The Ramsey Show - App - I Owe the IRS $100K! (Hour 2)

Episode Date: September 11, 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. Jade Walsh, all Ramsey personality is my co-host today. If we take your questions at 888-825-5225. Now last fall, not quite a year ago now, I think it was November. If I recall, uh, we did a fabulously attended free live stream on real estate. Interest rates had not yet climbed to where they are now. But the COVID rush, the Fauci pandemic quarantine rush had eased, and the real estate market was cooling off because interest rates had ticked up

and people were freaking out acting like the real estate market was going to crash and that prices were going to go down i'll just wait till prices go down and we were addressing that we had this big podcast um you were of course here you were still in your first few months with us at that point and uh it was very successful. We had, I think, a couple hundred thousand folks watch that view or watch that live stream. I called it a podcast. Watch that live stream. And in it, we went through the details of the real estate situation and explained very carefully how dramatically the supply of housing is below the demand

and that any time there is a demand for anything that is higher than the supply, if you took economics in the seventh grade, they taught you that that means the prices will go up. When demand exceeds supply, prices will go up. When demand exceeds supply, prices will go up. The more demand exceeds supply, the more prices will go up. As long as that is the perception in the market, then its prices are going to go up. That's what's going to happen. And so we told you house prices are not going to tank. As a matter of fact, they're probably going to go up in 2023 about 7%. Now, at that time, we had two types of house prices floating around. We had the people that had priced their house

way high and unrealistically hoping to catch a sucker because there were a bunch of suckers out there buying property for anything and everything way above appraisal yes okay that is not an actual price that's a sucker yes that's not a price and so uh now but and then there were people that had priced their homes at or around appraisal we were not talking about sucker prices we were talking about appraisal prices are not going to come down we said you can expect to see people calling prices going down but really what it is it's to see people calling prices going down but really what it is it's the asking price that's going down because people quit uh fishing for suckers okay and they get more realistic and you're going to expect to see instead of eight minutes uh time on

the market you can expect 80 or 90 days time on the market which has been typical for the last 50 years in the real estate market. That you mow the grass, you trim the bushes, you paint the kids' weird bedroom, and you vacuum and you steam clean, and you clean out the garage, and you clean out the closets, and you put fresh light bulbs in, and you put your house on the market at a good price based on what your good, competent real estate agent tells you to put it on at, and it will sell in 80 to 90 days for the last 50 years with rare exceptions. Keyword competent. Yeah.

And then, yeah, keyword competent and keyword that you priced it properly. That's right. Okay. So we told you a year ago that you're not going to see house prices going to go down. We think they're going to go up around seven percent they went up 27 percent the year before but that was based on the fauci uh pandemic quarantine so um you know the people came out of their houses after that quarantine like a baptist after a casserole buying stuff buying stuff left and right and so they went crazy and it jammed up supply demand on everything.

We called it supply chain, supply chain, supply chain. And all it was was people were buying like nuts, man. And so now Wall Street Journal reporting today, home prices aren't falling anymore. After declining on a year-over-year basis for five consecutive months, which includes the prices for the suckers I was talking about, the longest run of declines in 11 years, U.S. house prices rose in July, the surprisingly quick recovery, which really wasn't a recovery. I'm not surprised.

Suggests that the residential real estate downturn is turning out to be shorter and shallower than many housing economists expected after mortgage rates soared last year scarcity is a big reason yeah supply shortage hello yeah high interest rates have prompted homeowners to stay put rather than buy new homes and take on more expensive mortgages resulting in an unusually low inventory of homes for sale no honey there was already a lower inventory than there was demand now it's even worse because demand has even slowed because of interest rates prices are generously holding firm generally holding firm outside of a few trouble spots the national median existing home rose 1.9 percent in july it's almost two percent in one month if you annualize that that's 24

i don't think we're going to see that yeah but um even in a market where demand has been hammered by higher rates the supply just isn't there says the chief economist at kpmg short of a flood in supply it's hard to see these prices coming down now how would you get a flood in supply well you'd have to see a building boom and we are seeing quite the opposite the number of spec homes being built homes that don't already have a buyer almost zero completely dried up builders quit doing them and so there's not it was the opposite of a flood of supply there's a flood of shortage that's coming so you're going to continue to see real estate prices climb we told you that oh by the way we're doing another live stream where we will also give you some more truth and a year from now we'll say i told you so about that too

are you ready yes okay this one's got jade and me and rachel we're doing it tomorrow night for those of you listening live it is tuesday the 12th that's when the event is that's right it is the student loans in america how we got here and how we'll get out oh it's the get out part for me dave yeah that's main we're not going to talk about and gripe about all the stuff it doesn't i mean how we got here you can argue about that sure you can't argue about how to get out because we've figured them it's only one way to get out the results are in it's not biden right survey says not biden thank you richard dawson or steve harvey right survey says family feud okay Okay, here we go.

But either way, we know that you are not getting out from the Biden administration. Even the Biden administration knows that. Yeah, they know that. And the Supreme Court convinced them of that. That's an interesting move. So now here we go. How are you going to get out? What are you going to do?

Well, we're not going to beat you up. We know you're confused. We know you're scared. We know some of you are mad, and I don't blame you. Yeah. But listen, we're going to show scared. We know some of you are mad, and I don't blame you. Yeah. But listen, we're going to show you how to get out of student loan debt, how we got here, and how to get out. It's a free live stream from the Ramsey Solutions Studios tomorrow night

at 7 p.m. Central Time. Sign up for it at RamseySolutions.com slash studentloans. You'll want to know this information so a year from now, when we say I told you so, you can say I was there. Yes. When he said that, when she said that. That's right. When Rachel Cruz and Jade said that, I was there. And I did it.

And then I did it. There we go. Ramsey Solutions dot com slash student loans. Free live stream. Jade Walsh, our Ramsey personality, is my co-host today. Open phones at 888-825-5225. Sam is in Daytona Beach. Hi, Sam.

Welcome to the Ramsey Show. Hi, Dave. Hi, Jade. Thanks so much for taking my call today. I appreciate it. Sure. What's up? Okay. So I've got, it's a complicated situation, but I'm going to try and simplify it as easy, as best as possible for you guys, so I can just honor your time. So basically I have,

I'm completely debt free. I've never had any debt. I'm very thankful to you for that. When I was 18 years old, I took FPU before I went to college and actually graduated fully debt free. And so it was the best decision I ever made. So never known any debt. I have a fully funded emergency fund, but about a year ago I was given a sum of money from a family member. Now the sum of money from a family member. Now, the sum of money that I was given, it was kind of given with the pretext of the reason why they had this money was for a wedding or maybe to invest into, to give me to give for like my first property that I would own, but since kind of none of those things had happened, they decided, I'm just going to give it to you now and I want you to do something with it. So in regards to like investing or et cetera, et cetera, how much money is it? My problem is, so it was

$20,000. Okay, cool. That's awesome. Yeah. So, um, so I guess my next issue was more, I kind of don't know what to do in the sense of, I don't know much in regards to investments. And since it was kind of sprung on me, especially I think with the attachment of going, it was going to be for maybe a wedding or maybe a house deposit, but that kind of hasn't happened. So do you not own a home? Are you renting? I don't happened. So do you not own a home? Are you renting? I don't know. You're renting?

Um, are you opposed to saving this money? I mean, you said that initially it was maybe for a wedding, maybe for a down payment. Why wouldn't you set it aside and add to it as a down payment? Well, I guess that's,

I guess that's part of my question of just going is that the best thing to do um because i actually have no problem with it i think what i've been struggling with is because from this family member it was kind of given the the i'm giving you this money because i want you to do something with it in regards to investing it rather than it just sitting in my bank account doing nothing well Well, it wouldn't be doing nothing. I mean, you can put it in a mutual fund and add to that mutual fund and make that your down payment fund two years from now, three years from now. Yeah, okay.

So just go to RamseySolutions.com. Just go to RamseySolutions.com and click on SmartVestor, and you'll find a group of SmartVestor pros in the Daytona Beach area. You can choose from among them which one you would like to work with. Yeah. And you want someone with the heart of a teacher because it sounds like you're new to investing, and they'll sit down and teach you about investing

only after you have learned and feel competent and comfortable. That's right. Do you invest and don't ever invest in something you don't understand. But if I woke up in your shoes and if I had given you that gift with that guideline, I would be happy with you using some basic mutual funds to let that be parked in until and add some to it as you go along for a future down payment. Yeah. Plan on having it in there five years or so.

That's what I'd say. So it has some time to go in the right direction. Yeah. You should be able to do great with it. That should be excellent. Easy. Jill is with us in Phoenix. If I push the right button, Jill's there.

Hi, Jill's with us in Phoenix. Hi, Jill. How are you? I'm well. Thank you so much. Thanks for taking my call. Sure. What's up?

So I'm calling. I've listened to the show off and on for years, but I got really serious about six months ago. And so I'm going to admit at the outstart that I know I've messed up. But I have about $100,000 of debt with my ex-husband. I'm currently married. My current husband and I make good money. Because this debt felt so overwhelming, I kind of shoved it to the side. We paid off all of our other debts, and I started saving for a house. I went to basically, I skipped partial step two and went to step three. We started saving.

So you and your current husband paid off all your debts from the other marriage except this debt. And what is this debt? How big is it? It's $100,000. And who's it owed to? The principal and the IRS. Oh. Okay. And how did you end up $100,000. And who's it owed to? The principal and the IRS. Oh. Okay.

And how did you end up $100,000 in debt to the IRS? So my former husband owned a company. Tax issues got complicated. Life was really overwhelming. He didn't want to deal with it. I didn't know how to deal with it, so we just didn't file seven years of taxes. Yikes. Yeah.

So when we got divorced, obviously that had to be dealt with. Wait a minute, wait a minute. Did you have an income during that time, you personally? I did. I did. And you didn't file taxes on that income? Did you file taxes on your income during the seven years? No.

Nope. Okay. So his business was complicated. You didn't file on it. And how did the $100,000 come about? Who decided what that was? So when we were getting divorced, we actually hired a CPA, which is what we should have done in the first place.

And they went through, filed all of our taxes, and let us know what we owed as well as initially interest and penalties. And, of course, at that time, it was a group war. Why in the world did you file filing jointly while you're going through a divorce? Why didn't you file separately? You would have only been responsible for the taxes on your income. The judge required it, unfortunately. Interesting.

I know. I don't believe you. I think your attorney just mailed it in. That's not logical. The judge required you file your freaking taxes. I don't argue that. But he didn't require you were as liable that you had to pay taxes on his business that he didn't file he didn't require you you were as liable that you had to pay taxes on his business that he didn't file on so because the judge basically said well you benefited from

the income while you were married so you are both jointly and severally liable and you have to file together it was very very frustrating So the ex, I have a question about your ex-husband. Is he going to, if you both said, all right, it's a hundred thousand dollars. I pay 50,

you pay 50. Is he going to, is he going to do it? No, it's joint and several. She's liable for all of it until it's all paid. Through the divorce. Um,

he is obligated to pay 60% and I'm obligated to pay 40. And that's kind of part of the question is, no, he's not trying to pay 60% and I'm obligated to pay 40% and that's kind of part of the question is should I just try to pay the 40,000? No he's not. The divorce decree says that but the IRS says you owe 100. Correct. The IRS will not acknowledge that. Exactly. They don't have to. If I pay the 100 and I can take him back to court and sue him for that portion. Yeah good luck with that. I know.

And honestly, it wasn't until I called a smart investor pro because I started saving for a house and I had my emergency fund, I was saving for a house, and your smart investor pro was like, no, no, girl, you've got to go back to step two. You have to deal with this. Yes, you've got to deal with this so how much money do you have laying around so i have fifty five thousand dollars um part of that was money that i got from uh my son passing away and part of that is money

we saved okay i i gotta tell you there's a couple courses you can go through here one course you can go through is you can pay the hundred thousand and hope you get his 40 back out of him and i wouldn't give you much hope for that and you move on with your life that's a fairly easy course to take that's the clean course that's the easy one okay here's the one i would do though and it's the hard one okay um i would hire another cpa or rather a tax attorney, and I would go back before the probate courts where the divorce was done and challenge that judge's ruling and refile under the innocent spouse provision because I don't think you're liable for his taxes, and you're innocent of his. Ask your tax attorney about

the innocent spouse provision this is where a spouse just signs off on everything and the other spouse is running the business and then and they just sign off on it they don't then they don't get half the thing they get off they get out scot-free and you'd be liable for your income the taxes on your income during that seven years, but not on the business's income. And I'm challenging that judge's ruling if I'm you. It's going to cost you 10 grand to do this. I was going to say, how much would you spend to do that? Yeah, but I would do it. This is The Ramsey Show. Busy week around here at Ramsey. Tomorrow night night tuesday night we have the student loan live stream how we got here how to get out jade washall ramsey personality along with

rachel cruz will be my guests on that live stream it's a free live stream if you go to ramsey solutions.com slash student loans and sign up it is Tuesday night, the 12th at 7 p.m. This weekend, if you're in the Chicagoland area, up north of Chicago at Willow Creek Church, we are using their wonderful venue for Friday evening and all day Saturday for a smart conference. Jade will be speaking there along with George Camel and Rachel Cruz, Dr. John Deloney, Ken Coleman, and me. It is a day and a half of fun, frivolity, and you will leave exhausted, tired, and smart. It's a smart conference. And you can still sign up. There are still some tickets available.

RamseySolutions.com. It's our biggest event of the year slash events. RamseySolutions.com slash events. And, Jade, I don't know if you knew this or not, but Bob Borquez is running the board today. Okay. He's in here helping us run the board. I see you, Bob. And Bob has been here 23 years.

Wow. As of today. And he and just a handful of other Ramsey team members have been here for a quarter of a century or so. And Bob has been in. And here's what's weird about Bob. He's been in the radio area the entire time. That's weird.

Well, have you ever heard his voice? Yeah, I know. He's got the pipes and he's never done. I mean, we get voice work out of him just because he's here. But he has never been done professional voice work for us in the sense that uh we pay him for his voice we pay him for being bob that's what we pay him for and uh a lot of the 680 radio stations that carry the dave ramsey i mean the ramsey show the dave ramsey show in the old days are there because bob called them and that was his job for a lot of years, calling radio stations to get us on.

And a lot of the reason this network is the size it is is because of Mr. Bob Borquez. We salute you today, brother. Thank you, Bob. Very cool. Good stuff. Morgan is in Minneapolis. Hi, Morgan. Welcome to the Ramsey Show. Hi. Thank you so much for taking my call. Sure. What's up? So I have sort of a complicated situation. My husband and I are

in the middle of a construction project that should be wrapping up here hopefully in the next few weeks. But my question is, in the meantime, should we work the debt snowball or should we try to attack our credit card debt, which is at the end of our debt snowball, to improve our credit scores in the meantime since we have to maintain good credit before we refinance? You have a construction loan? Yes. You've not been pre-approved for your takeout loan? No, not yet. Why?

How in the world did you get the construction loan without a pre-approved for your takeout loan no not yet why how in the world you get the construction loan without a pre-approved takeout that's weird well so you don't have your permanent mortgage arranged um i mean not formally well that would be not yeah okay, my gosh. I'm scared. What's causing that? I don't know how they got their construction loan. Very few people will make a construction loan. I mean, what is your all's net worth? Morgan.

Morgan. I don't know the answer to that right offhand. Okay. But you don't have any money because you have a bunch of credit card debt. How much credit card debt do you have? Just about $20,000. And most of that relates to our project. Yeah, I bet.

And what's your household income? Just under $100,000. Okay. And what do you owe on the construction loan? Slightly over $300,000. Goodness. Other debt? Any other debt?

Yes. We have $20,000 in student loans. Are you current with everything right now? Yes, we are. Okay. This week, go to Churchill Mortgage and arrange for your mortgage right now. Okay. Because this house of cards may fall in, and if it does, you're going to lose this house. And I want you to get your permanent mortgage in place before this crap falls apart.

Okay? Because you have gotten yourself into deep debt. And I'm really afraid for you right now. You took on an awfully big mortgage and you overran the budget on the project and you did not have a backdoor plan in place with your takeout mortgage. And so you're in a very tenuous situation. So the first thing you've got to do is immediately get a mortgage in place to take out, set up and approved to take out this construction loan. And then once it's approved, it won't be a problem as long as you do it in the next 30 days. You're going to be finished with a project, you said, in a couple of weeks, right? Yep.

Okay. So you can get your UNO and get your appraisal done, and you guys can close, you know, like by the end of the month or early next month and be done inside of 30 days here. You got to get your mortgage in place. Once that's done, then we just start working on the debt snowball with the student loan and the credit cards. But you're in a very tenuous place because if you stub your toe before you get approval on this permanent. And I'm worried about you getting approval. You got a really big mortgage based on your income. But if you can get approval, you don't want to stub your toe. You don't want to miss, you know, these stinking student loans.

They're due October 1st. So you got to have something in place to pay that student loan payment October 1st. And you got to make sure all your credit cards are paid on time between now and then. So you guys need to lay out a detailed budget, not miss a stinking thing until you get this permanent in place once the permanent mortgage is in place then we'll back up breathe a little bit and start attacking the rest of these debts but you've left yourself very very vulnerable here because if one little thing goes sideways you don't pay a credit card on time. You're not going to get a – because you've got a real tight permanent mortgage. Your ratios are questionable as it is.

And you've got a mess, girl. That is a mess. Yeah. You guys completely jumped in the deep end and not swimming so good. So you've got to really, really be careful with that. It's scary. So, Jade, the thing you should always do, number one, you shouldn't be building a house if you've got credit card debt.

Number two, you should stay within budget so you don't run up credit cards to make the budget because you went over budget on your house because you didn't keep up with your dadgum numbers. I'm building a house right now. The builder just sent me the spreadsheet on what we've actually spent versus budget. And it's a pretty simple formula. Here's what we budgeted. Here's what we spent. We're under budget. We're over budget. Mm-hmm. And it's a pretty simple formula. Yeah. Here's what we budgeted. Here's what we spent.

We're under budget. We're over budget. Yeah. And you can keep track of that every stinking week with a builder if they've got their stuff together. Yeah. Okay. So, and then you don't go over budget.

And you don't pick stuff that doesn't fit, you know, in the budget. You know, so no, you can't have that carpet. No, you can't have that tile. And no, that appliance isn't going in the kitchen. You know, you don't have the budget. That's not what we're doing. Now, in Sharon's and I case, if we decide to break the budget, because we see something we want to do, we can do that. But we're doing that amongst a bunch of information that gives us the ability to make that decision wisely. What, what, what causes them to not take out that take over that construction

loan earlier you can't get a permanent mortgage on a house that doesn't have a uno use an occupancy permit if the house isn't completed they won't make a traditional so it's that they're over time and over they're over not just over budget they're over time as well no no they have to finish you could get the you can get the takeout mortgage approved subject to completion before you break ground before you even start the house okay and that's what should have happened but since they didn't do that uh they can't get a mortgage in place and pay off the construction loan the mortgage won't be funded to pay off the construction loan until completion but you can get it all approved and lined up, and then if something goes sideways, it doesn't matter, already approved.

They don't revisit and re-approve the mortgage six times during the build. They approve it one time, give you a letter, says you're approved. And at completion, we're going to fund the mortgage. That's simple. But you can get in a real pinch in a situation like this because that bank is going to want their money when the house is completed. And you don't have a permanent?

You're in foreclosure. Instantly. They're going to want their money. So you've got to get a permanent. And you've got to get it up for sale. And boy, that would be sad. That would be sad. This is The Ramsey Show.

Thank you for being with us, America. Jade Warshaw is my co-host today. Andre is with us in Philadelphia. Hey, Andre, what's up? Hey, sir, ma'am. Thank you for all you do. It's good to be alive. I'm definitely doing better than I deserve. I hear you. What's up? Hey, sir, ma'am. Thank you for all you do. It's good to be alive. I'm definitely doing better than I deserve.

I hear you. What's up? So let me do a quick rundown. I'm 32. I bring in about $4,000 home. I have about $11,000 in savings. And Lord willing, November 25th, I'm going to get married. Thank you. I appreciate it. So my fiance has a situation. She, um, she wasn't really thought

about finances and, um, she bought a car last year that she thought she was getting a good deal from enterprise. Basically 2019 Sentra, 78,000 miles. Right now, she owns 21,000 with 21 interest rate. So my whole thing, I'm trying to get out of that as soon as I can. And the other thing is I'm trying to, we're trying to rebuild her credit score. But first one is the car. I'm not sure. I know I need to get just a cheap car just to get by.

You don't do anything until after November. She might do something, but you don't do anything. You're not married. Yeah, I agree with that. She owes $21,000 on the car. What's her income? Her income is about $3,500. $3,500 what?

$1,000. $3,500 a month. Okay. half what thousand thirty five hundred dollars a month okay so she makes forty thousand dollars a year sell the car yeah so the thing is the car it's not worth that much money the most we are getting for it or she is um is around twelve thousand so i have to make the difference is seven thousand how in the heck did she get so so far you got that bid from a dealer well there's no way i can we can sell the car private

because you don't have the title for it she owns the money to the i know yes yes there is okay but the um so she upside down, but she's not upside down $7,000. Does she have any money at all? No. Okay. She's driving this car until you get married then. Okay. After you get married, you sell the car.

Let's say the car brings $18,000, which is probably about what it's worth. Okay. If it brings $18,000, I'm sorry, you owe 20. Yeah. Let's say you're $3,000 upside down. Okay. And I'm the buyer of the car. Now, you can check on this in Pennsylvania, but this is the way it goes down in most states.

Okay. I give you $18,000 for the car. You owe 20, and you don't have the title. You give me the car, the keys, and a bill of sale that says that you have sold me the car. And then you add $2,000 or $3,000 of your money out of your savings with your new wife, now that you're married after November, with that. And then you pay the bank off, and they you the title and then you see you give it to me and i've bought cars that way i've sold cars that way many times it's a standard procedure with a private sale that has a loan on it the old days you would go down to the bank and the bank

actually physically had the title there at the bank. And the buyer and the seller would meet at the bank, and you would pay off the loan with the proceeds of the purchase, and they'd hand the new guy, the buyer, the title. But these days it takes, you know, four or five weeks for the stuff to get shipped around. But this gets you out of a 21% loan in a $21,000 car with a $40,000 income, which is dumb. It's got to go. It's got to go. So I looked on the value of the car.

It's not worth more than $13,000, $14,000. According to who and which value did you look at? I looked at Cali Blue Book. I looked at Carvana. I looked at Cali Blue Book. I looked at Carvana. I looked at private sale. Private sale or wholesale? Private sale. So you got a dealer to offer you $12,000

and you're saying private sale is showing up as $13,000. One of those numbers is not right, Andre. I guess I'll just have to look into what's really going on there. Yeah. Why? I guess I'll just have to look into what's really going on there. Yeah, because dealers don't buy $13,000 private sale cars for $12,000. They buy them for $9,000. Okay. Because dealer likes to make a spread. That's their business they're in.

And so they're going to offer you wholesale, and wholesale is going to be somewhere around 20 less than private sale give or take and so just look at that and you're so something because they got to make a margin that's the business they're in so um but either way whatever you do put the some of your eleven thousand dollars to pay off the difference and sell this car. Hopefully you can sell it for more than you think you can. I hope you can so we don't use up as much of your savings. But you sell this car after you get back from your honeymoon.

It's gone. 21%. There's no reason to keep this thing. She got screwed six ways from Sunday on this deal. She overpaid for the car, and they saw her coming, and they hit her with 21%. Wait a minute. There's one other possibility I just thought of. Why don't you look at something else, Andre?

If it's a 21% loan, this is a subprime loan, they may be giving you the account balance and not the payoff. $21,000 might not be the actual payoff. That may be the total of the remaining payments including all the interest the actual balance because when they do a rip-off subprime loan they put it on the books as a total of payments top and but that's not your payoff your payoff doesn't include interest up through the end of the loan and that number includes interest through the end of the loan now traditional car loan that interest through the end of the loan. Now, a traditional car loan that's not screwing you as bad

just puts it on the balance, puts the principal balance, and that's your payoff. That's your account balance versus principal balance. It's not the same with one of these screwed up 21% loans. So it's very possible that the payoff is a lot less than you think it is. So call the company that has it financed and get the actual payoff. If I send you a check today, what is the payoff? And I think you're going to find that to be less, a lot less.

That would make more sense on the values that you're giving me. That does make more sense. We've had a couple of calls like that recently where that's the case with these subprime loans. What's the gain from the car dealership doing that just for you to feel like I'm never getting out of this? You mean the finance company? Yeah, yeah, yeah. Yeah, yeah.

You feel like you're stuck. Yeah. And so they keep a 21% loan on the books because you're stuck. Yeah. You don't realize how I can get out of this. Yeah, I'm You feel like you're stuck. Yeah. And so they keep a 21% loan on the books because you're stuck. Yeah. You don't realize how I can get out of this. Yeah, I'm screwed for life. Ew, I hate that.

Kind of thing. And it's a hope stealer. I hate hope stealers. Add them to the list. That sounds, what you just said, that sounds accurate. That makes more sense with the numbers he's looking up. Yes. I don't know, though.

Well, you have to dig into it and find out but maybe you find out that the payoff instead of 21 is 16 uh which is probably about the number and then maybe the real private sale value is 14 and the dealer offer is you know 11 or 12 that starts to make a little bit i'll go with that that one i might go with and then you're still putting in two or three thousand bucks either way you're giving out of it anywhere from two to seven thousand dollars worth of your money he's got to get out of that after you get married but only after you're married do not do this until the ring is on the finger and they need to sit down and have a conversation about how they're going to

manage their money going forward because it sounds like he's still stepping in and trying to you know save it and you know mold it together but they really need to have a conversation so they're both uh taking charge here yeah yeah make sure you guys are on the same page hey we'll help you with that we'll put you into every dollar and the every dollar premium and financial peace university we'll give you a little wedding gift and that'll give you guys some uh places to have the conversation that's right yes it's french yeah that's french because now you know you're gonna be we not not yeah but you were trying to he was trying to be we before he was there yeah he was well you're married before you're we. Don't be paying off other people's debts that you're not married to. Yeah, that's called no-no.

Yeah. No-no. Here comes the, we're going to play this bad French accent to the max. Take it all the way to the top of the hour. Yes. I'm committed, Dave. I love it. Well, hey, it is very smart to work together after you're married, but not before you're married.

Don't be paying each other's debts prior to an actual marriage license having been made official. This is The Ramsey Show. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.