auto
'Making-do' with used car makes sense
 Dear Terry,
I just wanted to thank you for responding to my question in your May 26 column, "
Does saving gas always save money?" and also to update you on my situation.
I thought about my financial goals very carefully and was able to sell my car for $1,500 less than what I owed on it. Instead of going with something new this time, I chose to get into an economical used car (a 2002 Chevy Cavalier for $3,900) until I get my credit card debt paid off. My car payment dropped from $354 to $119 and I am applying that amount plus my savings in gas money to my credit card debt. According to my budget, I will have all my debt plus the cheaper vehicle paid off in two years. If I had gone the new-car route, I would have been forced to take on another five-year loan to get my payments at a reasonable rate and would have been slowly paying off the credit card debt. Thanks for all the advice that you and Bankrate provide.
--
Lindsay  Dear Lindsay,
Congratulations on working things out. Hopefully the Cavalier will give you good service until you get everything paid off.
 | | This week | | | | • | More new-car buyers using cash | | • | Should I refinance new car now? | | • | Only cosign if you co-own | | • | Car columnist helps fix financial mistakes |
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