A debt's real cost is in opportunities lost. When you take on a new monthly payment (even at a low interest rate), you're making a commitment against your future income--often for a very long period of time. What could you be doing with the $423 a month you spend on a second car? Over a month, not much. But over 60 months, it's more than $20,000. Committing to debt prevents you from taking advantage of other opportunities. You want to take a lower-paying job because you love it? That's tougher to do with a new second car sitting in the driveway.
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