"I'm Missing Car Payments on a Luxury SUV I Can't Afford, and I'm Terrified of Being Stranded!

Jayson Thornton, CFP is an award-winning Financial Advisor and host of Pocket Watching with JT, a financial advice podcast and YouTube channel. Below he answers a recent question from a subscriber:

Michael from Texas asks: "I bought a luxury SUV during the pandemic because of low rates, but the insurance and the $850 payment are killing me. I've missed a payment, and I'm terrified they're going to take my car. With the repo crisis in the news, what's the first thing I need to do to stop this financial time bomb from exploding?" 

Financial Situation:

• Income/Month: $4,500

• Expenses/Month: $4,350 (Includes $850 SUV payment)

• Total Debt: $32,000 (Remaining SUV loan, $5,000 in credit cards)

• Emergency Savings: $500

🎙️ JT's Answer: Get Your Money Scorecard

Michael, let me be absolutely direct: You are acting like a broke person with a rich person's debt. The fact that your car payment is nearly a fifth of your entire income (over 18%) is financial insanity, especially when you have only $150 left over on paper ($4,500 income minus $4,350 expenses) and are already missing payments. Your fear is real, but you're focused on the wrong problem.

You are trying to fight a financial war without even knowing the score. Before you worry about the repo man or the $32,000 in debt, you need to follow the Pocket Watcher's first rule.

Step 1: Budgeting (Get Your Money Scorecard)

Your very first step is not selling the car—it is gaining clarity and control over your cash flow. That tiny $150 buffer is already disappearing, which is why you missed a payment and only have $500 in savings. We need to find where that money is going.

Your immediate action plan, straight from the Pocket Watcher Money Rules:

1. List Everything: List every single dollar of income and every expense for the last month. You are looking for the "Want Money"—the discretionary spending on non-necessities. This is the easiest place to find extra cash to use as "Debt Fuel" later.

2. Implement the "Pawn" Budget: Your finances are in a crisis, which means you need a radical, temporary plan. I recommend the 50/50 "Pawn" starter budget to get you stable fast.

3. 50% to NEEDS: This goes to true necessities like your housing, food, transportation, and minimum loan payments.

4. 50% to SAVINGS: This is a temporary move to immediately build a one-month emergency fund ASAP.

   
   

This temporary, non-negotiable budget will force you to face the reality of that SUV. It will expose the fact that the $850 payment and high insurance cost are not sustainable for a person whose income must be split 50/50. You need to know where your money is going so you can tell it where to go!

The Repo Warning: Make the Choice Now

The current situation is not changing, and you are terrified of losing the car—that is an excuse to avoid changing your financial lifestyle. With only $500 in savings, you are one unexpected expense away from going into a Debt Spiral.

The only way to ensure you never get into a financial mess again is to build your Guardrail. If you cannot find the money to consistently pay that $850 while adhering to the 50/50 budget, you must sell the luxury SUV now—on your terms—before the bank takes it on their terms. Selling it yourself will protect your credit and get you a better deal than a repo would.

Once you complete Step 1 and find that extra cash, you will immediately move to Step 2: Emergency Savings to build that Debt Spiral Guardrail. Use the cash flow you free up from cutting "Want Money" to build that initial one-month emergency fund.

You are in control, Michael. Financial freedom is not about making one big transaction. It's about building new money habits, and watching your pockets. Your next step is to go to www.PocketWatcher.net and follow the Pocket Watcher 7 Money Rules! 

About

Jayson Thornton, CFP is the founder of Thornton Financial and host of Pocket Watching with JT where he answers your financial questions38. To learn more or submit a finance question go to www.PocketWatcher.net

For press inquiries, contact Jayson Thornton, CFP at PocketWatcherJT@gmail.com or 314-776-9076.