The Ramsey Show - App - How Do I Guide My Parents Who Aren't Good With Money? (Hour 3)

Episode Date: December 29, 2020

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I am Dave Ramsey, your host, Chris Hogan. Ramsey Personality is my co-host today here on the air. Open phones at 888-825-5225. That's 888-825-5225. Lynn in Minneapolis starts this hour off.

Hi, Lynn. How can Chris and I help? Hi there. Thanks for taking my call. Sure. My dad passed away unexpectedly about six months ago. I'm sorry. Thank you.

He and my mom were just starting the process of setting up their trust, and so nothing has been finalized or written down, mostly just the process of finding their estate lawyer and talking about things. And so I'm trying to help my mom figure out what to do now. She is debt-free. She lives on my dad's inherited family farm. There are three of us kids, and my dad really wanted to ensure that the family farm stayed in his family's name. So I am one of three, like I said, and I have a sister and a brother.

So it is intended that my brother will inherit the farm. But my dad wishes were that upon my mom's death that the kids kind of split the asset equally, financially, I guess. And so they had talked about, so they have a tillable acreage that they rent out every year. And it brings in approximately $30,000, and the farm is a small farm valued at around $1 million. And so their idea was potentially that my sister and I would split the farm rent for about 20 years, and then at that point, everything would become my brother's. My husband has a concern of being in a financial agreement with siblings for that long and was hoping there would be a better kind of a one-time solution. My brother is not in a position to financially buy out, per se, my sister and I, at around $600,000.

And so we're just wondering if you'd have any advice on how we could fulfill my dad's wishes. Okay. So your mom is how old? My mom is 70. And how's her health? Very good. Okay. And so's her health? Very good. Okay. And so there's a million dollars worth of dirt.

Yes. And that's it? That's it. There's no other money? There is approximately $100,000 maybe. Okay. So to start with, your mom is the owner of all of this, right? Correct. maybe okay um and so to start with your mom is the owner of all of this right correct okay and so really all we're trying to determine here is how to set your mom's will up correct okay all

right just making sure i'm clear on what you're asking and so how do we get your broke brother 600 grand to buy out you and your other sibling, right? Yes, yes. Very difficult. Yes, we did have a financial person suggest to us that my brother take out a $600,000 life insurance policy. Doesn't do any good unless he dies. That only helps if he dies. On my mom. Oh, yeah, I know.

And that's a wonderful idea if you can get term life insurance on your mom for 70 years old. Is she healthy? Right. She's healthy, yes. And the quote came out to like $17,000 a year, which is just not affordable for my brother. Well, it's not affordable for anybody in this deal. There's no money in this deal except the dirt. Right. in this deal except the dirt so um well i mean obviously your brother could uh farm the land

and go get a mortgage to buy out his siblings yes yeah and so what i would do is just set the will up to say you know for the first x number of years he farms the land and gives you the proceeds gives you a mortgage the equivalent of a mortgage, and then he has to go get a new mortgage to take you guys out at the end of whatever number of years, three years, five years, ten years, whatever. But I'm with your husband that in perpetuation, this is a bad idea. Yeah. And Lynn, unfortunately, there's not a quick fix to this, meaning, you know, your brother can't just go get $600,000.

So you all are connected as far as this property is concerned for the foreseeable future. So really, your part is like $300,000 as of today's values anyway. Correct. And your household income is what? My household income? Mm-hmm. About $80,000. Okay.

Don't build your financial world on getting this $300,000. I don't think that we are. My sister lives out of state. Neither one of us. Good. And that allows you to have lots of patience to let this unfold so the property does not, your brother doesn't end up losing the property trying to make you happy because you built your world on this $300,000. It's very difficult to get.

So you're saying he let him, because he would not farm the land. He's not a farmer. So let him have the rent and then him take out a mortgage to pay. So why is, if he's not a farmer, why is he going to end up with the land? It's been, well, so he'll live on the farm. There's a homestead there. There's hunting land. It's just some of it.

And what is his income? I would say around $60,000 maybe. So he needs to own a million-dollar farm as a gentleman farmer. Why? Except that we want to keep it in the family i don't know somebody making 60 owns a million dollar farm well it's it's a century farm it's been in our family i get that i'm talking about he can't afford this farm well he does have his own property also he can't afford this farm. Glenn, are you hearing Dave?

A guy making $60 cannot afford a million-dollar hobby farm. But can he afford to inherit? Yeah, okay. He didn't inherit it. He only inherited one-third of it. Right. You're skipping forward some steps. What's his other property worth? It's probably worth $300,000.

Okay, he sells that and uses that money to buy you guys out. You give him a discount, and he goes and gets a small mortgage. Okay. He needs $300,000 more, and he sells his property for $300,000, so he's $300,000 short. And you guys give him a discount on that 300 because you're not because you're trying to keep it in the family and so each of you take 100 in addition to his land and he goes and gets a hundred thousand dollar mortgage making 60 he can do that yeah but i don't need him signing up for a six hundred thousand dollar mortgage and you know you can't

look at the bank when you can't pay the bill and go, but it's a century farm. The bank goes, so what? Yeah. Right. And so we can't put him, we can't paint him into the corner. Dave, listen, there's a whole lot of talk and a whole lot of planning, but nothing written down. That's the danger in situations like this. You've got to get it all written out. You have to.

It has to be part of the will, part of the agreement. Everybody's got to understand, and you have a reading of the will before you pass. Let's go ahead and get all this out. Open phones at 888-825-5225. are you ready to really take control of your money personal finance expert and ramsey personality rachel cruz's brand new book know yourself know your, Know Your Money, is out on January 5th, and that means our exclusive pre-order deal ends very soon. If you're ready to start 2021 by making real progress, taking back total control over your money tendencies,

this book will give you the tools to win. Know Yourself, Know Your Money goes beyond the baby steps and gets to the root of your money choices and even the mistakes. Our special pre-order deal is ending soon. If you pre-order Know Yourself, Know Your Money for only $20 today, you get $150 worth of free bonus items. Hurry, reserve your copy today to get your free bonus items before the pre-sale ends. Pre-order before January 5th at the online store at daveramsey.com or call our ramsey concierge team at 888-227-3223 Chris Hogan Ramsey personality is my co-host on the Dave Ramsey show today Brian is in Cleveland

Ohio hi Brian how are you Dave and Chris how are you guys great man how can we help good good so uh first off I just want to thank the both of you I listen to your guys's show all the time my wife and I started our Debt Free Journey last November. Cool. We paid almost $20,000 off. Way to go. Really excited. Yes, thank you.

So my call actually isn't about me. My parents, I'm really emotional about this. I apologize. That's okay. I started my Debt Free Journey because of them. They've struggled with money. They've always been there for us. They're wonderful of them. They've struggled with money. They've always been there for us. They're wonderful people.

So they've struggled with money. They were heading into retirement here in the next couple months with a lot of debt. Mortgage was $80,000, and I think the same amount in credit card and vehicle debt. Well, we found out yesterday that they actually just won a lottery here. They won $340,000. I want to make sure that, I mean, I want to help guide them the way you guys have kind of helped me on what they should do with their finances. They're going to pay off all their debt. I just didn't know what you would recommend they do with any remaining money as far as investments or savings and stuff along those lines. Well, $340,000 is wonderful, and if you send me a check for that, I'll cash it. Okay?

Absolutely. But let me tell you what happens with people that don't have any money, that are broken in debt, and they win $340,000. Their brain tells them it's $34 million. Right. And I don't want to sound snobbish, but it's not that much money, because they can screw this up real easy, okay? It's not so much money that they don't need to become very very serious about the subject of money because it's still they still have a lot of problems this does not set them up for

retirement it helps right but it doesn't set them up and so the first thing i would coach you to tell them is to try to help them get their head around the emotions of this is not that much money so I still need to learn to behave yep okay because if they don't it's going to just evaporate and they're going to be in and I'll let me tell you seven years they'll be sitting right where they are today if they do not change their mentality about money because their money problems are symptoms of their behaviors the behaviors are the core problem so that's not to shame them or beat them up when i went broke it was because my behaviors made me go broke i did stupid butt stuff and it always knocks you upside the head you know what i'm saying why does it and they have been and they've

been doing this their whole lives not because they're bad people they're wonderful people they just suck at money yeah okay so i don't want them to think this heals that yeah that's what i want to break big deal sure because if we can get inside their psyches and lovingly let them admit out loud and admit down in their guts that this is not this much money but if i play my cards right this could be the thing that's going to make it okay even though i've messed up up until this point so first thing is yeah we're going to get out of debt then we're going to do some investing and chris can walk you through that and then we're going to put them into ramsey plus where they go through financial peace university i'll pay for it so they

just hit the lottery again because that's worth more than $340,000, by the way. Yeah. Because over the scope of their life, when they change their behaviors, they're going to have a lot more than $340,000, even though they're approaching retirement age. Yep. And, Brian, I have worked with people. I've been with Dave 15 years now. I have worked with people that have hit the lottery, much larger dollar amounts. But I'm going to tell you, the story of the people that do it well are the people that get connected, they understand the game plan, and they start to walk through the baby steps rather quickly because they have that.

But here's the ones that didn't do it well. The ones that, as Dave talked about, thought that this was enough to set them up. They didn't change their habits and these are the people within two and a half years have gone back into debt gambling or doing something to reach for that other savior and so i would tell you it worked once it'll work again it'll happen again so uh brian you can guide them but you can't be that person okay you can guide them but ultimately how they choose to handle it you i'd get them connected with some people that are really going to love on them yeah and walk with them but but that can't be you so let's let's do a couple

things one is we'll put them into financial peace university and ramsey plus i'll pay for it for a year so that they can have the chance at this turning their lives around. And it can be a blessing in that regard. If they do not change their habits, the money is going to be wasted and so will this effort. So this is their shot. This is their opportunity to reset.

Okay? And you've got to get that through to them. Then the second thing is jump on, as Chris said, let's get somebody in their corner. Jump on it at DaveRamsey.com, click SmartVestor. And then when all the debt's paid off, we've got the emergency fund set aside. Whatever's left, let's throw that towards investments.

And I would hold out $3,000 or $4,000 to blow and enjoy. But not $30,000. It's not that much money. So you pay off the house, you'll be back in debt. You pay off the cars, you'll be back in debt. You do all this, you'll be back in debt. If you don't get on a budget, have your emergency fund,

and live on less than you make the rest of your freaking lives. And then they're going to have a lot more than $340,000 a decade from now. They really will. And, Brian, also reach out to one of our tax EOPs. They need to go ahead and get a full view of exactly how this is going to impact their taxes on a federal and a state level. Probably going to take half of it. You're going to hit them. It's going to get hit.

There may not be any money left after you pay off the debt and pay the taxes. It really may not. But either way, as Dave said, it can be a blessing or a curse. It just depends on how they view it and what they do moving forward, my friend. Thank you for calling us. Yeah, intentionality. Intentionality. Bill's in Lansing, Michigan. Hey, depends on how they view it and what they do moving forward, my friend. Thank you for calling us. Intentionality. Intentionality. Bill's in Lansing, Michigan. Hey, Bill, how can we help? Hey, what's up,

guys? How you doing? Great, man. What's up? Good. First of all, I just want to thank you guys, too. Like I said, my wife and I have been listening to you guys for about a year now and we've paid off about 43 grand of debt in seven months. Just got intense, and it's been awesome.

So thank you so much. Good for you. So my question is, we have three kids. We have a 9-year-old, a 2-year-old, and a 7-week-old. And I just started getting into life insurance stuff with them. My wife and I have term insurance, but we signed them up for insurance too, which I thought was going to be term plans, but come to find out their whole life policy.

Yeah, cancel them. And so are there companies that do term or is it just like not worth it? Like can you do like a rider and say, I don't really know much about that realm and talking to an agent about it, it's just a sales pitch, so it's hard to have that conversation with them. Yeah, it's not. All they're pitching you is how it's a savings program, their bad policies. Just cancel them.

Just cancel them. If you want life insurance on the kids, I would only do that until you had an emergency fund in place. Do you have your fully funded emergency fund yet? We do. Then you don't need life insurance on the kids okay because um let me let me be cold let me be cold-hearted and let's just talk mathematics for a minute god forbid a child were to pass away which we can't even put our heads around that okay but just let's just say

that happened which is what we're talking about it's life insurance okay your household does not lose an income because of that your term life insurance on you is to replace the income that you create for your family if you were to pass but when a child passes we don't lose uh uh an income the only money effect there is other than lots of tears and lots of other things but the only money effect there is other than lots of tears and lots of other things but the only money effect there is is the you got to cover final expenses burial and funeral and usually 10 10 grand or under will do that and you got your emergency fund gotcha so i would just cancel these and not worry about it personally chris, what do you think? No, Bill, Dave's dad on. Cancel these.

Unfortunately, you can have some unscrupulous people reach out and grab you by the heartstrings and lead you down a path of blowing money. And essentially, that's what this is. Again, life insurance is to replace an income. Your kids don't have an income. That's why you have it, buddy. So cancel that and stay away from the people that tried to sell that to you. Amen.

And one of the pitches is always, well, they may become uninsurable while their children, less than one-tenth of one percent do. Yeah. It's an absolute BS line. This is the Dave Ramsey Show. We'll be right back. In the lobby of Ramsey Solutions on the debt-free stage, one of our own Ramsey Solutions family members, team members here. Ashley Craft is with us. She's one of the creative recruiters. That doesn't mean that she's creative as a recruiter. It means she recruits creatives. She probably is creative as

a recruiter though too. So and her husband Joshua. Welcome guys welcome guys thank you so how long have you been with us I've been working at Ramsey for about a year and a half okay cool cool I thought it was about that amount of time yes just verify that so how much debt have you guys paid off we've paid off $169,000 156 wow and how long did that take? Just under three years. Three years. Okay. And I won't ask your income since you work here. Thank you.

And half of your teammates are standing around. Completely unfair. But what kind of debt was the $169,000? Pretty much everything. We had car loans, student loans, credit cards, iPhone payments on AT&T, everything. Kind of normal. Just anything we wanted, we bought it and had a payment. Yeah, that made you normal.

How long have you guys been married? Four and a half years. Yeah, almost five. Okay. So you're married a couple of years and something happens and you went, I'm getting out of this mess. Tell me about it. Yeah. So, I mean, it's really just when we're dating, we think we're going to combine our incomes and just be set.

You know, we're going to have double the income. And six months in, we were broke. And, I mean, just every week it was checking our bank account. Can I buy at the grocery store? You know, can I get gas today or do I need to wait until tomorrow? And it just wasn't working for us and really just kind of hit that point where we had to change it. Yeah. So what did you do?

So, actually, I was listening to the podcast. My brother introduced me. Oh, to mine. Okay. Uh-huh. All right. And kind of started thinking about it and visiting my family, I found an old CD FPU kit.

Wow. And from like, I don't know, 15 years ago. The leather one with all the CDs in it. The leather one. Yeah. Leather. It wasn't real leather. Leatherette.

Right. So I brought it home and I was nervous to talk to her about it. I didn't know how she'd feel. I love it. I'm the spender. I'm the free spirit. So we listened to it on a car trip, straight, all nine lessons. And, I mean, we were on board from then.

Wow. Okay. Yeah. So you had the stress point, and you're just like, and then the CDs come along. So, actually, at what point on this car trip, what were you listening to when you went, I think we need to do this? Well, it was actually beforehand. So when he brought that FPU kit home from Maryville, Tennessee, which is where he visited his dad, he brought it home and he was nervous to tell me. And he came and he said, are you sick and tired of being sick and tired and broke?

I was like, yes. And so we went downstairs and for the first time ever totaled up all of our debt. And really it, it, it was heartbreaking to see. And so at that point it was the moment where I knew we either do something drastic or we're going to be in this for the rest of our lives. And so that heartbreaking moment was really when I said, I am the free spirit, but I want to be a free spirit later with money and be able to serve differently and give differently. And we have an 11-week-old, and so we just wanted to change our family tree for our daughter as well.

Yeah. That's fantastic. Yeah. And so it wasn't hard once I saw that number. And once I had a plan, once I have a plan, I can get on board. There's kind of the process where you have the oh, crap moment. Yes. And then you go, okay, something's got to give.

Yeah. And I think there's a moment there where we all grow up. And you just go, oh, yeah, I've got to change this. For us, it was a three-hour silent period where we just kind of stared at the numbers. And we just didn't know what to do. You wait on them to shrink. Yes. And they don't.

Yes. Yes, yes. This can't be real. I married into most of our debt, too. A lot of it was his student loans, and he didn't have his degree yet. And so it was really hard for me, as his new wife, to accept that. He has all this student loan debt. He doesn't even have his degree. Like, this is ridiculous.

And so it was a moment for us to accept what we've done and i had some of it as well um but for me to really say we're going to tackle this together and i still love you but this is something we have to tackle together so when you're recruiting a creative do you talk about your personal story at all oh 100 all the time yes um so i mean getting somebody a creative to come to work on our team, someone in one of our many creative positions that we have around here. So, because you're responsible for hiring four or five people a month, aren't you? Yes. Roughly.

Yeah. Okay. Wow. So this is, it's really come, I mean, and then you come over here halfway through your get out of debt journey and come to work here. Yes. Now, how did this happen? Tell me about that. Yeah, so partway through our journey, actually really closer to the beginning,

Josh worked like four or five super random jobs. I decided to start a calligraphy and design business, so I am a creative. And really, I was working a job that I absolutely hated, but I had to work because we had so much debt and I couldn't do anything except work. And so for me, partway through our debt-free journey, I didn't want to hate every day. I wanted to thrive in what I was doing,

and so I decided I'm going to find work that I love right now, and I'm going to find a job that really makes an impact, and honestly this is the only place I wanted to work. So I applied, accepted the job, and we absolutely love it here. Very cool. Very cool. So you guys moved here? Yep, from Louisville, Kentucky.

Okay. All right. Cool. And what do you do, Joshua? I work at Schneider Electric. Oh, yeah. Okay. Very good.

Excellent. Well, way to go. All right. Now you've done it. You're heroes. 169,000. What is the secret to getting out of debt? For me, it was just kind of just being able to go to work really was the first one,

and then not caring what people think. You know, you really have to swallow your pride when you sell your nice car and you start driving to work, you work on just a piece of junk. And just knowing that people are seeing you, seeing the changes you're making, and just being okay with that. So that was mine. Yeah, I think I mentioned it earlier, but just really accepting the fact that we did this. And you have to really look yourself in the mirror. And that's the hardest part is to kind of forgive yourself for all the mistakes that you made and realize we need to get out of this. But that's a hard part. And then

again, I'm the free spirit, so I love spending money. So saying no to yourself is really hard. But I think keeping your why front and foremost. One of the things that we did all the time was we had dream dates. And so we'd go out to dinner and we would or we'd make dinner and we would just talk about what is our why to keep that front and center. That was really important to us, and we loved our dream dates. Yeah, that's really neat. Joshua, what did you find out about this young lady throughout this journey? She is really just unstoppable.

If she puts her mind to it, there's nothing she can't do. I mean, she started her business, and just really being through this whole process, just seeing how she can just do anything. That's awesome. Ashley, what about you? What'd you learn about Joshua? He loves Excel spreadsheets and I hate them. He is our nerd and I love him because I don't think like that. And I come to our budget meetings, but I hate them unless there's like a category for bows for our daughter or something cute. So that makes me happy. like that and i come to our budget meetings but i hate them unless there's like a category for bows for our daughter something cute so that makes me happy very fun very fun all right are you going to put everly in the shot here all right let's have her in there so way to go you guys we're so

proud of you we've got a copy of chris's book but you probably already have one uh you're on definitely in the next chapter here to be everyday millionaires. And how old is Everly now? She is 11 weeks. 11 weeks. Oh, my gosh. Just barely older. There we go.

That's good. She just screamed, I'm debt free. I heard her. Yeah. She's better now. That's awesome. All right. Joshua and Ashley and Everly, $169,000 paid off in three years.

Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Yeah! That's so cool. That's perfect. I love it.

I love it. 11 weeks old and screaming debt-free is pretty cool. I don't care what you it. 11 weeks old and screaming dead free is pretty cool. I don't care what you say. Might be the youngest one ever right there. I think it might be. It really is. At least on the stage in front of us. Yes.

Somebody might have had one in the background at their home or something. Well, listen, I can tell you. Front and center and in the picture right there. Looking around out here and seeing the team members and people that she's impacted, recruited, and worked with being out to celebrate. This place, Ramsey Solutions, is a different place. And it's displayed when you see team members smiling from ear to ear, grinning, rooting for another team member who's crossed the finish line. That's something special, people. Absolutely.

That's special. Absolutely. Good family. Well done, you guys. We're so proud of you. Well done. I love it. This is The Dave Ramsey Show. We'll be right back. Our scripture of the day, Galatians 1.10, for am I now seeking the approval of man or of God?

Or am I trying to please man? If I were still trying to please man, I would not be a servant of Christ. Warren Bennis says, Becoming a leader is synonymous with becoming yourself. It is precisely that simple and it is also

that difficult. Well, there you go. Open phones at 888-825-5225. Chris Hogan at Ramsey Personality is my co-host today here on the air. Allison is with us in Hammond, Louisiana. Hi, Allison. Welcome to the Dave Ramsey Show. Hi.

Thank you very much. Sure. What's up? So we just moved to Louisiana from Maine about two months ago, me and my husband, we, and I've been trying to find a job down here that I like, and it's not working, so now I have two jobs. I work Monday through Friday. I'm a tire mechanic at a shop, and then I work at a Harley-Davidson store Saturday and Sunday, and then I'm actually in the National Guard also, so one weekend a month I'm going to drill. And I want to go to school, but with having a schedule like that,

I'm just trying to break even on the bills right now. I'm not trying to make a million dollars. I mean, like, I'm trying, but it's not working out. But I don't know how to balance work and trying to go to school at the same time while still paying all the household bills and creating a plan. What's your husband make? He's on a tugboat, so he makes $185 a day. He works 21 days on, 14 days off.

So it's a, yeah. So he's making $40,000, $50,000 a year, right? Yes, about, yes. Okay, and why can you all not make your bills if he's making $40,000, $50,000 a year and you're working? Yes, it's just, I don't know if it was because of the move, and we had to spend a lot of our money to get down here and get all our stuff down here that we don't have as much saved anymore. How much debt do you have uh we have two vehicles and i have a credit card of five grand and a student loan for five grand okay what do you owe on the cars? My car, I owe 19, and his, he owes 40, I think.

Okay, $40,000, and he's on a tugboat 21 days out of 30 for that dadgum thing to sit in the driveway? That's dumber than a rock, girl. You're going to be mad at this part, too. It's a lease, and I don't know how to get out of it That's the main thing I would love to get out of it Yeah, you need to sell both of these cars The reason you don't have a life

Is you gave it to the dealership You're in slavery Both of them have to go So, the way you do a fleece And get out of it You're going to get out of it if I tell you how? Yes, sir. You can tell tugboat boy his car is gone, right?

Yes, sir. Okay. Don't text him. Wait until you talk to him. I'm serious. This stuff is killing you guys. It's not the move that got you. It's these cars.

You have $60,000 in car debt and your household income isn't even $60,000. I'm so sorry, honey. I'm mad for you that they just screwed you this bad, and you let it happen. Oh, my gosh. All right. So how do we get out of it? So here's what you do. You jump online and find out what the stupid car is worth.

It's not a car. It's a truck, isn't it? Yes, sir. Yeah. Okay. We've been down this road a couple times. and find out what the stupid car is worth. It's not a car. It's a truck, isn't it? Yes, sir. Yeah, okay. We've been down this road a couple times. All right, so me too. I'm not laughing at you.

I'm laughing with you. It's the same exact stuff I would have done when I was 25. Are you all 25? I'm 23. Okay, close enough. All right, and so you jump online. Let's find out what the car is worth, the truck is worth. Let's pretend that it's worth $35,000.

Where did you get $40,000 as to what you owe on it? I'm sorry? Where did you get the number $40,000 that's owed on it since it's a lease? Well, we're gonna so for the lease aspect i think we only owe about 10 but it's over miles so it's 25 cents per mile that it's over so we were thinking of the cheapest way to get out of it would be to buy it and then sell it at the end of the lease it may be it may be the cheapest way but let's go ahead and do that now you don't have to wait till the end of the lease okay so you call them and ask them for the early buyout on the fleece if you want

to give them a check and they give you the title have you you done that? Is that where you got 40? No, sir. Okay. That's all together. You were just estimating. You were guessing. Okay. How long has he had the truck? Two years.

What was the MSRP on it when he bought it, the sticker on it? 55. 55? 65. 65. Two years in. That was a sticker on it we we got it knocked down probably to 52 uh-uh not on a leash you didn't um okay my family friends on the dealership yeah

they were so good to you too um yeah i know such a blessing to have friends like that um so all right. Call them back and ask them to take back this blessing. No, they're not going to take it back. I wish I would have heard of you two years ago. I know. I'm sorry. I'm sorry.

I'm just hurt for you, and I'm just aggravated for you, not at you, honey. I just want you to get out of this because it's killing you. It's killing you. You're working in a tire store to pay for his truck. So call the car fleece company and ask them what the early buyout is. I'm afraid it's going to be more like $50,000 than $40,000. Okay? I don't know.

But you ask them for the early buyout, and that's like the payoff on a car loan. It's the same number. Okay? That make sense to you? Yes, sir. Okay. Then what I want you to do is to jump on KelleyBlueBookKBB.com, and let's find out what it's worth.

And then you're going to have to come up with a difference with a loan from someone. So if it's a 50 buyout and you look it up and it's worth 40 then you're 10 in the hole and if you can you got to write a ten thousand dollar check in order to sell the truck and you're going to borrow that money somewhere but i'd rather you be ten thousand dollars in debt than 50 which is what i think you are in debt i don't know well you'll have to get into it and figure it out but basically you've got to cover the difference and you're going to be in the hole just like if you had borrowed the money on a car loan you'd be in the hole you'd be upside down it works the same way it's only they hide it under the mystery and the fog of a lease but it's still all in there it's still uh you getting screwed is

in there so here's what we need to do, okay? I need to put the two of you, and has he got Wi-Fi available on the tug? I assume he does. He has cell phone service here and there. Yeah, good. Okay. I'm going to put you two into Ramsey Plus and Financial Peace University so you can learn how to handle money. We're also, Kelly's going to hook you up with one of our Ramsey certified coaches. Our Ramsey preferred coaches. And it's going to be free. We're going to pay for it to help you get out of this truck. Thank you very much.

She's going to help you get out of this truck because you're so screwed in this thing. If we don't walk you out of it right, it's going to double the pain or triple the pain. And so we're not making a dime on this. We're going to help you for free. I'm paying for all of it because I know how scared you've got to be. He's gone on the boat for three weeks out of the four-week month, and you're over here trying to fight this stuff off by yourself, and you're 23 years old, and you just moved to a strange town.

So we're going to love you, kiddo. We're going to walk with you. I'm fussing at you, but I'm fussing at them for selling you this truck and you for buying it, not because I'm mad at you or something. I just hate the injustice of this in your life, and I want to help you get out of it. So Chris and I will take care of you. We'll do that. We'll get you set up with a counselor.

Kelly, you can get her set up with Ramsey Plus as well. Yeah, and the main thing, Allison, is it's not always going to have to be this way, young lady, but you guys are going to have to lock arms and get serious about this and do the Ramsey Plus stuff together. Yeah, and you people, these car dealerships, that's immoral. For a 22-year-old young woman to walk

on a thing, walk out with a $65,000 truck, that's immoral. That's just wrong. At some point, you've got to do business in a way that's a blessing to people. That's just wrong. At some point, you've got to do business in a way that's a blessing to people. That's immoral. Thanks, James Childs, for producing today. Kelly Daniel, our associate producer.

I'm Dave Ramsey, your host. 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. Hey, it's Kelly, associate producer and phone screener for The Dave Ramsey Show. If you would like to do your debt-free scream live on the show, make sure you visit DaveRamsey.com slash show and register.

We would love for you to come to Nashville and tell Dave your story.