# Figuring out finances for separation...



## LoveAtDaisys (Jul 3, 2013)

Hi again!

So as some of you may know from following my thread in CWI, I'm getting ready to start the process of separation. Unfortunately, crunching the numbers, money is going to be tight for a few months while we untangle our finances.

All the bills are in my name. We have a car payment, a personal loan, a credit card, car insurance, phone bill, and internet/tv bill.

I've already removed him from my insurance. I need to figure out some way to get my cell phone plan changed and get him off my plan - I haven't decided if I want to just cut his phone off completely or be "nice" and transfer his phone to a new plan since I do have all his banking info and can  The insurance is minor and the credit card/loan I'm applying Dave Ramsay to so I'm not too worried about those.

My biggest worry is the car. I got a larger vehicle (planning for children+we have large dogs), and it's a gas guzzler. Our original plan was to use his GI Bill to pay down the car payments faster and then trade it in at the end of the year. I still owe more than the trade-in value.

Is it worth it for me to just cut my losses and get a more fuel-efficient vehicle and take the hit financially?


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## Burned (Jul 13, 2013)

Do you drive many miles? Might be worth trying to keep for a while and pay it down so you won't have any negative equity. That will depend on how many miles you drive it, the more you drive the more depreciation you take. If you can slow down the miles you might be able to break even. Just my two cents.


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## Burned (Jul 13, 2013)

Another thought would be to try and sell it yourself, you will get the most money that way but will have to handle "selling" and taking the phone calls and dealing with strangers. Maybe you can have "him" help you with that if at all possible. The dealer will try and give you the least they can for it (Just what they do)


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## PBear (Nov 16, 2010)

That's impossible for us to tell. It might be worthwhile to take the initial hit now in exchange for lower payments and lower fuel costs, but it depends on your current financial state and future budget. You'll have to crunch those numbers, but it shouldn't be rocket science. 

C
_Posted via Mobile Device_


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## LoveAtDaisys (Jul 3, 2013)

It's mostly to/from work, which is roughly a 10-15 mile commute (so 20-30 miles a day). But I have started carpooling with a friend to work (alternating days that we drive in) so that may help.

I'm thinking I'll funnel a little extra each month to the car payment and use the money I'll save on my cell phone bill and my insurance to supplement. Re-evaluate in six months.

My monthly payment is most likely going to go up regardless, but the fuel savings may offset that and cause me to break even/save some. These gas prices in California KILL me!


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## DTO (Dec 18, 2011)

My first thought is if you are upside down on the loan, you need to have the cash to cover the gap. The lender will demand you pay off the loan when the car is sold. If you go to a dealer to pay it off and roll the shortfall into a new loan, how will you be sure you get fair value for your current car and a decent interest rate on the new loan?

That being said, I've heard trading in a car to save on gas money is a bad idea. If you drive 20,000 miles per year and trade in a car averaging 15 mpg for one averaging 30 mpg, you'll save around $200 monthly in gas (and probably something on maintenance) at CA prices. 

Could you find a car to meet your needs that would save significant money in gas? Maybe.

Would that savings offset the payment and term change on a new car? I'm guessing not unless your new car is going to be a much lower level one (like going from a loaded large pickup to a small SUV).


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