The “Car Payment” Trap: Dave Ramsey’s Advice for Finishing Your Debt Snowball

Dear Dave,
My husband and I make $180,000 a year combined. Right now, we’re working on our debt snowball. We’re almost debt-free except for our home, but we still have a little bit left on two car payments and some credit card debt. He wants to get rid of the credit card debt, but he doesn’t seem to mind having car payments. I’m not sure I understand why he feels this way, and I’m a little worried he might lose interest in paying off debt once the credit cards are gone.
Keri 

Dear Keri, 
To be honest, I’m not sure I understand his thinking either. They’re both debt payments, and you’re being charged interest on both of them. The only difference I can see is that one’s attached to a car and one’s not. It makes about as much sense as saying you like Visa better than MasterCard.

Even if he has some strange hang-up about car depreciation, that argument doesn’t hold water, either. Cars go down in value whether you borrow money to buy them or not. A $30,000 vehicle will be worth half that in just a few years, no matter what you do. And car payments won’t keep it from depreciating, or slow the rate of depreciation.

You know, sometimes people just get burned out and tired of paying the price to become debt-free. I’ve seen it happen several times when folks have been working at it for a while, and they start to feel like they’re never going to get there. What if you two sit down, and have a detailed talk about why he feels this way? See if you can find out why he feels the way he does about car payments, and where the root of the problem really lies.

Keri, this guy has been right with you on the journey to get out of debt, and gain control of your finances up until now. That tells me he’s disciplined, and that he’s willing to pay a price for things that are important to him. He may just need some encouragement and support. So, try reminding him how far you’ve come together. Remind him how close you are to winning, and how much you love and respect him for being part of it all.

You two can do this!
— Dave

* Dave Ramsey is a nine-time national bestselling author, personal finance expert and host of The Ramsey Show. He has appeared on Good Morning America, CBS This Morning, Today, Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people take control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions. 

Dave Ramsey

Dave Ramsey is an eight-time national bestselling author, personal finance expert, and host of “The Ramsey Show.” He has appeared on “Good Morning America,” “CBS This Morning,” “Today,” Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions and is the author of numerous books including Baby Steps Millionaires: How Ordinary People Built Extraordinary Wealth–and How You Can Too.