How to Get out of Car Debt and Get Rid of Car Payments

Did you know if you invest the amount of an average car payment each month during your working lifetime, instead of paying a car payment to the bank, that at retirement you'd have well over one MILLION dollars? Are car payments keeping you from becoming a millionaire?

Instructions

1

Open a savings account for a car purchase.

If you are not currently making a car payment but you will need a car in the future, start saving now. Just a few thousand dollars in the bank in a "car fund" will give you enough money to buy a used starter car. It might not be pretty, but do you really care when you think about your future million or so dollars?

Once you have saved your few thousand dollars (anywhere from three to five thousand will buy you a very decent vehicle if you take a little time and shop around), keep it in the bank until you need it.

2

Purchase your used starter car and maintain it very well.

And, start right away putting money in the car fund again! In a couple of years, you'll have enough that by selling your current used car and adding what you have in the car fund you can "trade up" to a better used car and pay CASH to do it! And it will feel great!

3

Keep flipping those cars!

You can do this car flip as many times as you want and end up driving slightly used luxury autos if that's your thing. Do you know that most millionaires don't buy new cars from dealers? The reason is that the cars drop so quickly in value that they just aren't worth it. Smart wealthy people buy one or two or three year old "barely used" vehicles at a fraction of the cost of new.

4

Don't panic.

If you are currently making payments on a car, don't despair. You can get on the millionaire wagon by paying off your current car as quick as you can and then never buying a car on payments again!