Who wants to talk me INTO a bad decision?

[theduc]

Yes, that's right... who wants to talk me INTO a bad decision?

I'm a big fan of motorcycles and my dream garage will one day be full of various styles... and some almost identical to each other (like what I'm looking at now). I've always been a big admirer of the Ducati and MV Agusta Italian superbikes... In fact, I'm on my 3rd Ducati now (I sold the previous two) and have the opportunity to purchase another rare Ducati (only 3,000 were made and it's number 125 of the 3,000). It belongs to a friend of mine who is thinking about selling it to build another car with 7 y/o his son.

My current motorcycle (paid cash for it):
Ducati 996

One I'm looking to add to the stable:
Ducati 748S

The motorcycle is worth around $5,500 to $6K and normally I would just write a check and be done with it as I have in the past. But now I recently found out about a $13K bill of my wife's (from before we were married) that has gone to collections. We have around $17/18K in savings so we could do both but we're trying to see what we can settle with the collection agency for first.

Our only other debt is our car ($7,600 but worth $12K... $250/month) and our mortgage on a rental property in another state ($45K mortgage with $115K in equity... $1,100/month including mortgage, taxes and maintenance fees).

My wife hasn't worked since before we were married due to chronic back pain and I bring in about $4K/month after taxes and investing... plus an additional $1,800/month from the rental property. I know it's doable but it's probably not the smartest decision given the $13K debt of my wife's.

We currently spend about $4,500/month on everything...

[PauletteGoddard]

You initially had me at Ducati (I almost bought a Ducati for my first bike but I have a Yamaha) but you lost me at collections and existing debt. I am perhaps too timid a critter to follow your reasoning all the way through.

[bjl584]

Very sharp bike.

But,
That is definitely a toy and something that you shouldn't buy until all of your debts are paid off.

Sorry.....

[theduc]

Yes I know... Our current plan is to find out what we can settle the $13K for (hopefully for a lot less than $13K) and then pay off the car with cash. THEN.... maybe the 2nd bike.

We may just go ahead and pay off the car before settling the $13K but I'm not sure if that's the wiser option.

I can't say I really have a good reason to buy the 2nd bike right now... or even that I think it's a smart decision... just looking to see what everyone would say about talking someone INTO a bad decision.

[humandraydel]

Here's a hint: in order for people to talk you INTO it, you'll have provide a LOT more details such as age, net worth, free cash flow, etc. Do you currently save $1300 per month outside of retirement?

[disneysteve]

I bring in about $4K/month after taxes and investing

We currently spend about $4,500/month on everything

Can you explain what you mean here? How can you bring home $4,000 and spend $4,500?

[LuckyRobin]

I don't understand why you're trying to get a settlement on your wife's debt when you clearly have the money to pay for it in full and make a good income. There is no hardship there, no reason to settle. Sounds like you are trying to get out of paying a legitimate debt so that you then have money for toys. You already have one motorcycle so you are not suffering in the toys department. Pay your debts and keep your dreams just that, dreams, until you can truly afford them.

[disneysteve]

I don't understand why you're trying to get a settlement on your wife's debt when you clearly have the money to pay for it in full

I agree completely. Debt settlement is for folks who can't possibly afford to pay what they owe. Why should the people who lent her this money suffer so that you can surround yourself with luxuries?

[maat55]

I myself, would settle the debts, payoff the car, then rebuild the savings to at least three months expenses before even looking at a bike.

[theduc]

ok so this was more of a joke here...

my personal income is around $4K after taxes and investing... plus an additional $1,800 in rental income for a total monthly income of $5,800. The $4,500 in expenses includes the $1,100/month expenses we have on the rental property (including the mortgage, maintenance fees and taxes) plus the $1,200/month we pay in rent. We net around $1,300 to $1,400 a month.

I am torn on the settlement of my wife's debt... If you were to look at us as separate (I know we're not), then the debt belonged to her before we were married and is technically still only her debt in the eyes of the court. She has not worked and has had $0 income since before we were married... Therefore, she should be able to settle her debt (not me) as she can not afford to pay what she owes. Technically I have money to pay her debt, not her (and no, I do not really look at my income as only mine... but the court does since we live in a common law state).

I know that the second motorcycle is not a "need"... It's more of a "want". And if the $13K debt was not there then I would not be asking for someone to talk me into a BAD decision... that's why this is more of a joke.

like I mentioned above... Our first plan is to deal with the $13K... Then to pay off the car... And then MAYBE get the 2nd mototcycle...

[BuckyBadger]

As far as I know, you have to pay tax on forgiven debt. Also, it will ruin her credit.

[amarowsky]

buy the bike

The devil is a friend of mine

[theduc]

buy the bike

The devil is a friend of mine

LOL! Thanks!!!

[maat55]

Which is more important, an EF or the bike?

[theduc]

the bike of course

ok... the emergency fund