Hello all, just seeking some general thoughts about what to do in my current situation. If there’s a better sub to post in please lmk.
26m, bills are next to nothing after moving in with family besides $50 phone, $300 auto insurance, 650 car note. I budget another $250 for gas and miscellaneous expenses/entertainment. Food and rent is covered by family for helping out around the house (extremely fortunate.) Only debt is car note.
Burnt out of my career in tech sales after two lay offs in the past year. Currently working as a valet, bringing in approximately 3k/mo post tax. Have 5k in checking after paying off remaining CC debt, ~12k in 401k. No savings.
I’m going to attend flight school, of which I’ll need ~80-100k in student loans to pay for training and flight hours before commercial certification. Cash flowing flight school is not an option as it’ll take me 4x as long. (~1 year vs 4-5).
The thing holding me back is whether I should sell, work more to pay off before starting school, or just use the student loan to make payments on the vehicle.
The car in question is a 2021 mazda 3 with 35k miles. I currently owe 25k with 36mo remaining, at 7.2% interest. Student loan would be approx the same rate. Looking at the same spec and mileage, dealers are selling for 20-22k in my area and KBB lists the value at 20-24k.
I do baby the car and it’s in immaculate condition so I think I could get 22k for it. I’m looking at older Hondas for 3-5k which I have experience in owning and maintaining, and a family member is willing to assist in a 0% loan to buy the beater. Insurance would drop to about $100/mo for liability here in florida.
Transportation is vital, as the airport is a 20 mile commute daily. I plan on working part time as a valet during school and feel safe knowing I could bring in ~$1000/mo while doing flight school. I plan on putting the loan in a high yield savings and using what’s left over to throw back at the principal upon graduation.
original posted by Throwawaytwenty4s to r/personalfinance on Thu, 07 Mar 2024 11:20:58 GMT.