The Ramsey Show - App - Are All-in-One Loans a Good Idea? (Hour 2)

Episode Date: May 20, 2021

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🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. I'm flying solo today. Thank you for joining us here on The Ramsey Show. Good to have you guys. In the third hour, the next hour,

we will be dealing with one of the scummiest industries in America today. Time shares. Ugh. Gross. Filth. Trash and nastiness horrible reputation everyone starts shaking their head and laughing when you start talking about them you guys are a joke in that business you're a joke and you're a nasty joke that has ripped a bunch of people off to the tune of billions of dollars. And it's time you stopped. So we're going to talk about you if you're Timeshare scum.

So get ready. It's going to be next hour. If you have had experience with Timeshare scum and it didn't turn out well for you and you want to talk about it, I'm going to give you just the place to do it right here. You can call us at 888-825-5225 for next hour's show, or you can email if you can't get through because the lines are jammed right now. Just go to DaveOnAir at RamseySolutions.com. Put Timeshare Scum in the subject line, and we'll give you a chance to talk and tell your

story as to what happened in the time that they screwed you like they have half of America. So there you go. Hope I wasn't unclear on how this is going to go down. It's not like this is an objective thing. I'm right. They're scum, and we're going to tell everybody. It's how it's going to work. Okay.

So Dave on air at RamseySolutions.comcom john starts off this hour in toronto hey john what's up in your world hey dave thanks for taking my call sure how can i help uh so i'm 21 years old just graduated from school congratulations what's your degree in? Paramedicine. Good. What are you going to be making? $40 an hour. Good. Good for you. Yeah. So I have, thank you, I have about $21,000 in loans, about $7,000 in my savings,

and the interest on the loan is only about $15 a month. So I'm kind of wondering, should I be dumping 90% of my paycheck into paying off my student loans or kind of putting half on student loans and half in the savings account kind of thing? And the savings account pays nothing. It's just like a student savings account right now. Nothing. So we have to set up something better.

Yeah, nothing. Yeah. And so we're going to not pay off the student loans because they don't charge a lot and we're going to save money and make nothing yeah that's pretty much what i'm doing right now yeah so when you're 31 uh i think you're going to be really glad that i kicked your butt and told you to pay off your student loans immediately. Don't screw around with these things.

And here's the thing. You're correct mathematically in that the interest is not that high. But there's another interest that you're paying, and it's the weight of them hanging around your neck that makes you even question the situation. You can feel the weight across the tops of your shoulders and runs down your back, and occasionally it manifests itself in a headache. You have a physical reaction to debt. You have an emotional reaction to debt. You have a spiritual

reaction to debt that has nothing to do with mathematics, but it does affect your life and the quality of your life. And you'll know that I'm right about this when you're free of it, and you feel light and airy. And wow, I had no idea. This feels so nice.

The rich rules over the poor, and the borrower is slave to the lender. When a slave is set free, they are free indeed. So set yourself free, young man, as fast as you possibly can. That's what I would do. Aaron is with us in Denver. Hi, Aaron. Welcome to the Ramsey Show. Thank you, sir, for having me.

Long-time listener. You've helped me get through a lot of stuff in the past, and hopefully you can help with the situation I'm in now. Thanks. How can I help today? Yeah, so 30 years old, me and my wife, we're looking at selling our house. As you know, the market here in Denver is pretty crazy. We've got some pretty solid equity in the house we have currently. I've worked with $300,000.

Looking to buy a new house and we're given a couple options from the lender that we're working with. And one of them I'm extremely unfamiliar with. I've owned several houses, traditionally done just a fixed interest mortgage. They're often what's called an all-in-one loan. And I just was curious, have you ever heard of that? Good, bad situation? What do you have to say? I've not heard of it. It does sound like a brand particular to that lender. What does it entail? So how they're marketing it is it's basically a savings account that the balance in the account reduces the interest by that amount. So, you know, we have about $50,000 in cash that we keep in the account at all times. So that would basically reduce the interest that's

charged on the account. The thing I don't like about it is it's a variable interest rate. Right now it's around 3.5 versus I can get a 1.99 on a 15-year fixed. But it has potential to go up from there. It's kind of a sliding rate. So the math, you know, they provided me a spreadsheet that said it'll save $50,000 over the life of the loan or something like that. But it's just kind of a new territory to me. If you put the $50,000 as an extra down payment on the house and you get out of debt that much faster,

you're going to save a lot more than their spreadsheet gave you. That's what I figured. I'm an engineer, so I'm pretty good with math, and I've tried to run a bunch of different scenarios, and it ends up being a wash, basically. And here's the other thing. Here's the other part of that is there's a part of the math that's hard to put in there, and it's the analysis of risk, that the more debt you have on the house,

obviously the higher your payment is, and so the more risk you have. The longer you're in debt, the more risk you have, and the higher the ratio of loan to value is the higher your risk is uh and that it's hard to put that to an actual math figure but that's common sense we know that to be true because you and i have walking around since right we know that if i owe more money i have more risk duh you know so uh but but it's hard to actually put an actual dollar figure to that the way we do see that play out in reality and where we can measure it is like when we did the Ramsey team, did our Ramsey research study on millionaires, and we studied 10,000 millionaires.

We didn't find a single one that used a technique like you're talking about to become wealthy, not one. Correct. Instead, we found the typical millionaire. All the data tells us that the typical millionaire quickly gets out of debt average pays off their home in 11.2 years which means that some do it sooner some do it longer but that was the average among the 10,000 millionaires none of them were sitting around going i'm going to figure out a way mathematically to borrow my own money back and pay a little higher interest rate on a variable, and a spreadsheet says, and all this crap that they're telling you, right, with this product.

So this product stinks to high heaven, dude. Run from it. Bottom line. You knew it. You could feel it in your bones, but you hadn't figured out a way to put a math number to it yet. But I just gave it to you. Data says don't do it. This is the Ramsey Show. People all over the country are discovering a faith-based and budget-friendly way of meeting

health care costs through Christian Health Care Ministries. Christian Health Care Ministries, or CHM, is a nonprofit organization that helps members carry one another's burdens with healthcare expenses, and they have successfully shared each other's medical bills for nearly 40 years. See if CHM is right for you by visiting chministries.org. CHM is a proud sponsor of Dave Ramsey Live Events. Thank you for joining us, America.

This is the Ramsey Show. We're glad you're here. Open phones at 888-825-5225. If you live like no one else, later you can live and give like no one else. There's a price to be paid for winning. No discipline seems pleasant at the time, but it yields a harvest of righteousness. Our team is just giving away my best-selling stuff. I mean, this is crazy.

Next to nothing, almost. We are running an epic two-day sale right now. Good gracious. That means you can get up to 80% off books, bundles, and envelopes and give a life-changing gift. Springtime, graduation graduation season wedding season father's day is coming up you name it if you're ready already budgeting and you know the baby steps we want you to live and give like no one else these sales are great opportunities to stock up on gifts for people that really need it two-day sale includes audio books starting at five dollars oh my gosh the starter envelope

system for budgeting only five dollars bundles lots of the bundles on the site up to 80 off and the update ramsey plus marriage bundle which includes now the know yourself money assessment which we just launched two weeks ago. Man, these are deals. Use this opportunity to give and live like no one else. You may just change someone's entire life. And if you're trying to get out of debt, well, you can start right here. Shop this epic two-day sale at RamseySolutions.com slash store. RamseySolutions.com slash store ramsey solutions.com slash store alex is with

us in new york city hi alex welcome to the ramsey show hey dave how are you doing better than i deserve what's up uh just a little background i graduated college recently i've had a full-time job going and um i just want to have minimal liability in the work-from-home situation. And I want to invest aggressively as early as I can. And I'm interested in investing in rental property. But as you know, real estate in this region is astronomical. So I was looking into out-of-state markets

where my money would best be served. And I have a better opportunity to pay all cash for these rentals, and I just kind of want to get your thoughts on that. What do you make? $70,000. How old are you? 22. Okay.

And so how much do you have saved? I have about $40,000 saved right now. I have a little bit of student loans student loans but like i i definitely plan to pay those off of the check like very very soon so it's about 10 000 student loans you live in manhattan i live in new york area not not in manhattan where do you live um i live uh okay all right cool all right i'm just trying to figure out how he's making it on 70 grand dude i mean i kind of know that market um yeah uh so it's a good income but it's a very expensive place to live as you know even staten island but nowhere near like manhattan so all right hey um no look here's the problem and i own a bunch of real estate as you

probably know alex and i love real estate as you probably know and i've had really bad experiences without with rental properties that i cannot lay my hands on i need to be able to drive by them look at them and even if someone else is running them for me i i that you just make better decisions if they're within you know shooting distance here where you can get to them um it just sets you up for a problem and if you have a rental property that goes bad it could set you back more than than three of them going good could set you forward. And so that's the problem. Real estate requires, it's got a hassle factor to it as an investment. It requires involvement. And no, you cannot just stand back and watch someone else run it and it all work out.

I mean, you can have a property manager, and there are some good property managers, but no one manages your stuff like you do. So you've got to look over the shoulder of the property manager to be sure that things are being done right and go, how much did we pay for that hot water heater? Say what? You know, that kind of stuff. And when that's three, four hours away from you or eight hours away from you or something, that just becomes very

tenuous and it sets you up for a high potential to have a bad experience in real estate rather than a good one so i would tell you not to do that i would tell you instead let's just pile up our money and and let's see where your career takes you and see where you end up landing and let's just start invest i would just use mutual funds at your age to begin to build it up you don't have enough to buy it anyway today, so it doesn't matter. It's all theory at this point. Chris is in Houston. Hi, Chris.

Welcome to the Ramsey Show. Hey, Dave. It's an honor to speak to you. Thanks for having me. Sure. What's up? Hey, my wife and I, our family, we're in baby steps four, five, and six. We've got a fully funded emergency fund of $30,000.

And the household that we live in has natural gas and electricity energy sources so i keep getting but i keep getting letters in the mail from our natural gas provider stating that any pipelines that run exterior to the house we would be responsible for 100 out of pocketof-pocket for any repair or burst. And they're offering a plan for $8 a month that would supply up to an $8,000 policy coverage. I bet they do. I was wondering if that would be a good idea to do. Absolutely not.

That's horrible. Okay. That's what I thought. But this is the first household that we've ever lived in with natural gas and electricity, so I just wanted to get your perspective. Yeah, they're making a bazillion dollars on that. They're making more on that crap than they are on gas. Oh, my gosh.

That's what I thought. Yeah, so let me kind of, here's how I'm answering that question with such in with such emotion okay um in my life which i'm old i have owned over 2 000 pieces of real estate lots and lots of residential single-family homes are on that list i used to buy property that was trashed fix it up and resell it in my 20s and flip it. In all of those pieces of property, I have replaced plumbing and lots of them. I've replaced, I've had septic tank problems with lots of them. I've had sewer lines running from the street that got busted up by roots from a tree growing next to them in lots of them lots of them not hundreds but enough of them that i remember it happening a lot okay i've bought houses that the wiring was

bad in and we had to strip it out and put all wiring back in all of those properties and i'm in middle tennessee and natural gas is very proper or very prevalent in middle t. You'll see it in a lot of our homes. I have it in my personal home now. I have it in my lake house now, okay, right here in Middle Tennessee. So natural gas is everywhere where I'm doing all these deals. The vast majority of these houses would have had natural gas in them. The number of times I have replaced a natural gas line from the street to the house out of all of those different experiences is zero

oh wow okay beautiful so there's actually some data behind my going no way right yeah so that's what i thought too but i mean i'd be more likely to buy sewer line experience sewer line insurance than i would be gas line insurance and they don't know they don't sell that that I know of. So, yeah, that's interesting. God, what will they come up with next to sell people? Unbelievable. Hey, thanks for calling. That's very interesting. I appreciate that question. The first time I've ever had that question. I didn't even know they did that. That's wild. So here's a good rule to remember on insurance of all kinds, extended warranties of all kinds.

Some insurance is insuring something that's so expensive that you cannot afford to fix it. Your house burning down. Your car being totaled. You die and your family loses your income. These are major, life-altering, huge expensive things, and you do need to buy insurance for life insurance, homeowners insurance, car insurance, to transfer the risk that you cannot afford to take. Small items, like a gas line from the street, like getting an extended warranty at Best Buy on your big screen.

Give me a break. Which is a throwaway item anyway, by the way. Get Best Buy on your big screen. Give me a break. Which is a throwaway item anyway, by the way. So, no, you don't buy those insurances because that's where they make all their money. You only buy insurance on things that are large and that you need to transfer the risk that you can't afford to take the hit. That's a good rule of thumb right there. So the next time someone wants to do extended warranty, say, no thank you, and you america open phones this hour at 888-825-5225 in the lobby of ramsey Solutions on the debt-free stage. Tim and Shannon are with us.

Hey, guys, how are you? Great, Dave. Thanks for having us. Absolutely. Where do you guys live? Suburb of Chicago, Illinois. Okay, wonderful. So good to have you.

And how much have you paid off? We've paid off $67,000, and that took about 10 months. Good for you guys. And your range of income during that time? It was $175,000. Good. What do you all do for a living? I'm a police officer.

Uh-huh. And I work in HR. All right. Very cool. What kind of debt was the $67,000? A lot of normal stuff. We had some credit cards. There may have been an engagement ring in there.

Might have been. Yep. And we had car loan and student loans. Okay. It's kind of normal. Yeah. How long have you been married? We got married the end of October.

Okay. So, yeah, about seven months almost. So you were working on this before marriage. We were. We kept it separate. We followed the principles, everything, until we got married, and then we put it together, and power became that. And finished it up.

Yes, sir. Very good. So tell me the story. How did you get started on all this? So I got to give a little shout out to my employer, the village of Algonquin. COVID hit, sat down with our chief of police. I'm the training supervisor for our law enforcement agency. We said, let's bring Smart Dollar to the police officers.

Wow. Yep. Thank you. So we instituted Smart Dollar, went strictly for them. And I had to go through the program first before I rolled it out to everybody else. Sure. So I did it. Loved it.

Fell in love. Had never really heard from you before. And I did exactly what you said not to do. I went home, told Shannon, sit down, we're doing this. And tried to shove it down her throat, and that didn't go well. They taught you that in training school, did they? They did. So, reeled back though, we ended up going through SmartDollar together. And just fell in love. It all made sense.

We realized we were paycheck to paycheck. We made way too much money for that to happen. For those of you out there that don't know, Smart Dollar is our program that corporate America and some government agencies take in to make all of the financial peace stuff and all the every dollar stuff available to their team members. Like Costco has had their entire company go through it as an example. And obviously your wonderful police department went through it. So thank you guys very much for that. And it's called Smart Dollar. It's a different brand because it's in corporate America. And so that's why you don't always hear about it on the show.

Very cool. All right. So, Shannon, he comes in and screws this thing up. What did you do? You said, you've got to be kidding me. A little bit, yes. And then how did he finally get you back around after he screwed that up? For me, it was once I understood more the the underlying reason why he wanted to shove it

down my throat i knew he was really you know just trying to be caring and um as we were getting ready to prepare um life as a married couple um i know oftentimes people struggle financially um in marriages and then that tends, yeah. So that was really important. So I know he came from a loving standpoint, so I think once I reframed why he was trying to shove it down my throat so much, it made more sense. And, yeah, I ended up purchasing the Total Money Makeover without him knowing.

I know. I tried to take some initiative and did some plastic surgery, like 48 hours after I binged uh your book so wow oh yeah cut it all out so when you get in you get you got all the way in then oh yeah once once once we got past that initial hurdle then we're we're joining forces and going for it exactly very very cool we drank the kool-aid good and you did it i mean you're professionals you paid off 6767,000 worth. And in addition to that, I'm sorry, we also cash flowed about additional $14,000 for our COVID wedding. And thank you.

And to the other Ramsey personalities who said, why wait until, you know, why push the wedding off because of COVID? So because of you guys, we actually got married a lot sooner than we anticipated. Oh, good. Yeah. So we cash flowed the wedding. We cash flowed part of a graduate degree. So that was all besides the 67. So we were really going after it for a while.

Yeah, you were. You make good money, but you also made really good decisions. Yeah. We were fortunate that we had a large shovel, but yeah. The discipline still needed to be there. Oh, yeah, you've got to be intentional, just the same. Yes, sir. Yeah, very cool.

100%. Well, so as an HR director now, you've got to take smart dollar to your place, right? Oh, my gosh, I would love nothing more than to do that. We're still working on that, but yes, one day, hopefully. Sometimes it's a challenge. Very cool, guys. Very cool. So you tell people the key to getting out of debt is what now?

For me, it was the budget. I am the nerd in the relationship, and that was one thing to where, I mean, we didn't spend anything, but I'm checking it every day. It's like something was going to change, but it didn't. To see the numbers, to see where everything added up, that really made sense. We nerds get comfort in numbers that don't change. Correct. Correct.

I knew I didn't spend anything yesterday, but I need to check it again today to make sure we're still good. Still, I'm good with that. Nothing happened. But it was the budget, but then it was, for me, it was additionally, it was just the why. And knowing that we were going into a young marriage, being on the same page, it was our counseling per se, our premarital counseling that's recommended by you, and just put it all together. It was like, hey, we're on the same page. We can do anything.

Wow. Yeah. Very cool. And I think saying no is also probably one of the most challenging hurdles through this whole process. So learning to just, you know, internally when to say no to yourself, that's probably the hardest piece. It's a weird thing. It's very difficult when you do it, but it's very satisfying a day later.

A hundred percent. It's the discipline that came along with it. Oh, yeah. And everybody's journey was different, but COVID actually, our vice was eating out all the time. We didn't have that option up by us. So we saved a a bunch of money there and it was just one thing after the other and it was snowballed into something beautiful yeah that's that's interesting yeah and it's it's you know it's not saying no forever it's saying no for a little while uh live like no one else so

that later you can live and give like no one else now you have no debt and you make a ton of money what are you gonna to do next? I know. Well, just having been married, you know, we have a family in the future. We've got lots of other plans, and really, we can do anything we want now. Yeah. I mean, it's amazing where you are. This is very cool.

Plus, you have this sense that we can do anything because you just did a big thing during a very difficult time. Correct. I mean, you plowed through and knocked it out. Very cool. Who were your biggest cheerleaders? Each other. I know for a fact we held each other accountable. That was huge.

Do we need to do this? Do we need to spend that? Well, no. Did you check the budget? So it started internally, and the reminders on the why helped. But then for me, at least going to work every day, knowing everybody else was working the Smart Dollar program, some took it more serious than others.

And I was also the one keeping track of everybody's progress in a sense. But that really helped. And as well, our other good friends that turned us on to you a while ago, Teddy and Stephanie Crawford back in Chicagoland area, they were the ones that had all the positive words of wisdom and everything throughout. You've got to have those. Yes. That's very cool.

So as the trainer, you were getting the overall report, not individual things, but you saw what the whole police department was doing. Correct. We don't get their finances or anything, but it's the point system to know who's engaging, watching your lessons. The baby steps are obviously included, so we had people working those. And you're seeing overall progress. We're seeing overall progress. We're getting feedback, and that was the conversation we had with the chief and the village manager.

Hey, did it work the first year? Do we want it again this year? Yeah. Thumbs up across the board. Oh, wow. Thanks. Very cool. I'm glad it worked that's

a big thing and thanks for what you do excellent job tim and shannon chicago illinois we got a copy of the legacy journey our latest book about wealth that i wrote anyway latest book i wrote and uh and an extra copy of the total money makeover for you to give away so you can pay it forward so good good stuff tim and shannon $67,000 paid off in 10 months, making $175,000 between them. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free!

Yeah! That's how it's done. Boom! Man, how it's done. Boom! Man, how cool is that? The whole police department gets the whole thing going. New married couple gets it going. This is just good stuff right here. This is The Ramsey Show. Thank you. Welcome to the Ramsey Show. I'm Dave Ramsey, your host.

Open phones at 888-825-5225. Margie's with us in Seattle. Hi, Margie. How are you? Hi, I'm good. Good. How can I help? We're on baby step two, and my husband got served with a summons for a bad debt. Um, and so after talking to some debt relief attorneys, uh, like four of them, they suggested bankruptcy. Okay. okay and we're about 33 34 000 in debt and credit cards and we have like a 11 000 loan on our car

and about 100 000 worth of student loans combined okay. And what's your household income? About $28,000 a year, yeah. Okay. Who's not working? Me. Why? My daughter is at home with COVID and everything and my anxiety. Your daughter is how old?

Seven. And are you being treated for your anxiety? Yes. Okay. In what way? Therapy. Yeah. Okay. um therapy yeah okay all right well let me give you a couple of facts that we can walk through and then let's try to figure out how to help you okay okay fact number one student loans are not bankruptable. Okay? Yes, I know that. So after bankruptcy, you will still have $100,000 in student loan debt.

Yes. Fact number two, your household income is $28,000. Y'all are starving to death. And bankruptcy will not fix your income problems. Okay. So after bankruptcy, we get rid of credit card debt. And by the way, you don't have a car anymore, or you still have a car payment, one of the two. If you don't give up the car, you've still got the $11,000 in car.

So really, when it gets down to it, if you're going to keep the car and reaffirm it, it's called in a Chapter 7 bankruptcy, then you would have $33,000 in credit card debt is all you're bankrupting. Yes. And who served you? Which credit card? The credit card was credit one bank. Okay.

And how much do you owe them? A thousand and six dollars. Okay. All right. Um, all right. The third fact is that debt relief attorneys are generally not debt relief attorneys. Generally what they are is bankruptcy attorneys. And if you ask a bankruptcy attorney if you're bankrupt, that's like asking a dog if it's hungry.

Yeah. So the advice you were getting from a quote-unquote professional was self-serving advice on their part. So these are the things that are disturbing me. So we're getting advice from people that want you to file bankruptcy because it's what they do. They're a hammer, so everything's a nail. If you're going to keep the car, we're not filing bankruptcy on very much, and really $1,000 is all that's triggering this, and you have a household income of $28,000, which is less than half the annual income of the typical household in America.

And so I'm not shaming you. I'm just saying you guys have an income issue. I've been there myself. One year in my life I made $6,000, okay? So I know how it feels. It ain't no fun. What's your husband do for a living um he works at a car dealership doing what supporters um driving cars driving cars 40 hours a week um well on average right now, 33. Yeah. And how old are you guys? In our 40s.

Okay. All right. And so for me to help you have a good life a decade from now, I want to be able to paint a picture that gets rid of not only the immediate stress of this lawsuit, but also gets rid of $100,000 worth of student loan debt and allows you all to have the freedom. Can you imagine, can you even for a second wrap your brain around what it would feel like in your home if you guys made $60,000 a year

and had no debt? I can. I envision it. Yeah, that's where I want you to go. And that's where my mind takes me on answering your question when I start gathering the pieces of information up. But there's a lot of things that are going to have to happen for us to live that dream together, okay?

Mm-hmm. And I am not a mental health professional professional and i do know that anxiety is real and i am not uh qualified to tell you when and if you can go back to work or what you could do but i am qualified to tell you that your family needs income and i am qualified to tell you the 33 hours a week's not enough to work when your family's just broke your husband needs to get six more jobs especially since the one he has kind of sucks is that me a mean no but i mean it's a step up from where he was before so that's good then he needs to take let's take two more steps up because he's in his 40s and when he's in his 50s i don't want him making 28 000 a year driving

cars do you no okay then we have to we have to intentionally take some steps up from here and part of that's cleaning off this debt who's got these degrees with a hundred thousand dollars None of us. What did you study? I did accounting, and I transferred school, so my credits didn't transfer, so I had to start all over, and so that kind of made it difficult at one point. What was the last job that you had? Administrative assistant. Have you ever done accounting as a vocation? Yes. What did you do? As an administrative assistant, I did partial accounting accounting you helped him keep the books

yeah yeah good okay because you do know how to do it you just didn't finish with the degree yeah good good okay so there's a possibility you start doing accounting for some small businesses in the area as you're working for yourself and doing that from home where you can keep your anxiety low, maybe? Yeah, I've been looking for work from home. Okay. Is it the going out thing that gives you anxiety? What gives you anxiety? A ton of things.

But as for me getting a job, it's more of the, like, I'm afraid of letting them down, like not being able to show up. Okay. I understand. Oh, I see. So if you had an anxiety attack in the morning and weren't able to go to work, then you'd feel bad about letting them down and probably get fired eventually for doing that, right? Yeah. Yeah. Okay. Well, get fired eventually for doing that, right? Yeah.

Yeah. Okay. Well, that makes sense. Has that happened before? Well, it's happened where I haven't been able to go out. I know, but you lost your job as a result? No. No.

My anxiety came after. I see. After I stopped working. Oh, after you stopped working. Yeah. That's interesting. Okay. I don't know anything.

I mean, Dr. John Deloney is not here to help me with this, so I'm kind of trying to channel my inner Dr. D here. But the – because I know that what you're facing is real. I do know that, and I'm not questioning that, but I am trying to figure out a way to get you guys some income coming in. So I would prescribe, no, you're not bankrupt. Just ignore this lawsuit. They're not going to do anything.

What are they going to do, garnish you as wages? You didn't make any money. They're not going to do anything. Just ignore them and move on. No, I would not file bankruptcy. I will put you guys into Ramsey Plus for a year. I'll pay for it. Let's put you into Financial Peace University, get you on a budget. But then you're also part of it is you've got to do some stuff to get your household income up or you're not

going to make it. This is The Ramsey Show. Hold on. This is James Childs, producer of The Ramsey Show. You can listen to all our shows with the Ramsey Network app on your smartphone. Browse by topic or even send clips to your friends. Download the Ramsey Network app in your favorite app store today. Ramsey Network