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Thread: Loan question

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    CCArmyWife's Avatar
    CCArmyWife is offline
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    #1

    Loan question

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    Rich,

    When DH and I first got married we had no financial managment skills at all. We got into a lot of credit card debt. After we purchased our house in 2006 we got a consolidation loan (with my father as a co-signer) and have been working to pay off all of our credit card debt. We only have one card now, with a $1500 limit.

    Our current loan is $330 a month, and we have school loans, along with normal monthly bills. All of our payments are on time. Dh joined the Army in Nov of 08, so we sold our house (but made nothing). DH took a huge pay cut to join the Army, we can still make all of our payments, but it is close and makes me uncomfortable to think about what would happen in an emergency.

    Do you think it would be okay to try and refinance the remainder of our loan out for 5 years? That was the original length of the loan 15 -18 months ago when we first got the loan. I don't want to do any more damage to our credit, but if we had an emergency then I feel it could turn out a lot worse than this "pre-planning" by lower our monthly bills.

    I am still learning about financial management, so any input would be very helpful. Thanks!
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    Rich Lunsford's Avatar
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    #2
    Congratulations on making such headway on your debt reductions and thank you and DH for choosing to serve this great country. I would agree with your idea to attempt to refinance the debt to find a little breathing room in the monthly budget. Ideally, you wouldn’t have to, but you have definitely shown the discipline it takes to pay down the debt. Your father may also appreciate being removed from the loan as well. Once your refinance is completed and you have a little extra each month, I want you to take that extra cash and start building up your emergency savings. This will insulate you from future financial emergencies. Keep looking ahead to stay prepared and financially light on your feet.

    Rich Lunsford is a CERTIFIED FINANCIAL PLANNERTM practitioner with USAA Financial Planning Services, one of the USAA family of companies. Rich holds the Series 7 and 66 securities licenses. Rich also holds the designations of Chartered Financial Consultant (ChFC®), Chartered Life Underwriter (CLU®), and CHARTERED RETIREMENT PLANNING COUNSELOR (CRPC®).

    Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the United States, which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
    Need some money advice? USAA’s Rich Lunsford is here to help. Whether its investment advice, mortgages, college finances or deployments, he’s your money coach for any question you may have so just “Ask Rich!” Click here to submit your question to CERTIFIED FINANCIAL PLANNER™ Rich Lunsford or participate in the discussion.

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