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Dave Says: The Car, or the Snowball?

by | Sep. 27, 2011

Finances

Dear Dave,

We’re working on our debt snowball and are scheduled to become debt-free except for our home a year from now. The problem is I’ve got a very old car that’s on its last legs. Would it be okay for us to put the debt snowball on hold for a month or two, and save up money for a newer, inexpensive used car that’s in better shape?

Jonathan

Dear Jonathan,

I’d hold on to it if your car can make it a while longer. But if it’s really on its last legs, and you’re about to fall through a rusted floorboard, you might consider your plan. You need to ask yourself if you’re just whining, or if it’s an actual situation.

It sounds like you guys are doing a fabulous job so far of paying down your debt. Even if you take a month or two off to save up for a better car, you’ll still have everything paid off except the house in about the same period of time. I’m not going to fuss about a couple of months’ difference in this kind of situation.

Doesn’t it feel great when you actually sit down and take a moment to think and formulate a plan instead of just wandering around lost? You guys have thought this thing out, and now you’re ready to move ahead with a sensible idea!

—Dave
 
* For more financial help please visit daveramsey.com.

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