Van Totalled...Now What?
What happens when a car is totaled and you still owe money on it?
QUESTION: Paulie was in a car wreck and her van was totaled. They owe $4,800 on that van and it was worth $6,400 at most. They have four kids they need something with room. How should they use the money?
ANSWER: You need to find yourself a temporary vehicle for $2,000 that can haul your family around. Trust me, you can buy a van for that price. Take the $400 car payment you were sending off to the dealership each month and send it to yourself for the next 10 months. Sell the van you're currently driving, combine that with $4k you've saved and move up in van.
For a short time you will have to sacrifice and drive a beater, but it's only temporary and keeps you out of debt.