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Ask Dave

Skipping Isn't Solving

Sarah's already thinking ahead to her Christmas budget, and wonders if doing the skip-a-payment thing will help it to happen.

QUESTION: Sarah and her husband are starting Baby Step 2. They are having trouble finding money to put toward their lowest debt after doing their budget, and Christmas isn’t too far away. Does Dave thinks it’s all right to do a skip-a-payment on their car notes to save some money?

ANSWER: You guys need to take some extra jobs. You’re going to be limited on Christmas. My point here is that you can’t keep treating the symptom. You are tight on money and have too much debt for your income. You need to create some income and/or amputate some stuff to get ahead in your life. Just skipping a payment doesn’t do that. Skipping a payment doesn’t get rid of your problem, but getting rid of a $400 car payment goes.

Don’t delay your payments, unless I’m doing that just to eat. Work an extra job between now and Christmas or sell something to get $300 for Christmas.