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3 Steps to Paying Off Your Car Debt . . . . Forever!

 

 

 

 

3 STEPS TO PAYING OFF YOUR CAR DEBTDo you know that some people never get out of car debt? And it’s one of their biggest obstacles on their journey to true financial freedom. Fortunately, there’s a way to get out of car debt for good by following these three simple steps.

 

  1. Decide to keep your car at least three years longer than your car loan—and then pay off the loan.
  2. After your last payment, keep making the same payment, but pay it to yourself. Put it into an account that you will use to buy your next car.
  3. When you’re ready to replace your car, the cash you have saved plus your car’s trade-in value should be sufficient to buy a car without credit. It may not be a new car, but a low-mileage used car is often value anyway.

 

My wife, Bev, once drove the same car for 17 looooong years. She bought it second-hand and paid cash for it. This was one of the wisest financial decisions we ever made because the average monthly payment on a new car that’s financed is about $385. So, for 17 years she didn’t have a $385 auto payment which saved us $78,540! We were able to use this money to be more generous, get out of debt more quickly, and save invest more.