The Ramsey Show - App - Don't Be a Hostage for Ten Years (Hour 3)

Episode Date: January 7, 2019

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Music Music Live from the headquarters of Ramsey Solutions, it's the Dave 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. Open phones this hour. Happy New Year. We're glad you're here. Open phones at 888-825-5225. That's 888-825-5225.

Aaron is with us in Columbus, Ohio. Hey, Aaron. Happy New Year. Hey, Dave. How are you? Better than I deserve. What's up? So my wife and her family have been on the Ramsey plan for a while, which is why when we got married seven months ago,

she came in with no student loans. I wish I could say the same for myself. I have approximately $73,000 in student loans, and I know that you are not a fan of the public service loan forgiveness program. I'm about three years into that program, and we have $55,000 in cash, and we have about $92,000 total. Just wanted to get your thoughts on what we should do moving forward. I'm sorry, $92,000 in total what? With our retirement and Roth.

Oh, okay, okay. But not counting retirement, all you could get your hands on would be $55,000. Correct. You don't have any investments that are not in retirement? I believe we have a few investments, but not too many. Okay. All right. Which would add to the $55,000 figure then. Yeah.

And you have $70,000, $72,000 in student loan debt. What other debts do you guys have? That is our only debt. And so I guess my concern would be if I continue doing the public service, you know, I could potentially save $50,000. Yeah. And your household income is what? Currently $90,000, but my wife will be returning to school in the fall to get her MBA from Ohio State. And how are we paying for that?

Well, as a staff member at OSU, I get half off tuition for her, and she's on track to potentially get a full ride. Okay. All right. Good. All right. So we have to pay cash for it. You understand that? Say that one more time. You have to pay. Good. All right. So we have to pay cash for it. You understand that? Say that one more time. You have to pay for this education, right? Yes, and that's why we're thinking of we don't want to take out any more loans for her. Right. We have to first make sure that we don't borrow any more. That's rule number one of getting out of debt.

Yes. Rule number two is to get out of debt. Now, the student loan forgiveness program, the problem with it is twofold. One, it is 10 years of hostage you're hostage to this thing for 10 years there are some student loan forgiveness programs that are three years and some that are even five years and they give away a fifth a year or a third a year and um in the underserved areas and those are fine the 10 year is just too long for you to be a hostage number one number two it's not working the first articles that came out 10 15 000 people

applied 96 were granted i read an article over the holidays. So far, only 206 people have been given this forgiveness. 206 people out of millions. And so I don't like these odds. The government is screwing you, is what it is. And so, no, pay that off as soon as you possibly can. Now, we've got to have the money for the NBA, so we need to make sure exactly what we're getting into there. And so you may want to hold off just a little bit on paying it down.

But once you figure out she's got a free ride, that $55,000 goes at this thing, and then you knock out that other $17,000 as fast as you possibly can. Get yourself out of debt because it's not working, man. I mean, you don't want to be one of the millions of people that apply for this and 206 people get it. That's called dashing your hopes on the rocks right that's you know it's almost like playing the lottery right there so no thank you no thank you and no thank you for seven more years of student loans hanging around sally may

hanging around your house oh ugly woman get her out of your house katie's in topeka kansas hey katie welcome to the ramsay show thank you um i have a bit of a situation back in october of 2017 um i am self-employed and i bill insurances to get paid well in 2017 in October, it just stopped. And I called the companies. They said everything's in the system. I got a lot of runaround. Long story short, I didn't get paid from October through March. In April, I got paid for what I did in March.

In May, I discovered they were sending some of my checks to the wrong address, and then I got stuff for what I worked October, November, and December of 17 and the summer of 18. What do you do? I'm a therapist. Why don't you do a therapist for somebody else? This sucks. It does, but I wouldn't make nearly the amount of money. You haven't made any money right now.

You haven't been paid. You haven't been paid. You haven't gotten paid. All of a sudden, things started coming in. I got paid for this summer. I got paid for this fall. Yeah. But it scares me to death because we had started your program before, and the $1,000 was gone quickly.

And then all of a sudden, you we're we just started fpu and we're trying to do a budget and everything seems to be working out um i so what are you making a year as a therapist if you were paid up paid on time paid on time i should be making about eighty thousand dollars well you make eighty thousand dollars as a therapist around here when i was working before for somebody i was making about 40 yeah i don't doubt that but there's marriage counselors in your area that are making that or people that are doing individual practices that are making that in Topeka, Kansas, I promise you. But I am doing the individual practices. Yeah, but you're just doing it for government, for people that are being paid for by the government.

Yes. You need new customers. And I'm accepting other instances. I'm hoping that by diversifying things will get better. Yeah, i would diversify out of the business of the government my question is so i'm afraid to just have a thousand dollars i feel like i should be having more like baby step three and then digging through yeah i don't think you need to be in the baby steps until you get your career crisis solved. Okay. Because you don't know what your dadgum income is going to be. I mean, you went several months without being paid,

and somehow you think that's okay because you finally got paid. It's not okay. I'd be getting away from this. The government sucks, and the way they're treating you sucks. And so you need to not just diversify your business model. You need to change it and get away from this to where people pay you when they come in for therapy. And, you know, if you want to do it slowly and gradually, keep a few of the government clients and that's fine. But by this time next year, I'd be out of that business.

I'm not waiting around for these people to not pay me when they're supposed to pay me. That's ridiculous. And you're way too accepting of that. Draw some boundaries, kiddo. Change your business model. This is the Dave Ramsey Show. I had a conversation with a friend recently, and he told me about a young man in his late 20s who died suddenly with no life insurance. Now, I don't want to sound unsympathetic, but this drives me crazy.

What are people thinking? I don't understand how taking care of your family isn't a top priority. Most of you probably just spent a bundle on Christmas on things you didn't really need, and now you're making New Year's resolutions that are focused on yourself. But if you've taken the time to do something really important like protect your family, if you want to use the new year as a reason for doing something right, then do it. Term life insurance is something every family needs,

and that's why I talk about it every day. It's not complicated, it's not expensive, and you need to do this right now. Zander Insurance is the only place I recommend. Visit Zander.com or call them at 800-356-4282. Please learn from other people's mistakes and get this taken care of. Zander.com. Well, if you didn't know, we do the Dave Ramsey Show in the Ramsey Solutions headquarters on the glass. And folks drop by and see us. And we have a really cool bookstore.

And the coffee is free. And the homemade cookies and breads and things are free. And it smells like mama's kitchen when you walk in. And, of course, we're in Nashville, and so we always have celebrities swinging by to see us. You know, we'll have a Brad Paisley drop by or a John Rich from Big & Rich or whoever drops in and sees us. And I just got to meet another celebrity just a minute ago at the break. Have you ever been?

I mean, for years I've gone to the boat show because I'm a boat guy and if you've ever been to the boat show and you see the uh the skiing the water skiing squirrel you ever seen the water skiing squirrel well i just met twiggy the water skiing squirrel in town for the boat show this twiggy number nine his family's been training these squirrels since 1979 so twiggy nine and i just had our picture made together i'll post it on instagram at the break because you have to see this that's right and um yeah i mean the water skiing squirrel hey i'm a big water skiing guy so uh big barefooter so um you know that's a big deal to get to meet twiggy the uh water skiing squirrel yeah chuck best and his family stopped by they were in town to do this and wanted to come by and say hi and well you just never know you never know who's going to swing by the dave ramsey

show on a commercial break so there you have it open phones at 888-825-5225 our question today comes from blinds.com they have a 100 satisfaction guarantee that means even if you mismeasure you pick the wrong color they will remake your window blinds for free. You get free samples, free shipping, and with the new promos they run every month, you'll save even more. Use the promo code RAMSEY to get the best deal. Rules and restrictions apply. Of course, Jen is in California.

She says, how do I do the dead snowball when I'm behind on my payments with credit cards? I'm no longer making the minimum payments. I'm longer making the payments. I don't know what she's trying to say. That doesn't even make sense. Okay. So you don't do the dead snowball when you're behind on your payments. You don't even start the baby steps when you're behind on your payments.

The first thing you do is get current. Then once you're current on your payments, now that's assuming you're like two, three, four months behind, something like that. You're two months behind on your rent. You're a month behind on your car payment, that kind of stuff. Before you start the baby steps, you get current. Everything you do is you just work to get current. You just, every dollar you can milk out of your budget. And the first things you get current on are food shelter clothing transportation and

utilities so car payment house payment light bill water bill are your first things once you're current on those then you get current on other stuff you get current on secured debts next meaning if they have a a lien on you have a boat payment, you get current on that. Anything that has a lien on it, you get current on things that have a lien on them next. That's a secured debt. Then unsecured debts are the last things you get current on, and that's credit cards in your example, Jim. And that's what you do. So absolutely what we're going to do, we get current on everything first.

Then we start the baby steps, we get current on everything first. Then we start the baby steps. And baby step one is save $1,000. A little miniature beginner emergency fund. And then baby step two is that you need to start your debt snowball at that point. But you don't do that while you're behind on your payments. That's not how this works. Tara is with us in Denver.

Hi, Tara. Welcome to the Dave Ramsey Show. Thank you. Happy New Year, Dave. Happy New Year to you. What's up? So I have a question. My husband went from making $80,000 to $100,000 a year, but the hours in stress were not worth it. So he took a better job, less hours, but a ton less money.

So he went from $80,000 to $100,000 down to like $36,000. So we sold a piece of property, finished baby step one, two, three. So we still don't make a ton of money, but we have $50,000 left over from selling that property. What do I do with it do i open iras for us and our children do i put it towards the mortgage do you work outside the home no i do not not till my son starts school in august i mean i do every here and there but a... What did your husband used to do? He worked at a coal mine. And what does he do now?

He works for the CDOT, Department of Transportation. And what's he going to be doing in three years? Hopefully moving on up and being the boss. I don't know. At TDOT? CDOT, Colorado. Yeah, okay, the boss. I don't know. At TDOT? CDOT, Colorado. Yeah, okay, CDOT. I'm sorry, I'm in Tennessee.

I heard it wrong. Okay, anyway. Yeah, I get that he needed to get out of the coal mine. I got no problem with that. But I think his choice sucked. The $36,000 drop, that's ridiculous for your family and so he needs a game plan to double his income okay and that means i'm gonna go back to work in a few i mean like no i'm talking about he he used to make 80 000 a year i want him to try to get back that

direction again and a government a government job is not going to do that okay he took too big a pay cut your family is not going to make it on 36 000 when you were used to operating on 80 so this 50 000 you're asking me what to do with you guys are going to end up going through it is the problem right i don't think well are you doing a budget on making it now you're doing a budget on $36,000 and not touching your savings. No. It's interesting, but it's getting done. Yeah, that's what I'm talking about. We're just not saving much at this point.

Yeah, your long-term operation of your family won't work on $36,000 after you've been used to $80,000. Right. It can be done, but've got it we have a career crisis is still in the making the move away the move away from whatever mess he was in i got no issue with that that's fine he was in a horrible situation okay i got that so move away from it but now let's the next step is now that we've at least got a little money coming in let's hold that 50 000 to the side and let's get his career crisis solved. In other words, it might sound like this.

Okay, honey, what do you want to be in 10 years? How old is he? He'll be 40 in March. Perfect. What are you going to be doing when you're 50, 55 years old? Because it's not this. Okay. It's not this.

Right. You don't want to live like this for a decade with three percent government raises and a few things like that so what are you going to be doing that may mean we open a business and we use some of this money to do that it may mean he goes and takes some classes and puts some different tools in his belt because he may want to move in a completely different direction than he's ever i've always dreamed of being a dot dot dot well this is the time to rediscover those dreams recover those dreams and that 50 000 may fund some of that that then in turn causes your family to have a household income from your husband without you being back in the workplace yet of back up 60 70 000 bucks and i want him heading

at least that direction on like a three-year schedule and i may need some of that money to help him get there so let's park it for right now and let's finish this career discussion if he continued to work that what he was doing and i took some of the 50 000 and went to nursing school that'd be okay i mean that'd be okay okay i'll be okay but i was still not okay with him right he still needs to go do something because all he ran he didn't run to something he ran from something you follow me right right and he just got the first place that you know is raining hard and the first place that wasn't that had a little roof on it he ran under the roof right it wasn't it wasn't the house he chose though you know it just he's just trying to

get in and out of the rain. And that's not an okay way to live the second half of your working life. So I want him to have a dream, too. And maybe he goes to nursing school with you. I don't know. I don't care. But anyway, you know, let's get his career track adjusted. And if you want to do nursing school, too, that's a real good use of that 50 grand. So park it to the side and let's use it on career or careers or something along those lines.

Or if you don't end up doing that and you still get the incomes up, that's fine too. We'll use the money for other stuff later. But if we just simply chuck it down on the house, house payment doesn't change. And we're trying to make it on 36,000 and we can't breathe. That's not a plan. Not a plan. So, hey, thanks for the call. This is the Dave Ramsey Show. I'm Mike Pearson. There's nothing smart about smartphones if your wireless plan is blowing your budget each month. Pure Talk USA offers smarter wireless with unlimited plans starting as low as $20 per month.

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Visit puretalkusa.com or call 844-862-3677. Enter promo code SAVEDAVE and receive 50% off your first month. That's puretalkusa.com. This is the Dave Ramsey Show. We're glad you're here, America. Matt is with us in Los Angeles. Hey, Matt, welcome to the Dave Ramsey Show. Hi, Dave. How are you today? Better than I deserve. What's up? So, I'm an FPU coordinator, and one of the couples in my class had a question regarding their 401K.

So they have options in all of the funds except for the international. And we dug into all three of the funds, large cap, mid cap, and small cap. And each one of the funds that are available to them already have a 20% investment in non-U.S. stock. So with that being said, would you advise for them to still have an international fund, or is the diversification enough in their current funds to continue with what they are doing? They don't have an international at all. No, they do not. They don't have a global?

No global, no world, nothing. Like I said, it's mostly just growth funds, growth in income, and aggressive growth funds. No international available to them. I would go with the three that they've got. I mean, if they found three in the three other categories that work and run with that, and then if they're going to reach over at some point and do Roth IRAs, I might load one of those up a little heavier with international to offset that. So even though they already have the 20% invested in international through those three funds,

you would still advise for them to have an international fund? It's pretty standard. Most mutual funds have some international in them. That's not unusual. So that doesn't really change it. So it's not the end of the world either way. The whole point, Matt, and you're doing a really good job. Thank you for being a coordinator, and thank you for digging this deep into something like

this and looking at it. Here's the thing. 90% of why people build wealth is that they steadily invest in mutual funds it's not the expense ratios and it's not the diversification those two things are just icing on the cupcake you follow me so the fact that they're the fact that they're doing these three and that they're out of debt and that they're asking these questions and they got a guy as smart as you in their corner, the fact that all of that is there, they're going to win. I'm not worried about them.

It's not like, oh, God, they're bankrupting because they left out one of my funds. Oh, Lord, no, it's nothing like that at all. The whole point of diversification is, as you know, you've taught the class and led the class, and you've heard me say it in the investing that the Bible says in Ecclesiastes, spread your assets to seven, yes, to eight, because disaster may come upon the land. The Bible was the first place that diversification came up. And so spreading your money into different categories gives you a different level of safety. And usually, as a a different a better rate

of return but there's no magic perfect formula uh it's kind of like you know i tell people never take out a house payment that's more than a fourth of their take-home pay but if they take out a payment that's 27 of their take-home pay well okay i still got the point across right it's not the end of the world it's not like they're not going to make it because they're 2% over or something like that. Or the other guy's not going to make $200 million more because he's at 23%. You know, that kind of thing. The point is the principle of diversification and in something that has a good track record and the steady investing in that. We've got the dragon.

We've killed the dragon. We slayed the dragon when we did that the dragon we slayed the dragon we did that you and i did uh for these folks but uh but it's good to get down in the analysis and learn some things in there too so i like having international in there it's a good idea but if they don't have one well we're not going to say don't invest you know let's invest in those three and when they step over into the roth load it up a little bit on international, let's invest in those three, and when they step over into the Roth, load it up a little bit on international, and let's rock on. So, hey, really good question.

Thanks again for being such a good coordinator. These Financial Peace University coordinators, folks, there's 15,000, 20,000 Financial Peace University classes starting right now. And the nine-week class, Financial Peace University, right now, if you didn't know, when you buy the class, just the nine-week class, Financial Peace University, right now, if you didn't know, when you buy the class, just the nine-week class, you get the one-year membership to Financial Peace, which is everything online. You get the one-year membership to that free for the first year. Wow.

And so these coordinators that are leading these classes, they make everything happen. They fix everything. And, you know, guys like that right there, you know, he's leading the class. There's people coming in there. They've got questions. He's got answers. You know, to be a coordinator, you don't have to be perfect.

You don't have to have a master's degree in finance. You don't have to go to a class to learn how to do the class. We'll answer the main questions. That was a pretty ticky-tackyy question there and it was a good one uh but i mean you don't have to know that kind of stuff to be able to lead the class you just got to be able to put chairs in a circle and love people and he's obviously doing that too so this is good times people it's a good time to get in the class by the way the number of people that do their debt free scream that say they started their class and started their financial peace university class the nine-week class they started that in january the number

of people is huge you listen to these debt-free screams what'd you do i went to financial peace university my church started teaching in january i went in january and the number of people that started their whole walk with this thing started their baby steps in in january is um it's amazing it's a good time to start, in other words. Really, really good time to start. Anthony is in New York City. Hey, Anthony, happy New Year to you. Thank you, too, Dave.

How can I help? All right, so I've been working at this new casino and resort that recently opened up. Literally, I can walk to the place. Great. I'm making $41,600 a year, and that's before taxes. But I'm noticing very quickly I'm doing more, taking on more responsibilities and stuff like that. And I'm wondering, just because a lot of stuff has been promised to me that just hasn't happened yet, and I'm wondering if it's time for me to move on and further my career, I guess, or expand, because I've opened three buildings

for this place already, basically without my director or boss, and I'm basically, everyone's, I mean, even my family's telling me I should go for an IT project manager role, which pays on average about $80,000. How old are you? 24. Okay. And how long have you been with this company? I've been with them for about two years now.

I opened the casino as one of only three technicians they had. By opening, you don't mean you were the manager when it was opening. You mean you were doing the IT work. Yeah. Okay. All right. Well, I mean, if you can shop around and get an IT job with a company that you want to work for, making twice what you're making, that's kind of a no-brainer. Yeah.

The only issue with the whole thing is IT jobs are not very readily in the area that I live in. So in order to move up, it would require me moving either to New York City or out of the state as a whole. Where do you live? Catskills, New York. Oh, you're not in New York City. Okay. All right.

Yeah, you're in a fairly rural community. Yeah. So you're going to have to move to a more, I don't know that you've got to move to New York City to make $80,000 in IT. You can make $80,000 in IT a lot of places, but I don't think you can afford to live in New York City probably. I don't think I'm going to make that recommendation right now. Yeah. But, yeah, shop around. The other thing you can do is sit down with whoever it is that's been making these promises to you.

And don't be arrogant. Just say, listen, I'm very grateful. I know I'm only 24. But I also know the work I've been doing over here. And I also know what we've talked about. Now, so I need you to help me. What do I need to do to make it easy for you guys to follow through and let me move on up in income? Because I'm pretty sure I can move to a different city

and make double what I'm making in IT. I'd like to stay here. I can walk to work. Everything's good. I'm not mad. But I feel like I'm missing something, and is there something you need me to do that I've not done in order for me to make more

and in order for me to move on up through this organization? So asking a question of how you can cause this to happen instead of going in and shaking your finger at them and saying, you people need to keep your promises, which really never goes very well when you do that kind of thing. So I wouldn't do that. But so, yeah, that's the thing. Let's go in and have a conversation with them, and then let's also look and see where we've got other opportunities around that are reasonable. Probably from the Catskills to New York City is a bit of a leap you may not want to make.

It may not be the first bite you bite off. So, good question. Thanks for the call. This is The Dave Ramsey Show. Our Scripture of the day, Psalms 3311, but the plans of the Lord stand firm forever. The purposes of his heart through all generations. Herb Kelleher said, If you're crazy enough to do what you love for a living,

then you're bound to create a life that matters. Started a little thing called Southwest Air, if you've ever heard of it. Yeah, pretty crazy. I love it. Very, very fun stuff. Very fun stuff. So, buying a house can be a huge blessing. But when you buy the largest asset that most of you own,

at least in the initial stages of your wealth building, usually your home is your largest asset that most of you own, at least in the initial stages of your wealth building, usually your home is your largest asset, and you do it wrong, the mistakes are a lot of money. You need to have the right information. And when I'm going into something that I don't know what I'm doing, I don't DIY it. I get somebody in my corner that knows what they're doing. We've created a free guide that gives you the steps and the things you need to consider when you're buying a home. Our new homebuyer's guide starts by teaching you real estate lingo all the way to what to expect at the closing and what happens after signing on the dotted line so that you can buy confidently.

If you're thinking about buying a home this year, check out this guide. It is free. You can find the right home in the right budget for you and your family, and you'll have more confidence because you have more knowledge. DaveRamsey.com slash Home Buyer's Guide. DaveRamsey.com slash Home Buyer's Guide. Faraz is with us in Los Angeles. Happy New Year.

How can we help? Happy New Year, Dave. Good. How are you doing? Better than I deserve. How can I help? Yeah, so I have a question about 3B and Baby Step 4. I'm finishing up Baby Step 3 right now, and I'm in no rush to, I guess, save up.

Well, no particular emergency to save up for anything, but I like to save up for a better car because uh, uh, more, uh, a better car cause I'm still driving that thousand dollar car. Um, but, but it's still driving well. So at the same time, I'm not really worried about it, but, um, and I'd also like to, I'm renting. So I'd like to eventually save for a house. Um, uh, but you know, I'm, I'm finishing up three, my, my 6% for the 401k, and they have a Roth option. The first 4%, they match 100%. The second 4% is at 50%, so I'd have to put 8%. And I was wondering, can I do both part investing into my 401k, say 8%, so I could get the full match, and then save in 3B, I guess, so to speak, on the side?

Or do I have to pick one or the other? No, you can do whatever you want to. I mean, any of it's fine. Obviously, the more you put into retirement, the longer it's going to take you to save for a car and for a down payment. You don't want to be out of that retirement and miss that match for very long. And you know that because you just outlined the match. You know what you're looking at. Very well done.

What's your household income? Last year I made $63,000. Okay, cool. And so if you didn't do it, once you finish baby step three, we got to do that before we do anything. You know that. And then you got a horrible car. You need to move up in car. Okay.

How much can you save if you really lean into it? How much can you save a month towards buying a car? Probably about $2,500. Good. Okay. So you can do that for four months and buy a $10,000 car? Yeah. And my car could probably bring about, I mean, I bought it for $1,000,

but it could probably bring about $2,500 at least. Okay. Then do it for three months and buy a $10,000 car with your $2,500 car sold, right? Right. But, I mean, you see my point. It's not like we're going to do this forever. Just for a few months, and let's get you a car. And then if you want to start doing, at least get up to the match,

and then above the match start saving for your down payment. Then once you get a down payment saved, then step all the way into Baby Step 4 for your house down payment because that's going to take a little longer. Okay. That's a way you could do it, but as long as you're going to get to baby step four within about two to three years, if you want to put it on hold and just save, get your car and then save for your down payment completely, that's fine. Or if you want to step in and do a partial

for a little while until you get that thing done. But listen, three years years from now you need to be 15 going into retirement gotcha either way no matter what you do but three months from now you could buy a lot better car right the nerd side of me wants to keep driving it uh even though uh you know it's got 260,000 miles no you need to move up you need to move up in car you're gonna you reach a point of diminishing returns it's just part of your story, the journey driving the hoopty. But you don't want to be in a hoopty forever. And I'm not moving you into a $60,000 car. I'm moving you into a $10,000 car.

You can get a lot of really fine vehicle for $10,000. It'll have a lot of life in it. Right. Right. Oh, yeah. Yeah, and I think I would go that way. And then let's talk about how long we're going to and how we're going to do the emergency fund.

I mean, how we're going to do the down payment fund from there. But you've done a really good job. Congratulations. Very well played. Well played, sir. Andrew is in Tulsa. Hey, Andrew. Welcome to the Dave Ramsey Show.

Thank you. What's up? Well, about two years ago, my wife and I got a house. Really good deal of a house, which is why we got it. Mom's friend selling her uncle's house, offered it to us $100,000. It was a $135,000 house. Right now, we're in baby step two. We have about $39,000 of debt left.

But we're contemplating this summer maybe we'll sell the house, take the equity, pay it on the debt. I also have a collector car that could get us the rest of the way. By the summer we'd probably have about $30,000 of debt, and we're thinking between the sale of the house and the collector car, that would probably get our debt paid off. What's your household income? About $85,000. Okay. Is there any other reason to sell this house other than the debt?

Well, the fact that it's not the house that we shopped for and picked we like the house okay that's fine yeah it's not well i mean for but for the next two or three years it's not the end of the world there's nothing nothing going on here that's like a big driver other than you're just trying to figure out a way to get out of debt so your classic car is worth what somewhere in the six to eight thousand to $8,000 range. Okay. And what's the debt on the $39,000? Majority of it is student loan.

Then there's about $12,000 on credit card debt. And then right now I'm still paying a little bit on five, seven years ago, a foreclosure that we had to deal with. And how much is the balance on that um seven thousand that's actually i'm paying to my parents they gave me the money get get the attorney and get everything paid off and i'm paying that to them got about seven thousand pay to them gotcha okay and your household income is what about 85 okay no i'd keep my house and i'd sell the classic car today there's no difference in selling it today and selling it in the summer.

A couple of things I want to get sorted on it to get a little bit more money for it. Okay. All right. That's fine. So you're still polishing it. Okay. Yeah, polish it up, but let's get that done before summer and let's get that money thrown at this.

Because making $80,000, you're going to pay off thirty thousand and what twelve eighteen months what what we've looked we're paying about fifteen hundred a month towards the debt and that puts us at about the two-year range okay plus or minus the car true yeah okay so my 18 months pretty close there you go almost like i've done this before yeah you're you're in good shape no i i don't think you sell this house for this reason if you get out of debt and you have your emergency fund fully funded and you guys decide to trade houses later and you don't take out a payment that's more than a 15 year fixed rate and then you get that paid off and you're never going dead again then that's an okay move but i i think you're just trying to find a way to slip out of this and right now you're very very, and let's just play through.

I'd play through is what I'd do. Hey, thanks for the call. I appreciate you joining us. That puts this hour of the day Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. This is James Childs, producer of The Dave Ramsey Show. Did you know you can now listen to The Dave Ramsey Show on Pandora and Spotify?

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