The Ramsey Show - App - Debt Collectors Are a Problem…Even in Europe! (Hour 3)

Episode Date: June 12, 2024

Welcome to the Ramsey Show, where we help you win with your money, win in your work, and win with your relationships. I'm Ken Coleman. Rachel Cruz joins me this hour. And our phone number to jump in is 888-825-5225. That's 888-825-5225. Alright, partner. You ready to go? Ready to get

to the phones? Ready, partner. Partner? I love that that threw you off. You know. I didn't say like podna. Like we're on a ranch. Cowboy. I feel like I'm, podna. Like we're on a ranch. Cowboy. I feel like I'm cowgirl. No, you're my radio partner.

No, but I am. I'm ready. It's going to be a great hour, Ken. Okay. I can tell she's ready now. I'm glad I woke you up before we went to Jeremy, who is in Anaheim. Jeremy, how can we help? Oh, yes.

Hi, Ken. Rachel. Thank you for taking my call. Sure. What's going on? Hey. Glad you're taking my call. Sure. What's going on? Hey, glad you're here, Ken. It's a work-related career question or maybe more of just some guidance. We're moving out of state in a couple

of years, and I'm going to be taking probably a significant A decrease and also probably in a whole new industry. It's not a new industry, but it's going to be a new job. I have a niche job here in Southern California, and where I'm moving, you know, I'm going to have to essentially build myself back up, I believe. And I'm just a little concerned and confused because it's been about 12 years I've been self-employed, working from home, and I'm scared, I guess. Sure. Well, will you be self-employed in the new state? I'd like to be, but I don't think that's going to start out that way. I'm in the real estate industry.

What do you do? I work for a group of investors. We buy and sell distressed homes, foreclosures. Well, what part do you play in that? I understand that business, but what are you doing day to day? Okay. I am a real estate agent. I do list some of the properties, but I'm actually, I coordinate with all of our realtors all over Southern California. I do the title work. I do the pre-work to buy the properties that we're going to end up rehabbing and reselling. Okay. And so you don't believe that you can go into... You said you're self-employed, but yet you work for them. So is this like a contract basis that you offer your services? So you work for yourself,

but they pay you for your time? Yeah. It's a group of three investors. I do a property management accounting and also I handle the, like I said, the trustee sales, the acquisitions. What I'm trying to understand, and I hope this helps you as we walk through this fear, um, is, is the fear is all about the big risk financially and starting over. Anytime change is involved, fear is always the issue. Change is what's driving the fear. So what I'm trying to help you understand is how much change are we actually making and can some of these changes be good? That's what I'm trying to coach you through. So what state are you moving to? And tell us specifically why you don't believe that you can start out at a little bit better

rate of pay than you think you're going to. Give us the details. Sure. Yeah. So I'm in Orange County, California, and we'll be moving to Nampa, Idaho, which is just outside of Boise. And I got into this 12 years ago as an assistant to one of the real estate agents, and I've just worked myself up every year to where I'm at now. And, you know, I just don't know. What do you make now? Right now, last year, my taxes is $131,000. Okay. And what's behind the two-year timeline? You're calling us today knowing we're moving to Boise or outside of Boise in two years. What's driving that?

It's my stepson here. He's going to be finishing high school in two years. I love that you've got a two-year on-ramp here. I'd be planning several visits to that area, and I would be looking at figuring out answers to the things I currently don't have answers to, and I think the answers you're looking for is, how do I transfer all of this experience and knowledge that I have over the last 12 years into doing something similar in Boise? Am I right, or is it a completely different thing you're looking to do?

I mean, I'd love to do this same thing. Jeremy, not to interrupt you, and I could be misunderstanding part of the business model of this, but I do know some people that have investors that are actually, the investors live in California, and they're buying homes in Nashville, and they're doing stuff, and they have a guy on the ground in Nashville. Could you use the investors still and just do the same thing, but do it in Boise and find, I mean, the deals will look different different probably money-wise, but could you still say, hey, I still want to do this role, but, you know, boots on the ground here in Boise and I can find a town and, you know, go to town, if you will. Yeah, that's great. I'm glad you brought

that up. And yes, I have a network here and my investors actually don't know that I'm going to be leaving in two years. But they have talked about doing stuff in Arizona and Nevada. Yeah. Other spots. So, yeah, my goal would be to go there and start it up, you know, obviously on a smaller scale. Totally. I mean, grow it there. Yeah.

I mean, one of our great friends literally came from Reno and his investor was a Reno, California guy. And he's doing deals in Nashville with this friend of ours and using, you know what I mean? So I'm like, there's a chance that your connections are there. So what were you planning? That's, that's Rachel's idea. And you've kicked that around. Love that idea, by the way. But what were you planning to do that was going to be such a big pay cut in Boise? Well, I was going to, you know, get my real estate license there and probably start out maybe in property management just to get something, you know, consistent going as I build up out there and hopefully use my network from here or meet people out there. Right. And so you're anticipating

based on that kind of a job and you've looked it up and that's where you've come up with this number where you're taking a sizable hit what are you anticipating that actual that actual salary being based on your current half at best half maybe six yeah jeremy no wonder you're scared i i think you've got two years and a lot of visits and a lot of research on the internet to see how transferable your current skill set and current experience is, I don't think you need to be settling. I think this is a bad move, and I would literally challenge you, if you accept that you're going to go to outside Boise and you're going to have to start making $60 or $70 a year, then I think you've undershot your potential, and I think

you've got some work to do. But I think I think this is the wrong narrative you started this call off with the wrong narrative in the wrong question you know it needs to be how do I transfer my experience and skill set Ken to a new area that's the question and I actually think you know the answer to that you got to find out who's doing something similar to Rachel Rachel's point, to what you're doing now. It doesn't have to be apples to apples, but certainly we start in real estate. And certainly you've got experience and skill set in real estate. I'd be starting there, not, well, I'm going to have to take a property management job.

Talk to your current investors and say, hey, y'all want to keep doing deals in Boise, you know? Yeah. I think you got a couple of options there, but you got to dig a little bit more and have the conversation that Rachel's talking about. You with us? I am, yes. Yeah, definitely. Don't settle. Now listen, if that ends up being what the reality is, then you and your wife and family are making a decision to leave Southern California where salaries are higher, but so is cost of living. And so, you know, you got to look at all, but you got two years to figure this out. I think you got plenty of time to figure out how you go from $130,000 to $130,000 or maybe $130,000 to more in a place where that money goes a lot farther. By the way, that economy is booming out there. It is one of the hottest places to move.

So I think you're going to be okay. I think you've got some more homework to do. And set your sights a little higher. We're not getting on you. We're on Team Jeremy. We're cheering for you. You got this. This is The Ramsey Show.

Welcome back, America. You're listening to The Ramsey Show. so you can make more money, get out of debt faster, save money. We're here to help. You want to knock out the debt, get it out of your life, we're here to help. That is what we're discussing today. It's your life, your money. I'm Ken Coleman. Rachel Cruz is joining me this hour, 888-825-5225. Let's go to Salt Lake City next. And that's where Ryan is. Ryan, how can we help?

Hi, Ken. Hi, Rachel. I have a question for you. It's kind of got an ethical component and a financial legal component. Okay. So a couple of years ago, my wife and I took a trip to Europe. We rented a car. The quote of the car was about $1,200. And some plans changed when we were there. We decided to return early. We spoke to return early. We spoke with the company. They said we'd get about $300 off of the initial quote. So eventually we returned it and the final charge was for the full amount. But in addition to that,

there was a second charge for about $2,400. So at this point, it's a $3,600 six-day car rental. My gosh. Obviously, was's a $3,600 six-day car rental. My gosh. Obviously. Was it a Maserati? What was the extra charge? Well, it was unclear. And so they said there was like a one-way fee, like an international, because we return it from a different company, or sorry, a different country

than we originally planned to. So it just didn't make any sense. And so we tried to contact them. They kind of just like marked our ticket as resolved without even responding to us. We couldn't get in contact with them on the phone or anything. So eventually I just did a chargeback on my credit card for a partial chargeback for the amount that we actually owed, which is around $800, right? So about six months later, they sent us into collections for that and they tried to come after us for it. We finally got

them to like review the case and see what was going on. And they found that instead of charging us $200 for the one-way fee, they charged us $2,000. An extra zero. That's important. Yeah, which is kind of a big deal. So it still doesn't account for the total difference. Like there's still something off there, but it's closer, right? So they said, okay,

we'll send you an invoice for the difference. At this point, I was ready to pay whatever they asked within reason just to be done with it. Sure. But instead of sending us an invoice, they ended up canceling both of the initial charges, so now we paid zero.

So I was done with them at this point. I canceled the credit card so they wouldn't have access to it or anything. They're just incompetent. I held onto that money for about six to eight months, ready for when they came back for it, and they never did. Finally, about 10 months later, they came back into collections for the full $3,600. So my question is kind of ethically, do I need to settle this debt with this company? And then I know you're not international debt collections experts, right?

But what are kind of the legal financial implications of not paying it? Do you have anything in writing? Oh, I have lots of things in writing. Okay. So a lot of it is written down, because I was going to say, I mean, because how much is it now that they're asking for in the collections? $3,600. $3,600. And have you contacted them since that's come up? Because like your point is, I'm like, I can't tell if they're like evil people trying to steal your money or if they're incompetent and they just have no attention to detail.

Their admin processes are just terrible and you just kind of keep getting the runaround, right? So which one do you feel like it is? It's the latter. I won't say their name, but if you were to go to Europe to rent a car yeah you're up to rent a car it would be one of the okay yeah i mean honestly for 3600 bucks i'm probably wrapping back around to the company again and saying guys you messed up again here's the here's what you said in the last email here and here i'm not paying this i'll pay this amount and we'll get it settled but you know what i mean i would probably just kind of keep i would probably keep fighting it because again, it's

more incompetence than them like, you know, people trying to come after you. I'm with Rachel, but I wouldn't fight it. It seems to me that based on what you all told us, there was a point at which they acknowledged. The question is, do you have in writing when they acknowledged that the charge was $200, not $2,000? I do, but that still doesn't account for the total difference, and so that's what worries me is that, like, they found one mistake, but there's something else in there because it should be way less still

than what they're asking. Right, and so, okay, I get that. And then do you have what the original agreement was for? Do you have that in writing? Huh? I do. I do, but it's also complicated because it was in euros and so there's the exchange rate and that's changed i get it i'm going somewhere with this

because i'm with you you want this out of your life okay right and so this back and forth back and forth i mean this could be like groundhog day for the next 30 years it sounds like these people are such idiots i mean this is just moronic so I would try to come to a number based on the original rental agreement Rachel check me on this I'm just trying to common sense my way through this based on the the original rental agreement the fact that they acknowledge they already just mysteriously slapped two thousand dollars on it when it should have been 200 I would come down to a number and I would go and i would write all this out and and like painstakingly like what you really do oh right what you what you think you it was twelve hundred dollars they're gonna take 300 off it's 900 then the 200 charge because you

returned in a different country which is fair that one-way rental thing that's a real thing it's real so then put that together it's 1100 bucks and i would pay that and say we are willing to pay this it certainly can't be any more than this if anything it's less but i'm so tired of dealing with you all that i'll do i mean i'd come to some conclusion honestly to ryan i think dealing with the collection people because naturally you can settle collections once the debt's in collections you can usually get pennies on the dollar that's actually a great point you're saying deal directly just do the collections and and be done with it but have in writing again all of this in writing that's so if the company comes after you ethically there's nothing on you

you're like no no i i paid i paid it i paid what i owed and this is what it was and this is what we settled with the collections company so that's what i would do that's a great point stop dealing with the company direct just deal with the collections people. Go, sorry. And you guys can pounce in. If I could follow up on the ethical component, I mean, it's two years since that happened. And so that's kind of out of our budget at this point. And we could get the money together if we wanted to. But, you know, like ethically, am I obligated to pay this company that doesn't know what they're doing and, you know, cost me all this time great question rachel what say you she's pondering i i mean i i lean yeah i lean yes i think you use the car you you

use the service for that yeah well you use the service i mean you you i mean i'm with you you are there is an ethical like you use the service you pay for that i know but nothing more i mean if it's like 30 bucks or something it's some i don't know pastry shop or something and after three years you're probably like it's fine but i mean it's a couple times the only reason i okay tell you the only reason i sat there and i looked at you see what you're going to say is you could make a case for the service being so horrible give it to you that a legitimate manager go, we've caused you more stress and blood pressure. We're going to wipe the whole thing off. All right. I got my wife's salmon

salad taken off the bill the other night on a takeout order because it was 20 minutes longer than what they told me. I showed up. I said, your gal just called me and said the salmon, that everything was ready. She said, it'd be ready in two minutes. It's been 20. I didn't even raise my voice. I was very kind, but I was like, this is crazy. And. She said, it'd be ready in two minutes. It's been 20. I didn't even raise my voice. It was very kind, but I was like, this is crazy. Yeah.

And the manager said, you know what, sir, I apologize. We'll take the salmon salad. Sure. And that's what the company do, but this company can't,

they can't see their way. I'm making a point that I see where he's at. But that's the merchant. That's their call. Giving it. Yeah. But I could see why this guy's done with this rental car company. Yeah,

totally. Totally. All right. I don't know. I think you would just not regret. But I can see why this guy's done with this rental car company. Yeah, totally. I don't know. I think you would just not regret paying it because you used the service. But paying your fair share. Here's a follow-up question, Rachel. Ryan, if you're still with us, he doesn't have it in his budget. Now what?

Yeah, I probably wouldn't make a move until i had the cash and maybe and i don't think it's unethical to talk to the collection so that point and pay even less like if they would settle for less i would that's that's totally i don't think it's unethical to kick the can down the road and some yourself ryan meaning you pay it because you owe it yeah but i kick the can down a little bit if it took me six months to save the money i go well i'm gonna oh i'm sorry i forgot to get to that email and i'm sure as long as it doesn't like screw up your credit or like mess something up with you guys financially but sorry ryan boo not fun yikes not fun and if that's the only thing i don't like about international travel is i get a little nervous about getting jerked around a little bit.

Yeah. When you don't live in that country. All right. Travel horror stories. We should have a whole segment on those. That would actually be a great segment. Yeah. Uh-huh.

If you've been ripped off, Kelly Daniel is saying, what is the email? Really quick. Sorry. Dave on air. Dave on air. Yeah. Dave on air. Dave on air. Yeah. Dave on air at RamseySolutions.com. The Ramsey Show continues.

Thrilled to have you with us. 888-825-5225 is the phone number. Rachel Cruz is here. I'm Ken Coleman. And we are here for you. Let's get right to the phones. Jasmine is going to lead us off in Los Angeles. Jasmine, how can we help?

Hi, good afternoon. So I'm training to be a mental health therapist, and I'm about 65% through my master's in counseling program. I'm 30, single single and a renter. To finish my master's program and internship is going to take about $29,000. And even though I have that in savings, I'm concerned about spending it because one, it will wipe out my savings. And two, more more importantly I'm starting to have some fear about my earning potential in this career path I spoke to several licensed therapists in my area and I asked them about their careers and then I tactfully asked

them about their incomes and it varied between $50,000 to $70,000 with one person making what seemed like $90,000. And the majority of these therapists were married and the one single person that I spoke to said that her finances were really, really tight. And so I feel stuck because my professors tell me that I'm really gifted in counseling and that I could help a lot of people. And I believe that. And I'm also really concerned about the practical side, like making enough money in this field and someday buying a house.

So I'm trying to figure out how I can make this work financially as a single person. What are you doing for a living as you're in school right now? And how much are you making? Yes, I've been actually in school full time. But before that, I worked in higher education. And what were you making? I was making about $75. Okay.

And so how are you paying your bills? Or if you don't have any bills, how are you living if you're a full-time student? I'm a full-time student, and then I have several nannying positions. So that helps me with rent and then I've just been paying tuition with my savings. Okay. And do you have a car? I do have a car, yes. Is it paid for? It is paid for, yes. And so what would you say you're nannying if we were to just run an exercise on a spreadsheet? The amount of money you're making every month as a nanny to pay your basics while you're a full-time student, how much is that a month?

2.3. 2.3? 2,300. Yes. Okay. 2,300. All right. So here's what's interesting.

You're managing to stay afloat while being a full-time student just on nannying. Right. And the fact that you have the money saved to be able to get through school and not go into debt, it feels like you've got something that you're afraid of that you don't need to be afraid of. I mean, you're not going to make $2,300 a month. Okay. And so I know you've done the homework. I love that you've talked to other therapists, but the other issue is your

zip code. And if it were me and I wanted to help people, I wouldn't live in a very expensive zip code when I was starting out at something. I'd go somewhere else in the country. I don't know if that's on the table for you, but I guess I'm trying to poke holes in your fear. I'm not challenging you. Jasmine, I think all the things you're feeling are real. I'm not in any way discounting them. Please hear me say that. But I'm poking holes in your fear and your fear isn't dealing with any kind of evidence right now. Okay. You are managing to stay afloat, nannying. Imagine if you were in a thriving practice and built your way up and eventually had your own practice.

And you don't go into debt, and you have no debt right now, correct? Yeah, and that's what I'm afraid of. I just, I mean. Afraid of what? Being in school full-time and working the type of hours. It's like 70 hours. How much longer do you have left, Jasmine? I have a year and a half left. Okay, so this time in December of 25, you'll graduate. Is that right? Sorry, a little. No, because I have practicum. It'll be in 2026.

Right. Okay. And so again, what are you afraid, you're afraid of the nannying plus? Can I ask this? Is the nannying, just what you're making on nannying, Jasmine, is that keeping you afloat or are you still dipping into savings too? I'm dipping into savings. So how much of that, how much of that is it, are you dipping in? Probably around 800, $900. So an extra thousand a month.

Okay. That's a little, okay. I was, that's why I was asking the question. Yeah. Sure, sure. Yeah, I mean, I think what's hard about that specific career path is you have to be in the chair.

Like it's you, you don't get to like, you know, I mean, it is you that is going to be the one. And so there's only so many hours a day that you can practice, right? I mean, you could go 10 hours a day if you wanted, 8 to 8 p.m. But there is a limit there because of that. Now, I think where the growth can happen is what Ken said. You kind of get a little bit creative and do start your own practice, have therapists under you, you know, that kind of thing, right? In the future, and that's where your income could grow but for the immediate the immediate need that you have while in school and with this I mean like

yeah it's I mean something's got to give because if you're dipping into the savings that's the savings that you're going to use to keep you afloat tuition wise so you're either going to have to pause for six months Jasmine which no one likes to do that while in school, and save up again and just work a lot and have a big chunk to float your way through tuition and lifestyle the remainder year and a half left of school, or find a way to up your hours as we speak. But it's probably going to have to be one or the other because you have to have this other cash for your tuition. Right, right. Jasmine, how much do you love the idea of sitting across from somebody and meeting them in of me really wants to and then a part of me is maybe

a little bit nervous about being able to do it well uh full-time um day after day meaning meaning the trauma and dealing with the heaviness of that day in and day out? Right. Yeah. Yeah. Okay. Because I think that's a whole different thing. And I didn't expect to get that from you. I just wanted to gauge how much you want to do this type of role. Because if you aren't willing to suffer through it, and suffer takes on a wide range of things. The reason that we talk about passion when we talk about loving work is because passion actually means to suffer. That's the root word. And so it's been referred to that for a long time. And so there's some meaning there. And here's the thing. If you don't think it's something that you can deal with, it's okay to press pause.

And it's okay to go, you know what, I'm this far in. I've got to think long term. Now, the only thing I don't want you to do is let the fear of money, because I think we've poked enough holes in that, I hope, because I think you can do quite well financially in that role. Can you do well in Los Angeles or do well enough to live with margin? I don't know, but that's a zip code issue, not an occupation issue. But what I'm hearing now is some serious, serious doubt, which is worth exploring. So the question becomes, is the doubt you're feeling,

is that because you don't believe something good can happen? In other words, you don't doubt you're feeling. Is that because you don't believe something good can happen? In other words, you don't think you're good enough or you're strong enough? And I would get some real help there. And you know where to go get that and get some real feedback because it sounds to me like your professors think you're really bright. But if you don't think you're built for it and wired for it, that's okay too. Yeah, you need to take Ken's assessment, Jasmine, when you get off the phone. Yeah, I want to give it to you. I'm curious. I'm going to give you the get clear assessment.

I want you to take it, Jasmine. And I think it's going to drive at what motivates Jasmine. And if it matches up with this, then I think there's a way. But if for some reason you don't think you can cut it, you don't have to go through another year and a half just because you started. Rachel, that's a big issue in today's world. It's a lot. Press pause. Don't spend another dime. You've got some money in the bank. She made $75,000 before.

Don't just go through a master's program because you started it. That's right. Only go through it if you're going to use it and you have to have it. And it has the ROI on it too. Hang on the line. We're going to get you the Get Clear assessment in the book, Find the Work You're Wired to Do. Quick read, quick assessment. It could give you some perspective. Hang on the line. We're going to get to the get clear assessment in the book, find the work you're wired to do. Quick read, quick assessment. It could give you some perspective. Hang on the line. This is The Ramsey Show. Welcome back to The Ramsey Show. I'm Ken Coleman. Rachel Cruz joins me in studio.

Our scripture of the day is from James 4, verse 3. When you ask, you do not receive because you ask with wrong motives, that you may spend what you get on pleasures. And then our quote of the day from Art Laffer, I've never heard of a poor person spending himself into prosperity, let alone I've never heard of a poor person taxing himself into prosperity. Gotta love a good tax and spend quote. It's right up my alley there. Anti-taxes, folks. Anti-taxes. Marissa is up in Vancouver, British Columbia, a place that I want to go to, but have never been. Marissa, how can we help? Hey, thanks so much for taking my call. And yeah, they call it the most beautiful place on earth, but it's also the most expensive place in Canada to live. Oh,

there you go. Yeah. So, um, I'm 28 years old and I've saved $200,000 for a down payment. And I would really like to take, take that step. Um,

but I have two options that I'm considering and they're very different and I am stuck and would like your opinion on which one you would choose. Okay, here we go. Give us the details on option one first. Okay, so option one, my mom sent me a listing for a house a week ago and I haven't really been looking seriously, but basically it's a detached home on a quarter or on three quarters of an acre um it's behind a provincial park uh in an area that's a lot it's a lot more rural so uh it's 720 thousand dollars and um it's very rare to be able to find a detached home within about two hours

three hours radius of where i live for under a million dollars so it could be a really great opportunity um i work from home so the idea of being more rural doesn't really it's not an issue for me okay and um it i just i love the. It would be absolutely perfect for me. It's older, but that's fine. I just, I had such a good feeling when I looked at it. Okay. Option two. Option two.

My parents have offered me the opportunity to build a second house on their property. My parents own two and a half acres. That's a lot closer to town. And my dad is a construction professional. So he would be able to do a lot of the legwork himself. That would save us a lot of money. And they expect that the build would cost $400,000 and then, uh, I would pay for the build and then we would work something out, but I would get that value of the property would become, would, would end up in my name. So I think we worked it out and I would, if I built on their property, uh, for the $400,000,

I'd put the 200 down and then have a mortgage for $200,000. And I would own about 18% of their property. My conflict is that being able to build on my parents' property means I would only have to have a mortgage for $200,000, and that lowers the amount of interest that I'd have to pay significantly. And I think I could probably pay it off in around seven years. Whereas if I buy the house that's out in the country that I love, that's ready to go right now, I am going to have to have a $500,000 mortgage and I'm going to be paying it for the next 30 years. And that interest is going to amount to a lot more money in the long run. Okay, so first and foremost, the last comment, you're like, I'm going to be paying it for 30 years. No, you're not. You can pay this down faster than that. Okay, so just have hope in that.

Here's where I'm going to do option one and I'm going to tell you why. When people build on family members property there is a point that you end up getting stuck there because there is a you know are you married uh I am dating someone okay but I am making this decision independently sure sure sure but I'm just saying you guys get married you have have kids, he transfers jobs, and suddenly mom and dad have strangers living on their property who are buying your house. And do mom and dad want that?

And it starts to the relational aspect. So if you do option two, number one, I would have a legal document and having new property lines drawn. And that's gonna be better for resale because if someone else, if you have to move one day, someone else is going to come in and be like, well, I don't know.

There's some document that they're saying 18% of the land, but it's some people we don't know. It's the girl's parents. And if it's, you know. Part of the biggest issue is that we're not able to subdivide. Okay. So I would be permanently tied to their property.

Yep. So for resale, for resale, that makes it really difficult. And the resale, for resale, that makes it really difficult. And the resale, the reason I say that though, Marissa, is I want freedom for you

in your life emotionally. This isn't the financial discussion. And there is something that I hear from people when they live on family property. Sometimes it works. So let me say that. There's a percentage that it works

and it's fine. But there's also a level of, oh my gosh, I have this guilt now because eight years later, we're moving to America. I don't know what I'm going to do. Mom and dad, no one's going to buy this home because there's no property.

It really messes up the future. Financially, it makes so much sense. I get it. But I think it attaches you to your parents. And even if they're great people and all of it, there is something there. It's a big portion of your net worth that is tied to this. And there's an emotional element. Can I ask real quick on this point?

Rachel's making a very good point. Do you have siblings? I have one younger brother. And I think that makes it a little more complicated too. And Will's and she's got some of the property. I'm with Rachel on this one. I'm just curious, what do you want to do? When you called us, which way were you leaning before you said, I want your take?

I change it based on the hour. But the problem is that this other property that I'm interested in, it is unique. It's been on the market for a while. It won't be the easiest to sell either because it takes a special person to want to live where it is. Yeah, but that's not attached to no property. It's not attached to my parents' property. And I also have to be, I mean, the thing is that my parents have said that if I wanted out for any reason that they would buy me out. Like they have other money that they could buy me out. But if they buy me out

and they rent it out, then they have to pay capital gain tax on that income and my parents will then be retired. And then that's going to impact their pension. So it does get really messy. And I do have a sibling. So I need to consider my parents and what happens if they die. It's a mess. And how the property is split.

Yep. Yep. Here's the question. Yeah, you're asking all the right questions. And remember this, Marissa. Dave said this on a show recently. I was like, that's good. Talk asking all the right questions and remember this marissa dave said this on a show recently i was like that's good talk about all the deeds this is everything from you know divorce death uh addiction drugs i mean like like i don't know all the messiness of life that

can happen when you're in a financial deal with someone living proximity your home i mean all of it so yeah if you guys i have a deeper I think. I think we're going a different direction. Marissa, I'm just curious. If the option one house was the same price as the mom and dad situation, would you even be thinking about it? No, I would choose the option one. All right, let me ask you another thing. What if another house showed up 30 days from now that was closer to town or whatever, whatever, and it wasn't some old thing and it was in roughly the same price, which one would you be interested in? Option one or this new opportunity? So I think that's what's really attractive to me is the land value. Like it's on three quarters of an acre

and it would be impossible to get something that price closer to town. I didn't ask. I wanted you to play. So you're sort of answering my question. You really like the land option. Is that right? It's not the house. It's the land for option one? The house is very cute and totally suits me. I'm going option one. And financially, I understand. But you're in a wise position financially still. And Marissa, I think you can take four extra mortgage payments a year. What that does to calculate.

You can do this. You can pay it off. You're not going to be paying it 30 years. I think it's a cleaner more independent way um it keeps i just think it keeps it it just keeps it clean i would i i and the whole idea with the land and parents we've gotten this question more recently i feel like this past year um and i get it and again some people it works but most of the time it gets really messy from a legal standpoint a property standpoint taxes i mean all of it and you've done the research i mean i'm so proud of you as you're rattling all

of it off you've thought through it but i think i think option one that's what i would do judge rachel has ruled folks and uh i concur okay i concur where there's a part of me that makes her makes me want to tell her wait there could be another problem yeah yeah that's fair she seems like a hurry but well but I'm okay. She's done a good job. Hey, great hour. Thank you, Rachel Cruz. Thanks to Kelly Daniel and the merry band of folks behind the glass that keep us on the air.

And you, America, for listening. This is The Ramsey Show. Take care.