The Ramsey Show - App - Dave Ramsey Surprisingly Agrees With Sen. Bernie Sanders?! (Hour 3)

Episode Date: October 27, 2022

Dave Ramsey & Ken Coleman discuss: The Fed's interest rate hike - one of the few things Dave Ramsey and Sen. Bernie Sanders surprisingly agree on, How to sell a property that was inherited without a will, What to do with your finances when your job is being eliminated, Why diligently sticking to budget is crucial to getting out of debt and providing you with freedom, How big your emergency fund should be when trying to buy a house, Why you shouldn't take out a personal loan to pay off your debt. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Девочка-пай Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio, 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. We help people build wealth, do work that they love and create actual amazing relationships. Ken Coleman Ramsey personality is my co-host today as we take your questions at 888-825-5225. Ken, a rare thing has occurred. Two times in the past six months, I have been in complete agreement with Bernie Sanders.

Say it isn't so, Dave. No, I mean, when it is what it is, it is what it is, right? That's right. One time was when his folks watched the Borrowed Future documentary, and his team reached out to us and said they wanted to use it. Oh, wow. Because they're also against the Epic student loan failure that's out there. They're probably coming to different conclusions about the failure than we are,

but we're at least in agreement that the thing is a failure. And they reached out to us on that. And the second time was when I looked down at this market watch um article that just came out where um it says the federal reserve's policy of steep interest rate hikes is not helping the struggling economy and is instead hurting working americans senator bernie sanders said i think they're hurting the situation i think it is wrong to be saying that the way we're going to deal with inflation is by lowering wages and increasing unemployment, the Vermont Independent said in an interview with NBC News' Meet the Press.

This is not what we should be doing. This inflation thing is a real issue. It's a global issue, but at a time when working families are struggling when the people on top are doing phenomenally well i don't think you go after the working people sanders also said he would not raise interest rates any higher completely agree senator bernie sanders yeah wow i mean this is a rarity i find myself in agreement sometimes with people that i am seldom in agreement with. But that's okay. If they say the truth, they say the truth.

That's right. I can line up with it. He goes on to say some other things, of course, that I don't agree with. But that's okay. I mean, there's no question that, in my mind, that the Fed is using an antiquated monetary policy that is absolutely going to backlash on them. They're going to continue to screw up this economy rather than help it. They're trying to squash inflation that was created by things other than an overheated economy. The economy overheating, you know, due to too much prosperity, God forbid uh was not what caused this inflation that was

what caused inflation in the 70s and this is the monetary policy that was invoked in the 70s that's how and up into the 80s and that's how jimmy carter ran interest rates up into the 18 fixed rate for housing i remember trying to sell houses in 1982 18 fixed rates for housing that was a mortgage rate like a credit card it's unbelievable that's what we had and it was this very policy this very view of monetary policy that this is how you correct economic inflation is you it's kind of like chemotherapy yes you try to kill the patient yeah a different way before the cancer gets them that's right i mean if you if you know people or if you've ever had chemotherapy i mean they basically destroy your body in an effort to destroy the cancer cells and it works but this will work eventually but the devastating

side effects are going to be very very real so yeah So, yeah, the Fed is out to lunch. They're smoking crack. They are using a hammer. They're dropping an atom bomb on a pissant here, and it's absolutely ridiculous. They're overkill, overkill, overkill, and they're going to cause bigger problems. The labor problem is not due to an economic inflation. It's due to the pandemic,

and you bozo's quarantine issues out of Washington. You disrupted the supply chain. You disrupted the labor market, and it turned into an inflationary economy. And that's what did it. Yeah. All in an effort to flatten the curve. Remember when we had to flatten the curve? Now we got a new curve we got to flatten.

And they're getting ready to flatten everybody with it. And so now we've got mortgage interest rates at 7%. When an eye blink ago, they were at 3%. And God forbid, house prices were doing well. God forbid the housing market was too hot. You know? And if you let these things burn out, they burn themselves out without going ahead and walking up in the middle of it and just screwing around with it. Sanders is exactly right.

It's going to hurt working people in an effort to look like you're doing something. Well, and Jerome Powell has said that very thing. He's come out and said on multiple occasions, you can look it up. He has said that this is the only way to deal with this. We've got to relieve wage pressure. So that's a fancy phrase that means they think that wages are too high. Hourly wages and salaries are absolutely high. But the reality is instead of letting the market work itself out,

and yes, you have some spikes in inflation, when you see wages go up. That's just the natural way it works, folks. When a target's got to hire somebody and pay them $20 an hour and they were paying them $14 or $16 or whatever, we can clap and applaud. I'm glad for that. I want everybody to make more money. But Target is in the business of profit. And so they're going to then pass the cost on to you and your loofah is going to cost more. The other factor that has affected wage increase is that we saw a tremendous amount of people in the ages of 53 to 65. I was studying this data this week, Dave.

They went home. They looked at their retirement accounts, and they said, we don't have to work. And when the pandemic disrupted everything and they went home and everything kind of changed, they went and said, well, you know what? I've got enough. And they left the marketplace. And that has created a big gap that we see now where companies are trying to find people. And so it's up in the ante. I'm going to pay you a signing bonus. I'm going to pay you 15% more to do the same job. And that's the reality on the street that has helped push inflation to a stubborn level that we are now because supply chain is fixed we don't see ships sitting off of long beach anymore and and so bernie's right in saying that

so jerome powell saying we've got to drive unemployment up he's saying those exact things we want to see unemployment at six six and a half percent now how moronic is that though you unemployment does not count able-bodied people who are not looking for work that is correct and we've got seven million men males seven million males between the ages of 25 and 54 that are able-bodied and are not looking for work that's correct what are they doing when they're interviewed, they said screens, translation, halo, and call of duty. Yeah. While smoking pot in their mother's basement.

And they're 32 years old. We've got a way too large a segment of our male population that is completely self-selected out of the workplace and is creating a labor shortage yeah and you know how are these people eating uh let me help you with this government support yes and some of you mamas need to throw your babies out in the street so they can be cowboys oh unbelievable that's right That's right. That's spot on. Hey, let me just tell you, an eagle that doesn't leave the nest eventually is known as a turkey. That's how this works.

So this is what's going on in the economy, boys and girls. It's real stuff out there. We have a work ethic crisis in America for sure, without a doubt, we've got people aiming at mediocrity instead of trying to be somebody. This is The Ramsey Show. ken coleman ramsey personality best-selling author is my co-host today of the book from paycheck to purpose how many of you listening to the show today wish you'd learned how to handle money the right way when you were in high school?

Yeah, me too. Think of all the money mistakes that would have never happened. Well, parents, even though you can't go back in time, you can make sure your teens learn how to handle their money now while they're in school, like how to budget, how to save, how to spend wisely, how to avoid debt. Foundations in Personal Finance is the homeschool curriculum we put together here at Ramsey. It'll give your teens the tools they need to win with money, to pay cash for college,

to stay out of debt. And it's not just another homeschool curriculum. It is a life-changing course that will completely transform how your teens think about money. So give your teens the money skills they need now for the rest of their lives. Foundations in Personal Finance Homeschool Curriculum. Find out more at ramseysolutions.com slash homeschool. Annie is with us. Annie is in Raleigh, North Carolina. Hi, Annie. Welcome to the Ramsey Show.

Hi, y'all. Thank you for taking the call. Sure. What's up? My father-in-law's family owned a property that the home was demolished because it had fallen into disrepair. We thought that the property would sit there forever because it's not in a desirable neighborhood. But then we received a property sale agreement for the property saying they would pay us about $5,000 for the property after they pay all the liens, escrow taxes, recording fees, all of that. We thought that

this sounded like a great deal, but they haven't done a title search we don't have the money to do a title search unless we use our emergency fund so we think that this is going to fall through but we don't know if we need to do a title search and try to resolve this property with the other heirs there's no money that we know of to be made off of it because of the liens and taxes that are back taxes at this point. We just don't know what to do. We don't want to use our emergency fund, but we kind of want to move off this. It's not your responsibility. It's not your money.

It's not your responsibility. Okay. It's not your property. Okay. Is it? No, it is still in the grandmother's name yeah well but i'm saying and she didn't have a will right it has not gone through probate okay when did she die 2002 good lord okay and how many heirs does she have? My husband would be the one on this side, and then there is a son on the other side that is still living. There's only two people?

Right, because the other son is still alive. The property owner's son is still alive on one side and then he has all of his kids and then my husband was the only surviving child of the owners okay family so there's only two surviving child right the his brothers and sisters that passed did they have kids he had a brother that passed in 2009 and never had children okay all right then yeah then those are the two heirs it sounds like so both of them ought to be able to get together and sign a deed shouldn't they but doesn't have to go through probate to uh ask a title company in your state i'm not sure okay 2002 if you can just both of you sign affidavits that you're the only heirs and you sign it um not sure it'll be good enough for title policy but uh but you can probably transfer the title depending on where your state i don't know your state's laws that well so they are advertising this property for sale the company that reached

out to us how are they advertising it for sale they don't own it i don't know but i accidentally found it on zillow one day yeah well you need to call them and tell them not to advertise it for sale since they don't own it okay if they want to buy and close on it then they can put it up for sale but we shouldn't use our emergency fund. No, you should not use any money. Okay. You should just let the buyer pay the cost to have the title searched and have them place it with a title company. And if the title company can tell you whether you've got to run it through probate, and if they want to run it through probate, they can pay the cost for that.

It's not worth it. It's not worth anything. It's not going to put any money in your pocket. Okay. You told me that. Right. And we are living paycheck to paycheck except for our very small. Do not pay any money for a transaction here.

Okay. The only thing you want to do is have your husband and his uncle, I guess it is, or whatever it is, sign a deed and get money. That's the only thing we want to do here. There's no other transaction. There's no other calories. But let the people know they don't need to be advertising the property unless they want to close on it, and they need to go to the title company, and the title company can tell them whether they need to go through probate or not.

Okay. But you're, yeah, they should stop. They don't need to be advertising something they don't know these goobs but um it sounds like it's more trouble than it's worth i think i just forget about it and move on with my life it doesn't sound like by the time you finish all this you're going to end up with anything except a bunch of worry and headaches do not write any checks under any circumstances for this property. It is not your problem.

It's someone else's problem. That simple. Virginia is with us in Orlando. Hi, Virginia. Welcome to the Ramsey Show. Hi. Thank you so much for taking the call. Sure.

What's up? Well, I called back in March and got through and had asked for advice about paying down my mortgage, making a rather large $50,000 pay down on my mortgage. And after some discussion, we all came to the realization that that was a good idea. So I did. And I've still been aggressively paying on my mortgage while putting money towards my emergency fund and savings. And then last week, I found out that my position at work is being eliminated. So I have a couple of options. I had planned on working another seven to 10 years, continuing to build up retirement. So I can look for another position.

I've got about 40 days to do that. Yep. Or I can take the severance package. I've been there over 35 years. I can take the severance package and early retirement, utilize my retirement benefits for insurance, et cetera. And I do have a 401k through work as well as a small beneficiary IRA. How old are you? I'm 55.

Okay. You can't access the 401K. I don't know why you can't take retirement package severance and go get a job. Well, I can't go get a job. So I think I can take the severance package and retirement together. I do have a pension through my employer employer and I think I can access that. Yep. And I ran

just the estimator on it. If I take it as a single life annuity, it would be $1,400 and change a month. I would take it as a lump sum and roll it into an IRA and not take it and go get a job ah it's both and well and that was going to be my that was going to be my question so my first option is the monthly option nope or i can take the lump sum which is like 300 and change

yep roll that into an ira and keep working So I can take severance and early retirement and then go out and get another job. Yep. Yep. You weren't ready to be out to pasture, and I'm not putting you out to pasture. Virginia, this is known as a win-win if you look at it that way. It's like a signing bonus into the next deal. Well, but it's going to be a highly taxed signing bonus

because it's being paid as a lump sum. What? The retirement or the severance? The severance. Well, good. Take it. It's what signing bonuses are taxable. Yeah, I'd go get a job, kiddo.

No question. What'd you do? Yeah, this fast-forward is everything. Yeah. Everything. Paying off a house faster. Got a big bunch of money and just extra stuff, extra money.

Oh, darn. Fire me again, please. This is The Ramsey Show. One of the most common pieces of advice I give folks trying to get out of debt is to sell the car. But it's important to sell the smart way by using CarWiser. CarWiser is a completely free service that gets you offers from all the top online dealerships instantly. Just enter your vehicle information and boom, you're ready to pick up an offer and get paid. CarWiser saves you hours of time and hassle. So go to carwiser.com slash Ramsey.

That's carwiser.com slash Ramsey. Ken Coleman, Ramsey Personality, number one best-selling author of the book From Paycheck to Purpose, is my co-host today. In the lobby of Ramsey Solutions, on the debt-free stage, Monique is with us. Hey, Monique, how are you? I'm good, and yourself? Better than I deserve. Where do you live? I live in Norfolk, Virginia. Welcome to Nashville.

Thank you. And here to do a debt-free scream, how much have you paid off? I paid off $76,430 in 21 months. Good for you. And your range of income during that time? About $60,000 to $70,000. Good for you. What do you do for a living?

I'm a realtor and Air Force reservist. Oh, thanks for your service. Thanks for your support. And what kind of debt was the $76, 76 000 it was my house all right you have a paid for house yes you're weird yes sir i love you awesome well done kiddo what's the house worth the house is worth now about 230 000 wow how's that feel it. I mean, like you got no payments. I don't. I remember when I started the seven baby steps back in 07 and I was like getting out of debt and I never even thought that I even wanted to own a house. And now like I own the house and

no one can take my house or my car if something goes wrong. Wow. Your family has to be looking at you like, wow. I hope so. Congratulations. Thank you. How old are you? 41. Well done. Well done, young lady.

Very well done. And a paid for stinking house. What's the house worth, you said? About $230,000. About $230,000. All right. Very good. Very good. All right. Tell us the story. story what happened what got you started on all this Ramsey stuff so in 2007 my co-worker I had just started a job at American Airlines and she said that you said that I

shouldn't invest my money unless I if I unless I didn't have any debt and I thought it was crazy so I went home I read the book that weekend, and I was like, well, I guess I can give it a try for a year. And 15 years later, I've made my way all the way through the baby steps. Love it. Yeah, that's crazy. Let me go read and see if this guy really said that. And you're like, well, no, he actually did say it, and I think it makes sense.

Yeah, and 15 years later, here here we are 41 years old with a paid for house and i just stuck with it um i was in the u.s airways american airlines layoff and then i had two more layoffs within a span of four years and i never had a financial crisis at all wow wow that really you're amazing very very very well. How much you got in retirement? I have my total net worth now is about $400,000. Good for you. Wow. You are on your way to Baby Steps Millionaire. Next stop.

I hope so. Sooner than later. Well done. 15 years. And here we are. That's amazing. And going through layoff after layoff and still pulling it out. Well done done so what do you tell people the key to getting out of debt is you're 41 years old with a paid for house um i would say having the budget and using the budget and

never stopping like no matter what if it's an unemployment check if it's a severance check no matter where the money comes no matter how big or small, always use a budget. And then just make the payments. I don't care if it's $2 or $3. It doesn't matter. Every little bit counts. Wow. Well, first I got to say, I grew up in the 757, so you're representing. Love that.

Hampton Roads, Virginia, awesome stuff. I'm curious to know what it was like for you when you first started out so you read the book and you go okay i want to do this and you get into this i'm curious from your journey because you've been at it a long time yeah uh when you hit maybe some patches of discouragement is this thing ever going to work out or maybe you were intimidated i'm just curious what your story was maybe early on and what you did to get over that hump and get that momentum going. Well, generally speaking, I'm pretty driven. So when I found out the book, I had just graduated from my MBA and started working and I had moved to a new city. So I hadn't really had any roots anywhere. So I didn't have to like necessarily

stop doing a lot. And so what I focused on was making sure that the money got to the payments, but then just doing like free stuff. The biggest challenges are probably like friends who thought it was weird and wanted me to do things or whatnot. So I wasn't in a point where I was like in a dire situation. I was like kind of in a good situation to start new habits. So that was like pretty easy. The house was a little tough because in the beginning, it wasn't as like exciting to pay it off. But then, you know, COVID hit and I wasn't sure what would happen with the real estate because I was a fairly new agent at the time. And I was just like on the four year anniversary, I was like, I'm going to pay this off by next year. I didn't make it the next year,

but I made it within two. Wow. So that was like the slowest challenging part was the first four years of paying the house. Wow. Yeah. Cause you don't feel the progress. Right. Yeah. And, but COVID gave you a little urgency and kicked it in. 100%. I realized that my basic living expenses were only $1,600 a month. I was like, I could work at Chick-fil-A and make that. So I got rid of the mortgage. How long have you been in the Air Force Reserves? It's about nine years this month. Okay.

Wow. Well done. Very well done. Okay. The secret again to getting out of debt is what? Having a budget. Having a budget. Sticking to it and using it over and over.

No matter what it is. No matter what it is. Always applying every dollar. No matter what it is. Applying every dollar that comes in, no matter where it comes from. Severance or unemployment, whatever it is. I heard you say that. Yep.

And then send the payment, no matter how small. Yep. Yep. Keep sending that extra $2, that extra $10. Because it's part of being in the rhythm, staying on the plan, staying on the plan, staying on the plan. Well done. Thank you.

Excellent, excellent, excellent job. Wow. So you feel great now? Yeah, I can do whatever I want now. What's the first big thing you're going to do now? Well, the first thing I did was I bought a Coach Tote and I signed up for Orange Theory. Nice. Okay. All right. Got to and I signed up for Orange Theory. Nice. Okay.

All right. Got to have a nice handbag. Yeah. Nice. Okay. Hey, that's a good celebration right there. Well done. Well done.

And now you can continue to do anything. You don't have any payments. You've got lots of margin now. I do. Lots of things you can do. So, well done. Hey, we've got a live and give bundle for you the total money makeover book and you'll be able to give that to somebody maybe they'll read it through like you did and maybe not and

maybe uh well maybe we can break their stubbornness too so we'll hand it off to that i hope and uh the baby steps millionaires book the latest number one bestseller because that's your next chapter for sure and a one-year membership to financial peace University as well as part of the Live and Give bundle. So we'll get that to you in a few minutes. Congratulations. Very well done. Thank you. Monique from Norfolk, Virginia, 76,000, paid off house and everything.

She's weird. Did it in 21 months, making 60 to 70,000. Count it down. Let's hear a debt-free scream. Three, two, one. I'm debt-free. Yeah. Yeah.

This is how it's done, boys and girls. This is how it's done, boys and girls. This is how it's done. So, Austin, have we got that video handy that we were talking about earlier? Yeah. I think that absolutely applies here. So we're always telling you that the tortoise beats the hare. Yes. And so she starts this 15 years, every little bit, every little bit, every little bit. And so those of you watching on YouTube, you're going to be able to see the uh tortoise actually feeding the hair this isn't actually a children's going

around instagram or dave ramsey preaching about it as a metaphor it's actually happened well yeah i mean i i suspect that most hares uh really can't keep their eye on the ball and uh they get they get you know they get sidetracked by everything flashy can you fire it or not i'm not gonna make it it's coming up okay because you just got 30 seconds okay so of course we know the the aesop's fable the tortoise and the hare that the hare is distracted add he's all over the place he's stopping to look at every little thing he's on amazon prime he's you know he's doing everything and the tortoise is ugly and just keeps on moving until they get there. You just keep pushing through, keep pushing through.

We even sell a version of it. Okay, there it is. So there it is. This is an actual race. This is an actual race between the hare. The hare stops. And you can see what happens. See, we can look there.

Comes out fast. Getting distracted. Comes out fast but stops. Becomes enamored, trying to please the crowd. Wants to look around at the people. Yeah. Tortoise is just moving along. Watch this.

It's my favorite part. The gal tries to get the rabbit's attention. Come on, buddy. Doesn't move. And there it is. The tortoise crosses the finish line first. Once again, proving the fable to be true. Hey, this is how it works.

This is how it works, boys and girls. We don't sell microwaves around here. We are in the crockpot business. This is the Ramsey Show. សូវាប់ពីបានប់ពីបានប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពី Our scripture of the day, James 1, 2, and 3. Consider it pure joy, my brothers and sisters, whenever you face trials of many kinds, because you know that the testing of your faith produces perseverance. Chris Pratt says, when life gives you lemons, make lemonade. I read that on one can of lemonade.

I like to think it applies to life. Yeah, that's pretty good. I read that on a can of lemonade. I wonder how that happened. Open phones at 888-825-5225 paul is with us in des moines hi paul how are you hey i'm good dave how are you better than i deserve what's up in your world um i just had a question for you um real quick story before that is when i was going through baby step two, I had about four or five credit cards and I would pay one off and call it up and close it and pay

one off and call it up and close it. And they would always give me resistance for closing the credit cards. And, uh, one of the guys, eventually I just dropped your name and said, the reason I'm closing it is I'm on the Dave Ramsey clan. And he said, I know who this Dave Ramsey is that you speak of. And I know that there's nothing I can say that will change your mind. One way to shut them down. That's great. Okay. So my question is, um, I'm on baby step three B. Um, I put an offer in for a house to buy the house in cash for right around like $200,000.

And they might, they haven't accepted it. It was just today, but they might come back with like a counter offer and was wondering, that's mostly all the cash I have, but I have a little bit of an emergency fund. And really my question is, if I have like a paid off house, what sort of emergency fund do I need if my expenses are really low like if they're like eight hundred dollars a month it seems like maybe forty eight hundred dollars is a little bit low for an emergency fund as a homeowner so just yeah because you know we always say three to six months of expenses as a guideline um but i you know you're doing something very amazing there how old are you 36 and you're paying cash for a house with 200 grand or so trying to yeah yeah

i really wouldn't want to get under 10 000 because emergencies in your situation are going to take the form uh of something like a transmission going out on a car or some kind of crisis happens and you need to fly across the country to be with family or something like that. They're going to take that kind of form. They're not really going to take the form of, oh, I've got to support myself because I lost my job. Because in that case, you know, your baseline is so low,

you can go, you know uh uber eats and survive right sure so it's more going to be a lump sum comes at you of some kind of heat and air system goes out five grand or something like that that's uh that catches you off guard an emergency obviously is an unexpected event and so i i you know I would say a minimum in a situation like that is going to be $10,000. What do you make a year? Roughly $60,000. It's kind of free glance. It's kind of up and down month by month.

I mean, you could cheat down a little bit if you want to. I'm going to close on the house and have $7,000 in there or something like that. But, no, I'm not going to use the uh you know three to six months of expenses when your expenses are only 800 bucks i think your life has more risk to it than that in terms of covering it with an emergency fund is that logical yeah yeah that totally makes sense that that feels comfortable to me i just wanted to yeah how much have you got no savings total uh 215 okay so that gives you 205 so you ain't got much wiggle room on this negotiation then yeah yeah okay all right cool that'd be interesting thanks for taking my call

yeah i mean the market has slowed down and you're a cash buyer no contingencies on mortgages um you know i just hold stance and if this doesn't work i'd just say i'm gonna get the next house i'm gonna find one i can buy for for that and uh the more the market slows down the more you're gonna be able to slip up on a deal maybe uh for the first time in really three years yeah you don't have a bunch of people lining up anymore you know and he is very attractive as a buyer yeah it's pretty cool paul very proud of you that's a very neat place to be you know and he is very attractive as a buyer yeah it's pretty cool paul very proud of you that's a very neat place to be you know we don't hear those stories very often 36 years old i've saved up two hundred thousand dollars to buy a house and pay cash for it in des moines iowa you

can get a decent house for 200 too i mean it's not a shanty right you know isaac is with us isaac's in new jersey how are you isaac hey jake how are you, Isaac? Hey, Dave. How are you? Better than we deserve, sir. How can we help? Yeah, so the reason I'm calling today, my wife and I got married in last July. Congratulations.

I'm 22 years old. Congratulations. Thank you. Yeah, so I'm 22 years old. I make $65,000 a year. I have no debt other than what we took out. We use credit cards to pay for the wedding. I own a house.

I owe $132,000 left on my house. And so I owe $6,000 left on the one credit card. My question is, um, the credit card is at 21% interest rate. So I was wondering if I should, um, instead of keep paying the credit card payment at the 21%, cause every time I feel like I make a payment and then I get an interest charge and it keeps going in a circle, I was wondering if I should go to a credit union and take out a personal loan. What does your wife make?

She's in college, so I'm cash flowing her college. Ooh. Okay. So she doesn't work at all? She works part-time, but, you know, making probably about five grand a year. Not much work. Okay. No.

Okay. She's going to be going to medical school. So she's going to become a doctor. And how are we paying for that? Cash flow. So actually this year with financial aid, because my income, this semester was paid for through the financial aid. But then after that, you know know i'm going to be cash flowing

it okay all right um well the the good news is you only owe six thousand dollars and uh the bad news is you need to work your complete tail end off for the next uh two months three months four months and get pay a thousand dollars a month on and be done with it interest rates not the problem intensity and focus is the issue and so if you were going to keep the loan for five years yeah we would refinance it and get a lower interest rate but that's not healthy for you you need to place scissors across that card chop it up have plastic surgery have a plasectomy and then step in there and take an extra job or six live on nothing all of you guys just roll up your sleeves and punch that credit card in the nose.

And if you pay $1,000 a month, it's gone in six months. And then the interest rate doesn't matter mathematically. And the reason it's killing you is you're making little bitty payments and you got a big old interest. But when you start putting $1,000, $1,500 a month on it, it's going to go away really fast. It's absolutely the advice. And right now is the time to do it this is all about hustle and getting any kind of every job possible and see how quickly you challenge yourself yeah especially part-time jobs there's a dearth of part-time jobs that can pay very very well 15 16 20 an hour an hour i mean and you could knock out

six grand in credit card debt fast yeah and she and she could too. Yeah, I'd challenge both of you as an older brother and go, we could probably both work several more hours and get this thing done quickly. Yes, fast, fast, fast, super fast. That's the answer. And then the interest rate at that point doesn't matter. If you're going to keep the loan five years, you're not following what we teach, and yes, you would go to the credit union and get a new loan. But you can't borrow your way out of debt, and we don't want to keep a credit card loan around

like it's a pet i want to get rid of it it's evil it's a disaster and um it was a mistake and so yeah let's get the mess cleaned up as fast as possible and never go back there again never again you got to draw a line in the sand so hang on i'm going to send you a belated wedding gift uh it's called the total money makeover it's a book that'll show you guys how to get started and how to handle money how to get out of debt and how to build wealth so you hang on i'll send you a copy of it to say happy wedding day a little bit late so well done ken good job today thank you sir well done will and aust Good job today. Thank you, sir. Well done, Will and Austin and Zach and Andrew and everybody in the booth. Well done, guys. Excellent work. I am Dave Ramsey,

your host. We'll be back with you before you know it. In the meantime, remember there is ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.