we have a gas guzzler that we still owe about $14K @ $430/month. im getting tired of how to solve this issue, since were about $6k upsidedown, very costly with gas, even if we pay it off, it will not be worth it. so here' my plan, and i need your insights if this is a good idea:
we dont currently have savings to pay for a car in cash so this means we have to start saving for it. as per Dave Ramsey, if we save $400 for 10 months, we will be able to get a decent car, so with that in mind,
we are planning to not pay the truck for the next 90 days, so thats $1290, plus set aside another $400 per month for 3 months, which equals to $2580, we will voluntary return the car by then and eat up the hit on our credit, take the bus or carpool together, we will continue saving $830 on month 4 and so on until we find a car we could buy with the money we have saved.
currently, we have a combined income of about $7500/month and budgeted $6300, we were planning to put extra towards debt repayment but we'd like to set aside the $400 towards this project.
Thoughts?