[cody0707]

I have a truck I recently took a small personal loan out on $3,000. I purchased the truck for $1,000 and put roughly another $1,000 into it. I used the other $1,000 of the personal loan to pay some things off.

Today my parents told me I can use their bought and paid for truck as long as I insure it and do all of the maintenance on the truck. I wouldn't have to pay them anything for using the truck.

My question is, is should I sell the previously purchased truck for as much as I can get out of it (probably around $2,000) and use that money to pay off debt?

Does anyone see any reason as to why this wouldn't be the best idea?

 

[Ayanka]

The reason why it wouldn't be a good idea: you would be indebted to your parents, for a relatively low amount of advantage. Unless you have a ton of debt, I wouldn't do it.

 

[CookieLee]

First you have to quit borrowing money to try to get out of debt. Taking a title loan on your truck for $3000 to pay off $1000 in debt isn't good math. You could probably earn more with the truck (hauling scrap, etc) than if you sell it. There is no fast path to getting out of debt except chipping away at it. In the end, you'll be glad you did.

 

[old guy]

Today my parents told me I can use their bought and paid for truck as long as I insure it and do all of the maintenance on the truck. I wouldn't have to pay them anything for using the truck.

The answer mostly depends on your age. If you are a teenager living at 'home', that could be a good arrangement. If you are over age 21 and living away from 'home', it would be a road-block on your path to becoming a responsible grownup. (Disclosure: My kids are in their 40's, if either of them, or either of my grandkids, wanted to borrow my truck, they are totally welcome to use it for as long as they want - but I will keep it insured and maintained myself)