You traded in that old bucket of bolts that had been with you for several years and you’re relieved that you don’t have to worry about getting to work anymore. You probably bought a Honda Civic or a Toyota Corolla and you’re now in debt to the tune of $15,000 or so. Chances are good you didn’t have much for a down payment and, because you were getting $4,170 from the government, you probably spent more than you would have otherwise.
But it is so SWEET to be driving a NEW car!
Regardless, you’re driving it. Now what?
First, set up automatic payments (if they’re available) when that payment book arrives in the mail. The worst thing you could do is damage your credit score by sending in a late payment right off the bat.
Second, let’s formulate a plan to get that car paid off as soon as possible. If you’ve read The Wisdom Journal for any length of time, you know my stance on debt (hate it). I’ve written before about different debt payoff strategies and since this new car is probably the biggest debt you have, and since interest rates are relatively low right now, unless it’s the only debt you have, you should concentrate on paying off other debts with either higher interest rates or lower balances. Eventually, your focus has to be on getting this new burden off your shoulders.
Third, check out your options on car insurance to make certain you’re getting the best deal possible. NetQuote, in my opinion, is the best company to check with to get multiple quotes from highly rated companies without having to deal with an agent right away.
Fourth, make sure you keep good records for the potential taxes that could be due, depending on your state’s laws.
Fifth, slow down there! The last thing you want to hear is Smile, you just got a traffic ticket!