Silver lining - new start.

new_leaf_6

I've been unemployed since 31st December 2006 as I was made redundant. :eek: I cleared all my debt with my redundancy money and have enough left to buy a small car outright. Should I do this (will need car for work when I start again...soon hopefully:D ) via a loan or use all the rest of my money and buy one outright? I now have a horror of debt - I've learned my lesson. Is a car loan debt?

postingalwaysposting

new_leaf wrote:

I've been unemployed since 31st December 2006 as I was made redundant. :eek: I cleared all my debt with my redundancy money and have enough left to buy a small car outright. Should I do this (will need car for work when I start again...soon hopefully:D ) via a loan or use all the rest of my money and buy one outright? I now have a horror of debt - I've learned my lesson. Is a car loan debt?

i would buy it outright but have you got money to live on while job searching? and as for your last statement... yes it is debt... the only 'debt' that i personnally class as 'good' debt is a mortgage... and then that varies to home value etc etc...

justruth

Is it possible to live without a car for a while until you find a job that requires one? It's not just the cost of the car you need to worry about it's all the insurance and servicing and road tax before you even have to worry about petrol.

I found that by selling the car and just hiring one the couple of times each year when I really need one works out a lot cheaper and I lost about a stone by walking everywhere! I do understand though that if you don't havetransport links it may be a nessecity but if there is a way of living without for the time being then perhaps save the money.

HazelEyes_3

If you can, put the money for a car into a savings account until you start work and then buy outright. As soon as you buy a car it is losing value as well as needing insurance, tax, petrol, servicing etc.

In the meantime let friends and family know you are looking for a small economical and reliable car in case they know of anyone selling.

Is there any possibility that you can get a job with a company car?

And yes a car loan is debt - all loans even mortgages are debt although as we all have to have a roof over our heads a mortgage is probably the last debt that most of us will clear.