Posted on 12/04/2012 12:47:00 PM PST by Kaslin
Dear Dave,
I make about $70,000 a year, and I have $9,000 in student loan debt. I also have a car that would bring enough to allow me to pay off the student loans. Do you think I should sell?
Dave
Dear Dave,
Nice name! Seriously, there are two questions I ask when it comes to selling a car to pay off debt. One, is the value of your car and other vehiclesincluding motorcycles, boats and such more than half of your yearly income? If so, then you have way too much money wrapped up in things that are going down in value. So, unless youre talking about a super-expensive car, Id say the answer on this one is no.
The second question is this: Can you become debt-free, except for your home, in 1824 months without selling the car? If the answer is yes, then I wouldnt sell the car. Theres no reason to sell your car in this scenario, unless you just really hate the thing or need different transportation.
In this case, it sounds like your car is a reasonable percentage of your income. Id hold on to it and just save like crazy to kill off this student loan debt. With your income, it shouldnt take more than a year. Good luck, Dave!
Dave
I have $1,000 in credit card debt, a $12,000 car loan and I owe my parents $20,000. The loan from my parents is causing stress because all I can afford to give them is $200 a month. They dont need the money, but theyd like to see it paid off soon. What can I do?
Jacob
Dear Jacob,
If youre not already living on a written, monthly budget, that should be the first step. You say your parents dont need the money, right? So, theyre not living on bread and water without your payments. I think the biggest thing causing them stress is the fear that youre being irresponsible and living without a plan.
Make out a simple, realistic budget, and sit down with them to explain what youre doing and how you plan to address things. Start a debt snowball, and begin knocking out your debts smallest to largest. By the time you pay off the credit cards and the car, youll be able to give them lots more than $200 a month.
Just ask mom and dad to stick with you a while longer. I think it will make them feel better to see that youre serious about getting your finances in order!
Dave
Can someone wiser than me give me a simple answer why Dave Ramsey isn´t tapped and brought in by the Obama team to end the deficit programs. Now really...why with a guy with his success can´t they bring him aboard.
I called the mortgage company for my official payoff statement and I am glad I did. I have to pay about $800 more than I expected! I forgot about winter prop taxes being due and will have to make up for an escrow shortage so that they can pay that amount! Dang, government gets me again!
Plus, I found out that you can’t just pay in the normal manner. They require a “certified check” or wire transfer. Then I tried to transfer funds from my MM to my checking account and was not successfull, seems I have to go to a branch to submit a signature card for the MM account I started on line.
I’m glad I decided to start checking this out! I am shocked at how difficult things are for closing this step.
I called the mortgage company for my official payoff statement and I am glad I did. I have to pay about $800 more than I expected! I forgot about winter prop taxes being due and will have to make up for an escrow shortage so that they can pay that amount! Dang, government gets me again!
Plus, I found out that you can’t just pay in the normal manner. They require a “certified check” or wire transfer. Then I tried to transfer funds from my MM to my checking account and was not successfull, seems I have to go to a branch to submit a signature card for the MM account I started on line.
I’m glad I decided to start checking this out! I am shocked at how difficult things are for closing this step.
Ummm....because he’s a guy on the radio and they don’t want to get rid of the deficit. That’s why we have one.
Do you really think that Obama is even remotely interested in fiscal responsibility, controlling the deficit and bringing America back to prosperity?
PFFFFTTTT if anything Dave will be in the reducation camp with the rest of us...
Obama wants the deficeit. Obama wants debt. Obama wants America to fail so the imperialism of the Muslim countries will end.
I have to answer your question with a question which is: Isn’t it obvious that 0bama is not interested in ending the deficit programs?
When Dave tells someone with overwhelming debts to go down to the basement, and crank up the money-printing machine, they might ask for his advice.
Really, a whole year on that income? That’s very bad advice. If the guy can’t pay off a mere $9k in 2-3 months then something is seriously wrong. He should have that in pocket change or much more in savings. I simply don’t understand people these days. They’re making money hand over fist but can’t make ends meet. It’s all about MEEEEE! I’ve never made anywhere near that and still managed to pay off the mortgage way early and don’t owe anyone.
Dave Ramsey: "Mr. President, you're spending far too much for your income. You're going to have to cut back on spending."
Obama: "Dave, I hear what you are saying. I agree with you that the Republicans will have to raise taxes so I can pay for what I'm spending and can then spend even more."
Ramsey: "That's not what I said at all. You have to cut sp..."
Obama: "Ah, ah, ah. You are part of the eeeeevil one percent. I'll just empty out your bank account for starters."
Because Obama is a socialist with Keynesian and Hamiltonian influences regarding debt.
“A national debt, if it is not excessive, will be to us a national blessing.” - Alexander Hamilton
Why pinch pennies to repay debts when you can live it up on more borrowed money?
BTW, the debt is only “excessive” when creditors refuse to lend adequate funds to service existing debt. Thanks to the Federal Reserve System that simply will not happen. Ben Bernanke stands always ready to be the lender of last resort.
Thanks for the ping!
Be encouraged; you’re still close to reaching BS7!
No, he was talking in general terms for anyone in that situation. Not specifically about that guy’s 9 grand in debt. Perhaps it should have been written more clearly.
I’ve listened to him talk to callers in similar situations dozens of times and, given those numbers, he would tell them to buckle down and pay it off in a few months.
Sometimes I think these “advice columnists” simply make questions up so they can answer them with canned boilerplate. Writing such a column must be one of the easiest jobs in the world. Real readers can’t be that stupid can they? Would somebody making $70,000 a year really fret over how they are going to pay off $7,000 in student loans?
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