Credit Card Overloaded, But We Need a New Car

Question: We have been trapped in the "miles thing" with our credit card. And it just got too easy to whip it out for everything. Pretty soon, more money was going out than was coming in. Now we need a car. Can you help?

Answer: You’ve got two issues to deal with. The first is the credit card debt and the second is transportation.

Stop using your credit card! If you need to, cut it up! Start cutting back on every expense possible, from groceries to entertainment. Take the excess you generate and pay down that credit card debt.

Can your current vehicle be fixed? You may not like it, but often the car you have is your least expensive option. Ask friends for reliable mechanic references. Call around, get quotes. Do you have a friend who can help you make the repairs? If you can keep it running, you'll buy time to save for a replacement.

If your car has died, check into public transportation or car pooling. Early in our marriage, we went a month without a car when we blew a head gasket. Steve bicycled to work and a friend loaned us their second car on the weekends so we could run our errands and get to church. It wasn’t easy, but during that month we were able to save up enough to get our car repaired.