Skipping Isn't Solving

Dear Dave, My husband and I have our emergency fund in place, and we're about to start the debt snowball. We're also doing a budget, but we still have trouble finding money to put toward our lowest debt. Plus, Christmas is getting closer. The company we financed our car with allows us to skip a payment once a year. What do you think about using that to help out? Sarah Dear Sarah, What do I think? I think you guys need to create some income. The issue here is that you're trying to treat the symptom instead of the problem. The symptom is that you guys are tight on money. The problem is that you have too much debt versus income. In this kind of situation you've got to either create extra income or get rid of some stuff. Just skipping a payment won't do that for you. All that does is postpone the inevitable. But getting rid of a big car payment - now THAT helps solve the problem! It may take a little while to get these things going - and you guys may have to go easy on Christmas this year - but once you do these things you'll find some wiggle room where your money is concerned! - Dave
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