Ah yes, the modern age is full of childish delights, but the costs that come with them are a little too adult for most people. You might think this is a drastic idea, but you might want to consider selling your car if you need to escape debt.
Surely you’ve given it a passing thought before? Many people have considered this and just scoffed. “It’s just something people in major cities do, it’s not for me!” Well, it might not be that ridiculous if you live near your work. Even if you don’t live near work, maybe you should move to an apartment that’s both closer and cheaper. Getting a smaller place and biking to work would drastically cut your bills down to a manageable size.
Forgetting for a second about the thousands of dollars you can get from just selling your car outright; think about your monthly car payments.
On average, monthly car payments add up to 400 dollars per month. Then you need to factor in insurance costs, gas, repairs, car washes, etc. At the end of the day, this one machine takes up a huge chunk of your spending power.
By selling your car and applying that money to your debt, you could be in a much better position. The average credit card debt in America, per person, is around 15,000 dollars. Let’s say you can only get a few thousand back for your car. You’d still be saving about 5000 dollars per year on your payments. That’s not even including gas, insurance, etc.
If you apply that extra money (treating it as if it’s not “extra money”) to your debt, you could pay that large sum of credit card debt in roughly 3 years. You could also add that extra 400 dollars to your payments each month, cutting debt in half the time. Another great option is splitting the extra money between your debt and savings.
If you’re willing to take the drastic step and move closer to work to a cheaper apartment or if you already live close to work, what’s stopping you? Companies like Uber can take you to see friends and family, there are just so many options nowadays! The possibilities are endless and you might not need that old scrap bucket weighing you down.