I got some better feedback from people this time concerning my comments about buying new versus buying used. So, I thought I would go for one more post here. Life with the Quinns commented that they bought a used Honda minivan for about $10,000 cheaper than new, but ended up spending about $10,000 in future repairs. E.C. commented that it can also make sense to buy new if you plan on driving the car for a long time. Also, it's helpful to finance a new car if you can get 0% or a very low rate rather than coming out of pocket for the full purchase price. That way you can keep the money in your account earning interest.

Like I've said before, you rarely hear the negative side of buying a used car from these radio and TV personal finance personalities. "It's always better to buy used!" No, actually many people have made out much worse with a used lemon and it cost them much more financially. Unless you're a mechanic and can fix you're own car problems, buying a used car can be a disaster.

Even many "lucky" people who have purchased used cars and had no problems will spout the same "always buy used" rhetoric. Yes, buying used is great financially if you luck out and get a genuinely good used car. But, this basically boils down to a financial risk with many variables involved.

So I'll leave it at this: Do your homework and don't get caught up in the idea that buying a used car is always more financially responsible, because sometimes it's not.

So I've caught a little flack from people saying how buying a new car is never a better financial decision over buying a used car. Once again, I will explain my view a little more in-depth on this topic.

In many cases, buying a used car is a much better financial decision versus buying a new car. There, I said it. But my point here is that you may buy a complete lemon of a used car (even with a warranty, it will be in the shop causing you problems) that may affect your job. It may be worth buying a cheap, reliable new car with a low payment and warranty. Now, obviously new cars can have problems as well, although it is less likely.

When buying a used car, you never really know how well it was treated by its previous owner. Mechanics, car salesmen, and car washers can work wonders on used cars and polish them up to look great. But looks may be deceiving.

If you have a new job or a tough boss, having an unreliable car may cost you considerably in the long run. Follow my logic: You get a new, decent paying job right out of college. You buy a lemon and it causes you to lose several days of work here and there and several more days of coming in late. You get fired because you haven't worked there very long and they see you as an irresponsible employee. You're out of work for say 6-8 weeks or you have to settle for a lower paying job in the mean time. Say your starting salary was $2000 (take-home pay) and now you've been out of work for 8 weeks, you've just lost $4000. This is probably more than any depreciation you would have incurred with the purchase of a cheap and reliable new car.

I know this is a stretch, but my point here is that there's much more to buying a used car versus a new car when considering the financial consequences.

Buying a used car may make sense in many cases financially, but it may not always pay off in the long run.

It's in our nature to adjust our lifestyle according to our income. We get a raise and we then go out and buy a new car or bigger house. We might also buy new clothes or go out to eat more often. This is why there are many people out there making $150k+/year and are completely broke.

My advice for young people is to live as cheaply as possible for the first 5-10 years of your career. Buy or rent a modest home and live there for as long as possible. Keep your cars as long as they run. Every time you get a raise, don't adjust your lifestyle accordingly; save this extra money!

I know this is difficult because it's typically the first time in your life that you actually have a decent income. It opens up so many more opportunities to finance fun things like houses and cars. It sounds so simple: "all I have to do is make that monthly payment." But pretty soon you'll have several monthly payments stretched out over many years. The possessions you financed will get old over time and that monthly payment will become a chore and a burden on you and your family.

Stay out of debt and save up for large purchases. You'll save a ton in finance charges and you'll be in a better position to truly decide if you want to spend your "saved" money for an item. When forking over a large amount of cash, you may re-evaluate your potential purchase.

I've heard of this documentary before, but never had the opportunity to watch it. I ran across it on Google videos and have to say it's worth watching. There is a lack of accountability portrayed on this film, but my post is not concerned with this. People make mistakes. Being in credit card debt, I can definitely sympathize with many in this documentary. Credit card debt is something you can overcome! My wife and I have made considerable progress in the past year. We have lived on as little as possible and put as much as we can toward our credit card debt. I'm happy to say that we will hopefully be credit card debt free in a few months. This has been an incredible burden hanging over us for a couple of years and I'm starting to see the light!

Watch this documentary; show (or send) it to your friends and family. If you have teenagers and/or college students, show them this video. Explain the many pitfalls of credit cards. But above all else, tell these people everything can be fixed no matter how far in debt you are. The "fix" may not be quick or easy, but is excessive credit card debt a reason to take your life? The answer should be clear to many, but alas many people feel as though it's their only way out.

Promote credit education.