Thursday, 17 May 2018 07:08

Dave Ramsey has the Answers to Your Questions!

Written by  Dave Ramsey
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Not as Bad, But Still Not Smart

 

 

Q.  How do you feel about check cashing companies?

 

 

A. I’m not a big fan of check cashing companies. They’re not nearly as bad as payday lenders, but it still seems kind of silly to me there’s even a market for this kind of thing. If you want a place to cash your checks and store your money, all you have to do is walk into a bank and open an account.

 

I realize there’s a small segment of the population that some people in financial circles like to call “the unbanked.” This means that, for whatever reason, they avoid banks. That’s their choice, but in the process, they leave themselves susceptible to bad deals.

 

As I said, I don’t feel the same way about check-cashing companies as I do about payday lenders. But it’s still not a financially smart move to regularly pay a storefront operation fees just to cash your checks.

 

 

 

Getting Rid of the Car

 

 

Q. How do you sell a vehicle with a lien amount that’s higher than the actual value of the car?

 

 

A. First, you need to find a way to cover the difference between the amount of the lien and what you can get for the car. Let’s say the car is worth $12,000, and you owe $15,000. That would leave you $3,000 short.

 

The bank holds the title, so unless you give them the payoff amount of $15,000 you’re not getting the title. The easiest and simplest way would be if someone buys the car for $12,000, and you had $3,000 on hand to make up the difference. If you don’t have the money to make up the difference, you could go to a local bank or credit union and borrow the remaining $3,000.

 

I really hate debt, but being $3,000 in the hole is a lot better than being $15,000 in the hole. Then, you could turn around and quickly pay back the $3,000 you borrowed.

 

You’d give the total amount owed to the bank, they would give you the title, and you would sign it over to the new owner. Hope this helps!

 

 

 

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