Koop
Well-Known Member
Credit Card!
Don't let the things you own own you!
Don't let the things you own own you!
What to do with my tax return?
- Thread starter russmuller
- Start date
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Credit card. I have made that mistake before. Now I have no more credit cards and only buy what I can pay cash for (car and house excluded). Credit cards are the biggest ripoff known to man.
DarkWolfXV
Excised n anatomised
Credit card, be responsible.
sawtoothscream
Well-Known Member
card
Watty
Naturally Cynical
This. I HATE credit cards. I use them, but pay the balance off as soon as I possibly can (i.e. within a week). They lull you into thinking that:
a) You have more money than you ACTUALLY do.
b) That you can afford stuff outside your means.
c) It's perfectly fine to carry a giant balance other than your car and house.
Pay off the credit card and start a savings account for an Axe FX. Put a $200 or so in there a month and you won't have to wait THAT long before you can pick up a used one.
NoMod
Reformed misanthrope
Credit card.
tedtan
Well-Known Member
Another option - if you are young (teens or early twenties) that refund could be close to a million dollars US by the time you retire at 65 or 70 if you invest it in a 401k or IRA. I know delayed gratification sucks, but its worth considering, especially if you don't have a 401k or IRA already.
If not this, then credit card.
If not this, then credit card.
JohnnyClaiborne
Audio Engineer
Buy 17 fender starcasters and give them out to poor children who's dream is to play guitar
NoMod
Reformed misanthrope
Wtf is a starcaster?
MistaSnowman
Play It LOUD!!!
Do your credit score some good...pay off the credit card 
Eric Christian
Banned
Nothing wrong with carrying a credit card balance and making regular consistant payments over several years. Thats how you establish credit so later on you can get an auto loan and then a house loan. Judging from the enthusiastic response around here I'd just blow your tax return on a AxeFx II and have fun with your bad self. I mean it seriously makes some amazing tones and you'll probably spends weeks tweaking and fucking with it until your ears start to ring day and night but you'll be having fun. Waiting for a custom guitar to get built sounds boring. So does farting around working on three projects as well. Sitting in room practicing or gigging is one of those simple pleasures that make life worthwhile.
axxessdenied
Arium Addict
I'm sorry, but this is just terrible advice. If you can't afford to pay for a vehicle in full, you shouldn't be buying it in the first place. You can get a lot of great commuter vehicles for a few thousand dollars. Taking out an loan to buy something that is going to depreciate in value and you are also paying interest on top of that? Fuck that.
If you want to buy a house, then start saving up. If you set aside a nice down payment and have a steady paycheque then you will get approved for a mortgage. If you can't save money, you definitely can't afford to own a home.
Pay off your credit card. You will feel so much better! You can then set aside a bit of cash every month that you would have instead payed towards those payments and get yourself a nice guitar and pay for it in full
Watty
Naturally Cynical
Pay off your credit card. You will feel so much better! You can then set aside a bit of cash every month that you would have instead payed towards those payments and get yourself a nice guitar and pay for it in full
+1...obviously
Maybe it's different in your neck of the woods, but I know of very few people who went out and paid for their cars with cash. I would definitely list a car as being on the short list for justifiable "unaffordable purchases" as they tend to be expensive but completely necessary depending on where you live and work. And while you can pick up good commuter vehicles for a few grand, some people don't like to buy used because they don't know what exactly happened with the car prior to buying it.
Cars for a couple grand are fine.. until you end up spending more in repairs and possibly gas (as newer cars tend to have better mpg) than you would've spent in car payments. Been there and done that for oh, 15 years.. I bought a 2012 from a dealer.. and knowing for sure that its gonna get me where I'm going is worth the $315 a month.
and I've thought about the OP alot more, as Im in the same boat with tax time here.. and I'm still paying off every credit related item I can, then putting whatevers left against my car.
axxessdenied
Arium Addict
I'd much rather put that money towards paying off my mortgage. I've never owed on a vehicle. I will also be mortgage free by 33. You're going to be paying $315/mo for how long? 60 months? I've got quite a few friends in the car business. I know the game. You're getting screwed either way
Banks make a killing off financing deals. They shower these guys with tons of gifts based on how much financing they give them. Even still, I own a nice car and a $1500 daily driver that has over half a million kilometers on it. I much prefer driving the shitbox over the nicer car anyways Bottom line. Be smart with your money, think of the long-term! $315 a month is definitely not a lot of money to drive a nice, new car. But, I'd rather pay off my mortgage more aggressively than carry a car loan.
Looking back at the amount of money I lost on depreciation of vehicles. I could have had an axe fx II, kemper and a few crazy custom guitars with all that money
I'd much rather put that money towards paying off my mortgage. I've never owed on a vehicle. I will also be mortgage free by 33. You're going to be paying $315/mo for how long? 60 months? I've got quite a few friends in the car business. I know the game. You're getting screwed either way
Bottom line. Be smart with your money, think of the long-term! $315 a month is definitely not a lot of money to drive a nice, new car. But, I'd rather pay off my mortgage more aggressively than carry a car loan.
Looking back at the amount of money I lost on depreciation of vehicles. I could have had an axe fx II, kemper and a few crazy custom guitars with all that money
Not sure if you have a family/job/school/band or not.. but I do. In my situation, I find that reliable supercedes cheap.
My credit is sweet, interest rate on car and house is way low.. so after 9 years in my house..then 5 years with my car, I will be clear on them both.. and its all because *used my tax refunds to pay down credit*
So the way of the credit cant be all that bad bro... So what if someone made a buck from me. Thats kinda how things work. I cost a chunk of change and all I do is build/fix swimming pools.
axxessdenied
Arium Addict
My car was cheap and is reliable. Haven't put a single penny into it aside from oil changes. I use it for business on a daily basis.
I just don't like to feel being in debt. You never know what might happen in life. Relying on credit is just not something that makes me feel secure in life. I can't wait to be debt free. Once that mortgage is paid off... no one will have me by the balls except my wife
I just don't like to feel being in debt. You never know what might happen in life. Relying on credit is just not something that makes me feel secure in life. I can't wait to be debt free. Once that mortgage is paid off... no one will have me by the balls except my wife
JLocrian
Well-Known Member
Pay off the credit card....for sure lol
obZenity
bwow-duh-da-dow
I sold my PRS Santana 25th Anniversary about two months ago, and I had the option to buy an entire new rig, a recording set up, or finish tattoos. I opted to pay off two credit cards and put all but 200 into savings. The feeling of not having those annoying bills every month is greater than any gear IMO. That being said, an Axe FX is kinda awesome . . . .
Cremated
Well-Known Member
I'd much rather put that money towards paying off my mortgage. I've never owed on a vehicle. I will also be mortgage free by 33. You're going to be paying $315/mo for how long? 60 months? I've got quite a few friends in the car business. I know the game. You're getting screwed either way
Bottom line. Be smart with your money, think of the long-term! $315 a month is definitely not a lot of money to drive a nice, new car. But, I'd rather pay off my mortgage more aggressively than carry a car loan.
Looking back at the amount of money I lost on depreciation of vehicles. I could have had an axe fx II, kemper and a few crazy custom guitars with all that money
It just all depends on your situation. I got a loan for a new car and I feel like that wasn't a bad decision at all. I'm a landlord in addition to my day job, where I make o-rings for aircrafts, etc. Paying off a car for me isn't a big deal because I live rent/mortgage free with free utilities, etc. So the car loan is one of my only bills, along with insurance for the car. Plus the car payment is only $246 a month so I can pay double or whatever to get it paid off faster. They do rape you with interest but the reliability beats having to put hundreds of dollars into a '95 Accord every other month. Just my opinion.
Depending on how bad your debt is, you could pay half of it off and do the rest in payments. Maybe you could still afford something nice for yourself. Not trying to give you bad advice though. The debt is the most important thing, so only do payments if you're capable of making them. It will build your credit more too.
