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So Grateful – Short Term Loss of Income

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There has been a change in my expected income for the foreseeable future. I certainly hope it’s for the short term, but to be honest, all it’s led to is a flooding of gratefulness.

Yesterday afternoon, my ex-husband called me and simply asked…”Will you be able to get my babies (our two kids) something for Christmas?” I knew where he was coming from, I knew he was struggling financially. And upon my assurance that our kids are well taken care of and want for nothing, he broke down in tears.

For all drama in our marriage and continued relationship because of our children, I KNOW without any doubt that if he could he would do anything for our children and even for me if I needed it. He is that type of man. I am so blessed that even with my failed marriage we have always been able to work together to put our children first. It’s certainly not always been smooth or easy or stress free, but when it comes down to it, neither of us doubts our committment to our children.

I’ve seen SO many terrible things come of broken homes and bad finances, that this interaction with him did not bring me stress, but rather a flooding sense of gratefulness for our warm home, food in our kitchen and so, so many blessings that it’s so easy to take for granted.

So for now, I do not expect to receive any financial support for the kids. I am also uncertain if he will be able to make his car payments ($350 per month.) He has a car that is financed in my name only. Per our divorce decree he is financially liable for any and all costs associated with it. He pays me for the insurance, car payment and taxes and takes care of all the maintenance on his own. As soon as the car is paid off, we will transfer the title to his name and be done with it.

I feel so terrible for him, I wish I could help, and I will where I can…but I’m also so grateful for this journey that I am on to get in a better financial place, for your support and tough love.

The Car

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So I’m here for your advice today. We’ve had our van listed for sale for almost 4 months now, I believe, minus that month it was in the shop was being rear-ended. And while I’ve gotten a few inquiries, but nothing really solid. Then this week, I had a super low ball offer…like 33% less then what I’m asking…no thank you!

Being a commercial vehicle, it’s harder to place a value on it so I went to my bank and asked their help. They valued it at about $25K. I own right at $27K.

So here’s the question…do I continue to list it for sale and just keep on or do I explore downsizing to a used car and perhaps roll the portion I am “upside” down into a new auto loan? I’ve looked (just online) at used cars and I see two viable options:

5+ year older Honda Element
Plus: Price around $12K, great gas mileage, low maintenance
Down: Only seats 4, there are 5 of us. But we do have the ’96 Honda Accord that seats 5 and is paid off. History Buff will get his license in March. Would have to rent a vehicle for any longer distance driving, which we are certainly not doing alot of but it will happen on occassion.

4+ year older Honda Pilot
Plus: Good gas mileage (much better than current vehicle,) low maintenance based on reputation, 3 row seating so seats all of us and some extras when needed (which we actually have ALOT)
Bad: Price around $18K, and I HATE 3 row seating, it’s very inconvenient for getting in and out.

I’m certainly not rushing into any decision. And as mentioned on several occassions recently, I don’t really trust my judgment. So I’m asking for your opinions.

Just a refreshed on current vehicle situation.
Car #1: New, Financed, large commercial van that I purchased to accomodate our growing family. Currently financed $27K, insurance runs about $100 per month, taxes are about $400 per year, monthly payment is $696. Regular oil changes and tire rotations, no other maintenance expected for forseeable future.
Car #2: Older Honda Accord, in good shape, owned outright. Insurance about $20 per month and taxes will be around $50 year. Just got inspection and oil change, will need new tires and to recondition headlights in coming months but no other maintenance known. This will become the twins car as they get their licenses (starting in March.) Oh, and it is a stick shift which I have VERY limited experience with.

Ok, I think that gives you all relevant information. What do you advise?