Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster

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...

Owensboro Man Hit by Vehicle

OWENSBORO, Ky. (9/15/14) — An Owensboro man was transported to the hospital for treatment of non-life threatening… Read More

Parking Committee Meeting Location Change

OWENSBORO, Ky. (9/15/14) — The Parking Committee meeting scheduled for 1:30 p.m. Thursday, Sept. 18, 2014. will be held… Read More

Most Read This Week (Site-Wide)

September 12, 2014 17151

Woman's Body Found in Theater Day After…

in Top Stories by Rita Dukes Smith, SurfKY News Director
September 13, 2014 3499

MPD Responds to a Disturbance at Baptist…

in Top Stories by Madisonville Police Department
September 11, 2014 3189

Subject of Officer-Involved Shooting…

in Top Stories by Rita Dukes Smith, SurfKY News Director
September 11, 2014 2542

Suspect Arrested for Possession of…

in Top Stories by Madisonville Police Department
September 11, 2014 2430

Two Accidents Occur on U.S. 62 Within…

in Top Stories by Trooper Stu Recke

Most Read Stories from Hopkins County

September 13, 2014 3499

MPD Responds to a Disturbance at Baptist…

in Top Stories by Madisonville Police Department
September 11, 2014 2542

Suspect Arrested for Possession of…

in Top Stories by Madisonville Police Department
September 11, 2014 1997

Three Injured in Early Morning Two-Car…

in Top Stories by Officer Falon Graham
September 12, 2014 1868

Madisonville Man Arrested for Disturbing…

in Top Stories by Madisonville Police Department
September 12, 2014 1550

Earlington Woman Jailed for Trying to…

in Top Stories by MPD Officer Matt Sanderson

Most Read Stories from Owensboro

September 11, 2014 1478

Owensboro Police Department Activity…

in News by Dennis Beard, SurfKY News
September 11, 2014 1439

Owensboro Parks Plans Fall Day Camp

in News by Brittni Bunn
September 11, 2014 1221

Special Events Committee Meeting Date,…

in News by Beth Cecil
September 11, 2014 1218

Daviess County Public Library Plans Events

in News by Leslie McCarty
September 12, 2014 1166

Ursuline Presentation 'Spirituality of…

in News by Jennifer Kaminski

Most Read Stories from Muhlenberg County

September 11, 2014 3189

Subject of Officer-Involved Shooting…

in Top Stories by Rita Dukes Smith, SurfKY News Director
September 11, 2014 2430

Two Accidents Occur on U.S. 62 Within…

in Top Stories by Trooper Stu Recke
September 15, 2014 2244

Man Accused of Stalking Woman During Her…

in Top Stories by GPD PIO Wes Miller
September 11, 2014 1928

Job Corps Students Volunteer with…

in Top Stories by Karen Robinson
September 12, 2014 1844

Paradise Residents Plan First Reunion…

in Top Stories by Paul McRee, SurfKY News

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