Davis Motor Sales banner ad

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 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
3/13 - 16

Most Read This Week

February 21, 2015 6727

Traffic Advisory for Western Kentucky

in Top News For All Sites by KTC
February 25, 2015 5777

Multi-Agency Investigation Nets Large-Scale Meth…

in Top News For All Sites by Trooper Stu Recke
February 25, 2015 5771

New Asian Restaurant Coming to Madisonville

in Local (Hopkins) Top News by Gary Gates, SurfKY News
February 24, 2015 5728

Two Charged in Central City Meth Bust

in Local (Muhlenberg) Top News by Trooper Stu Recke
February 22, 2015 5504

Easter Cuties Pageant in Memory of Shanice Bean

in Top News For All Sites Touching Hopkins by Tammy Holloway, SurfKY News
February 21, 2015 5225

Local Administrators Warn Employees to Watch for…

in Top News For All Sites by Tammy Holloway, SurfKY News

Most Read This Month

February 12, 2015

UPDATE: Name of Pennyrile Fatality Officially…

in Top News For All Sites Touching Hopkins by Doreen Dennis, SurfKY News
January 28, 2015

UPDATED: Several Involved in Two-Vehicle Accident

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News

Stories Trending Today

February 26, 2015 2651

Man Accused of Holding Woman against Will,…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 26, 2015 2603

Woman Charged for Allegedly Selling Hydrocodone

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 26, 2015 1773

Area College Students Touched by Cancer are…

in Top News For All Sites by Tammy Holloway, SurfKY News
February 26, 2015 1735

Hopkins County Health Department Food Scores Thru…

in Hopkins News by Barry Franklin
February 26, 2015 1693

Probation and Parole Violators - February 26,…

in Video by Crime Stoppers
February 26, 2015 1622

Madisonville Police Arrest Reports - Feb. 26, 2015

in Hopkins News by Madisonville Police Department
February 26, 2015 1407

Super Sunday Hall of Fame Alumni Honored College…

in Top News For All Sites by Joyce Riggs
February 26, 2015 1398

Walmart Evacuated after Customer Alerts 911 of…

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News
February 26, 2015 1053

Lions Man, Woman of Year Announced

in Local (Hopkins) Top News by Chris Findley
February 26, 2015 964

Gov. Beshear Announces NASCO Expansion in Bowling…

in General News For All Sites by Office of the Governor