Negative Equity

Why are so many Americans willing to pay for stuff they don't own anymore? Apparently, lots of people like to buy new cars when they haven't fully paid off the one they currently own. So the new car dealer always says this ---- you can get that new car, we'll just roll what you owe on the old car into the payment for the new one. And after 15 years of the low low payment of $400 a month, this new Oldsmobuick can be all yours!

I know plenty of people who've done this. Of course, they get tired of the Oldsmobuick after two years and trade up for the Family Truckster. Now they're paying on two cars they don't own. Leasing is even stupider. They'll stick you with all sort of charges when you turn in the car. And to top it off, you never own the car so payments are perpetual.

Ask yourself this question. Would you buy a new house if it meant you had to still pay on the one you just moved out of?