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

Dave Says – March 10, 2013

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.

© 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.

In Other News...

Business Spotlight - Gypsy Lady Offers Vintage Décor, Jewelry, Painting Classes

GREENVILLE, Ky. (8/22/14) — Gypsy Lady is a vintage home decor business located at 4712 U.S. 62 West in Greenville.… Read More

Two Busted for Meth in Central City

CENTRAL CITY, Ky. (8/22/14) — Two Central City residents are in jail after Kentucky State Police obtained a search… Read More

Most Read This Week (Site-Wide)

August 21, 2014 6516

Muhlenberg Task Force on Trail of Home…

in News by Wes Miller
August 20, 2014 4143

Park Avenue Trespass Call Leads to…

in Top Stories by Madisonville Police Department
August 19, 2014 3927

Free Arthritis Exercise Program will be…

in News by Woody Maglinger
August 19, 2014 3840

'Another One Bites the 'Duct'

in Top Stories by Paul McRee, SurfKY News
August 19, 2014 3837

Municipal Art Collection on Exhibit at…

in News by Mary Bryan Hood

Most Read Stories from Hopkins County

August 20, 2014 4143

Park Avenue Trespass Call Leads to…

in Top Stories by Madisonville Police Department
August 21, 2014 2168

Pedestrian Struck on East Arch Street,…

in Top Stories by Officer Ryan Clark
August 20, 2014 2147

Dawson Springs Woman Arrested for Driving…

in Top Stories by SurfKY News
August 18, 2014 1521

Madisonville Firefighters Recognized for…

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 20, 2014 1303

Theft at Pennyrile Park Apartments Leads…

in Top Stories by Madisonville Police Department

Most Read Stories from Owensboro

August 19, 2014 3927

Free Arthritis Exercise Program will be…

in News by Woody Maglinger
August 19, 2014 3837

Municipal Art Collection on Exhibit at…

in News by Mary Bryan Hood
August 19, 2014 2130

Owensboro Police Department to Host…

in News by Michael Hathaway
August 19, 2014 1533

‘Drive Sober or Get Pulled Over’ Campaign…

in News by Officer Michael Hathaway
August 20, 2014 1487

OCTC Faculty Earns National Honor

in News by Bernie Hale

Most Read Stories from Muhlenberg County

August 19, 2014 3840

'Another One Bites the 'Duct'

in Top Stories by Paul McRee, SurfKY News
August 19, 2014 3362

Drakesboro Woman Injured When Tree Falls…

in Top Stories by Martha Clark
August 21, 2014 2456

UPDATE: Injuries Sustained in Two-Vehicle…

in Top Stories by Charles W. Riley II, SurfKY News
August 20, 2014 2257

Deterioration of Caney Station Cemetery…

in Top Stories by Charles W. Riley II, SurfKY News
August 19, 2014 2119

Central City Lions Club Charity Auction…

in Top Stories by Dean Rowe

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


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

social 03social 04social 22social 21social 06