This Is the Worst Type of Debt

This Is the Worst Type of Debt

Products:

[brookemckenzie]

Paid $5, 000 for my used 2004 Honda CRV 8 years ago. Today, it’s at 310, 000 and going STRONG! Paid cash. No regrets. It’s been one heck of a blessing!!

[mackenzienelson]

I do get weird looks when I pull up in my 97 purple corolla... but it’s paid off.

[joanngennaro]

I live my car!! It belonged to my parents 2005 Grand Mariquis. My Daddy passed 2011 my Mama passed 2016. I will treasure the car always.

[buibuibuirockineverywhere]

I drive a 2009 Corolla, got it August 2008 when it had 6 miles on it, it’s 12 years old with 172, 000 miles on it and drives like new, a/c still freezing cold. No major problems. Can’t complain. Of course the paint is not as shiny and there’s some chips and scruffs here and there. I plan to keep it until the wheels fall off. I haven’t had a car payment for over a decade and don’t plan on having one again. Next car I will get will be paid full in cash. 👍🏽

[angelalebaron]

I’m obsessed with my minivan! It really is life changing. People that don’t take the leap will never understand the magic of the automatic door.

[derekandlindsey-millionair]

@Rachel Cruze, loved the point you made about the emotional side to debt. This can become even more complicated when the emotional side is attached to a relationship you want to last after the debt is paid off!

[romanticrelationshipsmoney]

We got tata nano in 2009 brand new with all cash and people laughed at it like it’s low end, it’s been great for us till now. Thanks to my mom she pulled us out of the car payments that the finance guy was trying to lure me and my dad into. My mom stood her truth that we can pay cash and it’s within our reach. So grateful.

[Justsayingthat]

I have always paid cash for a vehicle. Never over 5000. Worth it.

[rubyred]

I agree Rachel, saving money and not paying interest is more fun.

[ashleylaury]

I said goodbye to the auto loan for good, last month.

[cathyf]

My car is 17 years old (thank you Nissan). I haven't had a car payment in 13 years and I never want one again. My car has very low mileage for 17 years so I may keep it for the rest of my life but if I do buy another one I'm definitely paying cash.

[sumobowler]

i have two friends in their mid 50's who never learned to drive. i think they are on to something

[Lavos]

I worked for a car company for 6 years. My rule thumb is you can buy a new car on a loan but be able to pay it off fast. I also only spend about 25, 000 for a new car. I then take that car after driving it for 5 years turn around and sell it and use that cash to buy the same car but new. Now it is 28, 000 I get 8 for my old car and I have 4000 saved it. Borrow 16, 000 and pay that off fast. Again the reason I buy new cars is to avoid maintenance/operation costs and ease of mind that this car is not going to fall apart on me.

[tylerchambers]

Ever since I heard Christy Wright say how much Rachel loves her minivan, I always laugh every time she brings it up because you can see the excitement in her face haha

[gabrielasalazar]

I wish I knew this when I got my first car...My dad loves debt and it took me years to realize it. Fast forward years later, and I'm still paying off my 2017 VW that's been thru an accident that insurance refused to cover.. I'm definitely teaching my kid to follow this advice!

[OTRTrader]

I would have said it's the payday loan to be the worst kind of debt. The payday lender is really today's legalized mafia. I tell people to picture themselves in a "sit down" at a table if you borrow money from the payday mafia. If you don't pay it back, you might not know about "the next sit down", but the lender will for sure.

[crushitwithkris]

Thanks for breaking this down! Car loans can be a killer especially for a depreciable item

[annadavis]

I absolutely hate a car loan, so I am trying my best to keep my used car and used truck in great condition and save for another "used" one when the time comes, love beautiful and expensive cars but won't purchase one.

[Trustm]

Paid in full my FIRST car when I was 17 after saving for a year. It's a little, red, Toyota Echo that I got 14 years ago for $6500 and it's still going strong at 300, 000 miles on it. I've made bank off my car even though I know people driving by are judging me all the time.

[georgiawilksch]

Managed to buy a 2001 Ford laser and the mechanics I know all rave over how much they love it. About $2000 from a family acquaintance who was moving out of state. Had been owned by one older conscientious driver and was his to and from work car. It was a blessing because I had been saving for a new car when my old one (1993 diesel Toyota Carola) had a hit and was seriously on its last legs.
If you find anything of the same sort (apparently there was a whole lot of cars made basically the same around time that was amazing little troupers) look into it. If nothing else, a great first car.