The Ramsey Show - App - Avoid The Nightmare Of Being A Long Distance Landlord (Hour 3)

Episode Date: October 13, 2023

Девочка-пай Live from the headquarters of Ramsey Solutions, this is The Ramsey Show. It's where we help you win in your life, specifically winning with your money, winning in your work, and winning in your relationships. I'm Ken Coleman, joined by George Camel. Phone number for you is 888-825-5225. 888-825-5225. We love taking your questions. We're going to be nice. We're going to try to be entertaining as well as equip you to move forward. And if you don't like the jokes and the little side comments, well, you can tune in when two other hosts are here.

Don't change the channel. Just another day, it in when two other the channel don't change the channel just another day it'll be a two other people but i'm getting more and more george the little comments about the root beer float which we were once referred to by a listener was this on a podcast review on i believe it was a podcast review okay and i appreciate that so more and more people are saying they like the root beer float so uh we don't know who's the root beer we don't know who the vanilla is george has his opinions i don't know if i agree i digress i think you're the float i think i'm the root beer you're the float well it's the same thing the root beer float you mean the vanilla ice cream yes you think i'm the vanilla ice cream you're smooth you're cool you're liked by everyone

i don't know if that's true root beer you know not everyone likes that flavor ken but it's got a little bit of spice to it little zing and that's you little zing little zing i see what you're doing there all right we'll get off of that topic quickly and move to las vegas nevada where is it nevada nevada or nevada it's nevada technically but nevada in my heart can i get a ruling in the booth is it nevada or nevada what do you think most people think anyone that lives there will say nevada including including sarah she's gonna say it okay But Nevada in my heart. Can I get a ruling in the booth? Is it Nevada or Nevada? What do you think most people think? Anyone that lives there will say Nevada, including Sarah. She's going to say it. Okay.

Sarah will tell us. Sarah, you're on the Ramsey Show. Is it Nevada or Nevada? It's Nevada, and that's the only way. Okay. It's the only way. I will start to change it because I lean towards the ah, not the ah. Yeah, Nevada. Okay. How will start to change it because I lean towards the ah, not the ah. Yeah, Nevada. Okay. How can we help?

So I am actually selling my house and moving out of Nevada and building a new house in Denver, Colorado. So between houses, my family and I, we have about like four to six months, and we're going to have about half a million from the sale of this house cash that we take away. What is a good, like what should we do with that half a million while we're just waiting about the four to six months until we put it down on our next house? Okay. So there's going to be a gap of six months between the sale of this one and the purchase of the next one. And you just want to know where to park it. Yeah.

Okay. If I'm in your shoes, I'm going to go with a high-yield savings account. Okay. And that would be a – do you have a spouse? Yeah. Okay. You want to make sure that it's FDIC insured, and that would give you each $250,000 of protection, which would be perfect if you have $500,000 sitting in that joint high-yield savings account. And that'll give you

about 4%, some of these 5%, maybe even a little more. And you take $500,000. I mean, $100,000, you have 5%. That's $5,000, right? So we're talking $25,000 in one year. So split that in half. You're going to make $12,000 guaranteed if the interest rates don't change. Okay. Sounds good. So I would not invest the money. I wouldn't put it in a 0%. I would just find a decent high-yield savings account, and you'll be good to go there. Congratulations. Thanks. What are your thoughts on the treasury bonds? Should I stay away from that i would stick with the high yield savings account because we're seeing the very similar rates without any restrictions uh for taking the money out early and all of that so i'm a fan of the high yield savings account right now for that temporary parking spot

okay and just roll it all over to the new house that's exciting you love taking that call well you know we get a lot of you know crisis situations this is a good problem to have where Okay. And just roll it all over to the new house. That's exciting. You love taking that call. Well, you know, we get a lot of crisis situations. This is a good problem to have. Where do I park half a million dollars? And nothing against our good friends in Nevada, but moving from the desert to the Rockies. Different landscape. It's a very different deal. Speaking of the Rockies, Darcy is joining us somewhere near Denver, Colorado.

Darcy, how can we help? Hi, George and Ken. Thank you so much for taking my call. You bet. What's up? So my husband and I are really stuck on baby step three. We're losing money out of that fund like every month. We can't seem to figure out this budgeting thing.

But I think that my husband should withdraw enough money from our traditional Roth to pay off our house. How old is he? And he'll be 59 1 a half next October. But the backstory is that the house mortgage payment is 50% of our income. We both hate our jobs. And I'm probably about to be fired because the state has filed a civil rights discrimination case against my employer. Oof. You got a lot going on there. Yeah. We got over a million. I mean, I can tell you any numbers you want to know. Okay, what's left on the mortgage? I'm sorry? What's left on the mortgage? What's the balance? $467,000. And what is your household income right now?

Our household income is about $7,000 take-home. $7,000 take- 7,000 take home okay and what's in your nest egg in all the retirement accounts okay so our traditional Roth has $778,166 first Roth, which is my husband's, has $17,509. The second Roth, which is mine, has $12,551. My husband has a 401k in his work, and that has about $80,000 in it. He wasn't totally sure. And I am an educator, so I'm under the state para program, and I have $54,721. Okay, great. So we're close to a million in our nest egg, and you're saying, I want to rob half of my entire nest egg to pay off the house? Well, the house is worth at least $600,000,

but it's half of our income. It's 50% of our take home. I understand that. What I'm worried about is your house doesn't produce any income. And so you're living in this house and now you have less than $500,000 to live on for the rest of your life. Am I correct? Well, no, because if we sell the house, we'll end up with $600,000 at least. Okay, but I'm saying I don't want you to have to sell your house that you love. I want you to be able to retire with dignity and not have to go, oh, we're broke, we have to sell the house.

So while it's great, you guys have a great net worth i'm just looking forward going is robbing this roth a year from now the best idea and it sounds like you want to rob the roth earlier the next october no i'll i'll wait but my husband is totally against it for he says tax reasons but we're stuck on baby step three, and we just can't figure out. Well, it sounds like we've got to stop having life just happen to us and get ahead of things and get better maintenance on things. And these emergencies aren't going to keep hitting you. We're going to figure out the job situation. But right now, I would not make any big moves.

I would stay put. And when it comes to worse, it sounds like you might need to sell your house. But I would not rob your retirement instantaneously. And I'd get very serious, very intentional to get new gigs very soon. This is The Ramsey Show. The Ramsey Show

continues. Thrilled to have you with us. I'm Ken Coleman. George Campbell joins me. 888-825-5225 888-825-5225. 888-825-5225. Let's go to Phoenix, Arizona. Anthony is on the line. Anthony, how can we help? Hi there, gentlemen. Good afternoon. So I'm coming up on my first eligible retirement date. I currently work in public safety, so I'll have a defined pension benefit on that date coming up. I'm kind of battling a lot of compassion fatigue as well as burnout in my current job and wondering if I

should retire and try to pursue a second passion and a second career. I love to travel, so being a travel agent or something like that. Our total household debt right now is about $20,000, not including our mortgage, since the interest rate is practically free at this point. So if I were to retire, I'd walk away with my defined benefit plus about an additional $30,000 to $40,000. So I would have the startup cost, we would be debt free going into it and I just don't know if it's the smartest decision I can keep working and the pension goes up

and the other investment nest egg accounts continue to grow but I don't know yeah I think you do my guess Anthony is your head and heart are in a wrestling match and so that's why you called today I think your head. My guess, Anthony, is your head and heart are in a wrestling match, and so that's why you called today. I think your head's telling you to stay in the guaranteed thing that you know

that has the pension, and I think your heart's telling you to leave. Yeah, but I guess I just don't know which one to follow. I guess I just don't know which one to follow. Well, just confirm that I'm right. I mean, I'm guessing you're saying I'm right, that your heart's which one to follow. I guess I just don't know which one to follow. Well, just confirm that I'm right. I mean, I'm guessing you're saying I'm right, that your heart's telling you to leave. Oh, yeah. No, I mean, I love the job that I have, but it's just one of those. I wake up every morning, and everything's great, and I start to drive into work,

and I'm like, oh, my God, do I have the emotional energy to do this one more day? What are you doing? I'm a homicide detective. Oh, yeah. It's a pretty heavy job. Yeah. I can't even begin to comprehend that, so I won't try. But let me ask this.

This is interesting to me. If, well, let me ask you this what part do you love tell me the part about being the detective that you love oh giving solving the cases and giving families closure okay so it's the investigative part tearing into it, digging, putting the puzzle pieces together, and then after doing all that, giving answers to the family. That's the part you love. The part that burns you out is just all the trauma and all the disgusting stuff with it, correct? Yeah, it's kind of the trauma, the disgusting stuff, you know, the fighting with the attorneys, fighting with, you know, internal politics and drama within the job.

All right, so I'm going to throw something at you. It's kind of got to be exhausting. If you didn't have to deal with that, would you be calling us about this issue? If we took the disgusting trauma and all the fight, but you were just doing the investigative part to get to the bottom of something, to give some sense of closure, if we just kept it there, would you be calling us? I don't know. I'm going to say that I don't think you would. And I'm not trying to talk you out of the travel agent job. I'm going to tell you to pursue the travel agent thing on the side.

Okay. But I want you, before you walk away, I want you to take some time, and not a lot of time, because I think you're probably getting to your limit of trauma and just junk. I just wonder if there's another role that involves the investigative side, the puzzles, the closure. I just wonder if there's not another role that way in doing that work that doesn't involve the trauma and I mean I'm a little bit limited here because I'm not in that world but I think you know what I'm talking about is that fair

it is you know I've spoken with the spouse about that to try to figure out what that would look like there's not a lot of appetite for anything that would look like. There's not a lot of, um, of appetite for anything that would be more dangerous. No, no, no, no, no. But here's the deal. I'm pushing against that. I don't know that it has to be dangerous. I wonder if you were like maybe investigating financial crimes or investigating, um, I don't know. I mean, maybe,

uh, um, uh, insurance fraud or like, could you work for big insurance companies know I mean maybe insurance fraud or like could you work for big insurance companies I mean I'm really trying to brainstorm here but I know there's more out there that don't require you to be CIA FBI and all that I'm just telling you I think it's worth kicking the tires you understand what I'm saying

you know I do because here's the deal if we remove the trauma and the danger and we are mostly 80% of our day in the investigation and putting the puzzle pieces together and giving closure, man, that could be really great. And it involves good retirement plans, 401ks, George, all the investment piece. I at least want to kick the tires. But while I'm looking for that, I'm also going, all right, let me make the moves and let's pay

the debt off and let's get the travel agent thing going on. Because it's going to take some time on the travel agent thing to get the income up to where you are. You do realize that? Oh, no, no, absolutely. Yeah, I totally recognize that. If I were to leave public service and law enforcement, I mean, my take-home would be, the difference between my take-home now and my take-home in retirement is zero. I'm going to be bringing that the same so oh anything i do above and beyond that is extra okay so i'm still going to hold to what i'm saying i think you should kick the tires see if i can find something that i love yeah i like a related role that maybe isn't as on the scene maybe behind the scenes a little bit more but if you can't find it you're not going backwards

financially and you get a chance to take a shot at this. So I would just consider that. I'd also go talk to people who are doing independent travel agent work full-time and take them out to dinner, coffee and say, hey, how did you get into it? How'd you get to where you are today doing this full-time and see if it's something you'd like to do. They might be able to kick you some of the smaller gigs and start to get a taste of it. And that's something you can absolutely do on the side right now versus jumping ship completely hoping that it's going to work out. Maybe Anthony could book the Camel Coleman vacation. Now we're talking. You got your first client, Anthony.

Sounds great. Hey, man, we appreciate it. We just eat something with a lot of shuffleboard activities. George is really big into shuffleboard. And putt-putt. I've been known to kick Ken's butt in some putt-putt. This again. You beat me one time because I basically quit, Austin.

And it's still the greatest day of my life. And the fact that your wife got to watch me decimate you in mini-golf is one of the greatest joys known to man. I wanted to point out to the audience right now that George A. did win, but he struggles with proper uses of adjectives. There was no decimation going on. You snuck in somehow because you hit it through the elephant's mouth, out the ear, and it went in the last hole.

Something of that nature. Ken claims he was phoning it in that day. I promise you I was phoning it in. You and any competitive sports thing is phoning it in just by nature of being there, and I love you. I'm trying to get him out on the pickleball court folks america needs to see george camel and ken coleman in a pickleball match i can tell you right now we're getting a lot of bobbleheads out in the audience there's a lot of things america needs

right now i don't think you and i playing pickleball is one of them i disagree because there's a lot of dark stuff going on in the world today inflation's there people need to laugh and i promise you if you and i played pickleball live on YouTube, Coleman Campbell Charity Tournament, we could raise some money for something good. At least $100. We need to get Rachel out there, Deloney, Jade. I'd ask Dave to get out there, but he's no chance.

You're now involving people who have athletic ability. I'm out. Well, I have athletic ability. You forgot about that. Okay. I need a rematch. I need a rematch so that I can gloat when I beat you in pickleball. No, I think I'm going to

just take my win and go home. I love it. We're having fun. Fantastic. We are having a good time. Hey, EveryDollar webinar. I've got to mention that really quick, George. Tell folks why they need to be a part of it. Yes. We've been doing these. Rachel, Jade, Warshaw, and myself. It's totally free. You can sign up at everydollar.com slash budgeting. And for an hour, we're going to sit with you, show

you how to create margin by using EveryDollar, show you the ins and outs of the product. And we've had great response. Thousands of people show up on these virtual calls. You can watch the replay later if you miss it and can't make the time. So go sign up regardless. Everydollar.com slash budgeting. We've got one coming up next week. Just occurred to me I need to do a pickleball webinar. Nope.

I'm going to work on that. Hard pass. You think so? All right. We'll see. I'm going to talk to Dave about it. This is The Ramsey Show. All right, folks. Welcome back to The Ramsey Show. All right, folks, welcome back to The Ramsey Show.

888-825-5225 is the phone number to jump in. I'm Ken Coleman. George Campbell is with me. And we are taking your calls about your life, your money, your work, your relationships. Let's go to Nathan, who's on the line in Charleston, South Carolina. Nathan, how can we help? Hey, guys, How are you doing?

Doing well. What's going on? So me and my wife need a little bit of guidance, if you guys don't mind. So we are freshly married. The last two years we got married. When we got married, we bought a house in our hometown. And I went in and I gutted the entire thing and redid it. And that was back when the interest rates were down in the low twos. And we ended up gaining quite a bit of equity in it. We got about $135,000 in equity. And we're

actually folk God calling us out of there. So we ended up moving about three months ago, about eight hours away to South Carolina. She's in ministry. And so I ended up renting my house out when I moved. We're currently renting down here. I've been renting my house out when I moved, mainly because my parents have six paid off rental homes, and that's basically all they do now. They're retired, and they said they'd take care of it. And it's bringing in good money, but we are currently in about $90,000 of student debt.

And I am wondering if we should sell the home, pay off our student debt, and kind of have a good three to six-month emergency at that point. We have about three months saved up right now, but that's kind of where we're at. Okay. Well, my guess is you called on the show. You know what my answer is going to be. Yeah.

Sell the house. Yeah. That's great that your parents are there as kind of the property management crew, but as it stands today, if you're living in Charleston, would you go buy this property as a rental? No. And the fact that you've got all the debt on the other side, and it sounded like you were excited about it propelling your financial future. You become completely debt-free with a fully funded emergency fund with money left over

to start funding your next goal, which I assume is going to be being a homeowner in Charleston. Correct. Yeah. We're looking to do that and maybe start a family. So I'm just thinking more about getting out of debt to go to do that. I know long-term I want to own a rental property. That's kind of what my parents taught me. But again, they've paid off all theirs. So it makes a little bit of a difference. And guess what? When you tell your parents about this, they're going to go, oh my gosh, don't listen to those guys. You should keep the rental property.

We'll take care of it. It's fine. You can put a little bit down on your next house while you still have your student loans. You'll be okay. Is that what they would say, you think? Yeah, probably so. They don't like that either, though, so I don't know. They bought their rental homes in cash as well.

They kind of run that game plan. That's what's up. Well, I'd take after mom and dad then and go, that's my goal. I want to become a homeowner. I want to pay my place off because you guys are young. How old are you two? 25 and 23.

That's amazing. So let's fast forward, right? A year from now, you have no debt, fully funded emergency fund, well on your way to saving up a down payment, correct? Correct. A few years after that.

We're able to save now too. Yeah. And then you'll have a house in charleston let's aggressively get that thing paid off and then let's start saving up for an investment property and my guess is by the time you're in your early 30s to mid 30s you're going to have a paid for investment property well that sounds like forever from now but let me tell you, man, you got a good 70 years left on this earth. You got plenty of time. Lord willing. I really appreciate it, guys. Yeah, you bet. Thank you for the call. That's awesome. Yeah, love that. How about your old

neck of the woods? Mary's joining us in Boston, Massachusetts. Mary, how can we help? Hi, thank you for taking my call. I'm 55 and I'm working full time. I'd like to know whether I should put my money toward paying off my HELOC or credit card bills. And my credit card bills are mostly for schooling. I'd like to change careers eventually and so I'm studying at the same time. My credit card bills have zero interest for a year and my HELOC is at 1.9%

also for a year and the HELOC is at $95,000 and what about the student loans? excuse me? how much do you have in student loans? I don't have any student loans it's credit card bills on the credit card how much is on there? How much do you have in student loans? I don't have any student loans.

It's credit card bills. Okay, on the credit card. How much is on there? Yeah, $17. $17. Okay, great. And what's your income? I make about $97 a year.

Okay. I'm focusing on these credit cards ASAP. And this HELOC, we can put that next. What's left on the mortgage? There's no mortgage. Just this HELOC, we can put that next. What's left on the mortgage? There's no mortgage. Just the HELOC? Yes. Okay.

Well, that makes it real easy. I'm going to put all my focus on this credit card at the 0%, and not because it's the interest rate, but because it's the smallest debt. Okay. And make it 97. okay and making 97 you could pay this off what in say two let's say another six months on the credit cards yes and then another two years to get rid of the heloc uh yes that would be my plan well that's what i'm nervous about is that it's going to go to prime afterwards. When does the HELOC go to prime? It'll go July of next year, 2024.

Well, you're not going to be able to pay it off earlier than that anyways, right? Right. So it sounds like we made what we call a stupid tax is what we're going to pay on this. And we're going to get rid of it super fast. We're going to get really aggressive about this.

Do you know what the rate might go to at that point? No, I'm guessing, well, right now they're saying about seven point whatever, but who knows. You will survive it. But, you know, you kind of touch the hot stove and you go, that didn't feel good. Not doing the HELOC again. Right. No, no. And you got a great income.

Yes, I ended up buying a house and it ended up costing me, it was next door to my parents, like my mother is sick. So I ended up paying more than I wanted to or else I would have lost it. And I had to gut the whole thing. So that's really why, you know,

ended up costing me a little bit more. But also I have about 20,000 in savings. I'm just kind of holding off her emergency fund. Did I use any of that to pay anything down or just keep that? Absolutely. Let's get rid of this credit card debt today. Even sitting at 0%, it's going to clear up the payment. You're going to be free to focus on that HELOC and get this done even faster. And if an emergency comes up, you're going to pause these baby steps that we're talking about, and you're going to aggressively attack whatever emergency has come up, sell stuff, make more, and cover it. And likely, you're not going to have a $10,000 emergency coming up. It's going to be those ankle biters, those $200, $500. And so that's what I would be focused on,

is just following these baby steps through baby step one, $1,000, baby step two, all debt, all consumer debt gone using the debt snowball method. Okay, great. Okay. Yeah, we're cheering you on, Mary. Okay, great. Thank you so much.

Yeah, thank you for the call. Awesome stuff. Love that. I mean, that's, when people get that, they see the light bulb kind of go off like, uh-oh, I can actually do this. This is doable. It's a game changer. Well, there's so many options, and it can be overwhelming.

And so just to have a filter you can lay down and go, okay, I'm going to filter it through this. I want to get rid of the debt. The smallest one will get knocked out the fastest. I've got money in the bank I could use. The problem is dealing with the fear of, oh, my gosh, I'm going to go down to $3,000 in savings, and I work hard to get up to

that 20. What's the best way to overcome that? I've heard you, we talk a lot, but I'm just curious. You've coached a lot of people now. What is the best way to overcome that fear? Well, number one, they have to realize the money has someone else's name on it already. It may be in your account, but when you owe someone $20,000 and you have $20,000 sitting in savings, you don't really have $20,000 in savings. Your body is keeping the score, as the book says, and therefore you're not truly safe. You have the illusion of safety, which is sometimes scarier because we get lulled into a sense of comfort. And so part of getting over that fear is seeing the freedom on the other side and starting to paint that transformational picture of here's what happens. You got no payments. Think about that, how that would feel. Think about what that does for your budget and your finances and how much faster you

can tackle the next debt. That's what I found helps most people get over that hump. So are you saying that there is a, for lack of a better word, a chemical transformation when you walk through those two exercises that you just gave us, the perspective of it's really not my money. I owe it to somebody else. And then once I eliminate that debt and all those feelings, even though I only have two grand or one grand left in my emergency fund, you're saying that stress is far less, the chemicals with that stress is far less than what you're experiencing. To give you some Ken Coleman alliteration, I think it turns the fear into fuel. When you have a thousand bucks, you're like, I'm not safe.

Things are not okay. And I go, yeah, now you understand what's really happening. This is the reality that your financial situation has been. And when you follow this proven plan, millions of people have done it. So this is not something that has a lot of risk involved. Turn your fear into fuel. I love the alliteration. It's another pencil drop. Or as we say here, what is it? A pencil drop.

Is that good? Austin's rolling his eyes. I'll have to go check on him in the booth. Don't fear. More puns up next and your calls. This is The Ramsey Show. Welcome back to The Ramsey Show. I'm Ken Coleman. I'm joined by George Campbell. The phone number is 888-825-5225. Our scripture of the day comes from Proverbs 13, verse 20. Walk with the wise and become wise, for a companion of fools suffers harm.

And our quote today from Thomas Sowell, four words today in the quote. Thomas doesn't need a lot of words to drop the depth. That's it. Intellect is not wisdom. Ooh. You got to sit there and think about that one for a moment. Well, it takes intellect to understand it. Well, intellect is not wisdom.

In other words. Which kind of is wisdom in and of itself it's kind of wisdom it is knowledge is overrated it's pretty meta and all you got to do is hang out on on ivy league campuses oh i thought you were going to say twitter no twitter would be the opposite twitter is any fool can type that's what my big quote about twitter would be yeah just okay i'm going to fire off some opinion doesn't matter if it's honest doesn't matter if it's right just there we go it feels good to get it out feels just venting alexander is up next in orlando florida alexander how can we help

all right uh big big fan of the show all Hi. Hey. Thank you. How can we help? So I'm 22 years old, my apologies. And I just got a unarmed security job, which pays $18 per hour full time. And I get paid weekly. And I have a bit of a dilemma because, and there's unlimited overtime when it comes to that job. Last, I'd say 2021, my parents, which I am grateful for, gifted me a 2018 Mercedes Benz. And they were going to take care of all of it.

And, you know, I was just grateful for it. It was like, who wouldn't be? And so their business within the last year, I'd say kind of went down drastically to where they're basically in survival mode and they had to put the payments on me. So I'm trying to see how I could possibly get that done because the payments per monthly on the car note is 600. They pay a 29,000 in total for the vehicle, or they financed it, actually. And there's $20,000 left. I have, unfortunately, nothing in savings.

And I looked the lowest possible way for any type of car insurance on this vehicle. The lowest I could find is $450,000, and I have a clean record, not even on parking tickets. So basically paying... Well, you're an 18-year-old, so the car insurance is through the roof for young drivers. Oh, no, I'm 22. Oh, you're 22 now, okay. And what are you making with your job? 18 per hour plus unlimited overtime.

Okay, so you're making about $36,000 a year? Yeah. Without overtime? Yeah. And what's the car worth? Oh, the car is worth, I'd say, $21,000 to $20,000. Okay. That's a lot of car for a guy making 18.

Well, and you're saying, hey, how do I, do you want to get out of this? Well, his parents transferred the payments to him. So you're stuck with this thing. Yeah. Unless you sell it. That's the thing. We actually don't have the title. It's in my father's name, but the financing company,

they have the title until we're able to pay off the vehicle. So I don't think we could sell it. No, no, no. Whoa, whoa, whoa, whoa, whoa. Of course you can sell it. If your dad has basically said you need to take over the payments of this, he needs to sign the title over to you. That's pretty simple.

But the point is, somebody sells the car. Here's the point. We're making this too complicated, Alexander. Here's what happens. You list the car today, and you sell the car. And you can do the transaction at the lender's office. That's right. Or they'll give you the title as soon as it's paid off.

That's right. Once the person buys the car, you know, yeah, this is all simple stuff, but you don't, you don't, I don't even know how to explain this. This is so simple. You just sell the car and then the title will be transferred to the person who buys the car. Okay. So just get ahold of the company, the lending company, and basically find a buyer. Yes, but you do it all simultaneously. So the transaction happens, they'll then release the title once the car's paid off, and then you can transfer the title.

You're going to need your dad there because you said it's in his name still. Yeah. Sell the car. You're not going to sell this to a dealer. You're going to sell it private sale. Do you understand what we're saying? Private sale? Can I get more description on that, please? Yes. So you list it on Facebook Marketplace, or you list it on Craigslist, or you list it on AutoTrader. Yeah, because the dealer is going to give you much, much less for it because they're

in the business of making a profit. That's right. So if you're saying the car is worth, you said it's worth how much? $21,000? $20,000 to $21,000. Okay. So the dealer's going to go, hey, we'll give you $14,000 for it. Right. We don't want that. And what do you owe on the car again? Yeah, $20,000.

Okay. So let's just keep it simple just for explaining to you what you're going to do. If the car, if the Blue Book, and you need to go to kellybluebook.com and put in the VIN number, and it'll get you a really accurate number. Let's just say that you sell it for $20,000. You owe $20,000, okay? So you sell it to a person. They give you $20,000.

You pay the car off. The finance company gives you the title. You sign the title over those people. That's how it works. Very simple. Your dad can be involved with the whole thing. But you need to get rid of this car. And you get rid of it before it continues to depreciate because you don't want to be upside down.

You're right at that number right now. Which you need some money to get a different car as well, right? Yeah, that's the thing. Yeah. So how quickly can you save up and get a beater car? Not much thinking. $5,000? $5,000.

Might take a couple months, yeah. Okay. So in a couple months, we can sell this car. It's not going to depreciate that much in a couple months. Right. And as soon as that car is sold, you got the other one right there ready to go. And that insurance is also going to be a whole lot cheaper, and you're going to do it with cash. So don't go to a dealership and say, I have $5,000.

They'll say, hey, well, we can get your payments nice and low, buddy. We're going to pay cash. You're going to buy this car from a Facebook marketplace, an independent used car dealership, and it's not going to be a pretty car. It's not going to be your beautiful Mercedes you've been driving. So get ready emotionally. Yeah. But what you're going to also do is get an inspection on it.

It'll cost you $100. You can take it to a Firestone and get it inspected. Make sure you're not buying, you know, a lemon of a car and take it for a test drive. Do your due diligence. And that should get you at least out of this pickle. Do you have any other debt? No.

Okay, great. And then let's start to use this income to build ourselves an emergency fund once we get out of this car debacle. All right, great. And then let's start to use this income to build ourselves an emergency fund once we get out of this car debacle. All right, perfect. Hope that helps, man. Sorry you're dealing with that. And parents that are listening out there, please don't gift your kids debt. Yeah, I mean, wow.

Don't call it a gift. He doesn't even understand, and unfortunately, they haven't even told him, look, here are your options. If you want to sell it, I'll walk you through it. He doesn't even understand. And unfortunately, they haven't even told him, look, here are your options. If you want to sell it, I'll walk you through it. He doesn't even know. And so not just gifting them debt, but- Yeah, I want to know, when he says transfer the payments, do they actually legally transfer the loan?

Or do they just say, hey, you're signing in and you pay this now? Can you do that if the dad's name is still on the tie? I don't know if the finance company would do that. Would change the loan to this poor 22-year-old who's now stuck with it. Yeah. Because I don't think they would have let him finance that car. Yeah. Man. And now that I think about it,

I know he's on hold. I hope you can still hear us, Alexander, but maybe a $3,000 car. I mean, a beater. I mean, a $5,000 car is not a beater. Well, these days, it used to be the $1,000 car. I mean, a beater. I mean, a $5,000 car is not a beater. Well, these days, it used to be the $1,000 car. Now, with how crazy the car market is, you're looking at $4,000 or $5,000 for the bottom-of-the-barrel vehicles. That's still running.

I mean, but he's got to do what he's got to do. He may be working little crazy hours. He might be taking some Ubers. Now, he's driving the unarmored truck. It sounds like you're doing unarmed security. I don't know if that comes with a vehicle or not. Sometimes you'll have a vehicle for that you could drive home. Yeah.

That's an option, too. Interesting. Man. Well, it's been a fun show, Ken. It has been. I thought you were getting ready to say something. I was. Well, I want to let people know we've got our Money in Marriage getaway coming up.

Yeah, it is. October 19th. Right around the corner. To the 21st. And I'm going to be speaking there. You've been added to the docket. What are you going to be speaking on? My talk is called Pillow Talk,

The Dirty Secrets of Budgeting. Really? If you're going to do a budgeting talk, make it spicy at a couple's event. I got to tell you, when I asked you, it was out of courtesy. Now I'm interested.

Now he's in. It was a courtesy ask to set up the event. But then when you said the title of the talk is Pillow Talk, I want to see the illustrations. Well, the goal is to let couples have event, but then when you said the title of the talk was Pillow Talk, I want to see the illustrations. Well, the goal is to let couples have fun, but also get equipped with tools, cast a vision, create a life they love. But you're not suggesting that people talk about the budget in bed, are you? No, it's about throw pillows. There's my teaser. So, ramsaysolutions.com slash events. There's still some spots left.

Rachel Cruz, Dr. Jeloni, Jade Warshaw, and myself will be there all weekend, October 19th through the 21st. All right, good stuff. George Campbell, always fun to be with you. I want to say a big thanks to Austin and all of the kind folks in the booth that keep us on the air. And to you, America, and to the folks in the lobby, thank you so much for listening and watching. This is The Ramsey Show. Hey, it's George Camel. If you like what you heard in this episode and want to know more about getting started

on the Ramsey Baby Steps, go to ramseysolutions.com and click on the Get Started button. We'll help you figure out the best next step for you based on your specific situation. That's ramseysolutions.com and click Get Started.