Comments on: Money Makeover – Couple in Debt

By: Wasted Potential

Wasted Potential — Wed, 22 Aug 2007 00:27:43 +0000

I have a friend like Maria’s. He buys a new car and as soon as it is finally paid for, trades it in (at a huge loss) and buys another new car. This is the same friend who always complains that he can never afford to take a vacation.

By: Maria

Maria — Tue, 21 Aug 2007 23:18:01 +0000

I agree with several commenter’s – get rid of the high car loans. My goodness, what are they driving and do they need it when they’re that much in debt? The answer, of course, is ‘no’. Seems to me this is where they need to start. Sell the cars & buy an inexpensive, reliable used car that will last several years.

About 7 years ago, shortly after I paid off my car note, a friend asked when I was buying a new car. My brain literally started screaming at me “Does not computer. Does not compute.” I asked her why I would want to incur a new car note when I just paid off a note on a perfectly fine car? She had no answer. My car is 13 years old & still going strong. Of course there are minor wear & tear issues, but nothing major. I plan on driving it until it dies.

By: Starving Artist

Starving Artist — Tue, 21 Aug 2007 17:28:00 +0000

Wish I could find a mortgage for $126K!

By: Starving Artist

Starving Artist — Tue, 21 Aug 2007 17:24:46 +0000

I’ve been contemplating doing the numbers on whether it may be a good idea for people in debt to move to a HIGHER cost city. Reasoning: if you live in the middle of nowhere, and you make $30K, and you have $20K in debt, that’s an intimidating, maybe even impossible debt to pay off. If you got the same job in, say, San Francisco, where they will pay you $70K for the same work, you’re debt has essentially decreased. It seems like it might be a horrible idea for a person with large debt to move to an area with a lower cost of living…

By: Jim ~ mydebtblog.com

Jim ~ mydebtblog.com — Tue, 21 Aug 2007 16:47:13 +0000

I think you have the withholding backwards. If they increase their withholding allowances it will reduce the amount of money taken out for taxes. They need to spread out that 4k refund into monthly income so they can use the extra to help cover their expenses.

They have too much car, too much stuff, and a lot of debt. That’s the American way, right? The auto loan has to go because the payment on a 23k loan has got to be high, basing this idea on their 28-30% APR. A cheaper car they could afford/own will help free up a monthly payment that could be applied to credit card debt. Cutting expenses also helps. Good article.

By: FrugalBabe

FrugalBabe — Tue, 21 Aug 2007 16:37:04 +0000

As soon as I saw the listing of the debts, my first thought was how crazy the car loans are. It looks like Chris had exactly the same idea. I have never had a car loan, and I don’t ever plan to. My car is 16 years old, and we bought it with cash ($2300 that we saved up over nearly a year) four years ago. I will drive it until fixing it becomes more expensive than the car, and then we’ll buy another vehicle that’s at least 10 years old.

By: Chris

Chris — Tue, 21 Aug 2007 14:02:20 +0000

They need to sell whatever cars they are driving around in and drive some old clunkers. $23k in car loans making $60k a year when you’re $60k in debt not including the mortgage…crazy!