Should I snowball the car?

[disneysteve]

Here's my updated scenario after starting the DR debt snowball

Auto $21,500 at 0% Montlhy is $420

My question - I have a zero percent auto loan. Should I make the regular payments and focus on savings or debt snowball the car?

Or should I sell the 2010 car and buy something at $10k

For DR's debt snowball, the interest rate does not matter. So if you actually want to follow his plan, it would be part of your snowball. That said, your second question is more important. You have a very expensive car that you really can't afford. Your car payment, if you have one at all, shouldn't exceed 10% of your monthly income and for no more than 3 years. $420 is 19% of your $2,200 base income and I'm assuming that was a 5-year loan.

How much could you get for the car today? If you can get out of it and get a personal loan for any amount you are upside down on the loan, that would go a long way to clearing up your situation. Far better to owe 6K or 7K than over 21K. Sell it and buy something for 5K or less until everything is paid off. Then you can save up cash to upgrade to something better if you wish.

[junkmail]

Or should I sell the 2010 car and buy something at $10k

[junkmail]

Here's my updated scenario after starting the DR debt snowball

Owe:
Mattress- $2,682 at 0% interest. Monthly is $145
CC- $2,569 at 18% Monthly is $75 (roughly)
Auto $21,500 at 0% Montlhy is $420
House $126k at 5.5% Monthly is $1,100 (roughly)

Utilities/Insurance/CellPhone: $509 a month

As of today, I've paid off several CC around $3k

My EF is at $1,000.00

My monthly net income- $2,200 to $3,500 depending on the month

I'm focused on paying off the CC and Mattress.

My question - I have a zero percent auto loan. Should I make the regular payments and focus on savings or debt snowball the car?