Home > Took a Loan for 20K

Took a Loan for 20K

July 30th, 2023 at 07:10 pm

So one thing I have been thinking of A LOT lately is how much I have in available funds.  I currently have 18k in savings and 41.6k available in my Roth.  I anticipate netting 22k or so from selling the truck, which will be a quick sale.  Also I hope at least 20k from selling the 5th wheel, but that may take longer to accomplish. More on that below.  And then of course as soon as I am separated from my employer, I will have access to the 25k in my 457 plan, although I hope to not touch that this year.  So that is 18k +41.6k + 22k = 81.6k which I can count on having available immediately, plus another 45k which will be on the horizon.  I'm not going to lie, I wish that I had more.  I am trying to buy a house plus live on this money until I find a new job.

I have been mulling over the idea of taking a personal loan someplace, to cushion my bank account.  Of course, this is something which will cost me money.  I'm not really certain I want another loan, but once I am no longer employed it will no longer be an option.  If it turns out that I need a loan, it will be too late. Of course, I can always use my credit cards to pay for necessities.  But this is not an appealing idea if I lack the funds to pay for my charges; a loan would likely be less expensive.  So I have looked online a bit and the best deal I could find was with Citibank.  On Friday, I accepted their loan; my check is in the mail.  The terms are no origination fees, 11.99% interest, a 5 year repayment schedule, no prepayment penalty.  When I receive the funds, I will throw them in savings and that will reduce the cost.  Once I have a job, paying off this loan will be a high priority.  

I have my eye on 2 houses listed for sale, both at 59k.  The one which I like the most has recently been completely re-done inside.  It is small, only 800 sq ft, but it is on 1/3 of an acre, unfenced.  The other is a bit larger at 892 sq ft, but sits very close to the neighbors on both sides. It has a covered front porch which I just love and a fully fenced backyard. If they are still listed when I go to Illinois in September, I will see them.  And I will keep updating my list between now and then.

I have some friends in my old area who camp a lot.  The husband is very knowledgable about vehicles in general, including travel trailers and 5th wheels.  If necessary, he will keep my 5th wheel and handle the sale, for a commission.  I offered the commission, he did not ask.  It will be a chore, so I wouldn't feel right about not compensating him for his time and trouble.  I trust these friends completely and have no fear that he would cheat me in some way.  Of course, I would prefer to sell the 5th wheel myself and quickly, but in case it does not work out that way, I do not want the 5th wheel holding me up from heading to Illinois.

4 Responses to “Took a Loan for 20K”

  1. LivingAlmostLarge Says:

    Sounds like a plan although I don't like the idea of the loan. I Think that a 0% CC cash advance for 24 months and 3% origination fee is a better deal for you. If it's not too late, use a check from a CC with 0% and pay off the 11.99%. That is a worse deal I think since you are in a short term crunch. Plus you know you'll be working now to pay off that loan. At leaest that's what I think would be more prudent financially.

  2. Wink Says:

    Have you researched the employment landscape in your new area at all? If so, does it look promising for what you might be looking for? If job openings look strong and you find employment right away, you may just be able to pay the loan back very quickly anyway.

  3. Petunia 100 Says:

    That's a good idea, LAL. I will look into a 0% balance transfer.

    Wink, I have looked online some. There are plenty of jobs in the area, most are in the service industry. I would prefer a bookkeeping type job, but I will do what I need to do. I think that I may try to get hired at H&R Block for next tax season. My tax knowledge is dated but I should still have time to take the course which they offer.

  4. terri77 Says:

    My dad works at H&R Block part-time. He enjoys it, but the pay isn't much. I bet you would do better doing taxes independently if you have the proper credentials.

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