Biggest Car Payment
Dave goes bananas when he hears that William only makes $41,000 a year but owes $37,000 on a car and wants to buy a house!
QUESTION: William just relocated to Indiana from Florida. He wants to get a timetable on when to buy a home. He owes $37,000 on a car, his car payments are $886 a month and makes $41,000 a year, and has some miscellaneous debt. Dave almost blows his top before describing to him how to lay a solid foundation first.
ANSWER: That takes my breath away! I can’t believe that you make that much and have that kind of a car loan … they own you! Sell the car and sign a note promising to repay the $16,000, and get a $2,000 beater car. Working an extra job, it will take you about two years to get this mess cleaned up. This car has to go away, by Christmas. Be done with this thing!