Getting Current … And More
Sheila's car payments are gigantic, and she's not on the same page with her husband about getting control.
QUESTION: Sheila has about $230,000 in debt and makes $80,000 a year. They owe $21,000 on the truck and their total car payments are almost $1,000 a month. They are 2 months behind on the car payment and she and her husband are disagreeing about starting Dave’s program. Dave tells her about the most vital part of getting started here.
ANSWER: When you have almost $1,000 in auto loan payments, it’s tough. You’ll have to amputate some stuff, and you have to get current first. If you don’t get something done by 90 days, they’ll come get the truck and sell it for a lot less than it is worth. Then they’ll chase you for the difference, and you’ll have a repossession on your record. Bringing this truck current is absolutely vital.
You make enough money to bring it current, but you better not do anything else. Call them and ask if they will roll a payment in if you send them 2 payments. Then be ready to pay for next month as well. You can pull all that together. Once you’re current on the truck, stay that way until you get it sold.
You can either painfully sacrifice, or continue to make this money and continue to be broke. It’s going to be a painful year, but for the rest of your life after that you’ll be in control.