Ltngdrvr

Don't want to do it but I've decided to get on the Dave Ramsey get out of debt program. Have been offered $28K and will take it if something better doesn't come along before this Tuesday.

Haven't really done much as far as mods but the parts I have done are for sale here: https://themustangsource.com/f722/20...5/#post6835111

If anyone wants to offer me something better than $28K for my car then PM me before Tuesday 8/5/14 then you can have it. Car highlights in my sig.

cdynaco

Are you sure? Surprised to hear this since your purchase is so new.

Debt acceleration is nothing new. And locking in the depreciation this soon by selling your new car will take a looong time to gain back.

I'd re-check the math. Esp with today's record low interest rates - and perhaps still needing transportation - paying off a loan tied to an asset would not be my first choice. Of course you know your situation, but aren't there debts tied to non-asset purchases that can be paid down first? The best order is knocking off the lowest balance with the highest interest, then applying that payment to the next one up the line.

Remember, shows like Ramsey offer some good points but make money by slinging generic "advice". I can't tell you how many times I've heard shows saying someone would be better off filing banko when they only have a measly $15-$20k in debt. Outrageous! Hence I change the station when any of these "experts" come on the air. They make me ill.

Low interest debt is not all bad providing you manage it rather than it managing you. 3-4% money is dirt cheap - esp with "reported" inflation running in the 2's... (we all know it's higher). Why do you think so many corporations are locking in big loans right now? The rates will never be lower.

Getportfolio

Low interest debt is often good as it builds credit.
However, High interest debt should be targeted first like Charlie said. Credit card debt is the most serious debt IMO.

You need your wheels!

I don't think selling your Mustang is the solution. A while ago, I needed cash to pay off some debt... Like pay off my wife's ring and get a new computer for work. I had to use a card. However, I transferred theses debts to no interest cards and got another job for a few hours each weekday. I was in the mindset that what ever I earned form job #2 would go to credit cars debt. After a few long months of bustin @ss, the debt was paid off.

I have never believed in being debt free unless you have serious income. Things like student loans and mortgage will haunt a man till he's old and gray. Lol

If the car is hurting your finances because of payment then do what you have to. If you're just trying to free up debt for piece of mind, then start looking at other things to liquidate.

I've been there. All respect, my car would be last on my hit list.

Jazzman442

Im not sure how old you are but I am up in years. LOL I have done everything from all cash to credit. Dave is the Man. But One thing I know for sure is life is short. Depending on your life style you can have the car and live within your means. You do not have to give up on fun getting to a place you want. I am doing his plan just bought a new mustang. My interest rate is 1.45%. I did it over 6 years. it is a toy yes. But 28K is not allot for a car. if you are young this will not be an issues. I agree with others. Unless you are flat broke and living way above your mean. keep the car and enjoy it. Loosing on a car is not a good thing and will not get you to cash faster.

Good Luck

Ltngdrvr

Selling the car, that I hardly drive since I am away from home so much, frees up $480 a month car payment, frees up $1200 a year of car insurance, all of this money can then be paid against my other big debts to get them paid off more quickly.

Once all those debts are paid off and I'm debt free I will have plenty of money to go and pay CASH for another Mustang or whatever strikes my fancy at the time. Have you all thought about what you could do with all your money if you didn't have any debts? You could invest in your retirement and have tons of money to live on when you get old. I'm already getting old and have almost no money put aside for retirement, one of you all want to take care of me in my old age? NO? I didn't think so.

As to Dave Ramsey, you obviously haven't listened to his radio show much, he does know what he's talking about.

And he never suggests bankruptcy to anyone, always promotes paying your way out of debt.

But anyway, I wasn't looking for anyone to talk me out of this, just letting all who might be interested in the parts know that they are available in the thread posted above.

Jazzman442

Oh yea I have listen and have all his books. I'm just not going to live like he tells you. I pay cash for everything. The only thing I have a loan for is the car. I have to for a personal reason. I need an expense. But you are right if you do not use it then by all means pay off all your other debt. Wish more people would do what your doing. But one thing Dave does not tell you. Life is short. God Luck to you

Ltngdrvr

Dave does tell you life is short, that is why he advocates getting out of debt ASAP so you have that weight off your shoulders and can be free to live as you see fit, not how your debt forces you to live.

I see myself free of debt in about 2 to 2.5 years, house and all, then I will be free to do as I please with all my money that I work so hard for.

wanted33

You can do it brother. I does take time. I'm one of the lucky ones as I only owe the necessities, lights, water, insurance, etc. It's a dayum good feeling. Good luck, and don't be a stranger.

Ltngdrvr

Thanks

Yeah, those kind of payments are just monthly bills, can't get away from those very much.

I just think about the fact of how great it will be when my $35K to $45K a year minus those small bills, will be all mine and not owed to anyone. That way, 7 or 8 months saved up, pays cash for a good used 2011+ 5.0 or whatever other car tugs at me.

smrbrz

Good plan Ltngdrvr. I have been fortunate to teach/facilitate one of Dave Ramsey's Financial Peace University courses. Perhaps it is not for everyone and that's fine. However, if you can stick with it and be debt free in 2-2.5 years, do it!!! There is alot to be said for being debt free. It's a nice feeling.

Jazzman442

I truly congratulate you. Not many people do those kind of things at all. Hell not to many people think past the end of the week. Keep it up you'll love life.

When you sell hope you stay on the forum.

TheReaper

I listen to Ramsey on the radio and have read 2 of his books. I like my toys too much to take his advice.

Ltngdrvr

Yeah, been listening for a couple of years but some recent events in my life have finally pushed me past holding my toys above all else.

It's time to get out from under all my payments, then later I can pay cash for my toys!

kylerohde

Kudos to you for recognizing the problem and making the hard choice. Being able to live a good retirement and have some fun later is far better than having a fun car now.

TheReaper

Do the Baby Steps and all should turn out well.

70monte

Being in debt is no fun and while the toys may be nice, having a bunch of debt hanging over your head can take the fun out of any toys unless you are someone who doesn't care.


I'm fortunate that my house is paid off and my Mustang is my only real debt unless you count child support which will be totally over in about five years.


I have no credit card debt and refuse to charge anything I can't pay off in a month.


You are smart to want to get out of debt and if selling the car helps you do it, than more power to you. Good luck.


Wayne

wanted33

Wayne, my dear old Dad told me when I was young that "Credit Cards" were made by the Devil's hand, and to stay away from them. It was difficult, but thanks to him I made it to retirement without any credit card debt.

FromZto5

Wow... Sad to see this happen. Best of luck.

Weird tho that you just had your V6, then traded that for the 5.0 not too long ago, and now this.

I understand the need to do what you have to do, and I'm not trying to talk you out of it, but you and I know that trading so soon means you're losing a lot of money. I'm sure you lost some from the V6 and now you will with the 5.0.

My question is more so, why? Why didn't you foresee this happening "before" you decided to buy either the V6 or the 5.0? If it was an unforeseen circumstance (job loss, new financial burden, etc) then that's understandable. I just feel like sometimes, it's the lack of planning that gets us into those situations in the first place.

Again, I wish you the best. Good luck.

cdynaco

....

Ltngdrvr

Mustang is as good as gone, got my minimum price, but had nobody to take me home after leaving the car so it will probably be Tuesday or Wednesday before I deliver it.

As to cdynaco, as Dave always talks about, the factor you leave out of your figuring is RISK. It's not the interest rate that makes the difference, it's the risk of something happening that causes you to have issues with carrying debt. If what you have is paid for then you don't have much risk of losing it.

As to why I am doing this now and not years ago, only answer I am willing to give is that I hadn't seen the light. There are other factors in my life at play here but I am not going to go into that stuff.

If you aren't afraid you might be swayed, give Dave Ramsey a listen. You have to be willing to listen for more than just a few minutes to really understand all that he talks about.

Anyway, as I said, not looking for anyone to talk me out of this, I'm doing it and fully believe I will be the better for it.