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Author: estermae Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308670  
Subject: Re: Newbie needs help on his credit report Date: 5/20/2001 10:02 AM
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I have to agree with the rest of the posters so far. Sell the muscle car. You may take a loss on it but you are taking a loss every month that interest compounds on those credit cards. Sell it and pay as much as you can on the credit cards...minus an emergency fund as aja91 suggested. Once you are out of debt and can afford it, you can get another muscle care and restore it, with cash!

The Caddy is your option. If you keep it and pay off your loan, you are still going to end up paying the extra $8000 that you owe over what it is worth. If you sell it you will still have to pay off the $8000 and buy another car. Either way, even if you buy another car for $2000 it will still cost you approximately $500 extra per month on the amount of money that is *not* being applied to the cc debt. You save $400 per month, but you are driving a $2000 car that will probably need to be replaced in a few years. On the other hand, that $400 can go a long way in paying off the remainder cc debt.

Good luck JTrain,

Ester
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