Please respond to one discussion post. Car LoanConsider your peer's thoughts on what to remove or reduce to make the same monthly payment? In what ways does your response differ from theirs?Share wit

Trelisa,

• Car Loan

  • Consider your peer's thoughts on what to remove or reduce to make the same monthly payment? In what ways does your response differ from theirs? In my response, I stated I would not have to reduce anything because the payment will fit into my monthly expenses.

  • Share with your peer why you feel the car loan they would have to repay might or might not be worth their proposed sacrifices.

  • Suggest an additional option they could consider to avoid taking on that monthly car payment.

In my opinion, it will be worth the sacrifice due to me having my own transportation, building my own credit but able to afford a car while still managing my other monthly expenses.

• Credit Card Debt (Because you have used the same scenario information as your peers, you should have the same real cost at the end of the first year. If you did not, you might want to consider how your activity led to a different outcome).

  • Consider their thoughts on how continuing to add to their credit card debt affects long-term financial health.

    • Share one way your response was similar to theirs.

    • Share one way your response was different than theirs?

  • Suggest at least one additional way your peer could avoid harming their future financial health (by spending more than they earn every month).

  • Describe how you could use one of the options they shared to gain or maintain financial health.

I can use your option of budgeting and do not take higher interest rates loans to help my loan term financial goal. I see that we both are finding ways to keep ourselves great in the financial health status. The only difference is that I did not feel like I would have to budget with the credit card nor the car.

Jasmine,

My experience with the true cost of a new car activity was definitely a teaching moment for me. It helps me realized how the interest rate plays a big factor when it comes to monthly payments for a car. As I was starting with a small loan amount then to the price of my car I had purchased as I can see where the number of years and interest rate comes together.  The monthly payments I would have to make on the loan was $517 with an interest rate of 4.4%. The years I chosen was 6 years to pay back the loan. The potential impact a car payment might have on my monthly budget is not able to get my hair done or have extra money to eat out with. The car payment is worth a sacrifice because I need a car to get me to work, school, and other daily activities. 

My experience with the activity the true cost of credit card use was as well an eye opener for me when using majority of your credit cards can affect your credit score. When someone have a credit card, we should only use 25% of it and pay it back before the actual payment is due or on the payment date. The continued use of a credit card to fund an extra $50 of spending money can affect my long-term financial health by me thinking I have an extra $50 to spend every month and not being able to not spend it and just to save it on my credit card. Two ways I could avoid long term consequences of spending more than I have on a regular basis is budgeting and saving. I feel as budgeting can help by letting ,e know what I need to pay for or save and using the 50/30/20 rule.