Student Loan and Car Debt:
- Joshua, a recent college graduate, has both student loan debt and a car loan.
- He currently has $17,000 saved up and is following the debt snowball method.
- Joshua is debating whether to pay off his student loans or his car loan first.
- He mentions that if he gets a high enough disability rating from the VA, they will take care of his student loans for him.
- Rachel suggests selling the car and using some of the savings to pay off the remaining balance on it.
- John advises paying off the car loan as soon as possible and then using what remains in savings to make additional payments towards the student loans.
Selling the Car:
- Josh's car is worth $26,000, but he owes $28,000 on it.
- The hosts agree that selling the car would be wise, even if it means taking a small loss.
- They suggest purchasing a cheaper used car with cash instead.
Financial Situation and Job Status:
- Joshua recently graduated with an engineering degree and makes $81,000 per year at his new job.
Discussing moving to a new home:
- Kate and her husband are currently living in a small row home in Philadelphia and are considering moving to the suburbs. They want more space, especially with plans to start a family soon.
Trust fund situation:
- Kate recently found out about a trust fund of $1 million that was left by her father-in-law. The money is managed in a mutual fund and they have already been using it for major purchases since turning 30.
Deciding how to use the trust fund:
- Kate and her husband have been trying to decide how to best use the trust fund. They have thought about ignoring it and sticking with their original plan of saving for a house, but they also wonder if they could get a better home sooner with the additional funds.
Considering options:
- They have considered buying a larger, debt-free home now or waiting until they save up enough money on their own. They are aware that rushing into getting a more expensive home may not be wise financially, but they are open to exploring their options.
Mental Health and Student Loan Debt:
- Student loan debt takes a toll on vulnerable populations, leading to anxiety and shame.
- Studies show that high debt levels are linked to problematic drinking, anxiety, and depression, particularly among economically insecure graduates.
Accepting Financial Help from Family:
- Caroline is feeling guilty about accepting financial help from her grandpa even though she could support herself financially.
- It is important to have open communication with the family member providing financial assistance and clarify the purpose of the funds.
- One option is to create an account and save the money for major purchases or future needs like housing or car payments.
- If there are concerns about the temporary living situation, it is wise to plan intentionally for a new living arrangement.