dave R2 300KENTUCKY (3/10/13) – This week Dave discusses What’s the Difference? and There’s a Better Option.
 
Dear Dave,

My wife and I make $140,000 a year, and we’re working on our debt snowball. We’re almost out of debt, but we still have two small car payments and some credit card debt. She wants to get rid of the credit card debt but doesn’t mind us having car payments. Can you help me understand this? - Kelly

Dear Kelly,
I’m not sure I understand her thinking either. The car payments and the credit card debt are the same thing. They’re both debt payments, and you’re being charged interest on both of them. The only difference is that one is attached to a car and one’s not. It makes about as much sense as saying you like Visa better than MasterCard.

Even if she has some strange hang-up about car depreciation, that argument doesn’t hold water either. Cars go down in value whether you borrowed money to buy them or not. A $20,000 vehicle will be worth $10,000 in just a few years no matter what you do. A car payment won’t keep it from depreciating or slow the rate of depreciation.

Sometimes people get burned out or tired of paying the price to become debt-free. It can happen when you’ve been working on something for a while, and it seems like you’re never going to get there. Sit down and have a gentle, loving talk with your wife. Find out why she feels that way about the car payments and where the root of the problem really lies.

She may just need some support and encouragement from the man in her life. Remind her how far you’ve come together on this journey, how close you are to winning, and how much you love her. You’re too close to making your financial dreams come true to stop now! - Dave
 
Dear Dave,
I’m 23 years old, and I was in the military for five years. While serving I received what is now $2,700 in Series EE bonds. Should I keep them? - Tammy

Dear Tammy,
If it were me, I’d cash them in and do my own investing with the money. Series EE bonds have a very low rate of return. They don’t pay much, and they’re not good long-term investments. They’re almost like keeping your money in a certificate of deposit over the long haul.

Investing is never a bad idea, and I know that may seem like a lot of money to you at the moment. But my advice is to cash out the bonds, find a financial advisor with the heart of a teacher, and invest the money in growth stock mutual funds with a good five- to 10-year track record. After that, get set up for auto-draft on your checking account and put at least $50 a month into your new mutual fund. That’s a much better plan! - Dave

* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.
 

Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

Posted on 2/2/14
3/13 - 16
1 DOW 17,684.87
+6.64 (0.04%)    
2 S&P 2,054.63
-1.52 (-0.07%)    
3 NASDAQ 4,867.26
+3.90 (0.08%)    
3/13 - 16

Most Read This Week

March 18, 2015 9426

UPDATE: Hanson Man Located in Henderson, Taken to…

by Trooper Stu Recke
March 25, 2015 4907

Fazoli's, Roses Coming to Madisonville

by Amber Averitt, SurfKY News
March 24, 2015 4863

One Dies, Another Injured in Mortons Gap Traffic…

by Deputy Heath Owens
March 25, 2015 4753

Grand Jury Finds No Criminal Wrongdoing in Bean…

by Doreen Dennis, SurfKY News
March 24, 2015 4001

UPDATE: One Injured in Hopkinsville Road Accident

by Doreen Dennis, SurfKY News
March 25, 2015 3678

Madisonville Man's Living Room Leap Lands Him in…

by Madisonville Police Department / Hopkins County Detention Center

Most Read This Month

February 25, 2015 13807

Multi-Agency Investigation Nets Large-Scale Meth…

by Trooper Stu Recke
March 09, 2015 12849

Multi-Agency Drug Bust Results in $1 Million Meth…

by KSP DESI

Stories Trending Today

March 26, 2015 1347

‘Chasing Rainbow’ Heart Walk Raises Funds for AHA

by Tammy Holloway, SurfKY News
March 26, 2015 986

Two Injured after Jumping from Second Floor to…

by Charles W. Riley II, SurfKY News
March 26, 2015 932

Madisonville Police Arrest Reports - March 26,…

by Madisonville Police Department
March 26, 2015 911

Hopkins District Court Fines Handed Down

by Hopkins Court Clerk
March 26, 2015 892

Baptist Health Honors Staff with Years of Service…

by Tammy Holloway, SurfKY News
March 26, 2015 863

Teams 'Dodge for the Cure' during Relay for Life…

by Tammy Holloway, SurfKY News
March 26, 2015 802

Hopkins County Sheriff's Reports Released

by Hopkins County Sheriff's Office
March 26, 2015 721

Kentucky, West Virginia Governors Offer Friendly…

by Office of the Governor
March 26, 2015 679

UPDATE - OPD Seeking Public's Help in Locating…

by Owensboro Police Department
March 26, 2015 552

Hopkins KFB Manager Named Manager of Year

by Kentucky Farm Bureau