Comments on: Two Common Debt Situations and How to Overcome Them http://christianpf.com/two-common-debt-situations-and-how-to-overcome-them/ Christian Personal Finance - Financial help blog, debt help and other financial resources Tue, 14 Feb 2012 21:22:01 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Kris @ Debt Tips http://christianpf.com/two-common-debt-situations-and-how-to-overcome-them/comment-page-1/#comment-21696 Kris @ Debt Tips Sun, 21 Feb 2010 23:57:11 +0000 http://christianpf.com/?p=5308#comment-21696 Wow, two tough scenarios. Years ago I went with the $99 lease for a Honda Civic because I got tired of paying repair bills. 13 years and 225,000 miles later, I'm getting ready to pass it down to my 16 year old. Wow, two tough scenarios. Years ago I went with the $99 lease for a Honda Civic because I got tired of paying repair bills. 13 years and 225,000 miles later, I’m getting ready to pass it down to my 16 year old.

]]> By: Joe http://christianpf.com/two-common-debt-situations-and-how-to-overcome-them/comment-page-1/#comment-21463 Joe Tue, 16 Feb 2010 19:13:47 +0000 http://christianpf.com/?p=5308#comment-21463 Car debt is a big problem for the reasons you describe, but for another reason too: the "I deserve it" mentality. Too many people not only get sucked into thinking they can afford it with low monthly payments out to 5 years or more, but they talk them selves into believing that they deserve or need the new car as opposed to a used car. I've seen people talk themselves (or be talked into) buying a brand new $24,000 car because they were convinced that it must be much better than the same model, 3 years older that was only $12,000. And Joseph raises a similar issue used by many: reliability. Often times people think it's more economical to buy the new $24,000 car because they can forget about maintenance costs, but many of those costs are only "what-ifs". You may never need to spend $2500 on a new transmission, but if you buy that new auto you will definitely be spending much more when it's all said and done, not to mention depreciation! ;-) Car debt is a big problem for the reasons you describe, but for another reason too: the “I deserve it” mentality.

Too many people not only get sucked into thinking they can afford it with low monthly payments out to 5 years or more, but they talk them selves into believing that they deserve or need the new car as opposed to a used car. I’ve seen people talk themselves (or be talked into) buying a brand new $24,000 car because they were convinced that it must be much better than the same model, 3 years older that was only $12,000.

And Joseph raises a similar issue used by many: reliability. Often times people think it’s more economical to buy the new $24,000 car because they can forget about maintenance costs, but many of those costs are only “what-ifs”.

You may never need to spend $2500 on a new transmission, but if you buy that new auto you will definitely be spending much more when it’s all said and done, not to mention depreciation! ;-)

]]> By: Randy http://christianpf.com/two-common-debt-situations-and-how-to-overcome-them/comment-page-1/#comment-21452 Randy Tue, 16 Feb 2010 13:01:43 +0000 http://christianpf.com/?p=5308#comment-21452 Another aspect of car loans is that a lot of buyers will "roll over" the debt from their previous car into a loan on the new one. By getting a five year loan and trading every four years or whatever method. I know someone who bought a used car and financed it for four years. The car died before the four years were out, so they kept paying for a dead car. Minimal rule of thumb: Never take out a loan for longer than the car will last. Another aspect of car loans is that a lot of buyers will “roll over” the debt from their previous car into a loan on the new one. By getting a five year loan and trading every four years or whatever method.

I know someone who bought a used car and financed it for four years. The car died before the four years were out, so they kept paying for a dead car.

Minimal rule of thumb: Never take out a loan for longer than the car will last.

]]> By: Jason @ One Money Design http://christianpf.com/two-common-debt-situations-and-how-to-overcome-them/comment-page-1/#comment-21350 Jason @ One Money Design Sun, 14 Feb 2010 05:21:41 +0000 http://christianpf.com/?p=5308#comment-21350 Infinion, good point about home mortgages. It's wise to to make sure you have enough saved for a good down payment and to avoid the pressure of jumping into a mortgage too soon. Deacon Bradley, thank you! I think God truly wants us to seek him for help in these situations. Unfortunately, we tend to work on our timing which can lead us away from following His principles. joseph, 280K miles? You're my hero! You give me hope for my Honda Civic in which I plan to drive into the ground!!! NikkiWW, Wow, you really touched on a good point. Pride! I've wrestled with this plenty of times. It's tough to sometimes let go of ourseleves and be open to God's will and Him working in our lives. Obviously, God works in all areas, but I sure do love that He works in the area of money when we are open to following His plan. Infinion, good point about home mortgages. It’s wise to to make sure you have enough saved for a good down payment and to avoid the pressure of jumping into a mortgage too soon.

Deacon Bradley, thank you! I think God truly wants us to seek him for help in these situations. Unfortunately, we tend to work on our timing which can lead us away from following His principles.

joseph, 280K miles? You’re my hero! You give me hope for my Honda Civic in which I plan to drive into the ground!!!

NikkiWW, Wow, you really touched on a good point. Pride! I’ve wrestled with this plenty of times. It’s tough to sometimes let go of ourseleves and be open to God’s will and Him working in our lives. Obviously, God works in all areas, but I sure do love that He works in the area of money when we are open to following His plan.

]]> By: NikkiWW http://christianpf.com/two-common-debt-situations-and-how-to-overcome-them/comment-page-1/#comment-21325 NikkiWW Sat, 13 Feb 2010 18:42:46 +0000 http://christianpf.com/?p=5308#comment-21325 On the car and the small business opportunity - can't stress enough the point that you must be in line with God's will and prayerfully open to His guidance. For us, there was a pride issue that was not acknowledged at first. There is something difficult about driving a "semi-beater" 10 year old car (or more) when everyone - even at our church - is driving something "better," unless we focus on God. Taking unnecessary risks or the wrong partners to try to become a "successful small business owner" (as defined by the world) is not in line with His teaching either... all mistakes we've made when looking around instead of to Him. ♠ On the car and the small business opportunity – can’t stress enough the point that you must be in line with God’s will and prayerfully open to His guidance. For us, there was a pride issue that was not acknowledged at first. There is something difficult about driving a “semi-beater” 10 year old car (or more) when everyone – even at our church – is driving something “better,” unless we focus on God. Taking unnecessary risks or the wrong partners to try to become a “successful small business owner” (as defined by the world) is not in line with His teaching either… all mistakes we’ve made when looking around instead of to Him. ♠

]]> By: joseph http://christianpf.com/two-common-debt-situations-and-how-to-overcome-them/comment-page-1/#comment-21320 joseph Sat, 13 Feb 2010 17:10:13 +0000 http://christianpf.com/?p=5308#comment-21320 I like the Article Jason! A reliable car is a must have for most people, and if you drive an old car at some time it will start having issues. Sometimes the cost of maitaining a clunker (time ,money, and stress) may not be woth. If therefore you drive a 'clunker' like me saving up to buy a better car is the way to go and entirely avoid debt. I have a 1993 Honda accord that have served me well for seven years... it has almost exceeded it's useful life with over 280K miles; it started giving signs of 'quitting' last year. I replaced the transmission but we also started saving to replace it this summer. We will pay cash for the next car. I like the Article Jason!
A reliable car is a must have for most people, and if you drive an old car at some time it will start having issues. Sometimes the cost of maitaining a clunker (time ,money, and stress) may not be woth. If therefore you drive a ‘clunker’ like me saving up to buy a better car is the way to go and entirely avoid debt.
I have a 1993 Honda accord that have served me well for seven years… it has almost exceeded it’s useful life with over 280K miles; it started giving signs of ‘quitting’ last year. I replaced the transmission but we also started saving to replace it this summer. We will pay cash for the next car.

]]> By: Christina http://christianpf.com/two-common-debt-situations-and-how-to-overcome-them/comment-page-1/#comment-21307 Christina Sat, 13 Feb 2010 06:44:05 +0000 http://christianpf.com/?p=5308#comment-21307 I usually grabbed an opportunity for low interest cash advance payable in certain number of months to pay some of my debts only to realize that the more I can't get out of debt. That's one thing I learn to avoid. I usually grabbed an opportunity for low interest cash advance payable in certain number of months to pay some of my debts only to realize that the more I can’t get out of debt. That’s one thing I learn to avoid.

]]> By: Deacon Bradley http://christianpf.com/two-common-debt-situations-and-how-to-overcome-them/comment-page-1/#comment-21293 Deacon Bradley Fri, 12 Feb 2010 21:44:42 +0000 http://christianpf.com/?p=5308#comment-21293 @Jason: Awesome article! I love your reference to Philippians to support not borrowing for a necessity. There are plenty of great reasons not to go into debt to buy a car, but it's refreshing to have one from God's word! Thanks for the insight! @Jason: Awesome article! I love your reference to Philippians to support not borrowing for a necessity. There are plenty of great reasons not to go into debt to buy a car, but it’s refreshing to have one from God’s word! Thanks for the insight!

]]> By: Infinion http://christianpf.com/two-common-debt-situations-and-how-to-overcome-them/comment-page-1/#comment-21287 Infinion Fri, 12 Feb 2010 18:46:31 +0000 http://christianpf.com/?p=5308#comment-21287 Yup, we pay ourselves a car payment ( quite large actually) each month. We also take repairs and such from that money. Every X years, we have plenty there to buy something new (new to us...). However, we run cars until they completely fall apart. Another thing to investigate is the home and mortgage issue. I've avoided going into debt in one simple and HUGE way. I've not bought a home. I don't need one really, and my aversion to massive amounts of debt is greater than any dislike I might have about renting. So often today the common answer is that it's just impossible to live in a home without borrowing money for 30 years. This just isn't true, and has really only been the common thinking for the relatively recent years. 50 years ago, people didn't borrow money for 30 years on a home. We're saving money for a home in cash, just like we buy cars. I'm not sure how that will all turn out, the time horizon is pretty far out there. We'll see. Yup, we pay ourselves a car payment ( quite large actually) each month. We also take repairs and such from that money. Every X years, we have plenty there to buy something new (new to us…). However, we run cars until they completely fall apart.

Another thing to investigate is the home and mortgage issue. I’ve avoided going into debt in one simple and HUGE way. I’ve not bought a home. I don’t need one really, and my aversion to massive amounts of debt is greater than any dislike I might have about renting. So often today the common answer is that it’s just impossible to live in a home without borrowing money for 30 years. This just isn’t true, and has really only been the common thinking for the relatively recent years. 50 years ago, people didn’t borrow money for 30 years on a home. We’re saving money for a home in cash, just like we buy cars. I’m not sure how that will all turn out, the time horizon is pretty far out there. We’ll see.

]]> By: Jason @ One Money Design http://christianpf.com/two-common-debt-situations-and-how-to-overcome-them/comment-page-1/#comment-21285 Jason @ One Money Design Fri, 12 Feb 2010 17:38:52 +0000 http://christianpf.com/?p=5308#comment-21285 Nikunj, yes, exactly. I'm really am hoping to convey the importance of not running out and immediately jumping into car debt to solve a car problem. You provide great ideas here in fixing up an old car and saving towards a car by paying yourself a payment. The idea, as I mentioned, is to avoid the quick decision. There are numerous options that are available to avoid the debt. I learned the hard way. :) Nikunj, yes, exactly. I’m really am hoping to convey the importance of not running out and immediately jumping into car debt to solve a car problem. You provide great ideas here in fixing up an old car and saving towards a car by paying yourself a payment. The idea, as I mentioned, is to avoid the quick decision. There are numerous options that are available to avoid the debt. I learned the hard way. :)

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