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Ask Dave

Pay it off!

Derricka got some bad advice from a co-worker, but Dave steps in and sets things straight.

QUESTION: Derricka has the money to pay off her car loan, but a friend told her she should keep making payments because of the low interest rate. Dave says this is dumb, and he advises Derricka to pay off the car immediately.

ANSWER: Derricka, your co-worker is broke. Taking financial advice from broke people is like taking dieting advice from fat people. In other words, it’s dumb. Pay off your car, and never borrow money to buy a car again for the rest of your life.

You’ve got to get out of the land of car payments if you want to win with money. The idea that you’re stuck with car payments — that you’re always going to have one — is the mantra of those who’ve given up hope. Don’t be like all those folks who complain about crap like stagnant wages and won’t get up off their stagnant butts to change their lives.

Miss Derricka, pay off your car today. And don’t take any more financial advice from broke people.