Car debt under $10,000

I have had lots of ups and downs over the past day or two. I’ve spent too much of my precious time trying to figure out how I can afford another car.

Regular readers will know about the costs associated with returning our cheaper little car to an aesthetically appealing exterior – projected to be about $3500 on a car worth only about $4000 once the work is done! I also currently have a water leak in the engine, causing it to overheat (I have a bill-pay account with enough in it to cover that work though).

The simple answer is that we’ve worked too hard over the past 8 months to return to old habits. I am not going to buy a car with a personal loan, or an extension of my current personal loan (for the bigger car). Or a credit card on a balance transfer, or any other purchase method that involves me not having the actual money in the bank to do it.

I can NOT watch our car debt climb again. I just can’t do it.

So we’re going to `live like no-one else so we can live like no-one else’, as Dave Ramsay says.

I’m going to keep the car, fix the overheating problem, keep the car looking as neat as possible and ride out the year without fixing the exterior. In the meantime, I’m going to save and work an extra shift here and there so we can buy another (but nicer) used car outright.

Every morning when I drop off my son to kindy, we arrive about the same time as this other mum. This woman works at the same place my husband does, where he is in a relatively high-profile position. We say hi to each other now and then.

She always looks at my crappy little car with a truly horrified expression. I’ve seen her stare a little too long multiple times! She is about mid-twenties and drives a beautiful black SUV. I don’t know what she and her husband make but I don’t think it would be that much. I think she wonders why we wouldn’t trade up, given that my husband earns a decent wage, probably a lot better than hers.

I have been a bit embarassed over the state of my car, especially because of the peeling paint (not the age of the car), and seeing her each morning has probably worsened that. But then I think, this is us! This is our decision. She’s not even a friend of ours! We drive an old car to improve our financial future. Get over it!

A lot of people tell me I should get a new car because `you’ll be earning money soon’ and we’ll be able to pay it off quickly.  However between student debt and lack of savings power over the past 6-8 years (and missing out on buying a house in a booming Australian market while I studied) I don’t think my family will be splashing out on a Porsche any time soon!

Anyway, now it comes to the point of this post. I am going to come down hard on this car debt. I want it gone.  That’s because I am SO SICK OF DEBT!

With interest accrued yesterday, the debt currently stands at $10,545. So I am scrounging $600 from our earnings this week to get it down under $10,000! A milestone if ever there was one.

My next goal is to get it under $8000 in one month. Watch us get there!


  1. JvW said

    You can bring it under $10K! I know you can do it! I think this is a great decision to keep your car the way it is.

  2. Joanne said

    I think you are making the right decision. You shouldn’t worry about what other people think. Keep up the hard work!

  3. […] Sick of Debt is about to get their Car Debt Under $10,000. […]

  4. […] I shared my post about our bid to get our car debt under $10K. Well, we made it and $8000 by the end of this month is our new […]

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