Dear Dave,
Iím self-employed, and I travel about 30,000 miles a year in my van. Iím three payments away from having the vehicle paid off, but it has 170,000 miles on it. Do you think it would be a good idea for me to buy a new van and have the tax advantages that would go along with it?
Dear Doug,
There are two things you can do on taxes when it comes to your automobiles. You can straight line depreciate them, which is what you do with expensive vehicles, or you can write off the mileage. Thatís a good idea if you drive a lot. The thing is, you get the mileage whether you have debt or not.
Letís say you bought a $25,000 van. If you depreciate that over five years, thatís $5,000 a year. If you made $65,000, and take $5,000 from that, youíd pay taxes on $60,000. If you didnít have that, youíd end up paying $1,250 in taxes. In other words, youíd be spending $25,000 over five years to save $1,250 a year on taxes. Thatís a trade I donít think you want to make.
Remember, too, that you basically destroy whatever you drive. You have to think of your vehicle as overhead. So youíre going to destroy a $25,000 van or a $5,000 van all in the same period of time. As a businessman, which would you rather destroy? The answer is whatever is the least expensive and gets the job done!
ó Dave

Donít need those cards
Dear Dave,
I have two credit cards. One charges me an annual fee of $79 and the other a fee of $39. Should I cancel these and not worry about my credit score? Iíd like to buy a house in the next two or three years.
Dear Ken,
In my mind, thereís no such thing as a good credit card. My advice is to go ahead and cancel them.
When you stop borrowing money and donít have any open accounts, your credit score will slowly disappear. The big thing is that you donít want to be caught in no-manís land in terms of a credit score. You want either a fabulous one, which means youíre in debt all of the time, or you want no score because you donít have any open accounts.
By the way, did you know that you can still qualify for a mortgage even with no credit score? There are still mortgage companies out there that will do manual underwriting. It takes a little extra effort, but in my mind thatís a small price to pay.
Cancel the cards, Ken. Iíve never met a millionaire who prospered thanks to credit cards and their gimmicks!
ó Dave

Dave Ramsey is Americaís trusted voice on money and business. He has authored five New York Times best-selling books. ďThe Dave Ramsey ShowĒ is heard by more than 8.5 million listeners each week on more than 550 radio stations. Daveís latest project, EveryDollar, provides a free online budget tool. Follow Dave on Twitter at @DaveRamsey and on the web at