The Ramsey Show - App - How to Choose An Executor for Your Will (Hour 2)

Episode Date: January 23, 2019

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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, and where the paid-off home mortgage is probably an indicator that you're getting ready to be an everyday millionaire. It's one of the statistics we actually found as we did the largest study ever done on millionaires here with Chris Hogan, Ramsey Personality, and here at Ramsey Solutions, we did the largest study ever done on millionaires here with Chris Hogan, Ramsey Personality, and here at Ramsey Solutions. We did that piece of research over the last several years, quantified it, pulled the key

points, the salient points out of it, and the statistical data is absolutely enthralling. It's absolutely amazing. Now, we recorded this particular segment of the show with Chris Hogan before he went on his Everyday Millionaire book tour, because as you're hearing this on the radio in the San Francisco area, he is at this moment magically also sitting in San Jose at the Barnes & Noble just down the street at Stevens Creek Boulevard signing books. So, Chris, it's pretty cool that you can be two places in one time. You are a magic dude. Yeah, it is.

I mean, we teleport quickly, Dave. Now, the power of radio. I mean, radio is a powerful thing. You can do all kinds of things with radio. So, seriously, as you're hearing this prerecorded segment right here that Chris and I did before the tour actually started, we knew that as you're listening there at the time slot that carries my show in San Francisco, that he would be signing at San Jose at 6 o'clock, so you can still get over there, at Stevens Creek Boulevard, and we'll be giving away $1,000 cash during the evening.

No purchase necessary. Must be present to win. Chris, it's the last week of the book tour right here in the middle of the week, hump day of the last week. You can see the finish line. Are you going to make it? Oh, absolutely, Dave. I'm going to tell you, meeting these people face to face and being able to shake their hands, to be able to meet their kids, to be able to see them and to see the excitement in their eyes. It was almost like people were waiting to hear this message of hope.

They wanted to hear something positive. They wanted to see some proof that, yes, you know what, regardless of where I come from, I can do this too. And so I'm meeting the everyday millionaires out on the road, shaking hands, talking to them. But I'm seeing people that are determined, Dave, to get there for themselves. You know, the opposite of this message is when you hear someone whine and say, well, the little man can't get ahead. The only way to be rich is to inherit your money. You have to be a person of privilege. You have to be the right race.

You have to come from the right area of the country. You have to go to the right schools. And if you don't have a rich uncle, well, you're not going to make it. And I hear that so much in the media being lifted up as the truth. And it's just a lie. Yeah. No, it is not true. And you're going to see the proof.

You're going to hear from the people. As they've told you, we talked to over 10,000 millionaires from all across the country, all walks of life, all jobs, all races, all of these things. And they all have some things in common where they were hardworking, they were focused, they were intentional with their money. And so what it tells people, Dave, is that regardless of your situation, regardless of whatever you've had to walk through, you get an opportunity to make a decision. And that's a beautiful thing to hear at the beginning of the year in 2019, that I don't care what's happened to you in the past, but being able to focus forward and to really

start to do the things that millionaires do. And again, we talked over 10,000 of them. So you've got an opportunity to hear from them firsthand. So the statistics say they didn't get rich quick. No, no, none whatsoever. None of them did. No. They got rich slow.

Slow. The crockpot, Dave, as you talk about. Not a microwave. There's no bought a single stock and hit the jackpot. I didn't hit the lottery. It wasn't a lightning strike sudden event. It was steady investing in their 401K and retirement plans. In their Roth IRAs and that kind of stuff.

And so you look at this and you realize this is a process, right? You don't win by accident. Dave, I've heard you talk at some of our Entrez leadership events where you say, you know, the Super Bowl winning team never wins by accident. They don't get off the bus and stumble out on the field and just get handed a trophy. This is a thing that happened because they practice, they won, and they improved day in and day out. And that's what happened here. These guys get more and more intense.

And they're not tightwads. They do live a life. They go on vacation. They have decent cars. They don't buy new cars until they're millionaires. We talked to several of them who had brand new cars, but they had or three million dollars by then right and um but in the time time that before that they don't carry car payments ever no not never never a credit card balance ever now shamefully some of them actually have credit cards but they never carry a balance well those

are people didn't know of us that's true yeah we did study a lot of millionaires that never heard of us too and that was important because we wanted to know what's out there. What does it look like all across the country? And so hearing this information, I'm going to tell you something. It really, as you read this book, what you end up feeling like is that you get to make a decision. You can choose to focus on what hasn't happened and where you are, or you can choose to move in a direction like the rest of these everyday people have done over time, and you can get there too. Maybe you've never had anybody tell you that you can.

Well, that's what this book is for, because you can. Don't tell me the excuse. Don't tell me why you can't. No, no, no. Those days are over. It really boils down to you deciding, just like these regular everyday people did. And I know you can do it. And that's why I'm excited to meet people, Dave, and encourage them to keep moving in the right direction.

So the book signing is as you're listening to this right now in the San Francisco, San Jose area. The book signing is occurring right now, 6 o'clock p.m. It began or begins depending on how this lands. Barnes & Noble, Stevens Creek Boulevard, $1,000 given away. Now, tomorrow night, Thursday night, for those of you listening in Sacramento area, Chris will be signing at 6 o'clock there at the Barnes & Noble at Arden Fair, giving away $1,000 cash there. The $1,000 is brought to you by SmartVestor because you will need some advice,

someone to walk with you to help you plan out your long-term investing. That is one of the keys we found. Have a teacher in your corner. Have a team in your corner that advises you. You don't have to have a master's degree in finance, but you do need people in your corner. And then, of course, over to Seattle for the last signing of the tour, Friday, January the 25th,

at Barnes & Noble Seattle, Northgate. $1,000 given away there. All of these $1,000 giveaways are no purchase necessary, must be present to win. So you've got to be there to put your name in the drawing. You've got to stick around until the drawing's out. That's how it works. 18 years old or older.

Otherwise, it's not legal. You know, it gets weird. So anyway, we have to be careful with all that stuff. But everyday millionaires, how ordinary people built extraordinary wealth and how you can too. Chris, one of the benefits of, I know we're pre-taping this, but you and I have had the benefit of talking to a lot of these people as they wander in the lobby here at Ramsey Solutions.

We were talking about just, you know, a policeman came in yesterday and he leans over and says, hey, I'm an everyday millionaire. It's already become a thing to identify as an everyday millionaire. It's a phrase we made up. Right, absolutely. But it identifies someone who bootstrapped it. Yeah. And it can be done. It can be.

And so you should see, Dave, I mean, as I've met hundreds of them already, the look in their eye, that look that I worked hard and I got here. This is not an accident. It's pride. And yeah, you know, you can see that excitement in their eyes. And that's the reason why I love it. They're at the at the book signings. They're they're right there with everybody else. And that's the thing that I love, because as you look around, you don't know how many are in there.

Right. Because these everyday millionaires are all over the place. But you can get there as well. And that's what I want people to know. It's available for you, too. I love it. Very good. Good stuff. Chris, we're proud of you. Well, thank you, sir. I appreciate Ramsey personality. Number one bestselling author of the book is Everyday Millionaires. How ordinary people build extraordinary wealth and how you can too. This is the Dave Ramsey Show. Your goal this year is to get rid of your debt, but here's the deal.

In order to keep your momentum going past January, you have to make small changes that get quick results. That's why you need to attack your debts smallest to largest. I also recommend you look for ways to find extra money to pay off your debt sooner. It's there, I promise you. Take a look at your mortgage. If you call my friends at Churchill Mortgage and request a five-minute checkup, they can help you find extra money. Churchill Mortgage Checkup has helped thousands of my listeners save big.

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Equal housing lender. 761 Old Hickory Boulevard, Brentwood, Tennessee 37027. Thanks for joining us, America. We're glad you're here. Josh is with us in Charlotte, North Carolina. Hey, Josh, how are you? I'm doing well, Dave. How about you? Better than I deserve.

What's up? Well, God is great, and God has great timing. I actually listened to your show after I was pre-approved for a mortgage, and me and my wife both realized once I started listening to your show after I was pre-approved for a mortgage, and me and my wife both realized once I started listening to your show that we are not prepared for this next life venture into moving into a house. So the timing was great. I can't ask for any better timing. My question that I have for you today is, right now we're working on Baby Step 1.

That should be done in the next uh two weeks or so um and baby step two we have about twenty six thousand dollars of debt we're trying to pay off on a take-home income of about fifty thousand um so we're we're renting right now we're looking into moving to a house but we do have a newcomer to our family she is uh about four months old yay. And we need a little more space. So right now I'm trying to sell my truck. I currently drive a company truck, so the transportation issue is not an issue. But my wife's car is really too small for us to move around in. So my question is, should I save up first to buy a car and then work on the house,

or should I do the house first and then the car? Buy a house. Okay. is that what you're saying you want to buy a house i'm in between buying a house or buying a car and i know it's going to set me back just a little bit longer by the time okay so you understand let's back up you understand that we tell you to get out of debt and have your emergency fund before you buy a home, right? Yes, sir. Okay, so you've got $26,000 in debt to clear and an emergency fund to build, but your wife's car is too small. Is it a two-seater or something?

It's a four-seater, but with the car seat facing backwards. Really, she has a sitting back seat, and she can't sit in the passenger seat with me. Yeah, but the car seat won't fit facing backwards in the car? It will fit. It's just it's tight, you know what I mean? Oh, well. What's your wife's car worth? Right around five grand.

Okay, and you're selling your truck, you said. Yes, sir. But it has a bunch of debt on it, right? No, sir, it's paid for. Oh, what is it worth? Roughly $11,000. Okay, so what if you bought your wife an $11,000 car and you drive your wife's car? Could do that.

I'm trying to get the debt paid off as quick as I can. Okay, why don't you buy your wife a $5,000 car and you drive your wife's car? I don't mind driving her car at all. I'm just talking her into the $5,000 car if it's an issue. Well, it just depends on how fast you want to house and how fast you want to get out of debt or whether you want to go out there and be normal. Right.

Okay. I'm tired of doing that. I've been doing that all my life. Yeah, you are, but she's not. Right. So we've got to decide when she is. Because if she's tired of being normal, then she's going to be saying, we're going to drive whatever so we can get out of debt.

So we can buy a house with no debt and a house down payment and an emergency fund in place. So I'm not suggesting you drive a $5,000 car the rest of your life. I'm suggesting you do that until you get your emergency fund in place and you're debt-free and you are able to get your home purchased. I'd rather own a nice house than I would a stupid car. Exactly. And I'd rather have it that way than have the house own me. So, again, you guys can do whatever you want.

You're adults, but if you're asking me what I would do, I would use the proceeds from your truck. You were going to buy yourself another car. Just take hers and get something that's got a bigger backseat in it that she likes for $5,000 that she's going to drive until you finish getting out of debt and throw the other $6,000 at the debt. Now we've got $20,000 in debt, so you've got to be debt-free in 18 to 24 months and start saving your down payment.

So you're two and a half to three years from buying a house. Okay. All right, cool. That's kind of the track I was going with in the assessment of life, but I just wanted to kind of hear from you if that makes sense. Yep, that's exactly what I would do. Hey, thanks for the call, man. I appreciate you joining us.

Open phones at 888-825-5225 christy is in asheville north carolina hi christy how are you hey dave thank you for taking my call how are you better than i deserve what's up um i'm currently a home health nurse and i um use my own car for transportation to and from patients houses and we get mileage reimbursement. And I just was curious about how I needed to use that mileage reimbursement. It's just part of your income. Okay. And part of your expenses are you've got some extra expenses on this car due to you using it called gas and tires and brakes more often, repairs more often, right?

Correct. But that's just part of your budget and then part of your income is this mileage reimbursement because um you know and which means in your budget it's going to filter down through there and cause more to hit the bottom of the budget which you apply to your baby steps you know wherever you are on your baby steps and that's the route that you go on that so hey good question thanks for joining us folks if you're stressed out overwhelmed with money you don't have to feel that way you don't have to keep living paycheck to paycheck you really don't no matter how you got there whether it was somebody else's fault or your fault your own stupidity you got the debt

you can take control of your money you just just need the right plan. And Financial Peace University is that plan. Now, Financial Peace University is a nine-week class. It's taught locally in your area. You can sit in on the class. And right now, when you buy Financial Peace University, we give you a one-year membership to Financial Peace. Now, the one-year membership to Financial Peace is all of the online stuff it's every dollar plus which connects to your bank that's about 120 item it's the legacy journey class and all of financial peace university online you can watch it listen to it however you

want to do it it's all available to you online and that's about a 300 350 item the smart money smart kids that they reference kevin lena said they read the book and taught that start teaching their kids well there's a course that goes with that book the smart money smart kids course teaching your kids how to handle money so that your family tree is changed taught by rachel cruz and a little bit by me that's all in the membership online the community is, and the accountability encouragement is fabulous online. We're going to be putting a bunch of the streaming of the live events in there online. The debt snowball tool is in there online. All part of your Financial Peace membership that is free for the first year

when you go through the class Financial Peace University, the nine-week class. If you want to get signed up for one in your area and get all of that online stuff going on, just check DaveRamsey.com, click on Financial Peace University, look at your schedule, see when you can start, or you can call Customer Care. They can sign you up for it. 888-22-PEACE, 888-227-3223. Nick's in Houston.

Hi, Nick. How are you? I'm doing well. How about yourself? Better than I deserve. What's up? Hey, my wife and I, we got heavy on the cards. We got about 53 on credit cards thousand uh thousand okay and um

been been paying them down uh we'd use your i don't know if it's called waterfall trickle down or or whatever that's snowball snowball yeah um been using that we got two or three of them paid off um but it's not going very fast at all. It doesn't seem like. What's your household income? Household income is about $120 a year. And so how much debt have you paid off? About $15.

How long did that take? Four to five years. That sucks. Yeah. You're not very good at this, are you? Well, that's what I'm thinking. I was looking at talking to some of the debt consolidators. You don't need a debt consolidator.

You need a budget and quit spending all your dadgum money. You make a lot of money, and you have no idea where it's going. We changed the last two years for Christmas instead of we used it. No, you didn't. You make $120,000 a year and you paid off $15,000 of debt in five years. You spend all your money. So what you need to do is get on a written budget and put $2,000 a month on this debt, and it'll be gone in two years. That's what you've got to do.

You've got to quit spending all your money. You can stay out of restaurants and quit going on vacation. Quit buying all this crap you've been buying. Time to get serious. You don't need debt consolidation. You need to fix the guy in your mirror. I'm going to go on a little rant here for a minute. I took a call from a father who wanted to know how to plan for the care of his special needs daughter after he dies. Why is it that parents of special needs children are so deliberate in their planning,

while other parents have a tendency to be sloppy? Do the needs of your family matter less if something happens to you? Oh, I'm sorry, did I just guilt trip you into getting some term life insurance? Well, then good. Your family needs you to step up. Having the right amount of term life insurance is a matter of personal responsibility. If you want to use the new year as a reason for doing the right thing, then do it. Term life insurance is something every family needs, which is why I talk about it every day. It's not complicated, it's not expensive, and you need to do this 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. That's 800-356-4282 or zander.com. Thank you for joining us, America. Efren is with us in Greensboro, North Carolina. Hi, Efren. How are you? Better than I deserve, definitely. Good. Thanks to you.

Thanks to our Lord Jesus Christ and you for helping us so much. But I do have a question today. I never had a will done for my family, so I'm going to get one, like you said, today. I mean, you know, as soon as I can. Good. But my question is, you know, we're in baby step six, 41 more payments on my house, but I'm hoping in 36 months I'll have it paid for. Good. 41 more payments on my house, but I'm hoping in 36 months I'll have it paid for. Sure.

We have our six-month already emergency fund, and I'm investing 15% of my paycheck every week. But I have four boys. They're educated and all, but I didn't do a very good job with teaching them about money. So on the executive, on the executive of the wheel, how would I choose one if none of them, matter of fact, they kind of refuse to listen to what I'm doing, really. They kind of, you know, they're doing their own thing and stupidity. You know, one makes really good money. Like, he went, I put him through college. I mean, in Charlotte, he makes close to $100,000. I mean, they're doing really good.

But I'm afraid that, you know, I just need to be very specific. I'm scared to do, you know, I've been to do it the wrong way, you know, or having the wrong person executing the... Yeah. Well, let me ask you this. Are they dishonest, or are they just, I mean, are they out of relationship with you, or are they dishonest, or are they just not good with money? Neither. I mean, they're very...

But they're good. They just... I guess the last part, the last... You see, they're not dishonest, but definitely, they're real good. And the relationship, very good. Okay, then let's just, let's go with that. Here's the thing. When you lay it out, you name the one that you think is most likely to follow through and do what you say,

not because they have knowledge or discipline, but because they simply will follow through with your wishes. The executor, the word means execute. The executor executes your wishes. They don't have any choices. They don't get to make any decisions, because you're not going to leave them any open decisions. You're going to say, in the will, I want this house sold, and I want the money split among three people or whatever okay but if

that's your instruction they don't get to decide anything else they do they execute what your will says if your will says sell the house and split it three ways or sell the house and give it to the church then they sell the house give it to the church they don't have a choice they have to do what the will says or they can get their butt suit off by the other people that are involved and so what i would do is lay out the will and you pick who you want to be the executor and i would sit down with them and explain what i just said to them that the executor does not have an opinion the executor executes my wishes are you willing to execute my wishes precisely as i have laid them out if so i'd like to name you as the executor on my will and then you then when

the will is done i would read it to all of them and say guys this is what we're doing with the money and here's why i'm doing it and here's how i'm doing it and brother a over here is the executor i've decided that so that everybody knows while you're alive exactly what everything's going to happen and then there's no surprises meaning the the little brother doesn't get mad at the older brother who's the executor because he has to do what the will says okay man i heard it i listen to you every day on my app on my phone so now i can listen to you every single day and i heard you said the same thing but now that you're telling me that it makes it just just really takes the whole weight off my shoulders by you saying that well

the good news is they don't have to have business acumen or financial acumen they just have to love their dad and be willing to do what his will says and follow through from an integrity standpoint. If they're that, then I think they are. I think they're good guys. They just are sloppy, and they're disorganized. They're just normal Americans right now. I mean, hopefully they'll grow up over time,

and you can certainly try to influence them to do smart stuff, which you've tried to do. But I don't think that's necessary for one of them to be the executor. Now, typically, the member of the family who is the best at business and money ends up being the executor because it's easier for them, the way their brain works, to execute the will. And so, you know know that's not unusual i mean i had a situation where i know the uh the youngest daughter ended up being the executor you know instead of the oldest son you know kind of thing right but she was actually the smartest one of the bunch and not it's not my family there's another family i was working with a while back but i mean she she's the one had her head on the straightest she was the most frugal and the most organized and had the administrative skills, the math skills or whatever,

to work through it with the lawyer and get everything done. So, hey, good question. Thank you for joining me, sir, and I'm honored to have you in my audience. Up next is Sarah in Springfield, Illinois. Hi, Sarah. How are you? I'm fine. How are you?

Better than I deserve. What's up? So my husband and I and my mom and my four kids plus two more on the way, we'd like to get a house together. And I know you don't normally recommend that, but it's something that will be mutually beneficial for all of us, and it's something that we all are willing and wanting to do, but we're not sure how to work out the finances. Okay.

Who's putting up how much? Well, my mom makes more than we do. I'm a stay-at-home mom. I have four plus two more kids. So she's going to sign the mortgage. So that's what we're thinking. Who's going to put the mortgage so that's what we're thinking who's going to put up the down payment um i think she would probably so you guys don't have much money and much income

compared to her okay how old is she she's 59 and why does she want to live with you she loves seeing her grandkids every day. She's a widow, and so living by herself is... So buy a house down the street. That's something that we've talked about, too. We've actually been living together the past eight months while we sold our house that didn't work for our daughter. She's in a wheelchair, and it was a two-story. So while we sold that and then started looking, things have just been going really, really well.

The problem is that there's very few exits from this situation that are going to be fun for everyone. If your mom becomes disabled, you've got a real problem if your mom has some kind of breakdown and uh you know get gets messed up you got a real problem if you guys get messed up she's stuck if y'all go through a divorce she's stuck oh that's never gonna happen to us says everybody and and the the problem is that this only works if everything works perfect. And sadly, life never works perfect. Right. So, I mean, in the event of divorce, what happens when she dies?

You got brothers and sisters? I have one brother, yeah. Okay. So what's going to happen then? I assumed we would buy our house. With what? We have to sell the house. With what?

Well, my husband's working on increasing his income. Yeah, but I mean, what if the value of the house goes up faster than his income? I guess we'd sell the house and find something that we could afford. This is your exit strategy. You guys have had a good time, a good warm

family time during this interim period while you've lived together. And you're getting ready to make permanent decisions instead of temporary decisions that are going to cause you problems in the future. They won't cause you problems immediately, but they're going to cause you problems in the future. I wouldn't do it. If she wants to buy a house and y'all stay with her, that's okay. If you want to buy a house and her stay with you, that's okay. But I can tell you what, you're going to be calling me back in five years and you're going to be in a mess because one of the D's hit you.

Divorce, drug use, default, disinterest, death, disability. These are the things that happen to these little plans we make, and they destroy your little plan and turn it into a nightmare. I would not do it. I think it's a mistake. If she wants to buy a house, that's fine. You want to live in her house? That's fine.

But I wouldn't put both of you on the mortgage. I wouldn't put both of you on the deed. This is The Dave Ramsey Show. We'll be right back. Thank you for joining us, America. We're glad you're here. Haley's with us in Atlanta, Georgia. Hi, Haley. How are you? Hi, Dave.

I'm good. How are you? Better than I deserve. What's up? Well, I'm calling because I have a 2011 Hyundai Sonata that I got when I turned 18. I'm 21 now. And it has 92,000 miles on it, and I still owe about $13,000 on it. It's only worth about $3,000. Wait a minute.

Who said it's worth $3,000? When I took it to the Hyundai dealership, that's what they told me. Oh, okay. That's not accurate information. So let's move ahead, though. What's your question? Okay. Well, pretty much I've taken my car multiple times to get fixed.

My boyfriend, who I've been with for about eight years, has paid for it to get fixed. And within the past couple months, we've spent about $5,000 to $6,000 on it. Why? And the last time I took it, the guy told me that my car was a lemon and that I should pretty much get probably traded in for a new car. Yeah, I bet he did. Okay. Yeah.

You were getting it fixed at the dealer, right? You were getting it fixed at the dealer? Not the dealership. I brought it to someone that my grandpa knows that he's always taking his car to get fixed at. Oh, I see. Okay. But it still was costing a lot to get fixed. What do you owe on it?

I owe about $13,000 on it. I assume you don't have any money. No, not to throw at the car. Yearly, it's $24,300. What do you mean, not to throw at the car? You have some money? No. I've been out of work for a little while.

So you don't have any money. You have a $13,000 loan on this car that's a piece of crap. Okay. Gotcha. Yeah. All right. I think it's worth more than three, though. I think that's probably the wholesale value.

And they saw a 23-year-old young lady standing in front of them, and so it's probably even below wholesale. So what I want you to do is jump online at kbbkellybluebook.com and look at private sale on a 2011 Hyundai Sonata with 92,000 miles. Enter all that information in, and it will tell you what you can put it on Craigslist and sell it for. My guess is it's probably more like seven, okay, maybe eight, somewhere in there. That's my guess.

So you're still in the hole, though, okay? Yeah, yeah. And pretty much I believe that they said it was only worth that much because after me and my boyfriend, who we lived together, we were in a car accident, and so he had to use my car for a while, and he wrecked the side of it. And so that's about $3,500 worth of damage to it. He wrecked the car, and you didn't get it fixed? Yeah, wrecked it and didn't get it fixed.

He does have the money to get it fixed, but we just haven't done it. Yeah. How much money does he have? He has about close to $70,000 saved. Okay. All right. So here's what we're going to do, okay? You need to find out what the car will bring, even with the ding on it, okay?

Really. A dealer is going to buy a car in such a way they can resell it for a profit, okay? That's what they're trying to do. And there's nothing for a profit okay that's what that's what they're trying to do and there's nothing evil about that it's just what they it's the business that they're in when you sell the car with a ding in the side what can you sell it for and you've got to figure that out by doing some research kelly blue book is a good place to start okay now maybe he should give you the money since he tore your car up for what the car is worth versus what it should be worth and where it fixed.

That'll help with the situation. And he did the damage. Yeah. Yeah. Maybe he should have done that already. Okay. But, uh, he tear up somebody's car. You ought to give him the money to fix their car.

It's a pretty simple equation. So, all right. So then we're going're gonna now who do you owe this money to um the car loan is through wells fargo is that a local bank you've been dealing with or just something you got through the car lot um just a local bank okay go in and sit down talk to your banker it's going to be tough with Wells Fargo, but usually we'd like to see a credit union or a small local bank. Wells Fargo, you're more of a number. But go sit down with them and see if you can get them to loan you the difference to sell the car.

So let's say that the car will bring $6,000 as is. Your boyfriend gives you the $2,000 for tearing it up. That's $8,000. Then that leaves you $5,000 in the hole. We need your bank to loan you that $5,000. And then you need to get a very, very, very, very inexpensive car, like a $1,000 or $2,000 car. Okay. That's kind of what I was thinking.

Yeah, you're actually going to move down in car temporarily until you can get the debts cleared up and then save up and move back up in car. So, hey, thanks for the call. I hope that helps you. Open phones at 888-825-5225. Adrian is in Phoenix, Arizona. Hey, Adrian, how are you? i'm doing pretty good how about you better than i deserve what's up um i'm just got uh picked up at a or i just finished flight school so i just got offered a position at an airline where they're offering me a ten thousand dollar

bonus good i've got about twenty two thousand000 worth of debt. And what my question is, my car, I owe about $4,500 on, so I was going to pay that off with the bonus. But my wife's car is paid off, but it's got about a quarter million miles on it, and I feel like it's on its last leg. So what I was wondering is taking the other five, trading in the wife's car, and going out and buying something used that we can afford with cash instead of throwing the rest of that bonus at debt. Does she work outside the home? No, she's pregnant now, and she's bringing in money from her GI Bill.

So she's bringing in about $1,500 a month. So with your new job, what will you be making? It'll be about $50,000 a year. Okay, plus she's got $18,000, so your household income is now $68,000 a year. If you throw $4,500 at the car debt out of $22,000, right? Then that gets us down to about $17,500, making $70,000 if you use the rest of the money for another car. Okay? Yes.

So her car runs, though, right? Yes, but the transmission pump is starting to fail, and I really don't want to put a newborn baby in an 06 Outback that's driven across the country five times already. Well, so give her your car. What was that? baby in an 06 Outback that's, you know, driven across the country five times already. Well, so give her your car. What was that? I said, so give her your car.

It's a stick. She doesn't know how to drive sticks. I've tried. Okay. All right. All right. Yeah, because you're going to be out of town. You'll be flying. Yeah, I'm probably going to buy her a little bit of a car here um but whatever you do you pay cash for okay in no

circumstances no debt and then you and then you guys have to commit to with no car payments we're going to in a new job we're going to roll up our sleeves we're going to be on a written budget and we're going to attack this other 17-5 in debt with a vengeance. Oh, yeah. We've been college students living off the GI Bill, and it's been a variable income for the last two years. So it's been kind of rough. Okay.

Well, just keep living like that and throw all the money at the debt. All right. Yeah, that's what the plan was. I just didn't know if it was, you know, should I go out and buy something or should I risk breaking down? Yeah, you're talking about a $5,000 car, so it's not a lot of car. Yeah. And plus whatever hers will bring, it's not going to bring much.

So maybe a $6,000 or a $7,000 car, whatever the old one will bring. But, yeah, that's probably a smart thing to do. It gives you a basis. You're out of town. You're not worried. Your new job is a pilot. You're flying. You're gone. And you're not worried about your wife or the baby on the side of the road that

does make sense in this case but we're again we're not buying too much car and we're certainly not going into debt to do it if you're going into debt to do it i would just say sell your car and get her a better car and you drive the old beat-up piece of crap which you could do that actually still um because you're not driving much except back and forth to the airport. That's all you're doing. You just got to get to the airport. That's all you got to do. And you can actually Uber over there if you wanted to.

So you could go that direction. But this is okay. It's an okay way to do it. As long as you lean in and finish out the paying off the debt as soon as possible. Make sure you do that because it sets your family up to win, dude. This is the Dave Ramsey Show. 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?

For all the ways to watch and listen, check out our show page at DaveRamsey.com slash show.