Is It Smart to Get Out of My Lease Early?

Chris needs to exercise the early buyout option on his car lease and then add that to his debt snowball.

QUESTION: Chris has 3 debts; a car, student loan and car lease. He got the car lease because he wanted his wife to have a safe vehicle. Where does he pay that off in the debt snowball? Dave explains what an early buyout is.

ANSWER:  Call the car company and ask for the early buyout; that’s your effective payoff amount. It will then be third in your debt snowball. Also, never buy a car again based on security. Buy it because you can afford it. The only way you can do that long term is to get out of the payment business.