The Ramsey Show - App - I Have Over a Million in Debt... (Hour 3)

Episode Date: August 25, 2023

Live from the headquarters of Ramsey Solutions, broadcasting from the Potts Moving and Storage studio, this is The Ramsey Show. It's where we help you win in your life with your money, your relationships, and your work. I'm Ken Coleman, joined by Jade Warshaw. 888-825-5225. That's the toll-free number for you to jump in. We'd love to take your work. I'm Ken Coleman, joined by Jade Warshaw. 888-825-5225. That's the toll-free number for you to jump in.

We'd love to take your call. Jade's here to answer your money questions. I'll weigh in. I'm here to answer any questions related to your work, making more money, experiencing more meaning so you're not tempted to go get a credit card to drown your sorrows on Friday after you've been just trying to make it through

to the weekend. And Jade will weigh in on those topics as well. 888-825-5225. Let's go to St. Louis, Missouri. Kelly is joining us. Kelly, how can we help? Hi, thanks for taking my call. Sure, what's up?

The reason I'm calling is I just wanted to let you know me and my husband are in our 60s, and we're on baby step seven. Wow. And I just wanted to see what you would do. I work part-time, and he's getting ready to retire at the end of the year. And just wanted to see what you would do in this situation. So a year and a half ago, we helped our daughter purchase. We didn't help her. We purchased a house and used our savings to pay cash for her a house because she was going through divorce and was having trouble finding affordable housing. So that they would be in a decent place, a decent housing.

So we bought a single family home, paid cash for it and then um now her divorce is finished and she is getting uh some settlement from her some property that they own together that they're dividing and so she she's interested in buying the house and she wanted to know um about buying it and so um it went up in value though at least 10 percent and so um and we've been renting it to her at a discounted value like over less than half of what we could get on the fair market place just to help her out but um so she um so what's your question, Kelly? My question is, I feel like we're wanting to give her a discount rather than fair market value. How much did you pay for the house? $234.

And what's it worth now? $275. $275. And we told her we'd sell it for $259 to her only at a discount. Okay. And can she afford that? She's going to go see. She hasn't went and seen, but she thinks she can because she has a chunk to pay down.

But she is appalled and surprised that we want to make money off of her well because we let me let me tell you what let me tell you what I heard and I'm going to give you a unbiased answer what I heard from your own words is we bought a daughter a house for our daughter yeah but yeah now what it sounds like is we didn't buy a house for our daughter. We bought a house that was a rental. And although we didn't charge her what we could get for rent, it's not her house. It's a house that we can earn money on. is if there was any indication from her that this was for her, even though she's not entitled to it, I think that's where the confusion is. Because she's not entitled to it.

But if the communication on this was anything like this call, there's a lot of gray area for people to think, well, I thought da-da-da-da-da. No, it's this. And that's what happens sometimes when you do these things for family. They get gray area really, really quickly. I would feel the same way your daughter does if, in fact, it was communicated clearly that you guys were buying the house for her. You were going to go lock it up, and then she was going to buy it back from you.

I mean, was the understanding that she would buy it back from you? No, I never thought she would be able to afford to buy it. Okay, well, okay, okay. So I thought we were going to invest in the real estate market because we had our money just in the savings account. So I thought we was going to invest in the real estate market and it would grow while we're renting it to her. But I never thought she would be the buyer

because I didn't think she could afford that. Okay, so when you told her, well, let me do this. We're going to go one little step at a time. Did you and your husband tell your daughter that you were buying that house for her, yes or no? For her family to live in, yes. To rent, yes. To rent. So it was not her house, it was we are buying a house that we are going to allow you to rent at a discount. That's what was communicated. Yeah. Okay.

Now that's different. That is different. So now the question becomes. But I'm not going to lie. I do have questions about how well that was communicated because it was not communicated here on the air. Well, that's why I'm going back. Kelly, was that super clear to her? Yes, it was super clear to me that uh no to her that's that's where the car yes yes it was super clear to her that she was going to rent that and that's what we were buying the house for for them

to live in and they were going to pay your rent to us okay so now recently the conversation is has shifted has shifted and you guys and so she's upset because she thinks that you should sell her the house for the exact amount of money that you put into it yeah because she's been paying us a discounted rent she thinks she thinks that that that should have been enough well she she's probably feeling like hey i put some money i've helped accumulate some of this equity because i've been paying the payment this is a tough one it's it's been paying the payment. This is a tough one. It's only a tough one because it's family. And when you do deals with family, folks don't put things in writing the way they should.

Yeah. Okay. Let me stipulate. The reason I think it's tough is because I feel like I'm going to be mean when I say this. But I don't think the daughter has any right to be upset about the sales price. In this case, she's already been given a discount by her mom and dad, which is very generous.

Well, it depends on how, again, we're talking about, cause she could call Kelly. You're the one who called in, but your daughter could call in and say this in a totally different way. I believe Kelly's telling the truth.

And in that situation, I don't think your daughter has any right to be upset about it. I would just tell her, I would say, you know what? This is the price. This is messy, and it's not worth the relationship. Go out and buy your own house that you love that you can afford.

That's what I think. That's what I would like to see, yeah. Yeah. Because, Kelly, and just to be clear, I believe— But there's none available. There's none that was available, so this is— Well, here's the other question. Do you think, as her mama, that she's going to be really upset if you tell her that she's already upset about the sales prices, she's going to be really, really upset when you go, you know what? I think it's

probably better that you just go find your own house and we not have tension over this. Is that going to be a bigger issue? Well, we already had that conversation last week and I said, that's fine. Yeah, that's fine. What'd she say? You can go buy something else that you can afford. I want you to be able to afford it. And so, but she got to look, and there is nothing. There's got to be something.

There's nothing in her area, in her price range, that she can afford. Well, that's... The housing market's so tight. Well, that's... She could buy something smaller, then. There's always something. It's not an apples to apples. And she might have to go slightly outside of her neighborhood. I guess where I was going was, is if this is going to be a big, big issue, and I'm thinking about it, if this was my girl, I'd go, all right, I'll sell you the house for the number you want so that we're all getting along.

I might. I might do that. I know I'm all over the place, but I'm like, it's not that much money. It's not that big of a difference to have to deal with that. It's just such an icky situation. It's an icky situation. I'm not going to lose my daughter. They're baby step seven. They can eat the $20,000.

That's what I'm saying. I'm not going to lose my daughter even for six months over that amount of money. I'm going to walk away and be the adult here. Literally and figuratively. I think that's what I'm going to walk away and be the adult here, literally and figuratively. I think that's what I'm going with. Oh, boy. Jade will tell me if I'm right or wrong in the break.

This is The Ramsey Show. Welcome back to The Ramsey Show. I'm Ken Coleman. I'm joined by the incomparable, the fabulous Jade Warshaw, ladies and gentlemen. 888-825-5225. 888-825-5225. Time for our question of the day. The question of the day is sponsored by Neighborly, your hub for home services.

After fires or floods, their rainbow restoration pros offer homeowners trusted full-service restoration expertise like mold remediation, carpet cleaning, odor removal, and more. Visit neighborly.com today to find rainbow restoration services in your area. Very cool. All right, today's question comes from Ashley in Ohio. She says, my husband's company gives a 3% match on any dollar amount with no limit. However, it is in a traditional 401k, not a Roth. Okay. I know this rule is due to the match. I know the rule is to do the match, then Roth IRA. I just don't know what to do when there is not a limit to his match. Do we just put 15% in his 401k or do we limit it and somehow put and put some in the Roth? He's 31. I'm 28. There is a limit. My husband's company gives a 3% match on any dollar amount. Well, there's a limit

because there's a limit to your 401k. That's number one. So we're investing up until that limit that you're getting 3% on. Does that make sense? And then we're moving on to the Roth because this is a better situation for you long-term because you'll be able to take the money out of that without taxes after retirement. And then once you max out that Roth IRA, if you wanted to come back and do your traditional and fill it up to the rest of the limit,

you could do that. Hopefully I made that make sense. Yeah. Did I cover that, Ken? Yeah, yeah, yeah. Okay. I think she's thinking that the 3% is like goes on forever. Right.

But it doesn't because your 401k has a limit. So I want to make sure I answered that clearly. Well, you're looking at me. I'm not going to correct the 1%. I just want to make sure. Did I not miss something? But I guess when I think about it. It's confusing folks it could be confusing yeah yeah okay that's good yeah you clarified it's the 15 and here's how we get to the 15 and then here's your options that get you to

the 15 that's right and that's what you laid out that's right so um each each year there's a limit on what you can put into that and i think think this year it was $22,500 or something like that. And then with your Roth IRA, there's a limit. So it's 3%. So there we go. That's all. All right. Good stuff. All right. Thank you for the question. 888-825-5225 is the number. Let's go to Victor who joins us now in Hartford, Connecticut. Victor, how can we help? Hi, thanks for taking my call. My wife and, my wife and I, we got married about, uh, eight years ago and we're really good at saving, but, uh, not very good at, uh, investing, I guess. So currently we have about 250,000 in, uh, savings and, um, we thought we'd splurge on a, on a new car and we got a car loan for about 5959,000. And the loan is for five years at 5%.

Victor, how long have you been listening to this show? I discovered you about, I guess, two years ago, but I don't listen regularly. All right, Victor, do you know what our position is on taking out loans for anything, much less a car? Don't do it. Don't do it. And my friend, you've got the 250 in the bank. But no, but no, because I'm shook to my core that you're spending $60,000 on a car. I just need to know your income and maybe my shooked nature nature will go away but tell me how much your income is uh well it's grown substantially in uh recent years but uh this year we're on track to make about uh 175 no okay 175 combined yeah i can't

what's your wife's car worth? The worth of the car is, I believe. What'd you pay? Yeah. What'd you pay for it? 60, 64.

No, just over 64. You guys are tripping. You're tripping, slipping and dipping. You got it. 60,000 to $60,000 cars. No,

no, no. Oh, sorry. I, I don't want to answer your question. Yeah. No, this is no. Oh, sorry. I didn't want to answer your question. Yeah. No, this is the car that we got. This is just the new purchase. And do you have any other debt? I know, but I want to know how many cars they have and what they're worth total. All right. So answer Jade's question

because she says you're tripping, slipping, and dipping. I think that's how that went. That is correct. What is the other car that you have? And we know it's paid for. We have a roughly $15,000 car. Okay. Okay. So the $60,000 car and the $15,000 car, that's $75,000. I know. I know it's high.

I know it's high. But they got the cash. So before I even get to that part, I'm like, why would you take out a loan for a car? And Jade's going to get you to this is the kind of car you should be buying based on the ratios. But why in the world, before we get to that, why would you take out a loan when you have no other debt and you've got all kinds of cash in the bank? I want to understand your philosophy. I don't think it's a – I's, I mean, I don't know if it's a good philosophy or not, but, um, we, um, our, our bank where we, uh, keep our savings

approached us, uh, uh, with an offer to invest in a, um, brokerage account. So I don't know if a brokerage account with that's going to net us more revenue to offset the percentage on the car loan. That was your reasoning? Yes. Okay. Yeah, no. It makes no sense to me at all. Zero sense.

What he's thinking is he's like, well, it's 5% on my car. I know what he's thinking. He's looking at the percentages of interest instead of real dollars, which is a car payment of what? What's your car payment on this thing? Well, real dollars, real cost of the loan is going to be $8,000 over five years. That's not what I asked you. So you're already playing games. Yeah, you're playing.

Oh, no. Okay. What is your car payment? For a month, it's going to be around $1,100. That is just mind-numbingly stupid. Yeah, it's so much money around 11, 1100. That is just mind numbingly stupid. Yeah. It's so much money. It's just so much money.

And here's the thing. You don't have to play these games. You know, you're making 175,000. You're both working. You can pay for things in cash. This car I'm guessing was brand, brand spanking new,

right? Correct. You're already upside down. Yeah. How much could you have saved by just getting a year used two years used right probably twenty thousand dollars like this it's not worth it for me i have a feeling that you're going to do what you want to do because this your game makes sense to you and that's that's okay um i would tell you to sell this car i i think it's it's i think it's extravagant for where you're at

um you could pay it off in two seconds and keep it i'm not mad at you if you did i think you have way too much money in savings um you said it was savings but then you said it was a brokerage account so i want to make sure is it invested money no no it's not invested yet uh that's that's why i'm calling to ask see if it's a good idea to go into a brokerage account for that kind of money. Okay. So I'm just going to briefly, and this is not just for you, for anyone listening, here's how we teach. It's a series of steps. And I think that if you filter it through this, it's going to help you. All right. In your case, do you have any other debt besides these cars? I put him on hold. I thought you were running. That's okay. That's okay. If you have any other debt besides these cars, we would take any money that you have any other debt besides these cars i put him on hold i thought you were running

that's okay that's okay if you have any other debt besides these cars we would take any money that you have saved less a thousand dollars and throw it at your debt so in your case we'd pay off every single penny of debt that's baby step two by the way he has no other debt but this new car sweet yeah pay it off and then you've got plenty of money. We would keep three to six months of expenses set aside. You could keep it in a high yield savings account, but not non-invested money that you can, it's liquid. You can get to it easily. That's baby step three. Baby step four is we would start investing 15% of your income every month into either your 401k or a Roth IRA. Okay. That's next. Then's next. Then you could save for your kid's college if you wanted to.

And then you would use any money left over that you just had cash sitting around or that's in your income. You can throw that at your home mortgage to pay it off early. So you've got a lot of money sitting around. Some of it is your three to six month emergency fund to be liquid.

Some of it's gonna go to pay off this car. And then whatever it's left, if you have a mortgage, dude, throw it at your mortgage. I don't think I'm going to be able to convince you to do that because our minds work in different ways. But that's really the way to do it. That's the fastest, safest, most secure way to build wealth. And I'm not just saying that as a talking head. We've done the studies. It's true. Millions of people have done it this way. So that's all I can tell you. And that's all I'm going to tell you. That's all you can do. Good stuff. Thank you for the call. Hope you figure it out. We're here to walk it through with you.

This is The Ramsey Show. Welcome back to The Ramsey Show, America. We're thrilled that you're with us. I'm Ken Coleman. I'm joined by my colleague, Jade Warshaw. The phone number for you to jump in is 888-825-5225. That's 888-825-5225. Let's go to Chicago where Robert joins us. Robert, you're on The Ramsey Show. Hi, Ken.

Hi, Robert. Hey, what's going on? Hey, I'm in big financial trouble where we owe over a million dollars all in together, including mortgage. Yeah. Let's break it down. 462 is the mortgage,

96,000 student loan uh 42 000 car is that student loan federal no no it's with earnest i've been paying it back for a couple of years at this point okay how much was the car and the car is 42 and the car the car is $42,000. And the car is going. I already decided that. Okay, good. We're going. To get rid of it, probably we'll spend $10,000 to $12,000 on it. But it is what it is. That's fine.

It's still going down. The rest is installment and credit cards. And our income is... Wait, hold on a second. $462,000 in the mortgage 96,000 private student loans 42,000 is the car run run the rest because there's still a good deal left is it all credit cards what is it uh installment installment loans and credit cards like private loans so so give me the numbers yes i, I do have a $50,000 solar panel loan as well. Solar panels?

What else? What's in the credit cards? What's in the personal loans? Personal loans, everything together is approximately $225,000. $225,000? Yes. Who do you owe that to? What persons? Approximately 225. Thousand? Yes. Who do you owe that to? What persons?

One of your favorites, SoFi. SoFi. And Lightstream and Upstart. So, and then there's some credit cards in there too? So here's the thing. I've been trying to be smart and it didn't quite work out. I was in a position where I could lend money to guys who need it and make profit on it. So I would throw money on a card or give the installment loan and they pay me back and

I've been making some profit on it it so you're taking out the debt for other folks right now one guy stopped paying and it's it's really it's so much stress and i'm done with it how much money do you make uh i would make 20 to 30 000 a year net after all the costs did you say you make 20 to 30000 a year net after all the costs. Did you say you make $20,000 to $30,000 a year? Yes, net after all the costs. My friend, you're not in position. From the, you know, loaning money. No, no, no, no, no.

I want to know for your job. What is your income? The income is about $10,000 a month. No, no. Is that your personal take-home in your salary? Your job is $10,000? $10,000 a month. Okay. It's like $9,800.

Oh, my gosh. You were in no position to be taking out loans for other people. Yeah. I could spend a lot of time telling you the ridiculousness of all i mean it's it's it's one thing to take out debt for yourself it's another thing to take out debt like some kind of a loan shark and loan it to other people you know that i think that you feel the weight of that i think you know i hope that you know i i do oh i think that you do okay um is it just you do you have a family tell me more no it's the full family it's my wife she's sitting right next to me here kids uh we have three

kids okay um all right so here's we have a full house are you both working uh yes she's working her hours are a little bit irregular so and does that 10k involve what she's bringing in yes okay i need her to work 40 hours a week not irregular i need her to pick up something that is just as solid as what you're doing and then after she does that and this applies to you too, you're both getting side jobs. You guys are about to work your booties off. You have to. There's no other way, okay? So you already said that you're getting rid of the car.

You're going to take a 10K loss. That's fine. You're still getting out of $32,000 of debt. That's great. Solar panels. How is this? Is there any way to get out of it? Are you able to sell them? Have you looked into anything? They essentially replaced my utility bill. That's what it is. Right. But can you get

out of them? Can you sell them? Probably at a loss. Well, we're getting out of debt. So it would be 10 to $15,000 loss, if not more. Yeah, but you're also, you're not thinking about the debt that's gone. So getting that down to $15,000 that you owe is better than $50,000, right? Yeah, just getting rid of the car and the solar panels, if you can do it, is going to give you some more room to be able to start really going after these other big debts. So here is really the question I'm calling with. Honestly, we would need to increase our income by about $5,000 a month. Yep.

Just to be able to bulk those payments. Yeah, you're going to have to get your income. After getting rid of the car and everything. So what's your question? Honestly, if I will float them, credit cards will soon start charging because the balances are like a zero balance promotion and so on. Yeah. So I'm expecting to get a bigger payout next year in August, September.

For what? Pretty much. It's money. That's all to me. No, we're not waiting till august it's great that you have money coming but we can't wait or depend on that as the solution because as you've seen before sometimes folks don't pay so we've got to start today what's your uh what are you paying every month for your home it's about thirty3,200. That includes mortgage taxes,

insurance. Okay. I 10 K a month. Are you guys on a budget? I need to know how far, how deeply you've gotten into this. We started the budget where we really cut our spending significantly. And we're,

we have a budget ready for September. Okay. I need it down to, here's the thing. There's no breathing room here. We got to go and we got to go like our life depends on it because yours really does. Wife is working. We're starting that process to get her full time tomorrow.

Okay. You guys pick up side hustles. I don't care what it is. Any money right now is going to be so helpful for you. I'm looking at ways to get rid of the car instantly sell off these solar panels if you can instantly i'm looking for ways to do anything i can i'm looking at your mortgage to be honest with you and i want to know what it when did you get this house did you get it recently or have you had it for a while two years ago two years ago what's it? And what's the interest on it?

Probably it's under 3%. And what's it worth? It's $600. We could probably walk away with... How much equity do you have in it? $650 and get $120,000, $130,000 equity. How much? $120,000 or $130,000.

$120,000, $130,000 equity. How much? $120,000 or $130,000. $120,000, $130,000. We put $20,000. My friend. I would be scorched earth. Now, if it were me, I'd be selling the house, and we would be getting a place that is the kids are kids. They'll be fine. I'd put them all in one room.

I would be going bananas on this to take that 130, put it towards this debt, get you some breathing room. Your life is going to be so much better, so much faster. This house is just as big a problem in my mind as everything else. It's too much of their income. It all is. I'd get out of it now. That's what I would do. I'd rent. Yeah. You need every dime that you can get. all i'm not going to make any bones about all of it's going to suck it's not going to be fun well his life sucks already yeah but i'm just saying like you know this is going to be the one of those seasons where it's like wow you're going to feel the gravity of the decisions that you made but the good news is you can course correct

and you can write this ship and you can make it happen and you're going to make it happen. But it's not going to happen if you don't do the things that Ken and I told you today. Starting today, don't leave anything out. Don't try to skirt the process. Do it. Hang on the line, Robert. I want to do a couple things, Austin, for Robert. So, Robert, hang on the line.

Number one, I want to get you in Ramsey's number one flagship product, Financial Peace University. We're going to give you every dollar as well, the number one budgeting tool in the world. And I'm going to set you up with a one session with one of our financial coaches. This is The Ramsey Show. Hang on the line. Welcome back to The Ramsey Show. I'm Ken Coleman. I'm joined by my good friend and colleague, Jade Warshaw. We're here for you. 888-825-5225 is the phone number.

Our scripture and quote of the day are Galatians 6-9. Our scripture, let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up. And a quote from Mark Twain, do the right thing. It will gratify some people and astonish the rest. I think if he were alive today, he might also say it'll piss off a whole lot of people, too. There you go. All right, back to the phones we go.

Richard joins us now in Providence, Rhode Island. Richard, how can we help? Hey, how's it going today? Good. How are you, sir? I'm great. So I'm great now that I get to talk to you guys. I just started listening to Dave Ramsey's show a few weeks ago because I've already started to make some changes.

But, you know, I'm in a lot of debt. Throughout my 20s, I pretty much mismanaged my finances, mismanaged my life, put myself in a car loan that I had no business being in. I got a lot of student loans and I have a lot of credit card debt as well. How much? So with my credit cards, I originally I owed $12,000. But after I entered into a debt consolidation plan, but after watching a Dave Ramsey video, I decided to exit right out of that. Good. So since then, I've been consolidating my own loans.

I've been trying to negotiate with them to get them paid off. So out of my five credit cards that I owe, I paid off three of them already. Very good. So give us your total. Walk Jade through your total debt. Give us the numbers and assign it. What do you got okay so i have seven thousand dollars in credit card debt okay between my two cards i have 15

grand left on my car and i have 33 000 in student loans good okay and what's your income i make 47 800 for my nine to five job and then on the weekends, I make another maybe $10,000 a year. So I pull in about $3,800 a month. Okay. $3,800 a month. What's the car worth? Do you know? I Kelly Blue Booked it about a week ago, and it's worth about $20,000. Okay. And you're how old? I'm 30. Are you single? Yes. Okay. What's your rent situation or mortgage? Do you have a home or are you renting? I live with my parents, so I don't pay anything. Okay.

But that's my problem. I'm dying to move out. Yeah. I was going to say. How old are you? He's 30. I'm 30 years old. Okay.

You're a grown man. You're trying to get out. Look, yes. And let's make that happen. You have no money saved, I'm assuming. I have no money saved. I don't have any retirement either, and that kills me as well. I really want to get started on a retirement and a savings,

but as I learned from Dave Ramsey, you know. Right, we got to do it right. I have $1,000 in savings. You dating anybody, or are you just kind of patching it right now? So I was a serial dater not too long ago and that was costing me a whole lot of money i knew that was coming and i decided to cut that off completely because that whining and dining that credit card bill was going up yeah so jay's gonna walk you through this she's gonna walk you the baby steps and walk you through financially

but i want to say this really quick before i turn you over. She's going to help you, but I'm going to push you. You're single. You are no longer ready to mingle. You need to be working 60, 70, dare I say, a week or two of the month, 80 hours a week, because you're actually closer than you realize with what Jay's going to walk you through. But you've got to increase your income, man. And you increase your income in today's economy right now where you can get gig work. You need to be, that little side hustle that's only making you about 10 grand a year, that's not enough.

You need to be bringing in way more money. So I'm going to tell you that. What's your car note? My car note is about $432 a month. All right. Here's what I'm, move number one. Move number one is I want you to save $1,000. That's baby step one.

As quickly as you can. Most people get it in 30 days or less. Okay. So that's selling stuff. That's looking around your apartment, selling anything you can sell. You know, whatever you can do to get that $1,000 fast. I want you to get it in under 30 days. So that's A1.

Okay. Right after that, get it in under 30 days. So that's a one. Okay. Right after that, I'm trading that car in, I'm selling my $15,000 car for 20,000 and I'm taking the 5,000 and I'm buying a car in cash. All right. So you're freeing up $432 a month. Then after that, I'm going to take that next thing and I'm going to get as much money as I can. I'm going to pay off these $7,000 of credit cards. You said it's two. How much is the smallest one? It's $3,000.

Okay, $3,000. With the $432,000 a month that you just saved off of selling that car, you know how quick you knock out $3,000? Fast. Because he's got more margin too because he's working like a madman. Yeah, I love that. Do you see how this works? Do you see where we're going with this yeah i definitely do so you're gonna my guess

is uh let's see once we get that 432 cleared up how much extra could you feasibly have in your budget if you worked like crazy um so like i said i get paid bi-weekly and then weekly from the the weekend hustle uh-huh so i would say without the 432 well i'm getting what do you have extra right now what do you what do you have extra right now like if you cut down your budget you cut down what you're spending how much could you find extra after all your bills are paid? Most of what I make, actually, because I don't really go out much. So I would say I probably still have at least three grand left over. I don't have many bills. Okay, you have 3000 left over plus the 432. That's 3432. Boo, that credit card is knocked out instantly almost. You're going to have your credit card

debt done in two months but you're also gonna get more work right and so now we're moving on to the 33,000 in student loan debt you can have that done in 10 months less eight months yeah understood and then I can move on right yes then you can move on I would tell you this I think you can move move out in the middle of everything Jay just gave you, but this is after we knock out the credit card and the car. You've got to have enough margin for rent, but if you're willing to get a roommate, maybe that's a good situation. I wouldn't wait until the $33,000 student loan if you increase your income.

So that's why I was getting after you about, I know you want to leave the nest, and that's the right move. That's right. But you have got to increase your income and you can do that. You can go out on your own, live, but I mean, you're rice and beans and Jade's really good at creating lots of dishes with rice and beans. That's true. Yeah, get yourself a roommate. If you don't want to spend another, because I think you can be done with this within the year. If if you're like i can't take another moment at my parents house i don't blame you if i was you i'd be trying to get out too just know it's going to elongate this process a little bit more which is okay i'm fine with elongating the process as long as we know

exactly yeah what the goal is and we're still going hard to get there you know what i'm saying i don't i'm not as jade would say i'm not mad at you on that if you stay with mom and dad a little bit longer. But I think you can do both. And I actually think you getting out on your own may give you a little bit more fire to get this stuff done. But you can knock this out quick. But, bro, are you okay having a $5,000 car? I don't care if you are or not. But I want to know if you are okay.

Because that's a step. I don't miss going to the mechanic all the time. I will say that. I like the security of having a new car. I get it. I want to pay it off and then have the next car for the next 10 years, you know, because it's only $60,000 on the dashboard. Yeah, but do you know how much security you're going to have when you have none of this debt? And you're not going to be in that $5,000 car for long.

Yeah. Because you're going to be, again, you're going to be out of debt in under a year and you're going to stack up some more put it you know get rid of the 5k car and then you're going to go up to a ten thousand dollar car then you're going to go up to a fifteen thousand dollar car you see what i'm saying this is how that works um but oh you know what on the fifteen thousand dollar car he doesn't have to sell it he's not in an emergency situation so if you're willing to bust it if you yeah if you're willing to bust it, what do you think about that, Jade? Here's my thing. If you decide to move out,

you need to sell the car. I agree. If you decide to stay at home, you've still got a decent-sized shovel. That's the way I would play it. Can I tell you both about my living situation that I might have set up? Really quick, because we've got 60 seconds. My parents own a second property,

and it's a whole entire house, and they want me to move in and pay $1,400 a month. Get a roommate. For the property as rent. I don't like $1,400 with what you make, but I like $700 if you get a roommate. Will they let you have a roommate? Yeah, they will.

Actually, I want to get my brother in the house. Okay. Yeah, let's go. I like it at $700. I don't like it at $14. Agree? Yes, agree. Agree. $700 is the move and sell the car, because your brother's go. I like it at 700. I don't like it at 14. Agree? Yes, agree. Agree.

700 is the move and sell the car because your brother's there. If your car breaks down, you can use his. I like where your head's at, Jade. I like that. And by the way, you said something that's key for people that are going, man, Jade was a little harsh on that. No, this motivates you to get out of this so we can get a $15,000 car cash. Absolutely.

And so that's the whole point of all this. We want to get you free of the stuff that shackles you down. Good stuff. Good hour, Jade, as always. Always fun being with you, my friend. I want to thank James Childs and the crew for keeping us on the air. We want to thank you, America. This is your show.

This is The Ramsey Show. Hey, folks, Ken Coleman here. Did you know The Ramsey Show is one of the most popular podcasts in the world? Get your daily dose of advice on life and money. Check out all of our shows from The Ramsey Network wherever you listen to podcasts.