Car Free to Debt Free (kind of)
#1
Tree-hugging Norse
Thread Starter
Join Date: Apr 2007
Location: Seattle
Posts: 41
Bikes: LHT, Schwinn World Sport
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times
in
0 Posts
Car Free to Debt Free (kind of)
After over a year of being car-free, I just made my last credit card payment the other day. To date, I've paid off nearly 6500 dollars in credit and other miscellaneous nonsense from my marriage, college, and irresponsible teen years. I have not been without credit card debt since I was 18 (now being 25). It's a nice feeling, and I think I'm on to a new credit-free lifestyle as I balked at spending two dollars on a drink when I realized I left my debit card at home and only had the credit card. Now those pesky student loans, that may soon be growing, are a whole other issue. Car-free FTW!
#2
Senior Member
Join Date: Jun 2005
Location: Spur TX
Posts: 1,991
Bikes: Schwinn folder; SixThreeZero EvryJourney
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times
in
0 Posts
Congratulations! I've had to claw my way out of debt three times. Twice during my first marriage, then one more time after the divorce that followed. Being car free definitely helps with the cash flow if you can swing it.
#3
J E R S E Y S B E S T
Join Date: Apr 2005
Location: DC
Posts: 1,849
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Likes: 0
Liked 0 Times
in
0 Posts
So what you two are saying is, do NOT get married? Kidding.
Congrats, I bought a car using my credit card but had it paid it off in about a year, at 3.9% rate and then paid my schools loans not long there after. Definitely a good feeling, even more so since that car and my education has let me make enough money to now live without being dependent on the car itself.
Congrats, I bought a car using my credit card but had it paid it off in about a year, at 3.9% rate and then paid my schools loans not long there after. Definitely a good feeling, even more so since that car and my education has let me make enough money to now live without being dependent on the car itself.
#4
Plays in traffic
Join Date: May 2006
Location: Rochester, NY
Posts: 6,971
Bikes: 1996 Litespeed Classic, 2006 Trek Portland, 2013 Ribble Winter/Audax, 2016 Giant Talon 4
Mentioned: 21 Post(s)
Tagged: 0 Thread(s)
Quoted: 76 Post(s)
Likes: 0
Liked 14 Times
in
9 Posts
Good job. An even better feeling is buying big-ticket items cash.
#5
Senior Member
Join Date: Nov 2004
Location: Between the mountains and the lake.
Posts: 16,681
Bikes: 8 bikes - one for each day of the week!
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 3 Times
in
3 Posts
I'm not seeing the link between responsible use of credit, (or lack thereof) and being car-free. Did you go car-free to pay off your debt, or did you have to go car-free in order to pay off your debt? Either way, congrats on getting out from under it all.
#7
Senior Member
Join Date: Dec 2001
Location: New Jersey
Posts: 7,143
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 261 Post(s)
Likes: 0
Liked 11 Times
in
10 Posts
There's no question in my mind that being car free enabled me to dig myself out of 14K in credit cards. I still have $600.00 dollars in student loans left and that will be paid next month. To think that I owed close to 30K in student loans and credit cards just 5 years ago!
#8
Senior Member
Join Date: Aug 2007
Location: British Columbia, Canada
Posts: 2,206
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 4 Post(s)
Likes: 0
Liked 1 Time
in
1 Post
From what I've observed here and elsewhere, those who choose to go car-free tend to couple their decision with strong attitudes about living simply, practicing wise management of personal finances and showing social responsibility. In other words, part of what attracts us to a car-free lifestyle is its role in a frugal lifestyle.
#9
Tree-hugging Norse
Thread Starter
Join Date: Apr 2007
Location: Seattle
Posts: 41
Bikes: LHT, Schwinn World Sport
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times
in
0 Posts
The link being, as others eluded too already, that a car-free lifestyle enabled me to recover from my past 'irresponsible' use of credit. Few realize actually how much money can be saved by using a bike (or even public transit) as a primary mode of transportation.
#10
Senior Member
Join Date: Nov 2004
Location: Between the mountains and the lake.
Posts: 16,681
Bikes: 8 bikes - one for each day of the week!
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 3 Times
in
3 Posts
Ok, I'm not knocking the car-free aspect, so please don't jump all over me. But could you have paid off this debt and still kept your car? And was the debt car-related? Did going car-free result in any loss of income?
#11
Disgruntled Planner
Join Date: Oct 2003
Location: Tillamook, Oregon
Posts: 882
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times
in
0 Posts
I can certainly say that the extra $300 per month that I now pay in lease payments and insurance could be much better spent on paying down my debt. I mean, I AM paying it off, but I could make it disappear much more quickly if I weren't shelling out money for my driveway's paperweight.
#12
Senior Member
Join Date: Nov 2004
Location: Between the mountains and the lake.
Posts: 16,681
Bikes: 8 bikes - one for each day of the week!
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 3 Times
in
3 Posts
I can certainly say that the extra $300 per month that I now pay in lease payments and insurance could be much better spent on paying down my debt. I mean, I AM paying it off, but I could make it disappear much more quickly if I weren't shelling out money for my driveway's paperweight.
#15
Senior Member
Join Date: Mar 2005
Location: Texas
Posts: 959
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times
in
0 Posts
Heck being a one car family finally go my wife and I to be debt-lite (just a mortgage and student loans); and now those are being paid off faster. Although my money market is making more interest than either of our student loans charge and almost as much as our mortgage. Try that with a c.c.
#16
Senior Member
I'm not car free, but my wife and I are as car light as we can possibly be in middle Georgia. I have a long-ish commute to work. My wife's a teacher.
We went from 2 cars and each of us driving to work to me dropping her off at work and her riding home (her work is on my route to work), getting rid of her car, using the trailer to take off our recycling, using the trailer to go grocery shopping when we can, and me telecummuting when possible (about once per week). I'll also sometimes take my bike to work, ride home, then ride in the next morning.
So far, we've extended the life of our cars be several years doing this, and we've saved enough on car payments, gas, maintenance, etc. to save over $60,000 between us. It's enough to allow us to move in the very near future.
We're going to move to the PNW where we can be car free.
We went from 2 cars and each of us driving to work to me dropping her off at work and her riding home (her work is on my route to work), getting rid of her car, using the trailer to take off our recycling, using the trailer to go grocery shopping when we can, and me telecummuting when possible (about once per week). I'll also sometimes take my bike to work, ride home, then ride in the next morning.
So far, we've extended the life of our cars be several years doing this, and we've saved enough on car payments, gas, maintenance, etc. to save over $60,000 between us. It's enough to allow us to move in the very near future.
We're going to move to the PNW where we can be car free.
#17
Tree-hugging Norse
Thread Starter
Join Date: Apr 2007
Location: Seattle
Posts: 41
Bikes: LHT, Schwinn World Sport
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times
in
0 Posts
Add the cost of the car to the money I have recouped and it's near enough 15,000 dollars since going car free. Anyway, I dont mean this as a 'pat me on the back' post, just a success story for anyone else trying to save money or thinking about going car-free for any number of reasons that include paying off debt~!
#18
Senior Member
Join Date: Nov 2004
Location: Between the mountains and the lake.
Posts: 16,681
Bikes: 8 bikes - one for each day of the week!
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 3 Times
in
3 Posts
Add the cost of the car to the money I have recouped and it's near enough 15,000 dollars since going car free. Anyway, I dont mean this as a 'pat me on the back' post, just a success story for anyone else trying to save money or thinking about going car-free for any number of reasons that include paying off debt~!
#19
Pedaled too far.
Join Date: Oct 2005
Location: La Petite Roche
Posts: 12,851
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 11 Post(s)
Likes: 0
Liked 7 Times
in
7 Posts
After over a year of being car-free, I just made my last credit card payment the other day. To date, I've paid off nearly 6500 dollars in credit and other miscellaneous nonsense from my marriage, college, and irresponsible teen years. I have not been without credit card debt since I was 18 (now being 25). It's a nice feeling, and I think I'm on to a new credit-free lifestyle as I balked at spending two dollars on a drink when I realized I left my debit card at home and only had the credit card. Now those pesky student loans, that may soon be growing, are a whole other issue. Car-free FTW!
I've been car-free at many points in my life. It provided a nice cushion when I first moved out from my father's house. It made a bachelor's degree affordable. I was car-lite during my marriage and my ex realized that my bicycle commuting was what kept us in the black each month. Most recently, when my ex asked for a divorce, I parked my car and went from car-lite to car-free. Slightly over 2 years later, I had $20,000 of credit card debt paid off.
As you know, its not just the savings on car expenses, its also that you spend less because you don't go to as many events as you might with a car and you don't buy as much as you might with a car because you know you have to carry it home. It also provides a general daily reminder about your efforts to achieve financial solvency. I might have been able to pay off the debts with a car, but when you really want to pay off debts, it's best to do it as fast as possible.
#20
Pedaled too far.
Join Date: Oct 2005
Location: La Petite Roche
Posts: 12,851
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 11 Post(s)
Likes: 0
Liked 7 Times
in
7 Posts
Well, in my case, I keep my parking lot paperweight parked near my apartment because I hope to afford it in the future. It will be cheaper to get it back on the street than buy a new one. And for insurance purposes.
Being a "low use" car, it costs me about $300 in insurance and $25 in registration per year. As far as I can tell, having driver's only insurance is normally considered "at risk" and would immediately put me into a very high-cost category. And the insurance is required to register the car.
While I don't drive my car, I do rent cars when the company sends me on business. My cheap insurance and what my credit card provides keep me covered. Most often, the company sends me to California. Drivers there are required to have insurance. This keeps me comfortable.
Being a "low use" car, it costs me about $300 in insurance and $25 in registration per year. As far as I can tell, having driver's only insurance is normally considered "at risk" and would immediately put me into a very high-cost category. And the insurance is required to register the car.
While I don't drive my car, I do rent cars when the company sends me on business. My cheap insurance and what my credit card provides keep me covered. Most often, the company sends me to California. Drivers there are required to have insurance. This keeps me comfortable.
#22
Disgruntled Planner
Join Date: Oct 2003
Location: Tillamook, Oregon
Posts: 882
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times
in
0 Posts
It just sucks to shell out that much money for something that gets driven about 100 miles per month.
#23
Biker
Join Date: Aug 2005
Location: DC
Posts: 1,917
Bikes: one Recumbent and one Utility Bike
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times
in
0 Posts
Well, I might go to more events than I did when I was car dependent. One reason is that it is much easier to park a bike right at the door of the venue. Another is I have more money to spend on events. Another is that I moved into town where there are many more nearby choices and it is quicker to get to them by bike than driving in from the suburbs. I'm interpreting "events" here to mean plays, concerts, lectures, films, political rallies, special museum exhibits, speeches, parades.
#24
Biker
Join Date: Aug 2005
Location: DC
Posts: 1,917
Bikes: one Recumbent and one Utility Bike
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times
in
0 Posts
I was car-lite during my marriage and my ex realized that my bicycle commuting was what kept us in the black each month. Most recently, when my ex asked for a divorce, I parked my car and went from car-lite to car-free. Slightly over 2 years later, I had $20,000 of credit card debt paid off.
#25
The Rock Cycle
I've been debt free since 1993. The feeling of elation I felt when I paid off my last loan still has not faded!
I can't think of anything I want bad enough to borrow money for it.
I'm in college full time: very low income + high GPA = grants and scholarships that pay all of my tuition and most of my living expenses (there are not a lot of them). I'm also working a few hours per week on campus for pocket money.
I can't think of anything I want bad enough to borrow money for it.
I'm in college full time: very low income + high GPA = grants and scholarships that pay all of my tuition and most of my living expenses (there are not a lot of them). I'm also working a few hours per week on campus for pocket money.
__________________
Gunnar Sport
Specialized Ruby
Salsa Vaya Ti
Novara Randonee x2
Motobecane Fantom CXX
Jamis Dakar XCR
Gunnar Sport
Specialized Ruby
Salsa Vaya Ti
Novara Randonee x2
Motobecane Fantom CXX
Jamis Dakar XCR