In many ways, being in debt is a financial wake-up call that encourages you to streamline your lifestyle and reduce your expenses. It would be unfair to pretend that debt recovery is as simple as creating a list of the things you can and can’t keep. However, it makes no doubt that a frugal approach can significantly contribute to your financial recovery.
But the definition of frugality can seem too obscure. How do you figure out what you truly need? Simple choices, such as buying a cheaper food brand, can cut down your grocery shopping costs without compromising nutrition and health. Additionally, reconsidering expensive hobbies to lessen the impact on your budget will also make a difference. But there’s a thin line between what you need to keep and what you should discard in your debt recovery journey.
Indeed, car ownership, for instance, comes at a cost. You need not only to consider the cost of purchase but also insurance, maintenance, and fuel expenses. Therefore, you may wonder whether a vehicle is necessary when you’re in debt. However, before you decide to ditch the car for now, here are the many reasons why you can and should have a vehicle while you recover your financial stability.
Money lenders understand the meaning of cars
When debt gets out of control, financial advisors can recommend filing for bankruptcy. However, most people assume that going bankrupt means you will lose all your belongings. In reality, the bankruptcy trustee will work closely with each individual to define whether or not they will lose their car. Depending on the value of your vehicle, it may be a good idea to sell it and opt for a cheaper car. In most bankruptcy cases, if the car is essential to maintaining your job, financial advisors recommend keeping the vehicle.
While expensive and valuable cars can be sold to repay your debt, it doesn’t mean you can’t purchase a new vehicle. Many financial options, such as New Roads Auto Loans, are specifically designed to support people with bad credit history.
A car is essential to maintaining your health
Your car is also an essential part of your health routine. For instance, if you need frequent medical appointments, you can’t afford to go without a vehicle. Your car makes essential health-related commutes possible. Skipping medical appointments is a false economy. Health issues can make it hard for you to maintain your performance at work and pay off your debt.
Your car also plays a significant role in preserving your social network. Debt can make you feel isolated and alone, which contributes to depression. Unfortunately, depression is one of the most commonly overlooked causes of debt. In other words, it is a vicious circle. You feel depressed because you are in debt, and your debt becomes less manageable because you are depressed. Keeping your vehicle means you can reach out to friends and relatives and maintain a supportive social network. You need to stay healthy, both physically and emotionally, to recover from debt.
In conclusion, a car is an investment in your debt-free future. Being able to own a vehicle even when you are in debt is a no-brainer. You need to have a car to secure your income and protect your health.
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