Dear Mary: We own two vehicles free and clear. The newer vehicle is a 2006 model with 50,000 miles that sits in the garage. My husband uses a third work vehicle during the day, and we use my older vehicle for family outings. I have $25,000 in credit card debt. Should I sell the garaged vehicle to pay off about $17,000 of that credit card debt? Since my husband was without a job for a short time two years ago, I have been unable to pay our monthly expenses and also pay down the debt. — Diane, Connecticut

Dear Diane: Yes, you should sell it and soon because, as you know, a car is a depreciating asset. Every day, it is losing value. Use the first $10,000 from the net proceeds to build your contingency fund — money you keep in a savings account and can use to pay your bills for at least three months should you face a financial emergency in the future (such as your husband losing his job).

Then use the remaining amount to pay down that big debt. If you do get $17,000 for that car, you should be able to bring your credit card debt down to about $18,000 — still a large amount but better than $25,000. And if you continue to make the same monthly payment as you are making now, you will see the balance drop quickly.

I know it might seem foolish to save any of the money at all when you owe so much on your credit cards. But if you were to use all of the money to pay down the debt and then face a financial emergency, you'd have no choice but to run back to your credit cards for a bailout. That would put you into an even worse situation in the future.

Dear Mary: We were looking at remodeling our outdated and insufficient kitchen by going at least $10,000 in debt. A recent "Everyday Cheapskate" column, "Don't Ever Give Up," about getting out of debt reminded me that I don't want to put on that ball and chain for the next few years! I'd rather have a modest kitchen and improve it gradually at a price we can afford than borrow from our future and strap ourselves with another huge burden of debt. Thanks for the dose of reality. — Valerie, e-mail

Dear Valerie: I am so happy to hear that column caused you to take a deep breath and reconsider your options. Break down that remodeling project into manageable parts (floor, stove, countertop, etc.) that you can pay for as you go. I predict that in just a few years, you will have a remodeled kitchen and no new debt, too. And never forget: There's no new kitchen that feels as good as debt feels bad.

Do you have a question for Mary? E-mail her at [email protected], or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." To find out more about Mary and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.