My wife and I have recently bought a new car. It was used but new to us. The best part about the whole deal was that we didn’t have to take out a car loan.
We paid cash.
Now, we are both in our forties and well established financially. So you might think this purchase was a piece of cake. On the contrary, it wasn’t. It took us two years of preparation to be able to buy this vehicle. But it was worth the effort to avoid needing a car loan.
How did we do it? I’ll share that in a minute and show you the steps to take to never need a car loan again. But first, let’s look at the reasons why people feel the need to take out a car loan in the first place.
What do you do? Luckily there are some options if you fall behind on your student loan repayment. It’s important though that you take action immediately instead of waiting until your balances are seriously delinquent.
We looked long and hard at our budget and made some adjustments. While we were paying off our mortgage we disconnected our cable TV, ate out less, spent very little on things around the house (like landscaping and home furnishings) and pretty much stopped going to movies just to name a few things. The extra money we saved by cutting our expenses and changing our lifestyle we put towards the mortgage.
If you can’t or choose not to pay back student loans, you risk going into default. To default on a loan means you did not pay it back on schedule according to the terms of the promissory note – the legal document you signed when you received the loan.
