Selling And Starting

Amanda is thinking about selling cars to fix her debt situation. Is that the answer?

QUESTION: Amanda and her husband have 2 kids and just starting to get out of debt. Is it worth it to go down to one car and drive him to work? They have 2 car payments and 3 cars. They owe $14,000 on the cars and have $12,000 in credit card debt. Her husband makes $55,000 a year. What should they do?

ANSWER: Ditch the expensive one and keep the cheap one. You’d have $18,000 in debt making $55,000 a year. People do that all the time. You’re going to make it … you’ll be fine.