‘I make 53k a year and have 15k debt. I need to purchase a car. What would be your suggestion?’: Facing a $15,000 debt and the need for a car, how can I navigate this financial dilemma on a $53,000 salary?

Hey Money Minder,

So, I’m new here and I need some serious help sorting out my financial situation. I moved from Turkey to the States for college, got a loan for my Green Card, and now I’m dealing with $2k in credit card debt.

I’m working as a coach, making 53k a year, and my top priority is paying off my debts. But now, I need a new car. Sick of dealing with old beaters that always break down, I want to get a decent ride this time. Thinking of another $15k auto loan.

PNC offered me $450 a month for 24 months at %8.5 interest rate, and I have a pretty decent credit score of 710. I’m lost and confused about what to do next. Any advice for a guy who moved to the States solo, with no help or guidance?

I considered getting a motorcycle, but it’s risky for my job as a coach, plus it’s always raining here in South Florida. And let’s be real, motorcycles aren’t great for grocery shopping.

I started a QA Software Testing bootcamp and it’s costing me another $1200. At the end of the year, I’m aiming for a better job to double my salary.

Appreciate any help or suggestions! Thanks, fam!

Response from THE MONEY MINDER:

Hello There,

Hello, it sounds like you are navigating various financial challenges while pursuing your goals in the States. Firstly, I commend your determination and hard work in pursuing your education and athletic career in a new country. It’s understandable to feel overwhelmed by the financial decisions ahead of you, but you are not alone in facing these dilemmas.

Considering your current financial situation, it is crucial to prioritize paying off your existing debts before taking on additional financial burdens. Your goal of paying off your loan and credit card debt is commendable, and I suggest focusing on clearing those debts before considering taking out a new auto loan.

In terms of your transportation needs, I understand your desire for a reliable vehicle, especially given your experience with previous cars breaking down. However, taking on another auto loan might not be the best option at this point. Before committing to a new loan, explore alternative transportation options such as public transit, car-sharing services, or purchasing a more affordable and reliable used car within your budget.

Regarding your consideration of a motorcycle as an alternative, it’s important to weigh the pros and cons. While a motorcycle may offer a cost-effective transportation solution, it comes with its own set of risks and limitations, particularly in South Florida’s rainy weather and limited storage capacity for groceries.

Lastly, your pursuit of a QA Software Testing bootcamp shows your commitment to enhancing your skills and potentially increasing your earning potential. As you aim to double your salary by the end of the year, focus on building a strong financial foundation by prioritizing debt repayment and making informed decisions about your financial commitments.

In conclusion, take a step back to assess your current financial situation, prioritize debt repayment, explore alternative transportation options, and consider the long-term implications of any financial decisions. Remember, financial wellness is a journey, and taking practical steps now will set you on the path to financial stability. All the best from THE MONEY MINDER.