Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

Dave Says – December 9, 2012

dave R2 300KENTUCKY (12/9/12) – This week Dave discusses when it’s worth it to sell your car.

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 vehicles—including 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 you’re talking about a super-expensive car, I’d say the answer on this one is no.

The second question is this: Can you become debt-free, except for your home, in 18–24 months without selling the car? If the answer is yes, then I wouldn’t sell the car. There’s 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. I’d hold on to it and just save like crazy to kill off this student loan debt. With your income, it shouldn’t take more than a year. Good luck, Dave!

—Dave


Dear 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 don’t need the money, but they’d like to see it paid off soon. What can I do?

Jacob

Dear Jacob,

If you’re not already living on a written, monthly budget, that should be the first step. You say your parents don’t need the money, right? So, they’re not living on bread and water without your payments. I think the biggest thing causing them stress is the fear that you’re being irresponsible and living without a plan.

Make out a simple, realistic budget, and sit down with them to explain what you’re 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, you’ll 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 you’re serious about getting your finances in order!

—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 5 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.

© Copyright 2014 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 by using one of the social media links below.

button coupons
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
button classifieds

In Other News...

Owensboro Convention Center Partners with Kentucky Proud to Promote Locally Sourced Foods

OWENSBORO, Ky. (11/25/14) — In cooperation with the Kentucky Department of Agriculture, Global Spectrum, operators of… Read More

HCCHS Softball Team Selling Pecans

MADISONVILLE, Ky. (11/25/14) — The Hopkins County Central High School softball team is selling pecans again this year.… Read More
Started 11/8/2013
Started 11/8/2013

Most Read This Week

November 21, 2014 6929

Man Accused of Assaulting Coach During Basketball…

in Local (Muhlenberg) Top News by Rita Dukes Smith, SurfKY News Director
November 22, 2014 4639

One Injured in Two Vehicle Collision in Greenville

in Local (Muhlenberg) Top News by Miria Thomas
November 21, 2014 4342

Crashing Dump Trucks in Work Zone Cause Pennyrile…

in Top News For All Sites Touching Hopkins by Trooper Stu Recke
November 21, 2014 3577

Muhlenberg District Court Fines Handed Down

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
November 21, 2014 3375

Madisonville Police Arrest Reports - Nov. 21, 2014

in Hopkins News by Madisonville Police Department
November 21, 2014 2960

Swimming and Diving Closes Fall Season at Ohio…

in General Sports For All Sites by UK Athletics
November 24, 2014 2764

Two Charged for Possession of Meth After…

in Local (Muhlenberg) Top News by MCSO/PIO Alex Piper
November 20, 2014 2612

Local Church Prepares for 'Return to Bethlehem'

in Video by Gary Gates, SurfKY News
November 21, 2014 2541

Kentucky Employers to Save About $112 million

in General News For All Sites by Cathy Lindsey
November 20, 2014 2522

Madisonville Police Arrest Reports - Nov. 20, 2014

in Hopkins News by Madisonville Police Department

Stories Trending Today

November 25, 2014 2194

Madisonville Man Charged for Selling Cocaine

in Local (Hopkins) Top News by Madisonville Police Department
November 25, 2014 1958

Call for Help Results in Arrest for Possession of…

in Local (Hopkins) Top News by Madisonville Police Department
November 25, 2014 1381

Madisonville Police Arrest Reports - Nov. 25, 2014

in Hopkins News by Madisonville Police Department
November 25, 2014 1312

Slow Cook a Turkey for a Tasty Thanksgiving Feast

in General News For All Sites by SurfKY News
November 25, 2014 1272

Protect Your Home When Traveling This Holiday…

in General News For All Sites by SurfKY News
November 24, 2014 1124

KSP Post 2 Thanksgiving Holiday Enforcement…

in Top News For All Sites Touching Hopkins by Trooper S. C. Recke
November 25, 2014 1071

Muhlenberg Job Corps Recognizes Employee of the…

in Local (Muhlenberg) Top News by Karen Robinson
November 25, 2014 987

Construction Projects Suspended to Ease Holiday…

in General News For All Sites by Lisa Tolliver
November 25, 2014 882

Parking Committee 2015 Meeting Schedule

in Owensboro News by Beth Cecil
November 25, 2014 833

Bake Sale Held for Two Year-Old Burn Victim

in Local (Hopkins) Top News by Tammy Holloway, SurfKY News

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss