Car Payments Are A No-No

Melissa has two small kids, and she and her husband want to take a camping trip next year. They have two paid-for vehicles. However, they would like to upgrade one of their vehicles with a car payment to make life easier.

QUESTION: Melissa has two small kids, and she and her husband want to take a camping trip next year. They have two paid-for vehicles. However, they would like to upgrade one of their vehicles with a car payment to make life easier.

ANSWER: You want to go back into car debt and you call that less stressful? You kind of missed the whole point of this thing, didn’t you? The point is to get out of debt because it’s less stressful. If you don’t have any payments, you have a life that is stress-free. You’re living like no one else so later you can live like no one else.

You’re willing to trade the temporary pleasure of a little nicer car and a camping trip for your family’s future. A vacation of any kind is a luxury. I went four years without a vacation after I went broke trying to get my life back. I’m not suggesting you want to do that for the rest of your life, but I am suggesting there are other ways to do this. I’m more concerned about your mindset than I am whether you go on a cheap camping trip or not.

Rent a car for the weekend instead of taking out a $250 car payment. You’re going to trade $500 for going back into debt. If you want to spend $500 in the middle of the Baby Steps for a cheap trip, I don’t have an issue with that. But I do have a huge issue with your mindset. You really haven’t grasped this whole thing yet. You need to do some soul-searching about whether this is worth it or not.