Should we pay off debt or get a second car… what would you do

Debt Management
1

Me and my wife are getting about $7500 back from taxes this year. We’ve already set aside $800 for some stuff, so we have around $6700 left. Right now, we have about $9k in debt, and I’m on a debt management plan that costs $300 a month and should be done in 3 years.

We’re trying to decide whether to put most of the money—around $5k—towards paying down the credit cards, or if we should use it to get a second car. Right now, we share one car, and I also have a motorcycle. If we got a car, we’d be paying for it in full with the tax return.

What would you do? Is it smarter to knock out a chunk of the debt or get another vehicle?

2

So the choice is between getting rid of debt or adding more? Got it lol :man_facepalming:

3

Ozzie said:
So the choice is between getting rid of debt or adding more? Got it lol :man_facepalming:

You’d think typing all this out would’ve been a sign for OP :sweat_smile:

4

Nico said:

Ozzie said:
So the choice is between getting rid of debt or adding more? Got it lol :man_facepalming:

You’d think typing all this out would’ve been a sign for OP :sweat_smile:

To be fair, people need transportation.

5

@Neo
They already have a car AND a motorcycle though…

6

If you already have a car and a motorcycle, I’d throw the money at the debt. The sooner it’s gone, the better.

7

Sell the motorcycle if you need another car. One less thing to insure. Use the money from that plus part of your tax return for a second car.

Or just take a bus if it rains.

Or get a second job to pay off debt faster.

Plenty of options.

8

You’re $9k in debt… why are you even thinking about getting another car? You’d have to deal with gas, insurance, maintenance, all on top of the debt you already have. The math isn’t mathing. Pay off your debt and stop using credit cards so you don’t end up back in the same situation.

9

Debt first. No question.

10

Bro, what?? Get rid of the debt. A second car will just add more bills. If the weather is bad, take an Uber or ask for a ride.

11

If you’re okay with paying high-interest debt for years, then get the car. If not, pay it off now.

12

I don’t mind riding my motorcycle to work, but if there’s a huge storm and my wife needs the car, I’d have to either ride in it or get a ride from someone. We also have an 8-month-old, so if she’s out and I need to go somewhere, I’d have to wait until she gets back. Also, the motorcycle isn’t something I can sell—it’s a family heirloom.

13

@Bell
Find a backup plan for those rare situations. Clearing your debt should be your main focus so you have more flexibility later.

14

@Bell
Debt comes first. You’ve been fine with one car so far, you can keep making it work. If you and the baby need to go somewhere and the car is gone, just call an Uber. A second car will only add more expenses.

15

If you’ve managed with one car, keep doing it for now. It’s inconvenient, but debt is more inconvenient. Another car means insurance, gas, and repairs. Pay off the debt first.

16

Use the tax return to pay off your credit cards, then put the money you were paying on those cards into savings so you can buy a car later.

17

You’re in a debt management program and still considering a new purchase? Bad idea. Pay off what you owe first, then save up for a car. If you don’t have at least $1k set aside for emergencies, do that first.

18

If the car you’re sharing is unreliable and might break down soon, I’d get another one. But if not, just wait. Use the money to get ahead on debt, then save for a car later.

19

Pay off your debt first. You already have one car and a motorcycle, so why add another expense? What if something happens and you need your credit cards again? Being debt-free is less stressful than owning an extra car.

20

Pay off your debt, then save up for a car. You’ve managed with one car this long, so just be patient. Maybe set aside $1k for emergencies.