Sell truck to payoff CC

[mudcat81]

I am debating selling my truck to payoff my credit card. My truck is paid for and I should be able to get a little more than what my credit card balance is. My family went through a really rough patch and we weren't managing our money very well and ended up with about $7500 in credit card debt. We are able to pay $300-500 down on it every month. My truck sits in the garage most of the time and really is only needed on snowy days or if I need to haul something big. I have a little commuter car for driving to work and other stuff. I know we would eventually get it paid off at the rate we are going but I want it gone. I will want to get a truck again someday but could get by for awhile without one.
I am also wanting to upgrade our family vehicle before it gets to many more miles on it. We have really good credit but I know the credit card debt is not helping us.

[bjl584]

That's kind of a hard question to answer without knowing more details about your finances.

Do you NEED to sell the truck to pay of the CC? Is there anything else that you could sell?

It sounds like you don't really need the truck, so selling could make sense. So long as you don't end up with a large unaffordable paying with the next truck or car that you eventually end up buying to replace it.

What is your plan to replace the family sedan? I'm guessing you are going to finance it?

[mudcat81]

I don't NEED to sell the truck. We are able to throw $300-500 at it each month but I don't like knowing how long that route will take.

We don't really have anything else we could sell. We have some small items that I am sure we could sell but they wouldn't put much of a dent in the debt.

We would need to finance the next family vehicle. We still owe about $14000 on it and its valued at about $19500 trade in. I was hoping to get it paid off prior to trading in so we would have more to put towards the next one but the miles racked up faster than expected.

[bjl584]

I don't NEED to sell the truck. We are able to throw $300-500 at it each month but I don't like knowing how long that route will take.

We don't really have anything else we could sell. We have some small items that I am sure we could sell but they wouldn't put much of a dent in the debt.

We would need to finance the next family vehicle. We still owe about $14000 on it and its valued at about $19500 trade in. I was hoping to get it paid off prior to trading in so we would have more to put towards the next one but the miles racked up faster than expected.

If you're not really using the truck, then I'd probably sell it and settle the CC debt.

For the family sedan. What is your time line to replace it? How many miles are on it currently? How much longer can you reasonably expect to get out of it?

[mudcat81]

Our current family vehicle has about 70k and we have had zero issues with it. We bought it brand new and I have taken very good care of it. I am sure it would get us by for another 2 years without any issues but I don't want it to be worth nothing when we sell it. I also like the peace of mind knowing my family is in something that is unlikely to leave them stranded. We leave in a very rural area and in the winter time that could get serious fast.

We have started looking but will probably wait until after the holidays to seriously look into replacing it.

[bjl584]

Our current family vehicle has about 70k and we have had zero issues with it. We bought it brand new and I have taken very good care of it. I am sure it would get us by for another 2 years without any issues but I don't want it to be worth nothing when we sell it. I also like the peace of mind knowing my family is in something that is unlikely to leave them stranded. We leave in a very rural area and in the winter time that could get serious fast.

We have started looking but will probably wait until after the holidays to seriously look into replacing it.

I'm going to suggest that your next vehicle be gently used. Let the original owner take the depreciation hit. Look at something 2 or 3 years old. Get the extended warranty if it makes you feel better. Plan to keep it 10 years. Since you'll be financing stick to this rule of thumb: Finance for no more than 3 years and make sure that the monthly payment represents no more than 10% of your monthly household take home pay.

[snafu]

I agree with you, sell the truck. It is a depreciating asset losing value every day and not serving your family's needs. Likewise sell anything else you no longer use, need or serves you. It's just stuff that needs to be looked after. I suggest you make a list that clarifies what you need as a family vehicle.

You seem to have a good handle on money management so I'm surprised that a 'bad patch' was made even worse by using a CC whose balance is currently $ 7,500. to create income. I wonder if you and/or spouse would consider short term, part time or overtime work devoting net pay to clear CC as fast as possible. Likewise, would you lower your lifestyle just a bit to free up funds to clear that CC?

[~bs]

NO brainer, sell the truck. It might be a different issue if it was a daily driven vehicle in a 2 person household, but if it's a "play" vehicle and just sitting in the garage, it's not worth it.

I've been told that having a truck is useful in the event you need to haul stuff. On that 1x per year that I do need to, I just look at the contacts in my phone, many who have trucks, and ask one for a favor. Then a case of beer and some gas money later, my truck needs are done for the year. A truck really isn't worth having IMO unless you're doing things somewhat regularly that do require it.