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Ask Dave

The Car Owns You!

Josiah is with the military and doesn't make much, and his car loan is way too much for his income.

QUESTION: Josiah is 22 and in the military. He and his wife are trying to get out of debt and owe $13,000 on a car at 14.5%. He’s concerned with building his credit so they can refinance their car, so they got credit cards. They make $20,000 a year. Dave knows a quick fix that will really get some money flowing.

ANSWER: That car owns you! Your entire life is revolving around trying to keep a car you can’t afford. I’m not trying to smack you around; I’m giving you the truth. Now you’re getting credit cards so you can refinance the car. This is about 2 or 3 stupid things in a pile. Get yourself a beater car and give your wife a hug. This stresses your marriage. You’ll make plenty of money in your life, and when your income rises, get yourself a nicer car. Credit hasn’t been a blessing to you.