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Ask Dave

Upside Down With Cars?

Melissa and her husband need to sell the cars and get a small personal loan, not another home equity loan, to free up the car loans.

QUESTION: Melissa and her husband have $135,000 in consumer debt.  They owe $60,000 on their cars.  They also have several home equity loans.  What can they do to attack the debt?  What if they can’t get another home equity loan to pay for the amount that they’re upside down with the cars?

ANSWER: Sell the cars and that will get eliminate $60,000 of your debt.  You don’t have to get a home equity line to free up the car loans – just a small personal loan.

Being out of debt has to mean more to you than owning a car.