Is 2022 a Good Time to Get a Home Loan and Car Loan with Bad Credit and Low Income?

Short answer is no. Let's review some facts.

Understanding Your Financial Situation

You already have bad credit from poor previous performance. Taking on more debt under these circumstances is foolish, especially since you've already demonstrated poor money management skills. Focusing on improving your financial health is a more prudent approach.

Current Market Conditions

Currently, real estate and car prices are at their high watermark. I expect these prices to decline by 5% as the extra money flushes out of the economy and a more realistic level of demand is established. Attempting to purchase at these inflated prices and then sell at a lower future price is a very foolish investment strategy.

The Employment Market

As we navigate the current economic landscape, it's crucial to consider the employment market. Today's job market is employee-short, with an estimated 10 million employees needed. Your income is the most negotiable asset you possess. You have two options: ask for a large raise or seek employment or a second job elsewhere. Almost any job can be found in the USA, given the current shortage of workers.

Addressing Past Debts

Once you secure a more stable income, focus on working with your creditors to negotiate a payoff arrangement for any past due debts. Make sure they report the debt as 'satisfied via negotiated arrangement' to all relevant debt monitors in writing. This step is crucial in maintaining a positive credit history.

The Path Forward

Work hard and be patient. In a few years, you'll be in a better position to consider purchasing a new home or car at a more realistic price, with a fairer interest rate. By then, you'll also be more mature and capable of making logical decisions based on an accurate budget. Saving and managing your finances through personal effort is often more effective than any finance class.

Consider the following steps:

Enroll in an at-home after-work course in finances to enhance your skills. If your education is close to completion, consider going back to school and finishing your degree. A new degree in a highly sought-after field can significantly boost your starting salary.

Your ability to understand and manage your finances is crucial. If you're currently behind on payments with a damaged credit rating and low income, you need to get at least an 'orange belt' in money management. Serious financial missteps can have long-lasting consequences, so taking proactive steps to improve your financial status is essential.

Focus on getting your finances together and getting out of debt. Adding to the problems with bad credit is not a wise move.