Debt can be disastrous. For many Americans, it leads to a spiral that puts you in a progressively deeper hole. It is a hole that keeps getting bigger. This is why it is so important to pay off debt as soon as possible. Plus, you may experience other expenses such as unforeseen auto repair services and the expenses that come with that. If you can, you want to avoid debt in the first place.
Otherwise, those interest payments will keep piling up. However, when do you know when you need to start making sacrifices to pay off your debt? In this video, you will find out.
In this video, the callers says that he is $20,000 in debt because of a car loan. This is the worst type of loan because cars go down in value. Fortunately, this young man has no other debt and an $18,000 shoe collection that he could sell if he really wanted to. Plus, his current car is worth about $25,000. Ideally, you don’t want to have to sell your collection. Therefore, the hosts of the show advise that he sell his current car and buy a more affordable used car instead. Then, he can decide if he wants to sell part of his shoe collection to pay off the rest of the debt. It really all comes down to how desperately you want to be debt free and stop those interest payments from coming in.