrying but I think given the debt you have run up on your credit card and the presence of another loan it is not unreasonable to surmise that you are spending more than you earn on a regular basis. It isn't the best position to be in when you decide to move out.

Have you gone through your expenditure on a daily basis and looked at whether you are spending money you should not be spending? If not it would be sensible to start a spending diary. There is a thread here dealing with spending diaries http://www.askaboutmoney.com/showthread.php?t=81144


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