The Ramsey Show - App - Comparison Is the Thief of Joy (Hour 1)

Episode Date: October 25, 2019

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🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and a paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I am Dave Ramsey, your host. This is your show because we talk about you. The phone number is a free call, and some say the advice is worth what you pay for it. The phone number is 888-825-5225. That's 888-825-5225.

Rick is going to start us off this hour. Rick is in Texas. Hi, Rick. Welcome to the Dave Ramsey Show. Hey, Dave. Thanks for taking my call. Sure. What's up? So I'm kind of looking for just some financial advice and also help me with a way forward.

I'm military, and my wife actually filed for a divorce while I just returned from a deployment. So just trying to get some advice as far as legal proceedings, what to do with all of our assets, and anything, really. I'm sorry, man. Thank you for your service. What a nice gift to come home to, huh? Yeah. How long have you been serving? I've been in 17 years.

How long were you deployed? Just a little over four months. Okay. So things weren't good when you left? No, sir. We actually, she originally filed for a divorce back in November. We kind of worked stuff out, at least I thought we did. And then I got sent on my deployment and got welcomed with that news right before I got, I was telling her I was coming back, so. So this one's going through, you think? Yeah, this ship sailed, so we're moving forward. All right. Well, I've got a friend that does divorce recovery work and works through all the emotions and stuff and said one of the most clear things that helps me when I'm looking at this kind of thing is there's all this emotion, all this hurt, all this crap in the air around this situation.

And yet divorce turns a marriage into a business transaction. And so once we've called it, once the ship has sailed, then it's down to division of assets, income, and children, right? It's just a matter of negotiating out the details, and it's just a, you know, who gets what. It's a business transaction now. And always the emotions and the finger-point pointing and the hurt and the heartbrokenness and all that gets woven into the discussion, but it really doesn't change the result that much because the laws are pretty clear.

So do you guys have assets? Yes, sir. We have a house that we have that's currently in Delaware. There's renters in it right now. So what will happen to it? So we did initially discuss selling it, but we were looking either now or just wait until the springtime when the market's a little more consistent

versus going into the wintertime when sales aren't as good, especially out in the East Coast. Okay. All right. And so the divorce decree might declare that the house goes on the market within a year of becoming final, and when it is sold, the proceeds are split? Yes, sir. Okay.

Anything else? That's the only joint assets that we have. Everything else is to her name now. What's that mean? She put everything in her name? I don't have any debt. She has debt in her name? Yes, sir.

Okay. What is the nature of that? She bought a minivan right before we divorced. So we paid, actually, we were using your steps, paid off all the debt that we had for her pretty much, but yeah. She decided to go the other direction. Okay. Yeah, she's not a big fan of you.

Yeah, that happens. That's great. All right. Well, so what's your question? How can I help you? So mainly I think both of our focuses, the kids is the main thing, but she hired a lawyer and I just got served with the actual papers yesterday and just wanted to see if there's anything you would recommend as far as

the kids alimony child support because she actually is also military she just she's actually retiring as of the 28th and she has 100 va disability i don't know if that's something that could really factor into that or just making sure it's you need a lawyer it's just fair and balanced yeah you don't you don't need me you need a lawyer don't don't go unrepresented with her having an attorney you need an attorney and then the two of them can help you guys understand what the law in texas says which is what will apply because that's where the divorce was filed and um you know what your what your obligations are under the law for child support and for anything else and you know you can work that out but no don't be walking around thinking that her lawyer is going to treat you right

and no you need representation yesterday so i'm sorry brother sorry thank you for your service and i'm sorry that's what was waiting on you n Nathaniel is with us in Oklahoma. Hi, Nathaniel. How are you? I'm good, Dave. How are you doing? Better than I deserve. What's up? Yes, so my wife and I are trying to pay off our mortgage early, and our bank, from what I understand,

gives us the option to add the extra payment to the back of the note or to add it to principal, and they said if I add it to principal, it adds it to the next payment off. So I'm kind of confused which option I want to do. You want principal reduction, and then the next payment that you pay should have more going towards principal than it would have had you not done the principal reduction. Okay.

So we have been doing it by tagging it as a credit to final is what it says on our bank statements. Is that the wrong way to do it then? Tagging it as a what? On our bank statement, it says credit to final on our bank statement. I have no idea what that means. That's what I'm kind of confused about. You want to ask them what it takes to reduce the principal. How often do you get a statement?

Once a month? Yeah, once a month. Okay. So if you pay $1,000 extra and you apply it to principal, next month check the statement and make sure it went down $1,000. Okay. And that will tell you if they told you right. I don't know what they're saying.

Credit to final sounds like you're putting it on the back, and I don't want to put it on the back. I want to put it on the principal because it slides you forward in the M schedule, the amortization schedule, and your next payment, because you have less principal, more of it is going towards principal because the interest charge is smaller when you reduce the principal each month. Mortgages are compounded, meaning recalculated based on the interest rate, monthly. And the interest charged per month is, of course, your annual percentage rate, your APR, divided by 12.

And so if you had a 6% rate, your monthly rate's a half a percent. You had a 6% annual rate. So whatever it is, divide it by 12, and that's what it's compounded as on the outstanding balance that month. And if you send a payment in every two weeks, doesn't matter. All that matters is what happened that month. Everything that happens in that month, that's what happens. So, hey, good question, man. We appreciate you joining us.

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pick your path. Go to Zander.com or call 800-356-4282. Zander will guide you through the whole thing, keep it simple, and find you the best rates. That's Zander.com or 800-356-4282. If you want to stir up trouble for your family and cause them all to fight with each other, I can tell you how to do it. Die without a will. They'll all get in a big dadgum argument. Well, daddy said this, mama said that. Told me one time at thanksgiving and none of that holds up in court that's all bs nobody cares what you thought you heard or

you think you remembered or what your opinion is the state a judge will decide what's going to happen to your assets and all your family's going to be ticked at each other. Get a will. Get a will. You do not want to be sitting in a courtroom. You don't want your heirs, your family, to be sitting in a courtroom looking at each other like this is some kind of scene from a bad movie. If you have little kids that are minors, it's even more important. You want the judge to decide what happens to your kids? This is not a plan. He doesn't know that your brother-in-law is secretly crazy.

He might give them to them. You need to know what's going on, and you need to have a will. And we took a survey of parents with kids 18 years old or younger. Here's what we found. Only 23% of them have a will. Let me just tell you that's just stupid okay that's just dumb as chris hogan says that's not okay right it's ridiculous well dave it's too expensive and if i do a will i might die you're gonna die just a matter of when

and there is no statistical evidence that doing a will causes you to die sooner. Do a will. Do a will, do a will, do a will, do a will, do a will, do a will, do a will. It's that simple. So here's the thing. Go to mamabearlegalforms.com. They'll help you get it done. Don't let some courtroom do it.

And you can make changes in your will when you do it with them these attorneys prepare these documents you can make changes for up to 90 days for free if you change your mind about the will and then put a copy of the will in your legacy drawer where your family can find all the documents that they need along with the will mama bear legal forms dot com do a will hannah is with us in tennessee hey hannah welcome to the dave ramsey show hey dave how are you better than i deserve what's up um i am wanting to start school again and my husband and i are in baby step two. We did FPU back in February and I was just wanting some advice on whether I should start in January or if I should

push that off and wait until we're a little bit more financially stable as we're digging out of whole. So what's your household income? Right now it's between $92,000 and $95,000. Okay. What are you going to study? Sports, exercise, and movement science. I want to become a physical therapist. You're starting from scratch? No, I have two and a half years, and it'll take about two more years for me to finish. Okay. What will that cost? It'll cost me $24,000 to finish, but I know that I qualify for grants and whatever else remaining we plan to pay out of pocket, and hopefully I can qualify for some scholarships after listening to the debt-free degree. Good. So what grants have you got that you know you've got? How much? Well, I don't know the amount yet. I just filled out my FAFSA, but I know from the past I was able

to get the Pell Grant and that was about $4,000 a semester. Why would you get the Pell Grant when you make $90,000 a year? Well, this is my first um going back to school after or making that much money so i'm waiting still my faster to see how much i qualify oh you don't qualify for a pell grant make a 90k it's for poor people okay okay um so okay 24 000 let's go with that what do you make now um my husband makes 80 what do you make now i personally make 12 to 15 as a freelancer i stay home with our two toddlers okay and so you're going to work full-time as a pt i'm hoping to yes okay after i graduate you'll put your kids in daycare yes they'll be in elementary school by that time, yes. Okay, all right. And what does a PT get paid?

I know starting out they can make around $60,000, but that really depends on where you get a job. How much debt do you all have, not counting your house? We have $102,000 in debt right now. On what? $64,000 in student loans, $24,000 in cars, and $29,000 in credit cards. What's your projection on that being clear, Megan 90? We're hoping to be finished within the next 24 months.

Okay. Then doing the school delays that by a year? Well, we just assume that we'd be paying more for child care and also if there's any money that we're having to pay out of pocket for school because we want to avoid taking out more student loans, so that could take out of what we would pay towards that. Yeah. So $24,000 added to the top of the debt of $102,000 that you've already got,

making $90,000. If you can do $90,000 in two years, it's going to take you three years. I mean, if you can do $102,000 in two years, it's going to take you three years to get everything done if you do the school. Okay. Does that make sense? Yes, it does okay so i should start school in january instead of delaying it if you cash flow it okay no loans okay and then you stay on your budget and you don't use school as an excuse to lay off your baby step two you

still got to lean into baby step two and you got to knock that debt out okay three years from today you should graduate debt free and be debt free other than your house okay that's the math we just did yeah and your family's got to all be on board with that your husband you you got to be because this is going to require you're really not going to get anything else done in the next three years you're going to have zero life you're going to go to school and pay debt right that's it okay no vacations you're certainly not going to see the inside of a restaurant i mean there's no wiggle room in this if you're willing to do all of that, the return on investment here, $24,000 in, $60,000 out, makes sense. Okay. Meaning you spend $24,000 to go make $60,000, and you're paying cash.

That makes sense, and I would do it. But what you're saying is you're choking the hose on your budget flow, right? Yes. And we're just admitting that, and we're looking at the actual arithmetic on that and saying it's basically an extra year. So the irony is that you'll finish school and debt at about the same time. Okay, perfect. Go do it.

Thank you. Thank you. Appreciate the call. Open phones at 888-825-5225. You jump in. We'll talk about your life and your money it is a free call 888-825-5225 tyler is on youtube dave does an hsa count towards your baby step one i fell off the plan and i want to get back on in 2020 um well i wouldn't put money into an hsa until you're up at baby steps five six seven

right in there it doesn't count towards your 15 of your retirement it doesn't count towards your um i wouldn't put money in the savings portion of it you can do an hsa and not fund the savings portion of it it's basically a high deductible health insurance premium then. Lower premium, but a high deductible. And, you know, that means you want to get your emergency fund in place as soon as possible to cover that. But I wouldn't put money into the savings portion of the HSA until you get north of baby step four, 15% of your income going into retirement,

and HSA is not a retirement you'll be fine your emergency fund will cover it if you have a big event but uh i've had an hsa for decades and i've um i think i've blown the deductible up twice or something in the entire time uh so it's just very rare uh but again been been fairly healthy, knock on wood. So that makes a big difference. And the HSA makes a ton more sense the more healthy you are because it's basically a high deductible, meaning it's coming out of your pocket for a while, right, if you get sick. But if you don't get sick, it creates just a lower insurance premium.

I love the HSA. But I wouldn't use your money that's in it. I would just let it sit there. If you've got some in it, let it's premium. I love the HSA, but I wouldn't use your money that's in it. I would just let it sit there. If you've got some in it, let it sit there, but I wouldn't add anything else to it until you get north of baby step four. This is the Dave Ramsey Show. We'll be right back. In the lobby of Ramsey Solutions on the debt-free stage, Chris and Liz are with us. Hey, guys, how are you? Hi, Dave. How are you? Welcome, welcome.

Where do you guys live? We are in northern Virginia, just right outside of D.C. Fun. Well, welcome to Nashville. Good to have you. Thank you for having us. And all the way down here to do a debt-free scream. How much have you paid off?

$143,000. Love it. How long did this take? 27 months. Good for you. And your range of income? So we started at $140,000, and when we finished, we were at $170,000. Excellent. What do you guys do for a living? So we are both athletic trainers. I am now in medical device sales. Yeah, I'm still doing athletic training more administrative things now yeah very cool well good to have good to have you

what kind of debt was the 143 so 19 000 of that was a brand new truck that we had bought we were still paying off and the rest were student loans okay wow a bunch of student loans. Yeah, we went to both out-of-state grad school, so that's what got us. Okay. And so how old are you two? Both 35. How long have you been married? Six years. Six years. And for 27 months, you've been game on. I mean, goal-oriented, kicking it.

Yes, sir. What happened 27 months ago that lit this fuse? It's kind of a funny story. So we were doing our normal going to the mall shopping on the weekend, and Liz had to go to the restroom. And apparently she likes the restrooms at Barnes & Noble, and so we stopped. And your book, The Total Money Makeover, just happened to be on the table right there. And while she was using the restroom, I flipped through the first couple of pages, and she came out and said, what are you looking at?

I said, I don't know. It's a book. And when we got home, I just kept thinking about it for about a week, and I said, you know, it seems interesting. I'll go back, and I'll read this bald guy that's cutting up credit cards. And I read it, and two or three days,

I closed the book, and we were laying in bed, and I looked at Liz. I said, I have to sell the truck. She said, give me that book. I said, who is this guy that has brainwashed my husband? In one reading. Yeah, it was amazing.

I'm a numbers guy, and the numbers just made sense to me in the book, so much more than the numbers that I was cranking out on my own. And the plan just seemed like it would work very easily. Liz knows. I had a crazy spreadsheet that I put together. It's funny how God works.

About two or three days after Liz finished the book, her car died. Oh! And so it was, okay, the car dealership guys thought I was crazy bringing a 2015 Chevy Silverado to the dealership.

And I said, I'd like to trade this in. And they were taking me all over the place looking for new cars. And I said, guys, I need two cars. And they thought they hit the jackpot. No, no, no, no, no. Two for this price. Yeah. So thankfully I had put a bunch of money down on the car and had been making payments ahead of time,

so I had a little bit of equity, but I was able to trade in the truck. You got some hoopties. What'd you get? We got a 2000 Honda Accord and a 2002 Saturn. I gave Liz the choice. She picked the Saturn. We've been driving around, and they work just as well um and it's it's it's been great yeah but now you make 170 and you don't have a payment in the world it's amazing you can go get you something else now right yeah save up

and get a decent car yeah get out of those hoopties good job man thank you very cool thank you very cool so uh how long after he closed the book that night and said, I'm selling my truck before you got through it and said, I'm on to? It didn't take me three days to read it. It took probably a week or two. Sure. I mean, once you get into it, it's interesting. Then I just want to keep reading.

So about two weeks, and then we sat down, and we did our first budget, and it was game on. Okay. All right. Was that first meeting hard? Yeah, I think the first – I know you ask people what's the hardest part. I think the hardest part was getting started. You're totally changing. You're just swiping the credit card.

You're, oh, it's just this one time. We'll skip on that. Or, oh, you know what? I don't feel like making dinner. We'll go out. Which with both of your training is perpendicular to everything you've been taught. Exactly. Except you do it in the physical world and I do it in the money world.

Right, right. Yeah, so once we were able to get that snowball rolling, I mean, our plan when we made that first budget, I thought it was crazy that we were going to be done in 40 months. I thought, man, there is no way that we'll be done in 40 months. And then we paid off the first loan about six months early. I said, ooh, maybe we can keep chunking away. And, you know, during that time, I had an emergency surgery.

We had Hannah, or we found out we were having Hannah about four months in. Wow. And so it was like, okay, now you talk about changing your family tree, and knowing that there's another branch to that tree kind of kicked us in the rear and said, let's go. Yeah, that's motivation right there. Yeah. For sure. So back to that very first budget meeting.

Liz, you were going to say something. It was tough, huh? It was. And then after that, he scheduled weekly budget meetings. Oh, no. going to say something. It was tough, huh? It was. And then after that, he scheduled weekly budget meetings. Oh, no. He's like a super nerd. You should see his spreadsheet. His spreadsheet is ridiculous. But it was like

every, until we really got going, we would meet every week. We would go over the cash in the envelopes. He's wearing you out. I was like, we haven't gone out to eat. There's still $50 in there. But we would meet every week until we like really got the hang of it and then it was more i think for me because he's always been the budget guy and the excel guy um so it was more for me and then i was like okay

i get it let's do it and then and then you get the muscle memory and then it just becomes second nature okay good very cool all right so what do you tell people the key to paying off $143,000 in 27 months is? So I would say the line for me that has stuck is the comparison is the thief of the joy. Don't compare yourself to anybody else. Everybody's debt hole is different. Everybody's debt shovel is different. Just stick with it. The end will come and it will be the best light you've

ever seen in your entire life. A Rachel Cruz line. Yeah. I think at some point during the journey, one of my co-workers handed me Start With Why. Yeah.

Again, it's funny how God works. Little pieces like that. Knowing that Hannah was on the way and finally seeing that it wasn't going to take me 60 years to get through this, understanding that there's something bigger than me, really just knowing your why and really keeping that as a central focus of what you're doing. It's a big deal. Who were your biggest cheerleaders? I'd say, aside from each other, our family, for sure.

You have some outside friends that thought you were crazy when you saw the truck, and you tell them, they ask you how you're doing, and you're like, oh, well, I've paid off $80,000. What? So we've had a close couple of friends, but family definitely, I would say, is our biggest. Yeah. You have people all over, Dave. Yeah.

And as you start, I was sitting down with a buddy at a conference, and he paid for dinner in cash. I looked at him, and I said, Eric? He said, oh, yeah, Dave Ramsey. I was like, how have we not talked about this? And then another coworker and her husband were great cheerleaders for us. Love it. Spiritually and just throughout the journey. So you have a lot of great people around.

If I start picking on you about your car, you just go, it's a Jesus car. We're all in one accord. We're all in one accord. That's right. Very cool. Good job, guys. Very well done. You guys are amazing.

Thank you. Very impressive. It's a lot of money. I mean, you've got to feel light. I worked a lot. We worked a lot. Liz was going to kill me one weekend. I needed some help. She was seven months pregnant.

She looked at me. You can tell that story better than I can. The coach said, are you our athletic trainer for the game? I said, yes, sir. Let's hope nobody gets hurt. I would be waddling out, you know, on the field. But we got it done. It's nice to see everything that we make now we get to keep.

Yeah, it changes everything. Got a copy of Chris Hogan's book for you, Everyday Millionaires. That is the next chapter in your story to be millionaires. You are on the way, baby. I love it. I love it. I love it. And you brought little Hannah with you. We did.

And Hannah is now how old? She'll be two in December. All right. What a fun age. That's good. Very cool. All right. It's Hannah and Chris and Liz from Washington, D.C.

$143,000 paid off in 27 months, making $140,000 to $170,000. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Love it! Whoop, whoop, whoop, whoop! Well done.

Well done, you guys. Congratulations. Wow. This is the Dave Ramsey Show. I'm out. Jay is with us in Florida. Hi, Jay. Welcome to the Dave Ramsey Show. Hi, Dave. How are you doing?

Better than I deserve. What's up? Oh, man. Just, you know, I use this statement everywhere I go. When people ask me that, I'm like, oh, you know, just better than I deserve. And they're like, Dave. I'm like, yeah, that's right. Get it done.

Cool. How can I help today? Well, I have a student scholarship that turned into a debt that got sent to Collections without my knowledge. And I wanted your advice on which way and how to deal with the situation it was a scholarship and it turned into a debt how can that happen well um when you go into the service the first year is free the second year you pay for and if you decide to get out of the program it now turns into a debt and you have to repay the scholarship money. The service.

The military? Yes. Yes, the military, yes. Really? I didn't know that. Uh-huh. Okay. So you quit school, and your scholarship turned into a debt. Well, I didn't quit school.

I just quit the program. I continued school, and I was told that when I'm finished with school, I would have to pay back the money. However, when I was finished with school, all of a sudden I did my first tax return, and I know that I was sent to collection without my knowledge. Okay. Well, that's not a big deal. Just pay it off.

Well, what happened was the interest and collection fees, it all came up. So now I have an extra almost $15,000 that I didn't know. Wait, wait, wait. Did you say $50,000? $15,000, $1,500. Okay. How much was the scholarship for that it turned into a loan? It was about $ 20 22 000 okay and how long ago was this

uh this was five years ago okay you knew when you quit the service that it had become a loan right i did yes so why is it a surprise to you that when you didn't pay on it for five years, it went into collections? Well, no, it went into collection while I was in school. Well, why didn't you start paying it as soon as you got out of school? Just like I have another school debt, and they sent a letter with all the information and everything that I'm supposed to do. I wasn't given any other information on how I'm supposed to do it.

And I do know it's my fault, Dave. I'm supposed to go after it. I'm supposed to know what's supposed to happen because it's my debt. However, I guess what I'm saying is someone went. You can negotiate away the collection fees. $15,000 in collection fees is ridiculous on a twenty thousand dollar debt there will be some interest that you can't negotiate away uh because it's been five years on twenty thousand but um and so some of that fifteen

thousand maybe as much as half of it will be actually interest and because it is a debt that's been outstanding that interest is not they're not actually interest. And because it is a debt that's been outstanding, that interest is not, they're not going to negotiate that if it's a guaranteed federal, if it became a federal guaranteed student loan, which is what it sounds like. It sounds like it dropped into the Sallie Mae program. And so, yeah, you've just got to go in and address it. You can negotiate away the collections fees and get on a payment plan with them. As far as the IRS holding your refunds,

they're going to do that as long as you're in default on a student loan. There's nothing you can do about that, except make your W-2 be changed to where you don't have refunds anymore, which would be a great idea as well. You shouldn't be getting a tax refund to start with. But the money that they took this year it's going to be applied to the debt and it's gone so uh there's not a negotiation with the irs on this it's a direction that they get from congress to take your money and put it

on the student loan and they don't even ask so that's i'm sorry but that's exactly how it works so the good news is now you've got all the numbers, and you can get the whole thing lined up, and you can get in attack mode, and you can begin to work your way through it. Jorge is with us in Arizona. Hi, Jorge. How are you? Hi, Dave. I'm great.

How about yourself? Better than I deserve. What's up? So I'm currently $19,000 in student debt. I'm paying it off. It's from my master's program. I have $6,000 in student debt. I'm paying it off. It's from my master's program. I have $6,000 in my saving account. But the thing is, I'm looking to move back to Texas, hopefully before or by the end of January. So I still have a little bit of an unknown. I wouldn't move without a job.

But the whole thing is, I'm looking to propose to my girlfriend soon, and I already have a ring picked out. And it's a $2,200 ring. And they're offering me a zero interest loan or a credit card, zero interest. So I was thinking, should I just pay the ring off with the money I have that I was going to throw into my debt, or should I take it out from my savings and pay from there and continue paying my student loan? I was a bit confused on how to do this. So what do you make? I just got a raise, so $65,000.

Okay. And your girlfriend is in Texas where you're talking about moving to? Yes. Okay. All right. And your girlfriend is in Texas where you're talking about moving to? Yes. Okay. All right. $2,200 ring is fairly rich in this situation. I certainly wouldn't buy anything ever on debt of any kind.

And if you're in a location where they're offering you 0% interest, I suspect you can get a better deal on that diamond than that retail establishment is offering you uh the fact that they're offering you this zero percent loan tells me they're probably retailing it and um you probably can find a very similar size diamond for less expensive for less expense if you continue to do some shopping but you just need to write a check and buy it. And I would say $2,000 is your budget. I wouldn't go any higher than that. And you write a check, buy the ring. When are you going to propose? I'm looking probably sometime early next year. Okay. All right. So you're going to drive by Christmas, huh? I'm sorry? You're going to drive past Christmas?

Yeah, I'm going to wait until after Christmas. Okay. All right. Good luck with that. Thank you. If she's expecting this, good luck with that. Yeah, maybe. So, okay. Yeah, you've got the money. You've got

$6,000, and you're going to use some of the rest of it to make a move, and you're going to get your new job lined up that pays more or similar money, not less, and you're going to get everything laid out, and that's exactly it. That's exactly what you do. So lay it out, but pay cash for it. Never borrow 0% interest because it's never 0%. If they're giving you 0% interest, it's because it's built into the deal somewhere.

Obviously, you're getting stuck somewhere. That's one of the reasons I know you're paying too much for the ring, for the diamond. So look for it. Hey, thanks for the call, man. Open phones at 888-825-5225. You jump in. We'll talk about your life and your money. Jared is with us in Georgia.

Hi, Jared. Welcome to the Dave Ramsey Show. Hi, Dave. Thanks for taking my call. Sure. What's up? I found myself in a pickle with debt. I make about $30 a year year depending on hours and overtime. My car is worth

about $12,300, but I owe over $16,000 on it. And I do have about $65,000 to $7,000 in credit card debt that I am working on, and I'm working on baby step one. Okay. Good. All right. Good. So you're just getting started. Well, let's get on that written budget and tear into it.

You may want to move down in car, but your car is not really, the $12,000 part is not completely out of line. The bigger part that's out of line is the credit cards, and my guess is you're going to need to start doing something to get your income up with a side hustle on the short term and reevaluate your career on the long term. And so let's get your long term income up and your short term income up because you need a bigger shovel to get through $60,000, $70,000 worth of debt making $30,000 and a $16,000 car debt in the midst of that. So, again, that's how we would approach it. Hey, thanks for the call. That puts this hour of the Dave Ramsey Show in the books.

Our thanks to James Childs, our producer, Kelly Daniel, our associate producer and phone screener. I'm Dave Ramsey Show. Once again, you made The Dave Ramsey Show one of the top five most downloaded podcasts last year. To get your daily dose of motivation and inspiration, subscribe today.