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173 Past Due – Our Daughter Needs A Car, We Can’t Get A Loan

by Derek Sisterhen on September 16, 2011

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Past Due: Radio 173 – Our Daughter Needs A Car, We Can’t Get A Loan

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Robert and his wife Patricia are reaping a harvest of, admittedly, poorly sown financial decisions. They have a college-age daughter who is splitting the family vehicle with Patricia to get to and from classes, then to and from her part-time job. The family needs a car in the worst way, but no one is qualifying for a car loan.

In his submission, Robert acknowledged that they’ve been late on mortgage payments in the past, and are trying to clean up their finances, but now they feel limited with this incredibly inconvenient transportation situation.

Today we discussed:

1) How the pressure of inconvenience often drives us to rushed, unwise financial decisions. We must assess the true cost of paying interest on a used car (and likely subprime interest at that) in the context of the hassle-factor of sharing a vehicle.

2) The importance of Robert and Patricia openly confronting their financial situation for their children to see. It’s time for them to lead their kids – two generations of healthy money managers hang in the balance.

3) How sometimes the best course of action isn’t the most obvious. Robert’s daughter has already saved $3,000 toward the purchase of a vehicle and has the potential to save more than her parents.

This show exposed a lot of the systemic financial issues we’re seeing in American households with regularity: paycheck-to-paycheck living, financially unprepared children, the perpetuation of the “Sandwich Generation”, and knee-jerk decision-making in financial discomfort.

If you have a specific question, I’d be happy to answer it and further cultivate the wisdom of the Past Due Radio masses. The experiences of our listener base provide plenty of insight we all can learn from; don’t hesitate to ask – I’m happy to help!

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168 Past Due – Should We Repair Or Replace The Car?

by Derek Sisterhen on August 12, 2011

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Past Due: Radio 168 – Should We Repair Or Replace The Car?

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Jane and Bill wrote in this week in the midst of an all-too-familiar conundrum: “Should we shell out the money to repair an aging vehicle, or throw in the towel and buy a new one?”

Right now, they have a large, four-wheeled paperweight in the driveway that requires about $1,500 worth of repairs to make it road ready again. They’re concerned that spending that kind of cash on repairs – money that has to come from the emergency fund because they haven’t been saving for ongoing vehicle expenses – will be a waste. Especially if they can use it toward a new, more reliable vehicle.

Today we discussed:

1) The two typical reactions for most people in this situation: A) Put the repairs on a credit card, B) Go buy a brand new car.

2) How to calculate your true ongoing vehicle expenses (covering everything from tires, brakes, batteries, wiper blades, filters, and alternators), and how to save for them every month in a clean, easy way.

3) The rule-of-thumb (and the exception to the rule) that I use when determining whether it makes sense to bite the bullet and repair an aging car, and when to move on to greener highways.

Cars are typically the largest purchases we make outside of our homes. You have to do your due diligence to make a wise decision on this issue in order to avoid car accidents of financial proportions!

If you have a specific question, I’d be happy to answer it and further cultivate the wisdom of the Past Due Radio masses. The experiences of our listener base provide plenty of insight we all can learn from; don’t hesitate to ask – I’m happy to help!

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Past Due: Radio 160 – How To Expect “Unexpected” Expenses

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Daniel and Lori heard last week’s show and wrote in a few questions. They seem to continually get knocked down by vehicle and medical expenses, not to mention the costs associated with their children. They’re beginning to feel defeated and are trying to find out what they might be missing so they can begin making real progress.

In today’s show, I shared that Daniel and Lori’s struggles are very common. That rug-pulled-out-from-under-us feeling is normal among the two-thirds of Americans living paycheck-to-paycheck when “unexpected” expenses arise. I also addressed that there really aren’t very many unexpected expenses, but we have to embrace two ideals:

1) We must reacquaint ourselves with reality – most of us grossly underestimate the true costs associated with our lifestyle

2) We must establish a new method of savings – planning for future expenses means incorporating monthly savings today so we can avoid feelings of stress and tension

The good news is, with a little forethought and a new perspective on their standard of living, Daniel and Lori will be well on their way toward their goals, leaving that sense of defeat in the dust.

Kids & Money Contest: I’m looking for stories of parents teaching their kids about managing money and understanding how money works. If you have a great story (humorous, big life lesson, etc) of what to do – even what not to do – please send it to mailbag@pastdueradio.com by Sunday, June 19th with “Kids Money Content” in the subject line. Entries will be gathered for the next few weeks and the winner will receive Junior’s Adventures, the boxed set of money lessons for children by Dave Ramsey, and a copy of my book, Get Naked: Stripping Down to Money & Marriage.

If you have a specific question, I’d be happy to answer it and further cultivate the wisdom of the Past Due Radio masses. The experiences of our listener base provide plenty of insight we all can learn from; don’t hesitate to ask – I’m happy to help!

Today’s Mentionables:

Episode 158 – Selling a Car at a Loss to Dump Debt – Sometimes we have to scale back our vehicles when we realize how much they truly cost to drive and maintain

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158 Past Due – Selling a Car at a Loss to Dump Debt

by Derek Sisterhen on May 22, 2011

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Past Due: Radio 158 – Selling a Car at a Loss to Dump Debt

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Send me your feedback or leave me a voice mail: (919) 374-0501

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Does it make sense to sell a car at a loss if you’re trying to get out of debt?

Sue, a financial coach in Raleigh, sought out my perspective on a family she’s currently working with. They’re working on a substantial debt-elimination plan, but keep running into a roadblock: the family’s gas-hog SUV with big-time monthly payments (to the tune of $800).

On today’s show, we addressed three pressure points facing this family:

1) How can they sell their car for less than what is owed? (And, should gas economy be a deciding factor?)

2) What are the financial implications? I run the numbers on their situation to paint a clear, objective picture.

3) Should they use a company like CarMax to speed up the process of dumping the vehicle? We must understand how dealerships value vehicles first.

Kids & Money Contest: I’m looking for stories of parents teaching their kids about managing money and understanding how money works. If you have a great story (humorous, big life lesson, etc) of what to do – even what not to do – please send it to mailbag@pastdueradio.com by Sunday, June 19th with “Kids Money Content” in the subject line. Entries will be gathered for the next few weeks and the winner will receive Junior’s Adventures, the boxed set of money lessons for children by Dave Ramsey, and a copy of my book, Get Naked: Stripping Down to Money & Marriage.

If you have a specific question, I’d be happy to answer it and further cultivate the wisdom of the Past Due Radio masses. The experiences of our listener base provide plenty of insight we all can learn from; don’t hesitate to ask – I’m happy to help!

Today’s Mentionables:

Episode 135 – Do Overs: Buying A Car – I dove into the details of my last car purchase and how I made a mistake that cost me nearly $30,000.

Kelley Blue Book – This is one of the most well-known vehicle valuation services out there; pay attention to the differences between Private Party and Retail/Trade-In values for your used vehicles.

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151 Past Due – Will You Cosign A Car Loan For Me?

April 1, 2011

Past Due: Radio 151 – Will You Cosign A Car Loan For Me? Right-click to download Send me your feedback or leave me a voice mail: (919) 374-0501 Leave a review on iTunes I received a phone call last week from “Paul” (name changed for purposes of the show). Paul wants to buy a new […]

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105 Past Due – The Great Checking Account Debate

May 12, 2010

Past Due: Radio 105 – The Great Checking Account Debate Right-click to download Send me your feedback or leave me a voice mail: (919) 374-0501. Leave a review on iTunes Today was a mailbag and listener feedback day!  I fielded questions on all manner of financial subjects.  Past Due Radio fans rock with their questions! […]

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