The Ramsey Show Highlights I'm 18 With A $1,000 Car Payment (Only Making $1,500 A Month)
Apr 15, 2025
A college student grapples with a staggering car payment while earning only $1,500 a month. The chat dives into the burden of high-value vehicles and the ripple effect on overall finances. Listeners hear about the challenges of negative equity and monthly strain. Practical tips emerge, like opting for affordable cars and exploring side hustles to regain financial control. The hosts stress the importance of lifestyle changes and alternative transportation to escape the cycle of debt.
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Young Student's Expensive Car Debt
- An 18-year-old college student bought a $30,000 car and owes $41,000 on it with 12% interest.
- He previously had a $70,000 car but sold it, damaging his mom's credit in the process.
Sell Car, Buy Cheap Cash Car
- Sell the high-priced car even with negative equity to prevent worse financial damage.
- Buy a much cheaper, used car with cash and avoid payments that eat up your income.
Car Payment Devours Income
- Making $1,000 to $1,500 monthly while having a $1,000 car payment leaves no money for essentials.
- This situation is unsustainable and financially disastrous.