How Much Car Debt Can You Afford?

1) Make a list of your average monthly non-car expenses, and subtract them from your earnings.

-___your monthly after-income-tax income

-___any other taxes

-___housing (including any fees and property taxes, and utilities)

-___food

-___health insurance or HMO

-___life insurance

-___debt payments

-___401 (k), IRA, or other long-term savings

-___short-term savings

-___telephone, cellular phone, cable, internet, etc.

-___entertainment and fun stuff (be honest!)

-___cost of yearly vacation(s) divided by 12

-___other expenses

= ____what you can spend on a car

2) Subtract your monthly car-related expenses from amount you have left over from your other expenses.

___What you can spend on a car (from above)

-___Amount you’re spending per month on gas (raise or lower this figure depending on whether you are getting a car with higher or lower gas mileage).

-___Monthly maintenance (remember: your new car won’t stay new long, so maintenance will be an issue).

-___Monthly insurance (remember that for a new car, your insurance premiums may go up).

-___Tax.

= ____ Maximum monthly loan payment.

Now plug number above into a vehicle loan rate calculator to figure out big of a car loan, and how much interest you can afford.

Final Hidden Auto Loan Danger: Unnecessarily High Rates

If you simply take first loan dealer offers you, you are probably paying too much. Do some comparison shopping on internet, and bring a list of best loans with you when you negotiate loan terms with dealer.

Don’t let dealer cheat you by shifting cost from car loan to car price to deal on your trade-in. Make sure you get a good deal overall.

Congratulations! You now are far better prepared to stay out of an auto loan money pit than vast majority of car buyers.

Joel Walsh is a regular contributor to Auto Loans :http://cars-auto-loans.com, where he writes about how you can get the best car loan

She then checked into all bills she would have to pay in between her upcoming paycheck and one after that. After all, with her next paycheck going to repay payday advance loan, she would need to make sure there was enough money left over to pay her remaining bills. She didn’t want to have to take out another loan after that.

Emily figured out that she would have $300 left over after she paid all bills between now and next month’s paycheck. Living for 40 days on only $300 would be a challenge. But she decided she could do it if she economized. She would bring her lunch to work rather than buy it in cafeteria, and give up going out at night--including un-inviting herself from a co-worker’s upcoming birthday party at neighborhood bar.

She posted notes on her refrigerator, steering wheel, and wallet, reminding herself not to make too many car trips, waste food, or splurge. She made herself goal of reading several books she’d always wanted to read, rather than going out. She got them free from library.

Did Emily’s Payday Advance Loan Plan Succeed?

Fully prepared, Emily took a $1000 cash advance from ABC Loan Company and repaid it on 15th along with a $50 fee. She saved $85 in credit card penalty fees. She also stayed on good side of her landlord, car loan lender, bank, and cellular phone provider.

The experience also brought home to Emily that she was living too close to limits of her paycheck. She realized that she would be better off moving out of her studio apartment, into a room in an apartment of a few friends. She’d also save money on gas by moving closer to work.

Today, Emily is grateful to payday lender for saving her from financial disaster. She’s also proud of herself for being able to stay out of debt trap so many other payday cash advance borrowers get into. She recommends to all her friends that if they ever get a payday loan, they do their homework, just like she did.

Joel Walsh is a regular contributor to Payday Advance Loans : http://www.payday-loan--online.com. Go to Payday Advance Loans for more tips on avoiding high fees on payday loans online.