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Do i sell the truck to get out of debt

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crews58
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Do i sell the truck to get out of debt  Reply with quote  

Currently i own about $5800 on a credit card with lower. interest rate is 5.9%
I'm about to start attacking it to get it down. but i have one tragedy that would chop the debt in half was wondering what others thought.
i own 4 cars.
A 2013 Sante Fe. i have payments on, also is my wife primary DD and family car
1999 trans am i own
2009 civic i own
and a 1994 chevy truck i own.
i could prob sell the truck between 3000-3500.
this would cut my debt in half or better but now I'm without a truck. i just bought it 3 months ago. whats the advice for what to do. I really want to get out of debt. I'm knocking out my last bank credit card now as we speak. then this card. then after my Student loan debt which is 8k then I'm debt free.Thanks for any input.
Post Thu May 28, 2015 2:38 am
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littleroc02us
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Debt free is wonderful, I wouldn't do it any other way. In my late 20's and early thirties I was making pretty good money and I started maxing out my CC's and leased a truck. When I got laid off in 2001 I just about lost it all, but I got on a plan where I paid off my debts from smallest to largest. I paid off around 50k in less then 5 years, by taking 3 jobs and never sleeping. The biggest headache was my leased truck. What a stupid idea leasing is and was. You lose your job or you cannot make the payment, it's nearly impossible to get out of the deal. At least you can sell your truck to get money to pay off debt. I had to work my butt off to pay off all of my debt. See, when you don't have payments, you have money to invest and save, not the other way around.
So I'm sure you can see what my advice would be. Sell the truck and get extra jobs and pay that debt off and don't go back in debt. The only debt we have now is on our primary residence and a rental duplex. Both of a ton of equity though and our mortgage payments only represent 25% of our income.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Thu May 28, 2015 1:50 pm
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oldguy
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Go back to the beginning - WHY do you want to be debt-free? Some folks "hate" debt cuz it feels immoral to them, some hate it cuz they 'were raised that way', some are genuinely afraid that they cannot manage it and something will get repossessed, some read the DR books, and so on. IMO, you should answer this for yourself.

Probably about $25,000 in debt?

I stay in debt on purpose and use that capital to build wealth - eg, I borrow an extra $25,000 on a rental house and invest it at 11%/yr for 30 yrs (about $550,000) - I don't prepay those loans on my houses, I keep them for the full term. When I buy a new car, I leave my money in my 11%/yr fund and I borrow the entire car cost (tax/lic, everything) for the full 60 months.

Not many people fully understand car costs - $4000/yr depreciation (on near new cars) $4000/yr for gas, $1000/yr for tags/ins, $250/yr for wear items (tires/brakes/batt), $250/yr for oil & washes. So $9500 'net', you need to earn about $11,000 to have net $9500. They look only at the 'monthly' rather than the cost.

I would keep the truck and the Santa Fe, sell the Honda ($10k?) & the trans am. Get rid of the revolving consumer loans - keep the low interest amortized loans such as the car and the SL. (What are those rates?)
Post Thu May 28, 2015 5:45 pm
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Kimberlie Broe
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I'm not into selling anything to pay for debts. But to get through it, you have a 3 more anyway, you might as well give up your truck.
Post Sun May 31, 2015 1:40 am
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crews58
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Yeah I def think the truck is going, and is the answer. Last night I was out with my wife and infant, and I was hurting to spend 100$ bc I have had to budget so hard trying to pay off the debt. And No I was not spending money off of impulse there was things my 4 mo. son needed. The truck sell will knock out almost a whole credit card. which after July I will only have one debt left which is my Student loan of 8k. come on tax season. Thanks for everyones opinion and avdvice.
Post Sun May 31, 2015 11:30 am
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ashishkochaar
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Re:  Reply with quote  

There is no need to sell your Truck. You can even generate more money through your truck by working more time with that. This is the one situation. If you say that condition is becoming more worse then sell your truck and then save some amount out of that and then you can easily start a new thing that will help you to come back. May be your whole business is based on this Truck.
So take any decision with the open mind and do hard.

Thanks


Ashish Kochaar- My Blog
Post Tue Sep 05, 2017 10:02 am
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