Six Figures and Broke » Dave Ramsey

Sold My Infiniti G35

BigSpender — Tue, 03 Jun 2008 21:58:43 +0000

When I started my 6FiguresNBroke blog, I mentioned that I loved my 2006 Infiniti G35 which was financed at a “fantastic interest rate.” Well even with the great rate, the payment was still $820.00 per month. Not only was the payment high, but upkeep was also expensive. See, it wasn’t just your typical 2006 Infiniti G35 coupe, we put several thousand dollars of after-market parts in to the car (to the tune of $13k-$15k). As a result, the rear tires needed to be replaced twice a year. These were 20″ tires and wholesale price on each tire was close to $300.00. So there is $1200/year in tires.

Oh wait, this is a luxury sports coupe. Gotta have the luxury synthetic oil changes. Those run about $75-$95 an oil change. You have to get that done at least four times a year. It doesn’t stop there, the car runs on premium gas. Sure you can put 87 into it but with a $45,000 car, why would you put 87 in it? Yup, that’s right - each fill up was with 91 (the best you can get here). I quickly realized that my car was causing much bleeding.

About a month ago, close to the two year anniversary date of purchasing the car (I loved the car, I remember the date I purchased it) we traded both that car in plus our 2001 Chevrolet Malibu with 98,000 miles on it and purchased a 2005 Nissan Murano with 46,000 miles on it. Now I know those that follow Dave Ramsey’s Total Money Makeover plan will squawk at taking out a new car loan. I am dedicated to getting out of debt but honestly not comfortable driving a $2,000 car. I am a freak about safety and even felt uncomfortable driving around in the 2001 Malibu.

So now I have a $300-ish a month car payment, I’m saving $100/mo on insurance and believe it or not I am getting better gas mileage in my Murano than I was in my G35. Something about the roar of the engine when you get on the gas makes even the most docile driver a lead foot behind a sports coupe like the G35. Overall I am looking at a net savings of about $700/month. This means we are going to be getting out of non-mortgage debt much, much sooner.

I still miss the car and I fear the time I see it on the road and am honestly hoping that I don’t. I had a major emotional attachment to the vehicle and evidently it is still there. I did, however, leave my virtual tiara in the driver’s seat. I am no longer a Princess and I believe I have made a responsible adult-like decision in letting it go.

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In Debt We Trust DVD Review

BigSpender — Tue, 03 Jun 2008 21:33:04 +0000

I have recently had the privilege of watching the documentary In Debt We Trust by filmmaker Danny Schechter. The film is different than Maxed Out in that it takes an in-depth look at the credit-lending scene. It touches briefly on collectors but discusses credit cards, predatory lending, cash advance/payday lenders and more. The filmmaker also queries users to ask the question if the next bubble to burst is going to be the credit industry, much like the mortgage industry is going through woes (as a result of the subprime/predatory mortgage lending market). He didn’t present this concept in a doom and gloom the sky-is-falling way but instead as a question that consumers must ask themselves.

Two parts of the film really stood out to me. The first was of a Baptist church in Virginia that helps members pay off non-car and non-auto debt. Parishioners donate what they can to a chosen member and then their credit cards are paid off. That member then cuts up the credit cards and the whole parish celebrates. As Dave Ramsey says often, debt is merely a symptom. I don’t know the whole program that the church uses but I would hope that they address the core root of the problem which can be different in each individual. Cutting up the credit cards is definitely a good step and having support from friends and family will likely help that one parishioner stay out of debt.

As the movie came to a close, a brief description of 2005 NYC helicopter crash in which six executives from MBNA (who was the primary backer for the 2005 bankruptcy reform laws) were rescued. One bankruptcy attorney mentioned that several people thought that perhaps this was divine intervention. I’d lean more towards karma perhaps but it does make a person go hmmm? Of course no one would ever wish this on the executives but considering what they were working on at the time, it is quite a coincidence.

The film runs a total of 98 minutes and was definitely eye-opening. I can definitely tell you that it helps keep me focused on getting out of consumer debt!

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Maxed Out Documentary Review

BigSpender — Sun, 20 Apr 2008 17:31:42 +0000

After seeing Maxed Out (a documentary) mentioned on several websites, I decided to check it out. What better way to spend a Saturday night than cuddling up on the couch and watching a movie about debt, right? The film, by director James Scurlock, provides an insider’s view of debt collectors and the credit card industry. In all honesty, as a user of credit, the documentary was a bit scary to watch. I’ve seen enough documentaries to know to take everything I see with a grain of salt but even if only a portion of what was presented is true, it is definitely the right time to stop using credit.

One of the facts that I found most disturbing was that MBNA, who is now owned by Bank of America, helped to write the Bankruptcy Abuse Prevention and Credit Protection Act of 2005 (BAPCPA). According to an article that appeared in the Journal of Economic Issues, “MBNA (one of the country’s largest issuers of credit cards) spent more than $17 million lobbying Congress from January 1999 to June 2004 for reform.” Now I’m not trying to support bankruptcy as an easy way out or the right decision for everyone, but knowing that credit card companies, those that would benefit from more stringent bankruptcy laws, had a major hand in the passing of the bankruptcy reform act. Food for thought, indeed.

Dave Ramsey, author of The Total Money Makeover and Financial Peace Revisited, has several scenes in the show. The documentary’s creator not only interviews Ramsey, who tells of his own personal financial woes, but also has some clips from his call-in radio show. Ramsey fans everywhere will be pleased to see his inclusion in the film.

This documentary is not a light and fluffy look at debt and the credit card industry; it is a serious examination of the flaws of credit and at times can move a viewer to tears. For anyone who is considering a move to get out of debt, I highly recommend the film Maxed Out.

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$340.50 Middle of the Month Payment

BigSpender — Tue, 26 Feb 2008 23:59:24 +0000

My husband’s company usually gives a hefty annual bonus to employees (several thousand dollars); 2007 wasn’t the best year for the company so we weren’t expecting a bonus. Well the company felt bad so we ended up with a small bonus - $340.50 after tax. Not one to look a gift horse in the mouth we were thankful. The money hit the checking account today and I just got done paying $340.50 on my Venetian Card. I tell ya, it feels good to know that I’m really making a positive change in our lives.

Dave Ramsey comments about people changing the family tree from the roots on up. That is what I’m doing. Well my sister isn’t a spendy gal, she’s actually a tightwad. Looks like I got all the spending genes in our family hehe.

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Getting Out of Debt

BigSpender — Sun, 24 Feb 2008 03:39:09 +0000

Welcome to 6FiguresNBroke.com - that stands for “six figures and broke.” I am a stay-at-home-mom to two young children and my husband is an engineer-type who earns a six figure income, annually. We have mountains of debt and have vowed to make a lifestyle change - stop spending and start getting serious about paying down this debt. Thankfully we are not in dire straits. We have a fixed-rate home mortgage with a great interest rate, a fantastic interest rate on our car loan and credit cards, and both have good credit scores. However, we have realized that we need to stop the financial bleeding and start getting serious about getting out of debt. Once we’re out of debt then it will be even easier to plan for the future.

I have started this website to help hold us accountable for our plan. In addition to progress updates on our personal finance journey, I will also be blogging about the latest in personal finance news. Whether it is the latest live event from Dave Ramsey or news on an interest rate cut by the fed, I plan to post it here.

If you are on a get out of debt journey yourself, I’d love to add you to my blogroll. Please leave me a comment and I’ll get you added as soon as possible!

Yours Truly,

Big Spender

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