Comments on: What to do when you’re upside-down? http://moneytalkwithgabe.wordpress.com/2007/10/06/what-to-do-when-youre-upside-down/ Your personal finance coach. Sat, 12 Sep 2009 21:13:27 +0000 http://wordpress.com/ hourly 1 By: Luis http://moneytalkwithgabe.wordpress.com/2007/10/06/what-to-do-when-youre-upside-down/#comment-358 Luis Sat, 12 Sep 2009 21:13:27 +0000 http://moneytalkwithgabe.wordpress.com/2007/10/06/what-to-do-when-youre-upside-down/#comment-358 So then, would it be a good or bad idea to trade my current car that I own now for a cheaper one? I own a 2003 Toyota Corrola (very reliabe, I did several months of research before buying). It has 97k miles on it. Bought on credit 5.99% interest. I know I may loose some value when I trade in, but maybe I can trade it and have no car debt left. That would delete $217 dollar monthly payments off for several years. With that money i would apply it to the debt I do have. I have written down all my debt, the interest, and the amount of interest these debts should acrue if I make the min. payments. My school loans are the highest, and the most threatening in regards to my feeling "I can these knocked out" I appreciate the feedback. This stuff really helps. The articles about others help too. I hope my experience helps others. So then, would it be a good or bad idea to trade my current car that I own now for a cheaper one?

I own a 2003 Toyota Corrola (very reliabe, I did several months of research before buying). It has 97k miles on it. Bought on credit 5.99% interest. I know I may loose some value when I trade in, but maybe I can trade it and have no car debt left. That would delete $217 dollar monthly payments off for several years. With that money i would apply it to the debt I do have.

I have written down all my debt, the interest, and the amount of interest these debts should acrue if I make the min. payments. My school loans are the highest, and the most threatening in regards to my feeling “I can these knocked out”

I appreciate the feedback.

This stuff really helps. The articles about others help too. I hope my experience helps others.

]]> By: Gabe Graumann http://moneytalkwithgabe.wordpress.com/2007/10/06/what-to-do-when-youre-upside-down/#comment-357 Gabe Graumann Fri, 11 Sep 2009 21:15:19 +0000 http://moneytalkwithgabe.wordpress.com/2007/10/06/what-to-do-when-youre-upside-down/#comment-357 Luis, Thanks for your comments and question. Sure, there is difference between newer cars and those that are 15 years old. So there are two main issues to keep in mind. First, I'm looking for a quality used car that has strong "bones" and has a lot of life left in it. Finding a solid 10 year old car is doable with some searching, and if you're not a motor-head, taking a friend that is will go a long way to helping make a good selection. Secondly, this isn't going to be your car forever. You are temporarily, but intentionally, trading in that newer and costlier ride to improve your overall financial situation. All the money you save on a lower or no payment will help get you out of debt quicker, as well as meet your other financial goals. The next time you buy a vehicle, start saving up the amount you would've been paying monthly, and within a year or so you'll be able to buy a $4,000, $5,000, or $6,000 dollar vehicle with cash! Luis,

Thanks for your comments and question. Sure, there is difference between newer cars and those that are 15 years old. So there are two main issues to keep in mind. First, I’m looking for a quality used car that has strong “bones” and has a lot of life left in it. Finding a solid 10 year old car is doable with some searching, and if you’re not a motor-head, taking a friend that is will go a long way to helping make a good selection. Secondly, this isn’t going to be your car forever. You are temporarily, but intentionally, trading in that newer and costlier ride to improve your overall financial situation. All the money you save on a lower or no payment will help get you out of debt quicker, as well as meet your other financial goals. The next time you buy a vehicle, start saving up the amount you would’ve been paying monthly, and within a year or so you’ll be able to buy a $4,000, $5,000, or $6,000 dollar vehicle with cash!

]]> By: Luis http://moneytalkwithgabe.wordpress.com/2007/10/06/what-to-do-when-youre-upside-down/#comment-356 Luis Fri, 11 Sep 2009 17:16:45 +0000 http://moneytalkwithgabe.wordpress.com/2007/10/06/what-to-do-when-youre-upside-down/#comment-356 I really enjoyed reading this. It sounds like this family had to make a hard decision--one that right now is hard. Like not eating that piece of candy, going to the gym, waiting a few days, the eating that candy. Since I work out and understands how to loose weight, gain muscle, and stay in shape that is what I do. It's science. In reading this I wonder about my own car situation. I own a car that cost 10k (on credit card w/5.9% interest 72 months). I wonder would be a good idea for me to get a cheaper car? This seems like a hard decision to make because sure I might loose money, but I am more concerned about the quality of cars I would get if I trade in. I don't mind loosing some money now to make more later, I just wonder if I trade in for a cheaper car, I may end up having to pay for repairs on another cheaper car. These articles are very inspiring and give me insight into what it takes. Being that I am younger it really helps to have these types of inspiring stories now so I can begin to steer myself in the right direction now. I really enjoyed reading this. It sounds like this family had to make a hard decision–one that right now is hard. Like not eating that piece of candy, going to the gym, waiting a few days, the eating that candy. Since I work out and understands how to loose weight, gain muscle, and stay in shape that is what I do. It’s science. In reading this I wonder about my own car situation. I own a car that cost 10k (on credit card w/5.9% interest 72 months). I wonder would be a good idea for me to get a cheaper car? This seems like a hard decision to make because sure I might loose money, but I am more concerned about the quality of cars I would get if I trade in. I don’t mind loosing some money now to make more later, I just wonder if I trade in for a cheaper car, I may end up having to pay for repairs on another cheaper car.

These articles are very inspiring and give me insight into what it takes. Being that I am younger it really helps to have these types of inspiring stories now so I can begin to steer myself in the right direction now.

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