"“That car is tied to psychological trauma for you. So every time you get in it, every time you write a check for it, you know I got ripped off because my heart was broken and I made a bad decision. I'd want that reminder out of my life.”"
"“And with that, an $800 a month raise.”"
"“Keeping the car through August means roughly four more $795 payments, most of which is interest on a depreciating asset that is already worth less than the loan. Selling now requires scratching together about $4,000 to clear the lien, plus another $2,000 to $3,000 for a cash beater, per Ramsey's suggestion of 'a $2,000 or $3,000 car that you pay cash for.'”"
"“Call it $7,000 out the door, painful but finite. In return, Andrew frees the $795 monthly payment. Aim that freed cash flow at the $5,900 in credit card debt and $7,000 in Upstart personal loans, and the unsecured pile is gone in a handful of months.”"
A 23-year-old became debt-free, then bought a car after losing a close friend. The purchase was meant to help with grief, but it created new financial strain. The car loan totals about $34,000 for a vehicle worth about $30,000, with a $795 monthly payment at a high interest rate. Additional balances include $5,900 in credit cards and $7,000 in personal loans. With a baby due soon and a stay-at-home partner, the plan is to sell the car, cover the remaining lien gap, and buy a cheaper cash vehicle. The freed $795 monthly payment is then directed toward the unsecured debts to eliminate them quickly.
Read at 24/7 Wall St.
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