The Ramsey Show - App - I Got Scared Then I Got Stupid (Hour 3)

Episode Date: December 19, 2023

Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. I'm Dave Ramsey, your host. Thank you for joining us america jade washall ramsey personality and author of the new book the new quick read money's not a math problem she's my co-host today thanks for hanging out with us the phone number is 888-825-5225 merry christmas kendray is with us to start this hour in Houston. Hi, Kendra.

How are you? I'm doing all right. How are you doing, Dave? Better than we deserve. What's up, sir? Okay, so I was calling just to get some advice. So I am about $61,000 in debt. I make about $55,000 to $62,000 a year, just depending on, you know, what kind of jobs we get.

I drive a concrete mixer. Our business is generally driven by what kind of contracts we get, the weather, anything and everything can affect the paycheck. I have about $19,000 in certain loan debt, about $4,000 in credit cards, and the rest is a $35,000 car loan, which I pay about $762 a month for.

Whoa! You're feeling that. Yeah. I think we found the problem. Yeah. Are you upside down on it? So, yeah, definitely. I owe $35,000, and the car is worth $25,000. Yikes. It's a 2021 Jeep Grand Cherokee.

I got it with no money down. As Dave would say, I got put into a situation where I got scared, and then I got stupid. You did. Okay. What kind of condition is your credit in? My credit is now in worse condition. It's around the mid-500s.

Who's the car loan with? It's with CIG Financial. It's through a company, through the dealership AutoNation in Houston. Mm-hmm. Okay. All right. Well, the net result is you've got to sell the car, and we have to figure out how. Okay?

I imagine. Yeah. Yeah. Because the car's killing you. I mean, it's safe to say that if you didn't have this car, you probably wouldn't have even called us. Yeah, definitely. And I'm assuming you don't have any money laying around. No savings, nothing.

I have half of my baby step-in. The other half will be going in at the end of this week. And after that, no, nothing. Okay, so you got $500. Are you married? Are you married? Are you married? Did we lose her? No, sir, I'm not married.

Okay. All right. And so you're driving the concrete truck, what, 40 hours a week? No, I generally work anywhere from 55 to 70 hours a week. Okay, and that's making the $65,000. Yes. You're renting a house or apartment? We're renting an apartment.

What's the rent? $1,100. Okay. All right. So it may take a little bit, but the formula is formula is we got to come up with 10 grand fast. And that means beans and rice, rice and beans, all the OT you can pick up or side hustles you can pick up if you're not picking up OT. All right. And I want you to sign up for everything.

They'll let you drive anything you can do. And beans and rice, rice and beans. No restaurants, no vacations, no nothing. Do we get 10 grand to cover the hole that you're in? And you sell the car and cover the 10 grand get you a thousand dollar car okay do you have anything else you can sell anything associated with the business that you don't need need uh no uh other than this car honestly i've been a minimalist for a very long time i don't really care until you met the grand cherokee yeah yeah exactly that that was the first and worst big thing i've ever uh gotten in my life and i'm sorry you're stuck

in this but really you got to have the 10 grand the other option and i don't think it will work but i'll put it out here just because it is a slight possibility you might slide over there to auto nation and say guys um i'm about to get repossessed here because I'm having real problems with this car. And I need you guys to let me sign a note and pay payments on the $10,000 and let me sell the car for $25,000. Now, who said the car is worth $25,000? Where did you get that information? So I went on Kelly Blue Book. Okay.

And got the quote. Private sale? Yes. Not trade-in? No trade-in. Okay. All right. So, they might say, we'll give you X number of dollars for the car and let you sign a

note for the difference. And if you pay $700 a month on $10,000, you can get it paid off pretty quick. Right. And let me tell you, I give you less than a 10% chance of that working. I was going to say, what's the likelihood of that? But I would haul my butt down there

and sit in front of them and try it. Right. In person, not on the phone and not by email. Drive up with the car, sit down, talk to the finance manager in person and say the phone and not by email drive up with the car sit down talk to the finance manager in person and say i'm screwed here and don't blame them you're you're not you're not a victim you signed up for this right but don't go in there and go you guys did me wrong that's not the point we know they did you wrong but that's not the point so if he tries it and it doesn't work then you got to come up with 10 grand is there a situation where you would say listen if i can get a credit card for that 10

grand yeah yeah i'd take a credit card for the 10 grand because i would rather you owe 10 grand on a credit card than 35 on a grand cherokee that's what i'm saying um i don't know how i would go about getting the same ground on credit card i don't either not with a 550 i don't but um you know i mean it could be that your credit i don't but uh you know i mean it could be that your credit union will loan it to you but i doubt it right that's why i was asking about your credit but if you got a credit union that you've got a long-standing history with and the guy knows you in there you might go in there and get 10 grand to cover the hole or 11 grand of which is one to buy a car with you get your little a little garage sale car to get back

and forth to work right yeah or maybe you get rid of that third get the third get rid of 25 of the 35 you can deal with the other 10 pretty quick okay so if i if i were to pause the baby steps until i can come up with like a two thousand dollars for a little cash car and then sell the twenty five thousand dollar car yep you got to cover the $10,000 difference. But the difference is that's where the problem is, is that $10,000 difference. You can't sell your car until you can get the title for it, and you have to pay them $35,000 to get the title. Right, right, right, right, right.

Okay. That's why I keep trying to come up with the $10,000 somewhere. Mm-hmm. Listen, even if you can get- And don't go down there and let them screw you and put you into another deal oh no definitely not no more deals with these people yeah i'm not trying to get any more notes anymore anymore i'm not trying we're going to help you out by selling you a twenty thousand dollar car no you don't need twenty thousand dollar car you need out of the thirty five

thousand dollar car completely right no debt that's where we need and then if you don't have any payments when we clear this mess up i mean you can then you can deal with the other two things you can knock out four thousand dollars in credit card nineteen thousand student loan because you're gonna stink at seven hundred fifty dollar payment anymore right right so that this is that's why we spent the entire time talking to you about getting out of this car. Well, that's the lesson. The problem is in the car. Almost every time.

Man, we used to call this the sell the car show. Yeah. Dave, my dog is ill. Sell the car. Dave, my marriage is struggling. Sell the car. It was the answer to everything. Sell the car.

Sell the car. This is The ramsey show jade washall ramsey personality is my co-host today she's the author of the new quick read money's not a math problem check it out 57 pages later you will be smarter than you were when you started check it out it's right there at ramsey solutions.com by the way if you guys didn't know our every dollar app where you give every dollar a name the world's best budgeting app it helps you manage your money the ramsey way it works wherever you are ios android online you can do it anywhere you want you can start every dollar for free and immediately see where you stand with your money you can do it anywhere you want you can start every dollar for free and

immediately see where you stand with your money you can get organized you can work with your spouse if you're married both of you have access to it so you know what's going on with your money there's no uh no two tracks here there's one track we're running together and new to every dollar will show you a long-term financial roadmap you track your net worth your debt free date your retirement date your baby steps dates and more you're gonna love this brand new thing those of you that are really into this stuff you're gonna every dollar just took a whole new step boys and girls we're to proactively coach you to build wealth and reach your goals nobody else does that you can download the free app for irs or android go to every dollar.com

and get started and if you pay just a little bit you can have all the connectivity to your bank and get access to a whole bunch of other things as well be sure you check all that out and by the way some of you for some reason i guess you've been living in a cave or something. You didn't know this. Mint is closing up shop. January 1. They're done. Wow. They're done.

They're closing it. So you got your budget stuff over on Mint. You got to have a place to go. Yeah, because they're not. They don't have anything for you. They're done. They're done. They're running Credit Karma.

That's all they're doing. and there's no budgeting tool there and we're the best and the biggest budgeting tool out there so your natural movement is to move your stuff over to every dollar and we can help you do that yeah and uh it's completely free if you want it to be if you want to connect to your bank do the other stuff we can show you how to do that but we're not going to be selling you know mint's whole thing was they were using it as a lead magnet. They gave away Mint for free because they tried to sell you rocket mortgages. They tried to sell you credit cards. They tried to sell you consolidation loans.

All kinds of debt products are being sold in there every day, and they made their money selling debt products. We don't sell debt products, obviously. We sell education, and part of that is educating you on operating this app with every dollar. And we're running all kinds of free webinars with Jade and George and Rachel are all doing free webinars pretty regularly on how to operate every dollar. When's your next one? My next one, oh, gosh.

Right after the first of the year, I'd say. It's right after the first of the year, but for the mint folks i just posted matter of fact if you go over to my social media on instagram at jade warshaw i just posted a deal where if you're leaving mint to go to every dollar we're giving you two months i think it's two months for free wow yeah so check that out because the link is there it's in my stories and you can click it and get that deal. Yeah. So just check out Wade's, Wade, Jade's Instagram. Jade, Jade Warshaw.

Yeah. Jade's Instagram. And she'll get you a deal there. And if you're moving over, if you're navigating, migrating from the every dollar from the mint close-up shop situation because you just got a few days and you know you're I don't know when they're going to shut down the access to your information but you want to get your information out of there before they shut the whole puppy down well yeah certainly January 1 is their shutdown date that's what they're saying so you want to bill be ready yeah John's with us John is in Johnson City Tennessee hey John Merry Christmas Merry Christmas.

Merry Christmas, Dave. How are you? Better than I deserve. What's up, man? Well, me and my wife are looking to buy a home sometime this year. Good. We're about $34,000 in debt. Bad. Yeah, that's what I'm trying to get situated.

I want to get this, at least the biggest part of it, knocked out between now and sometime this year so we can get situated to buy a house. Yeah, you need to get it all knocked out. What do you make? I make about $55,000 a year. She makes probably $25,000 or $30,000. So $85,000 and you have $34,000 on what?

Got $13,500 on a car. She's got a student loan that we're paying on together. How much is that? Her student loan is a little less than $7,000 now. What's the other $14,000? We have got a loan together where we bought something stupid. We had to get out from under it. I'm not going to lie to you.

That's what it was. What was it? $300. I bought a motorcycle. Oh. I got stupid, and then I got out of it. She got sick. She started having some health problems.

I saw the writing on the wall, so I got rid of the motorcycle. It cost you $8,000 to get out of it? It cost me $6,000 to get out of it. You got $14,000 more. What's the other $8,000? I've got $1,600 on a credit card, and we have got a $7,000 in a mower. A lawnmower. So we're selling that?

Yeah. Okay, so you're selling a $7,000 lawnmower. You're taking, we're selling everything else we can get our hands. Sell so much stuff the kids think they're next. Okay. I want you to get a house. All this other crap, it goes down in value. The house goes up in value.

Right. If you're going to keep that car, you guys need to work like 10 extra jobs, be going nuts from now until summer, and let's be debt-free by summer. But you're going to have to sell. You need to sell the mower. You may need to sell the car, but if you're going to keep it, you guys are going to be working like crazy people for a short period of time here. And no eating out and no vacations.

Okay. The bad thing about the car is I'm not ever going to get out what i owe in it never going to get it what do you owe you owe 13 what's it worth it's it's uh last time we looked it was worth about 9 000 okay yeah so you gotta pay it off it's easier because it's not it's not 35 000 it's 13 okay so you know yeah it's it's not the problem it's just part of the problem and after we sell the lawnmower it's the biggest part of the problem right so the thing is this john if you and your wife sit down okay let me back up two steps i got just a second i'll make sure i lay this out. Right. One of the great speakers

and teachers of all time on self-improvement said Earl Nightingale used to say that the problem with people's not hitting their goal, in your case, your goals to buy a house is not what you're willing to do to get there. That's not the problem. It's what are you willing to give up to get there? Those are the things that block us if you want to lose weight it's not what you're willing to do to lose weight it's what are you willing to give up that's your blocker you see what i'm saying and so what you guys have got to do now is you've identified the goal is very clear and it's a great goal and we're endorsing the goal right jade that's right i want you to have a house yeah we want you to have a house it makes good financial sense good relational sense everything and a bunch

of this other crap does not seven thousand dollar lawnmower does not okay unless you paid cash for it and you make a lot more than you make so uh your wife is working more than she's ever worked in her life in the next six months you are working more your family is doing nothing we're not going out to eat and we're going to have a bunch of sales and we're going to sell a bunch of crap left and right i mean ebay facebook marketplace everything's going to be activated at your place so that we can hit the goal do you guys have kids got Got two. Yeah. Because it's just a good investment for your family, man. And so I would prescribe in order to have a great life in the future that you prescribe yourself six months of hell.

Mm-hmm. Because if you move into this house with no payments, John, the house will be a blessing. Right. Well, see, I've got $ got uh I've got 12,000 extra dollars coming in a year because I'm I'm pastoring a church I'm a pastor so I've got that on top of what I'm making so okay then that goes that goes into the budget that goes into the budget and every time every time I get a church check I throw it on I throw it at a bill good I want

to do more than that I want you to add up all the checks and cut all the expenses and put everything towards these bills. Okay. And work smallest debt to largest debt and get rid of all of them. Cut up the credit cards, knock the credit card out. Then let's get the car and let's get the student loan knocked out and let's get the lawnmower sold. And so, I mean, you got $21,000.

I mean, $26,000 you got you you got twenty one thousand dollar i mean twenty what is it twenty six thousand dollars you got to come up with and that's two thousand dollars a month for a year that's uh three thousand dollars a month you do it in six or eight months and you're starting to talk about buying a house by fall but i want this to be a blessing to you not a curse and if you buy this thing with a bunch of debt hanging around your neck it's going to be a curse and i don't want you to do that jade washall ramsey personality is my co-host today if you're out running around during the holidays we do this radio show podcast youtube thing every day from 1 to 4 Central Time. We will be off between Christmas and New Year's.

You'll get best ofs on those days. But we're on the glass in the lobby of Ramsey Solutions. So you can come into the lobby and we have free homemade chocolate chip cookies. We like to celebrate our listeners and our viewers. We like to have you come in. We'll sign your books and take pictures with you. We like hanging out with you at the commercial breaks. We're here every day, Monday through Friday, unless it's a holiday of some kind.

And again, we're not here between Christmas and New Year. But otherwise, you can come out. And there's usually 50 to 200 folks hanging out. It's a completely free experience. We take care of you. We want to say thank you for hanging out with us. And in that lobby we put a little stage it's called the debt-free stage standing on the debt-free stage

is jason and cassandra which can only mean one thing well most likely means one thing that you're debt-free how much guys where do y'all live we're from houston texas, welcome to Nashville. And how much debt have you paid? $124,000. Excellent. How long did that take? 48 months. All right. And your range of income during that time?

Well, we started at $107,000 together, and we ended at $158,000. Excellent. What do you all do for a living? I am a math and stats professor. Excellent. I work in software development okay very cool what kind of debt was the 124 there were two home loans um two school loans for graduate school and two adoption loans wow so this pays off the house no not the house did i say house the first house was from when we lived in East Texas. That's what you're talking about.

The home loans. Two home loans. I'm sorry. I'm very nervous. That's okay. Two car loans. Two car loans. Okay.

We're just going to let him translate. That's okay. No, you're fine. It's good. Very good. It's nerve wracking to be on the microphone. I understand. Not for me anymore after 30 years, but the first time you do it, it scares the crap out

of you. You're doing good. Very good. All right. 124,000 paid off in 48 months. Tell us what started this whole story, this journey, this connection to Ramsey. We did FPU as a couple in 2015. We were having trouble in our marriage.

I'm the number person, right? I'm the math professor. But I was doing it by myself. And so in 2015, we almost didn't make it, And so we were like, we got to do this. And so we paid off all of our consumer debt in 2018. This whole time, cash flowing fertility treatments, trying to get pregnant for about 13 years. In 2017, we did get pregnant and got evacuated from Harvey and came back and not so pregnant. Oh, man.

Yeah. And so 2018 May, we decided to adopt. And we announced it. We started a GoFundMe and we started cash flowing. And they said, probably going to be 18 months. Y'all want two kids under two. You want biological siblings. Good luck with that.

Everybody told us that it was going to be a year and a half wait to even start. So we filled out our paperwork and we did our little home visit. And then like two weeks later, they were like, were like hey guess what we got a match for you so we believe that God had a mission for us. Oh mercy yes get those these are our little girls without a doubt yeah they're amazing the best thing that ever happened to us. Amazing yeah so what a story. So we stopped paying. Well, no, we. So in. 2019. Our youngest was born in October 2018. And we have an open adoption to this day.

She's still in and out of our house. Anyway, so in January of 2019, she placed the oldest with us. There was a delay. And so in 2018, I was on maternity leave. 2019, I go back to college. And now that we have both girls, which is what we always wanted, we now have a basically $2,000-plus a month daycare bill, as you might imagine. And there was room, and then there was not room.

And even with grants and GoFundMe and all of that, 2019, we had a lot of food insecurity, some that he may not even have known about so um we were very frugal with our budget um we did not have credit cards it was car loans and adoption loans and um school loans medical medical there was medical debt yeah anyway anyway so yeah we we wanted to get out of that we wanted to we wanted to get so you were debt free and then all of this happened and there's another pile of debt there's yeah definitely some i had some school debt that we had been working on so you weren't debt free when you started we were

not debt free when we adopted the girls and getting out of that was important to us so that we could make a firm foundation for our all our family's future we were consumer debt free that may have been what i said the credit cards we had paid off all of our credit cards but you still had the cars we didn't correct we were doing small to largest okay i'm trying to get the story straight in my head so okay you're good so you had some you'd reduce some debt yes and then the girls came along and you got some more debt because everything got real tight yeah okay it happened a lot quicker than we expected i got you and then you decided four years ago what happened right uh lily turned one and both of their birthdays passed by and there was there was no room for gifts people gifted us um things to pretend as though those were our

gifts from food banks and things like that um and it just wasn't working and i bet i blame ken coleman calling me a chicken by using statistics online that said basically that 25% of all people are in jobs that weren't so great. And they are just too scared to do anything about it. And I did apply for another job. And I started a new job in January 2020 and got an immediate 50% bonus or 50% raise. Oh, my goodness. Oh, there we go. And I have since um become the department chair and doubled that from where I was previously oh my goodness like we didn't have big enough shovel and in 2020 we did not have daycare bills because no daycares were open

and so we I was a full-time working stay-at-home mom changing diapers on web calls with no camera but you know just yeah but doing both of those things and um making the best of what was a very bad year for a lot of people financially it helped us push us in the right direction yeah you were able to turn the corner yeah and your your bigger shovel as you said so that enables you to get the whole mess cleaned up so you kind of knew what to do but it was just tight and then you change the shovel size and then covid helped not covid but i mean being at home from the quarantine helped i guess the better way to get some expenses covid didn't help anything but yeah um but anyway i mean fauci didn't help

anything for sure but anyway two thousand dollars is a big savings that's huge yeah yeah well done well done so proud of y'all How's it feel to be free now? What a journey. And we just closed that door. We just closed the door of being in debt. So we still feel like keep everything as tight as we can. Yeah, and I'm okay with that. Yeah, that's fine.

I haven't changed my grocery budget. It was about $300 in 2019. It's now gotten up to about $600, but I'm still very proud of myself to have been able to stay under that grocery budget. Yeah, that's excellent. Because money is not a math problem. It's so true. Come on now. Like from the math professor, like I was the solution and the problem all the same time. I knew the numbers.

It's just sticking to them. Yeah, that's right. That's right. Wow. So what do you tell someone who is in your situation? Talk to that person who they're in the fertility battle. They've got debt. They don't see the light on the horizon, right? Talk to that person right now. And you know, God is bigger than your problems.

And just because you can't see the exit doesn't mean it's not there for you. You can get through this. And surrender. I mean, I would love to say that it's this, that, and the other. It's Jesus Christ alone. Come on now. The point when we get to just surrender and stop trying to control it and I'm going to make this work and I'm going to get myself pregnant and all of that.

Like, no. The best thing I ever did was just let go. Just to let go and let him direct the way and him direct the story. And just him seeing us on the other side, I didn't do it. He didn't do it. I mean, we did some stuff, but I don't think we could have alone ever got there had we not got to the point where we just surrendered and say, okay, Lord, you handle our storyline. Yeah.

It is amazing when you surrender and plant corn and go, I'm not in charge of sun and rain. Wow. I'll plant the corn, but I'm not in charge of sun and rain wow i'll plant the corn but i'm not in charge of sun and rain yeah it helps helps a bunch there's a huge release there proud of you guys way to go heroes what a testimony a couple of beautiful babies and uh these girls are they're with you so it's lily and give me your other one's pronunciation jalexa jalexa lily and jalexa i love it look how pretty they are so beautiful i And give me your other one's pronunciation. Jalixa. Jalixa. Lily and Jalixa. I love it. Look how pretty they are. So beautiful. I love it. Very good.

Well done, you guys. Hey, we've got the Baby Steps Millionaires book for you, the Total Money Makeover book and the Financial Peace University membership. Count it down, guys. Jason and Cassandra. Here we go. Two hundred and twenty four thousand paid off in 48 months, making one oh seven to one fifty eight.

Let's hear a debt-free scream. All right. Three, two, one. We're debt-free! Yeah! Love it. What a great story. Wow.

Merry Christmas, America. Wow. This is The Ramsey Show. Our scripture of the day, Colossians 4-5, be wise in the way you act toward outsiders. Make the most of every opportunity. Charles Dickens in A Christmas Carol, it's the 180th anniversary of the book publication today. No space of regret can make amends for one's life's opportunity misused you don't hear that kind of uh language syntax used when you're talking about it was the best of times it was the worst of times bah humbug right but no space of regret can make amends for one's life's opportunity misused very powerful brandon is in cincinnati ohio hi brandon how are you

i'm fine merry christmas to you and jay it's a pleasure to talk to both of you merry christmas to you how can we help so uh d, my wife and I, we are newly in baby step three. We are renters. I have a, I just spoke to my HR department because I have a corporate credit card. So, like, my company's name is on there. And my name, I have it as an authorized user. So I have it to pay for, like, my work expenses when I travel, submitting receipts and expense reports. And so I was calling today to ask. Who is the card with?

It's with my company. No, I mean, is it American Express? Is it Chase? Is it Visa, MasterCard? Citibank. Citibank. Citibank, MasterCard, or Visa? I believe it's either one of those.

It's one of those, right? Correct. And it's in the company's name, and you're an authorized user? Correct. That's right. I'm with you now. I'm catching up. Okay, good.

Okay. So, yeah, so I spoke to them and to one of the HR leads, and, you know, I was asking about, like, can I do a debit? Like, can I do, like, a business debit card, or could you advance? You don't need to. You're not liable on this card. Oh, I'm not? Okay. No, you're fine on this card.

You don't want a corporate Amex because the corporate American Express requires you to sign for liability. But a corporate Visa or MasterCard with a standard bank like a Chase or a Citi, you're not liable. Your name is on the card. Let me give you an example. I did not know that. Yeah.

I've got Visa debit cards here at the company, okay? Right. They're our company's account, our company's card. But I don't know. Do you have one of them? I do. You have a company card. Yeah.

Okay. She's an authorized user on it, but she has no liability. If there's misbehavior with that account, the company is the only thing that's liable, not Jade. Now, if she misbehaved with it, that'd be different. But I'm saying if some kind of thing happened, it doesn't come back on her. Authorized user just means you're allowed to sign for the company. Well, what's the difference with the Amex?

Amex is a bunch of shysters, and I can't stand them. And their Amex corporate cards require the employee to also be liable. What? Wow. And I've had several clients over the years come in that their company went bankrupt and left them holding a $15,000 or $20,000 Amex bill. Wow. Yeah, but that's not going to happen with Brandon. Brandon, you're safe

you're fine don't worry about what you got you're good well dave can i ask you a question on behalf of other listeners okay um let's say if they had a like a american express business card a credit card if they were in my shoes and baby steps three like just starting out how i would turn it in i would get off of it i would cancel it i would not participate with american express in any way it's dangerous should they prioritize like hurrying up and finishing day three and then do with it i'm just i would go into the company and go get my name off of this i'm not going to sign for anything using this period gotcha okay here's what happened okay i had a guy went to uh his company

sent him to uh europe and he was picking up some tech equipment he came back and the tech equipment was shipped in it was 25 000 worth of stuff and he put it on the company amex card when he got back home went to the office the office had a padlock on it they were in bankruptcy and shut down amex chased him down for the 25k and it was a company card right now that's not true with your city bank visa corporate card or it's not true with the debit card that jade is carrying you're just allowed to sign for them is all you're not you have not signed an agreement to sign for liability wow a lot of people just got a wake-up call on that yeah really dangerous yeah but if for those that are in that situation should they like how should they cash for it like where and like if they were in

baby step three should they finish that first if they had to get reimbursement like pay the expenses up front and then cash and then get reimbursed yeah they're gonna have to cover their own expenses i'd set up a separate debit account just for travel and that kind of stuff if mx is the only way your company will do it but i'm telling you man most most companies have moved away from mx because of that most of them are doing what you're doing if they're using a credit card, they're furnishing a corporate card, or they're asking you, period, they don't have anything, and they just ask you to use yours, and then they do a reimbursement monthly. A lot of companies are still doing that.

But we furnish the equivalent of what your company is furnishing. Only ours is debit, yours is credit. But, like, Jade has a Ramsey Solutions for travel, because Ramsey Personalities do a lot of travel i probably got a hundred of those things out in the building here give or take i signed some stuff today this morning for one of our senior vps was moving some stuff around on it but um yeah but but but uh anything she buys i mean she she's not liable for the bill and you're not liable for the bill in this case either so you're

fine I wouldn't I wouldn't worry about it at all PJ is in New York City hi PJ how are you hello mr. Ramsey miss Warsaw thank you guys for having me on sure what's up so just I guess I set the foundation I'm 23 I was home little to no expenses I have term life insurance for 35 years. I have a Roth IRA. However, at the moment, I have little to no income. Why? I joined, I guess you can call it an MLM, for about a year, year and a half,

thinking it would work out for myself. And I realized that is not the way to go. Okay, so now you're looking for a job? Well, I actually have one lined up. I'm taking some of my security licensing exams at the moment. And I'm lucky to have a connection in the industry where once I pass

those exams, I have a job lined up. So that'll be by the should be a little bit after the start of the new year. Good. I'm blessed to be in the position that I'm in. Okay, so now we're in February and you're making money. All right, now what's your question? Correct.

So the thing is, I really have little to no education and knowledge on credit. Of course, I don't want to live at home forever. I've done my research online. However, I'm just slightly confused, so I figured why not ask you guys. I just really don't even know where to start. I don't have a credit card. I pretty much just have a debit card. So why do you need credit? That's the thing. I'm not too sure if I do or don't need it. I don't think you do. Credits for people who want to, credit is for people who plan on taking out debt and borrowing money for their lifestyle.

That's the only reason it exists. So if you have said, I don't want to borrow money and I don't want debt. I'm going to pay cash for my life. Then you don't need credit score, do you? I don't believe so. Just I guess would be, I guess the noise I've been hearing growing up and whatnot is if you want to get a house one day, you need good credit score. Yeah. The two areas most people are going to push back on that is A, if you're going to buy a car, but we plan on buying our cars in cash, right? Is what it sounds like you said, which you can, you save up, you buy cash cars, right? The next one is the mortgage. People push back and say, yeah, you can't buy a mortgage without credit. And you actually can. You can buy a home with a zero credit score. So if you never take out debt or maybe you pay off your debt, eventually your credit score will roll to zero. And if you better than a good credit score or high credit score.

You can do just the same thing that you need to do when it comes to buying a home. And so you're just doing what's called manual underwriting and you get a mortgage company that knows how to do that called like Churchill Mortgage that we endorse as an example. So PJ, I like what you've done. Just keep it simple, man. Don't go in debt so that you have the opportunity to go in debt so that you have the opportunity to go in debt, so that you have the opportunity to go in debt, so that you have the opportunity to go in debt. That's called dumb.

And people do it every day. That puts us out of the Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus.