nriojas t1_jdtqtpe wrote on March 27, 2023 at 3:01 AM

If you need to pull out a personal loan in order to pay your credit card debt and other debts, you are no where near ready to buy a house. Especially with a credit score that low.

You’ve gotten some sound advice here but seems you think you know better. Good luck.

[deleted] OP t1_jdu28v7 wrote on March 27, 2023 at 4:53 AM

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autismspeaksdotcom t1_jdub21p wrote on March 27, 2023 at 6:42 AM

Let me get this straight.

You’re asking for financial advice in a subreddit dedicated to personal finance. They give you well-thought out, actually useful advice, some of which you don’t happen to like. And then you say that they have their parties in a bunch?

Nah mate. You made poor financial decisions. The truth hurts, and now is your opportunity to take the advice, and make smarter choices.

Do you really think your exit strategy is going to work? You’ve spent a lot of time and research into it…. Like you did for a 9.4% interest car loan?

Welcome to the circus buddy we’ve been looking for a clown.

[deleted] OP t1_jdudcry wrote on March 27, 2023 at 7:14 AM

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autismspeaksdotcom t1_jdueh34 wrote on March 27, 2023 at 7:31 AM

Im sorry, I might’ve been a bit harsh.

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You’re right, having emergency savings is very important.

On another note, it can be risky to have all of your emergency savings in stocks.

In the same way how one can lose their job in a recession, your (savings) investments can shrink or even cease to exist. That’s double trouble. Triple if you count the debts too.

Then you still have debt, less savings and reduced/no income. The debt will not wait for the recession to be over; month by month, it piles back on. Snowballing if you will.

If you pay off your debts, you can guarantee that you’re no longer losing more money to interest. Each month, the money you would’ve paid towards your loan & interest, can go to savings. You can’t guarantee that you’ll make money in investments.

[deleted] OP t1_jduf00n wrote on March 27, 2023 at 7:38 AM

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Potential_Lock6945 t1_jdunxyf wrote on March 27, 2023 at 9:51 AM

By you not paying off your credit card debt today and keeping $7000 in a savings account, you’re basically paying 26% apr (or whatever your credit card apr) for that. You should take $6,000 out and apply it to your credit card today and keep $1,000 in you’re emergency fund then start rebuilding your emergency fund.