The Ramsey Show - App - Explore Your Options When Searching for a College (Hour 1)

Episode Date: April 30, 2020

Anthony ONeal, Debt, Savings, Career Tools to get you started:  Debt Calculator: http://bit.ly/2QIoSPV Insurance Coverage Checkup: http://bit.ly/2BrqEuo Complete Guide to Budgeting: http://bit.ly/2QEyonc Interview Guide: http://bit.ly/2BuGnZE Check out other podcasts in the Ramsey Network: http://bit.ly/2JgzaQR 

Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. Welcome back to the Dave Ramsey Show. Anthony O'Neill, number one best-selling author and Ramsey personality, joins me this hour to answer your questions about your life and your money.

It's a free call at 888-825-5225. That's 888-825-5225. I'm going to start off with Scott in California. Hey, Scott, how are you? Good, how are you? Good. How are you? Better than I deserve. What's up?

So my wife and I are having a baby at the end of October. Yay! And we have, yeah, so we have $2,500 saved up right now, and I was wondering what your advice is on what dollar amount we should save up to and if we should be saving for retirement during this process also are you out of debt yes and we have our emergency fund oh wow very good so you have three to six months of expenses already yes and plus that twenty five hundred500 to cover the cost of the labor and delivery. Yes. Okay, so have you looked at your insurance policy and learned what it's going to cost you?

A little bit. I need to dive more into it. In general, I know that it's good coverage, but I need to go more into the actual details. Yeah, let's look at that policy, talk to her doc, and develop an actual projection of cost, and then that's all you would need to save is that amount. Yeah, and one thing I'll add to that, Dave, Scott, this is Anthony. I would definitely sit down with your wife and just make sure you guys have a clear budget as far as, and make sure you write all of this stuff down. Once you figure out what that actual number is, put that as a category inside your every dollar budget or any kind of budget that you're doing and make sure that you all are keeping track of that.

But again, man, congrats so much. Now to the retirement part, I'm going to say, Scott, I mean, if you have the money saved up, keep going after it. Yeah. Yeah. You're on baby step four. There's no reason to not be putting 15% in. The only time we tell people to stop the baby steps is if they're in baby step two or three and a baby's on the way then you need to really focus on saving

and stop and make sure you've got some money in savings for the labor and delivery and and any little hiccups that might happen or along those lines that kind of stuff but yeah there's no reason to keep doing the baby step forward um as long as you know as long as you can make the amount you need to have the amount to cover in addition to your emergency fund to cover the actual costs and let's just do a better job of digging in and finding out what those are and then you've got a very clear goal a very clear target and you're the kind of guy who's going to hit it because you're doing a great job well done alex is in arizona alex how are you better than i deserve how are you? Better than I deserve.

How are you, Mr. Ramsey? Just the same. How can Anthony and I help? Thank you very much for doing this, by the way. I'm really appreciative of everything that you do. Thank you. So I'm a senior at Arizona State University. I graduated in two weeks.

For the past two years, I've been working and commuting by bus to my job. Recently, I got a second job at Chick-fil-A, and I'll start next week. So I'll be able to work 40 hours a week at my primary job and a couple hours a week after, and a couple hours a week at the second job overnight. And I am looking, I'm saving for a car currently. However, in August, I'll be moving to New York to start my grad school program. And I'm wondering if you think it would be a good idea to buy a car now in Arizona or wait to buy one when I'm in New York. Now, Alex, help me understand this. What are you going to New York for?

What's the master program you're going for? Yes, so I'll be – it's going for student teaching. I'll be getting a master's degree in teaching, and I'll be in Syracuse, New York. Syracuse, New York, to go there, get a teaching degree. How much is it going to cost you? To go there? get a teaching degree. How much is it going to cost you? To go there? Yes, sir. Luckily, I will be having a scholarship.

Okay. So you're going for free, going to New York. Right now, do you have any debt that you're graduating from? Are you graduating debt-free? I have about $10,000 in student loans around there.

Okay. Okay. All right. Sounds good. So I'm in baby step number two, but I haven't started tackling that student loan debt yet. So you're probably in the $2,000 to $3,000 car budget range until you get that student loan paid off, and I'm probably not buying that car in Arizona to drive a $2,000 or $3,000 car from Arizona to New York. I'd fly up there, buy a car up there, and I think you'll be better off to do that.

Can you make it between now and the time you head up there? Yes, sir. Okay. You've been making it this far. You're obviously hustling. So you've got a scholarship and a paid student teaching gig, right? Yes, sir. There you go.

And so no more student loan debt while you're finishing this up. Am I understanding that right? No, sir. And then hopefully to have enough saved that I'll be able to not have to work during grad school, but I might be able to. Why would you not work, Alex, as a teacher while you're getting your master's in teaching? Oh, I'll definitely work as a teacher, but on the side, like a second job on the weekends. Okay, okay, I got you.

During school. Cool. Okay, the big thing is to get through with no additional debt. And let's get you a little car to get back and forth to your classes and your student teaching gig there in Syracuse. And I would wait until I got up there to buy it to answer your question. Thanks for calling in, man. We appreciate you joining us.

Keep after it. Open phones at 888-825-5225. Jason is on the line in Tennessee. Hi, Jason. How are you? I'm great. How are you? I'm great. How are you? Better than I deserve.

How can Anthony and I help? So my wife and I, we're currently in Baby Step 2, and we've been working gazelle and tents, and we have a dilemma. So one of our debts is our very nice lawn ornament called a 2011 Yukon, and we have still 17,000 owed on that vehicle. However, it has a blown engine. And we didn't know if we should pause paying off our debt, smallest to largest, and try and attack that to get it down to where we could sell it for what it's worth. We've tried to take out a loan for the difference in what it's worth compared to what we owe.

However, it's too big of a gap because of that blown engine. So we've been paying off all the other debts and just paying our monthly payment on that, but it's like a gut punch every time we see it sitting there and didn't know if we should stop paying on our credit cards right now. Well, continue the minimum payment and then just attack the UConn to get it down to where we should stop paying on our credit cards right now, we'll continue the minimum payment and then just attack the Yukon to get it down to where we should sell it? No, I would stop and let's put a rebuilt engine in it. Certainly not a new engine from a dealer.

You don't want an $8,000 gig here, but something in the $3,000 or $4,000 range installed will get that card where you can get it sold. It's too expensive a vehicle to sell with a blown engine. range installed will get that card where you can get it sold. Okay. But, you know, it's too expensive a vehicle to sell with a blown engine. Yeah. You're going to take a butt whipping on that if you do that. So you need to get something like a Jasper Rebuilt or something like that.

Talk to your mechanic. Okay. What's the least expensive way I can put an engine in this? Or if you had a real low mile one you picked up from a salvage yard engine that you could put in it, and then you've got a car that you can get sold. But you've got to get out from under that puppy, you're right, and sitting there paying it down and giving it away is not a good plan. folks i love telling you about well-made well-thought-out products today i'm talking about grip six belts i don't know about you but I'm not a fan of traditional belts.

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Welcome to the Dave Ramsey Show. Hey, Dave. How are you doing? Good, man. How can Anthony and I help? So I wanted to give you guys a call because my wife, she is pregnant. She is due in September, and she was just laid off for her job this week. And so with her being laid off, we were wondering if we should, we're on baby step two,

we were wondering if we should stop paying on our house payment and do the forbearance thing and stack up as much money as possible. Now, in the process of us doing that, we also said that we were going to, if we did get that clearance from you that you think that would be the best thing, we were going to take those mortgage payments and put it in the savings account so that we wouldn't touch it unless something happens with their pregnancy. Let me know if you need any more details. What do you make? I make $48 a year.

Okay. And how is the pregnancy, the labor and delivery being covered? Is the insurance on you? So the insurance was on her, and so we are currently in the process of switching it over to my insurance. And making sure that this pre-existing pregnancy is covered correct yeah that's a big deal this is our this is our second child the first pregnancy went probably as perfect as it possibly could so i said that to say that there's a good chance that

she probably won't have any complications according to what our doctor has been saying so far. And you have no money saved. We do have money saved because we're on base step two and we paused at $10,000. Okay. No, I would pay my house payment. Absolutely. You got $10,000 in the bank. Yeah. You need to pay your house payment.

Yeah. And Steve, and you know the forbearance is due in one lump sum at the end of the forbearance plan. So even if you do set it aside, you know, for three months, I think that most mortgage companies are giving right now at this present time, you're going to pay three months plus that fourth one, Steve. So go ahead and just pay it. You got the money. It sounds like you can be able to get your insurance to cover it.

The last thing I want you to do right now in baby step number two, especially with the wife having a baby, is to add more stress because then now at the end of that forbearance plan, they're going to require all four lump sums and then you're going to be right around due for your baby. Just go ahead and make the mortgage payments right now. How much are your mortgage payments, if you mind me asking? What's the monthly payment? $1,400. Oh, yeah.

Pay it, man. Yeah. Yeah. I would not. I don't, because there's too many bad things that can happen when you stop paying your mortgage payment. Yeah. I understand that there's a forbearance. But, by the way, if you just stop paying your mortgage payment, forget what the government has said there's a forbearance

or the mortgage company's offering a forbearance. If you just stop paying your mortgage payment for four months, they're not going to do anything. It takes six to eight months to get into foreclosure at the earliest. And so you're going to have late charges added. But, I mean, anytime anybody wants to just not pay their house payment, you can do that. But, obviously, it piles up just like it does in a forbearance, and it becomes a serious problem. Dana is with us in Connecticut. Hi, Dana.

Welcome to the Dave Ramsey Show. Hi, Dave. Thank you so much for taking my call. Sure. I can help. We recently moved into my parents' first home when they bought their second, maybe about Hi, Dave. Thank you so much for taking my call. Sure. I'm going to help. We recently moved into my parents' first home when they bought their second, maybe about three years ago. But when they did that, they refinanced the house that we're living in to furnish their home.

So there's $81,000 left on the house. So once we're done paying off our debt, we're on baby step two. Should we ask them to transfer the ownership to us so that we can take over those payments and get it paid and avoid risking them refinancing again or just keep renting so that we can avoid that debt being our own? Okay. The house that you're living in is owned by your parents. Correct. Yes. And you're buying it from them? Yeah.

Well, I'm asking if it's wise to buy it from them. Why would you buy it? There's only $81,000 left on the house. What's it worth? Maybe about $206,000 to $20,000. They're going to give it to you for $81,000? Yes. Okay. Well, you can't simply transfer it into your name. Their mortgage has what's called a due on sale clause in it,

and if you do that, the mortgage company has the right to call the entire 81,000 due. So you would have to do a purchase and get a mortgage, but that can be done. You've just got to work with a mortgage company, and they're going to gift you the equity why would you not do that uh i just wasn't sure if it was wise to to not if we should just but eventually i know that it would pay off the only reason i don't know you don't want it left in their name if it's going to be your home it needs to be put into your name got it okay because if something happened with them let's say they had a car wreck, and they were found to be at fault, and there was someone sadly died in the car wreck, and they got sued for $500 or for, I don't know, $8 million, okay,

and they lost the lawsuit. That would be a lien against the house that you're living in because they own it. Okay. Or if they screw up and don't pay their income taxes and the IRS puts a lien on things, it will be a lien on that. So you don't want to be sort of owning a house or owning a house on a handshake that hasn't been put into your name because then you're doing repairs to it, you're paying down the mortgage on it,

and it can really get screwed up. And you know what, Dave? You have kids. And let me ask you this question. As a son, if I was your son, would I be wrong to come to you and say, Hey, Pops, if you're going to give me this house, I'm going to pay off to $81,000, and you are gifting me the rest of the equity. So when I pay it off, you're not going to want a piece of the pie when I go and sell it.

Well, that's the reason to go ahead and do it before the $81,000 is paid off. Let's go ahead and redo it now. Sell it to them for $81,000. You have to do some gift letters for the equity to prove to the mortgage company why you're doing this with a $200,000 house. Why are you getting an $80,000 loan without $120,000 down? Because mom and dad are giving me the equity. You have to get a gift letter that says that.

Okay. And then you get a new mortgage in their name at 81, put it on 15-year fixed, and then pay it off as soon as you can. But obviously, dad has already offered, mom and dad have already offered to give them that deal. But let's go ahead and put that deal, let's go ahead do that deal yes as soon as possible as soon as possible lucas is with us lucas is in florida hi lucas welcome to the dave ramsey show hi dave you guys are exactly the people i need to be talking to right now how can i help um so i'm. I'm graduating in a week, and I'm kind of in an I-told-you-so situation with my dad right now. And my girlfriend and I, we became foster failures about a month and a half ago of a dog that would be considered an aggressive breed.

And we're having trouble finding future housing that kind of accepts that. So I don't know exactly where the – You said foster failures? What did you say? They call it a foster failure, meaning I was fostering the dog for the shelter, and after a certain amount of time, I decided that she was such a sweetheart that we wanted her. So now we legally own her.

So wait, oh, so you own a dog. Okay, and what's wrong with the dog? She would be considered an aggressive breed. Breed? Just by looking at her. What is she, like a Rottweiler or something? We think she's a pit bull, but we're getting a DNA test done on her. Is the dog mean? Is the her. This is the dog mean?

Is the dog aggressive? Is the dog dangerous? No, not at all. No. Then that doesn't matter. You've got to find someone that allows pets. Yeah. I mean, listen, I don't allow pets in my properties as a landlord.

I love dogs, but they tear up crap. People don't make their dogs behave, just like they don't make their kids behave. And so I don't allow dogs or cats in our properties. But if you find a landlord that allows dogs, I don't know. I've never heard of a landlord saying, oh, I don't allow a dog. I don't like the look of your dog. You know, this dog behaves or doesn't behave. Florida, what I'm finding is that Florida has breed restrictive laws,

and so pretty much everything that I'm finding is they allow dogs, but they're breed restrictive of the pit bulls, the flotwilers, et cetera. Wow. Sounds like you've got to make a choice. Yeah. I'm afraid puppy might not get to stay. If you can't find a place to live because of a dog you got from the pound. Taking it back to the pound. That's not going to work, man. I mean, I don't know.

I've never run into that. But if there's a whole thing on it, I'm not aware of it. I don't doubt you. People got a lot of crazy crap they do out there these days. But I wouldn't want to own a mean dog to start with. And I wouldn't want a mean dog in a property that I own, but I wouldn't pick that out by breed either. This is The Dave Ramsey Show. Business leaders, now more than ever, we need people with the right skills to support our communities,

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or if you're in another industry and have hiring needs, visit linkedin.com slash ramsey. LinkedIn.com slash ramsey. LinkedIn.com slash Ramsey. Terms and conditions apply. Coming up in a week or so, we're going to be doing a generosity theme hour. We want to hear stories during the coronavirus of people that have been generous either you were generous or someone was generous to you if you've got stories especially during this time i've already got a few but we're going to add them and we're

going to talk about generosity because it is the antidote to fear you email dave on air at davramsey.com put generosity in the subject line no spaces no dashes dave on air at davramsey.com put generosity in the subject line and uh put on put a little bit about your story in there kelly will get back with you and line you up to be one of the callers during this generosity theme hour. You don't want to miss this. Michael is in Arkansas. Hey, Michael, welcome to the Dave Ramsey Show. Hey, Dave, thanks for taking my call today. Sure, what's up?

Hey, with the coronavirus, my company has reduced our salary by 20%. Permanently? Well, they say for three or four weeks, but back in 2008, I wasn't at the company yet. But they said that they did this, and they said that it was going to be if it doesn't end up being just temporary, if it's more permanent, or what conversations you might have with management? Yeah. Well, I mean, if they say it's temporary and then they come back later and say, oh, no, it's permanent, there would have to be reasons for that,

and you would have to not be able to get a job for more than that. What do you make after the pay cut after the pay cut i'm at uh 75 000 okay so you're making like 95 000 bucks correct doing what uh cpa okay so if you can be a cpa somewhere else for 95 and they won't raise your salary back up, you would go take the new job, right? Correct. I guess I just didn't know if they say after three weeks, if you would say, well, I'll give you two or three more weeks, or if you just start looking and see. I mean, unless there's something else wrong there, another reason.

But if the only thing is that their revenues are down and they're trying to survive by not laying off a bunch of people instead giving everybody a temporary cut that's good everybody gets a little pain instead of a few gets the whole pain we talked about doing something similar around here if we had reached a revenue problem thank goodness we haven't we may still but i don't think we will uh and so uh you know if you see revenues coming back up signs of revenues coming back up around there and then they don't raise it back up you know then you i would ask about it and go you know because i think i can make 95 over at another place right correct michael how old are you michael uh 30 years old 30 years old yeah um years old, yeah.

I agree with Dave, and I'm going to add this to it. And before you jump, man, I want you to really sit back and think about just the culture of the company. One thing that we have here is if Dave did come to me and say, hey, personalities, we've got to take a pay cut, you know, the culture here is just amazing, you know. So I love this place. Do you love where you work? Do you enjoy the culture? So don't just go chasing for another $20,000, which I get it. Money is important.

But make sure that you're leaving because you don't like the place as well. But if you do like it, I would hang around and trust the company because I would do that with Dave. I trust Dave. I love where we are. And I'm not here just for the paycheck that I'm blessed to have so that's just something to consider as well yeah hey Anthony I need to talk to you about you walked into that that's funny so no I I would give them a few weeks and then I would start having just they need to give you lots of communication yeah they owe you lots of communication about the timeline on this so when are you going to raise this back up uh and what are you basing that on if they say well we're basing it on

revenues and here's what revenues are doing and you're okay with waiting that because a lot of places have had to do that kind of a thing and so you know but but you know this time next year if they haven't raised it back up i'm looking for a job because by then it should be completely completely completely recovered sheila's with us sheila's in tennessee hi sheila welcome to the dave ramsey show thank you thank you appreciate you taking my call sure how can we help? My question is, we have been, my husband and I, have been to part of your classes at church before the pandemic. And we did not get to finish the classes. But enough of them that we have a pretty good idea. We did a close budget, not every dollar, but my husband just isn't on board.

I don't want to cause any family problems, obviously, but it's very stressful when one is and one isn't. And he's much better than he was, paying a lot more on the bills, but I don't know what else to do. Is there an option? Should we continue with what we've got going now and just not be as, I should not worry about it being as stressful? Shit, I'm going to ask you a quick question. I let Dave chime in because he's married.

But is there any particular reason why you guys couldn't finish the class? The church, could they just not give it to you in digital? Because I know we do provide it digitally. Well, we do have it digitally, yes. We were working on that in the classes. As a group, we had 10 or 12 in the class but yeah because of the pandemic we uh stopped the classes as such okay so let me let me let me walk through this you you you went to a class to handle money better because you've not been handling money well and your husband doesn't want to do it. I don't understand.

Pretty much. Why? Well, he's better. So what? He still sucks. Only a married man can say that. I can't say that. Well, that's why you're calling.

He's much better than he was. Well, that's why you're calling. He's much better than he was. Well, so what? Why in the world is he not willing to say, I wasn't any good at this, now I know how to do this, and we're going to do the whole thing? What's his problem? What's his objection to being smarter? Living his own way. Making his own decisions. Well, yeah. I mean, that's a decision he can make.

I can make a decision to get better at any area of my life at any moment and fully embrace the idea of doing that. I just don't understand. Yes, fully embrace, no. Yeah. We have separate checking accounts and everything so um i just i just wanted to know yeah if there's another solution no there's not a solution that considers half butt doing stuff and expecting that to win you know you guys have you have marriage issues and um

you know if you don't want to start the pot you don't have to start the pot i'm not going to make you do it but uh if this was at my house we would be sitting and talking with the pastor about it or some kind of outside third party like a marriage counselor and trying to work our way through uh why we can't get on the same page on where the money goes because where the money goes pretty much describes our whole freaking life and you guys are on two different pages and he's being lame-o to the point that you're not willing to even combine your incomes and your checkbooks with your own husband that that's pretty lame yeah it's not like sort of okay that's really bad you know and dave that's the young people the singles call this this will not be classified as hashtag relationship goals

because I hear division. I hear we got married. We were two and we stayed two. We just took the vows. And so I definitely want to encourage you, Sheila, as well, just to follow Dave's advice. Seriously, get some help so both of you all can get on the same page. And to the singles listening right now, this is why you have marriage counseling and you all get married and join uh together i mean because having two separate checking accounts if it's a spending account i'm okay with but here's the thing what i don't see any data points in the millionaire study that we did with chris hogan anywhere that say i became a millionaire because i drug my spouse along kicking and screaming.

They always say, we worked together. We were unified in our goals. And so you're not going to win. That's the problem. You're not going to win with money. You can exist, but you've been existing before you went to the class. This is the Dave Ramsey Show. If you do this one simple thing that we all do, you are literally at risk of being hacked and someone stealing what you've worked so hard for.

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That's Cyber Ghost VPN. Download it today from your app store and be secure in California. Hey, Irene, how are you? Pretty good. How are you? Better than I deserve. Your question for us. Yes, I have a question for Anthony. Anthony, I am a teacher. I graduated from college 25 years ago, and I went the route of doing two years of junior college,

and then I transferred to a private university here in the West Los Angeles area. My son is currently 18 years old with a 4.3 GPA. I told him about the no loans, student loans, what you really preach, and I told him to go to a JC for two years and then transfer just as I did to a private university. My question to you is this. I went to Loyola Marymount University with my son and was told that they have to be a student there for four years in order to graduate from that school, that they will not accept transfer classes from a JC more than maybe eight or 12 units. How can a student transfer to a better school in order to save money?

Well, just not that one. That's what I was about to say. Yeah, that's a lot of them here in the Los Angeles area. And I don't want him going out of state because we're trying to save money. Yeah, but there's a lot of them here in the Los Angeles area, and I don't want him going out of state because we're trying to save money. Yeah, but there's a lot of great schools in California. I'm from San Diego, California, so I know the school you're talking about. But you have some other great, you got UCLA out there. You have San Diego State University out there. There's a lot of great universities.

But I have a question. Your son's GPA is amazing. What's his ACT and his SAT score? I don't have that on me, but he was very high. And I want you to know this, and I wish I had him next to me to really give you those numbers, but the schools that have accepted him will only give him a $1,000 scholarship. And he is a minority with a 4.3 GPA. He is such a wonderful student, so respectful, and we can't get enough aid in order to get him into a very good university. So I'm guessing your income and his father's income is pretty high?

We're both teachers. Okay. So it sounds like here's the thing. The key thing that I'm teaching, especially in DFD and just talking to millennials and young people all the time, is a debt-free degree. And so with that GPA, with that ACT and SAT score, I'm not opposed to him going out of state because there are schools who will give him a full ride and cover 100% of everything with that GPA. So here's what I want you to do. Shop around.

I want you to start doing more research, okay? Maybe step outside of la going to san diego maybe go next door to texas there are a lot of great schools out there that will give him a full ride i know that i really wish i knew his act and sat score because i can probably name a couple of schools but uh that school that you're talking about i'm just not even going to consider it i mean that's that's just bottom line. Yeah, unless you can afford it. Right. Or if they want to give him scholarships.

Right. And, yeah, you've got to go down the streets of Texas. It's not actually next door. So we'll miss out on the geography lesson. But anyway. But it's close. Yeah, it's close enough. Arizona's right there.

I mean, there's lots of, yeah, yeah again the trick is not necessarily uh not necessarily community college into college yeah not necessarily uh in state uh the point is that free yes point is free and so i would be applying for bazillions of scholarships all over the place uh not just simply what that school will do but i'd also be asking with that GPA and with him being a quality person a quality of character which you described I'd be applying for tons of scholarships and looking for a school that'll pick up the ride on it and another thing there too Dave I want to call out that I just want to make sure America hears me we have to stop saying a better school school is school you know and I get it.

In fact, there are some Ivy League schools out there. But what makes the child smarter and just a better individual is if the child is willing to put in the work and have that hard worker ethic. Having a kid graduate from Harvard, having a kid graduate from in-state school does not make the Harvard graduate any better than the in-state kid. No, the kid makes himself better. And so we have to start teaching that. And I get it. Parents want the very best. But if you really want the very best, I have to say this again and firmly, make sure they

do it debt free. Make sure they start off with no debt, a little bit of money in their savings account with the bachelor's degree and they'll be successful. Yeah, very cool. All right. Good stuff. And hold on. We'll send you a copy of the right good stuff and hold on we'll send you a copy of the book debt free degree if you don't already have one anthony's number one bestseller

on how to go to college debt free really good question paul is with us paul's in florida hi paul welcome to the dave ramsey show oh hello dave hope you're having a wonderful day i am how can we help oh oh yes uh so me and my wife, we just started the Financial Peace University, and we're already on step two. And I was talking to her about selling. We have two cars. One I bought a while back, cash. So we don't owe anything alone, I think.

And then her car, we owe about $9,000 on and I had something to do about selling it but she said we can't sell it because we don't have the title and if we did sell it we would still owe it we just have to pay it so we weren't sure what we should do about that

should we just keep paying on it or should we see about how we can sell it So what's your household income? Probably about $70,000. We have about $60,000 in debt. On what? $9,000 on a car, and what's the other $50,000? Student loans, and then from me and her,

and then also we have something in collection and then credit cards. Okay. Well, it sounds like you've got a lot of work to do that hasn't got anything to do with this car. You're going to have to sit down, get the budget going, get very, very intense, sell so much stuff the kids think they're next. I don't think the car moves the needle enough to sell it. It's not that big a deal.

If you had a $30,000 car out of your $60,000, I'd be selling it in a heartbeat here. Okay? But that's not the case. Now, she is wrong in that you can sell the car if you don't have the title. You just have to sell it and send the money to the bank, and then they send you the title. And then you give it to the buyer. You know, that's how it works, and so people do that all the time, and it doesn't keep you from selling the car, but I don't think you need to sell this particular car.

Yeah. Paul, do you have any extra income that you all can actually work on? Because making about $75 a year with $60 in debt, I'm looking at maybe, is there anything extra that my wife and I could possibly sell or get some extra income in the door? What's your thoughts on that?

Oh, I was thinking of getting a second job or planning on it, yeah. Yeah, I like that, man, because you guys are young right now. Right now, and I say, if you're really going to get out of debt,

Dave is known for this. You got to get gazelle intense and you have to be determined. Get some extra income coming in and what we're seeing 12 to 18 months when people really follow what we teach, they get out of debt. So you all can turn this thing around within the next 12 to 18 months. Well, I think you're going to be more, you're probably going to be two years plus. You got $60,000 worth of debt with $70,000 income. So it's going to take you at least two years, but you're going to have to be really focused, get your incomes up, sell as much stuff as you can.

Again, if the car was a bigger percentage of the debt and it really helped the situation, I would dump the car. But I don't see that you have to. And you can also sell a car, by the way. The other thing your wife said is not right. When you owe more on it than it's worth, you just have to cover the difference, or the bank that has the loan has to agree to let you sign for the difference, one of the two. You can borrow the difference, you can have the cash for the difference, or sign for the difference with the local bank or with the bank that's carrying the loan.

So that and not having the title doesn't keep you from selling it. I just don't think in your case you're going to have to get rid of it. Generally, Anthonyony we talk about when someone's got a car situation can you be debt free in about two years and keep the car yeah other than the house and do your cars add up to be more than half your annual income neither one of those were violated here and on top of that the car didn't move the needle enough yeah it really didn't move the needle enough and i agree dave uh so in this situation it's all about them just really sitting down and getting focused and saying you know what we're going to get on a plan get on a budget

and we're going to go after it yeah you know that's the bottom line perfect good stuff guys good stuff well that about puts this particular hour of the Dave Ramsey Show in the books. James Childs is our producer. Kelly Daniel is our associate producer and phone screener. This is the show where you have common sense for your dollars and cents. We teach you to live on less than you make, a concept Congress can't grasp. It's the Dave Ramsey Show. In the middle of these uncertain times, Ramsey Solutions wants to give you some hope.

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