The Ramsey Show - App - Leave the Embarrassment and Stress Behind (Hour 1)

Episode Date: December 27, 2018

The show about you

🎵 Live from the headquarters of Ramsey Solutions, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. This is your show, America. Thank you for joining us. It's all about you here. The phone number is 888-825-5225. That's 888-825-5225. Thanks for being part of the program today. Tiffany's going to start off this hour in Memphis. Hi, Tiffany. How are you?

Hi, I'm doing great, Dave. A long-time listener. Thank you. I have a quick, well, somewhat quick question for you. I had over the past, golly, I can't. Your phone is breaking up. Try again. Oh, over the, I can't exactly tell you how long this has been, but I've had a creditor trying to get a hold of someone with the same first and last name as I do. But every time that I try and contact them, the Social Security's do not match.

I never, it's for a student loan, and I never went to school in Pennsylvania. And every time that I try and contact them, they basically do not listen, and they keep on trying to contact me. And I was wondering if there was any way that you knew of to get them to basically stop harassing me because obviously they have no idea where this person is. Right. Right. Okay.

So you have talked to them and given them the last four digits of your social and it does not match. I have not given them my last four of my socials. But every time I contact them and verify, it's the wrong one. Right. And then they don't change their procedure. Okay. No. So what I would do is this.

What I would do is this, then. Next time that they call you, do the same thing. And then when you're talking to the person, say, listen, I don't know about you, but the last four people I talked to are morons. If the rest of the people working in your organization are morons and you are a moron, you all are getting ready to have a problem. So you need to really make a note on this file and really get this changed. Or I could talk to your supervisor if you're too dumb to do that. Because if you don't, let me tell you what's going to happen.

The next time that your organization calls here, you can put this note in the file. You're not going to get a human. You're going to get a sports air horn, and I'm going to see if I can't break your freaking eardrums because you're too stupid to stop calling my house. Got it? And then what I'm going to do is I'm going to file a complaint with the Federal Trade Commission for violating the Federal Fair Debt Collection Practices Act, and then I'm going to hire an attorney, and I'm going to sue you personally,

and they're going to come to your home and bother you. Got it? And they've even gotten my address. The? And they've even gotten my address. The what? They've even gotten my address. Well, that's not hard to do if they have your name. Yeah. But basically what you have to do is you have to pierce through the stupidity

and try to get them to actually make a change in the database that they're working from. Because here's the problem. The person you're talking to will not be working there in 11 days. Oh, yeah. The turnover ratio in a boiler room collection agency full of morons is unbelievable. So the chances of you ever talking to the same human twice is almost zero in a situation like this. Oh, yeah, it hasn't. Yeah.

And so they just, the turnover rate is unbelievable. All they do is hire and train replacements for the next set of morons to come in and call you because they couldn't get a job doing anything else. So we know they're morons. And unbelievable. So really, you just have to get all up in their business and then blast the freaking headset off their thing if they call you again. And just, you know, and do file a complaint with the federal trade commission you can

ftc.gov there's a place to do that and um just light them up because it is an industry that's out of control and the only way regular people can handle that is to fight back because there's no communicating with stupid at this level but you try it one more time put them on notice and do just exactly what i said and if you're any nicer than what i just said they're not going to hear you they do not understand anything except a two before across their face and so you have to hit them that hard to try to get two of their brain cells to actually connect in the conversation and just just i mean be unreasonable because this is an unreasonable situation you've tried nice you've tried normal you've tried regular and some of you sweet people are out there going dave

remsey's over the top no you haven't dealt with idiots at this level dave remsey's not over the top believe me it's unbelievable what these people do. Roxanne is with us in Medford, Oregon. Hi, Roxanne. How are you? Hi, Dave. I'm good. How are you?

Better than I deserve. What's up? Well, I purchased my house about four years ago before I discovered you, and so my mortgage is more than a quarter of my take-home pay, and so I've gotten really determined to try to pay it off as fast as I can. But it's hard to do because it's most of my income. I do have, I owe about $200,000 on my house, and I have about $200,000 in non-retirement investments. And I'm wondering if it is smart to cash those out to pay it off or if the capital gains, the taxes on it wouldn't be worth it.

Oh, I would pay it off. If you're going to keep it, let's just pay it off. So how much of the capital gain is going to be on your $200,000 worth of investments? I don't know yet. Some of them, it's been invested since I was a baby. My grandparents set it up for me. So I don't know how much of it is still original from when it was invested or if a lot of it is new.

Well, the long-term gain would be taxed at 15%. So, I mean, it's $15,000 per $100,000 is a way of looking at it. And I'm guessing your gain is probably in excess of $100,000 with what you're describing. It's possible, yeah. So it's probably going to cost you $15,000. But so what? I mean, how much is in the total non-retirement investment? Just over $200,000.

And your balance is $200,000? Yes. Okay. That's my early payout is $200,000. Your payoff balance, yeah. So, I mean, the question is, do you have enough to pay your taxes and pay off the mortgage? And that's a calculation you may want to sit down with a tax person and come up with. But what's your household income?

About $50,000. Okay. So, do you have an emergency fund? I do. I have my fully funded emergency fund. How much is in there? About a little over $12,500. Okay, good.

Don't touch that. Right. So run the calculations. Can you pay the taxes and the mortgage with the non-retirement investment if you can i would do that or i would sell your house one of the two okay if you're not willing to use your investments to pay it off you shouldn't be willing to keep a house because what you're saying is you like the investments more than the house which is an okay thing if you do like them like the investments more than the house but if you like the house more you do like them, like the investments more than the house.

But if you like the house more than the investments, you need to decide which one you're going to keep. You can't keep both of them. I wouldn't keep. You can keep both of them. You're an adult. You're allowed to, but I wouldn't keep both of them. I would have one or the other, you know, by the end of next week. So sit down with your tax person.

If you don't have a tax person, check ELP at DaveRamsey.com for tax preparer, and there'll be somebody there that can help you with this calculation. And yeah, definitely, I would be debt-free. Dave Ramsey's always going to tell you to be debt-free. This is The Dave Ramsey Show. Can you believe this real estate market? Home shopping has become so competitive. There's a ton of new buyers in the market, and bidding wars are the new normal. Folks are under a lot of pressure to offer more money to get into that house. Don't do that.

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NMLS ID 1591. NMLSconsumeraccess.org. Equal housing lender. 761 Old Hickory Boulevard, Brentwood, Tennessee 37027. In the lobby of Ramsey Solutions, Chase and Sarah are with us. Hey, guys, how are you? Hey, we're good. How are you? Welcome, welcome. Where do you guys live? In Dixon.

Oh, you're right here in the Asheville area. Okay, very cool. And here to do a debt-free scream. Yes, sir. Love it. How much have you paid off? Paid off a total of about $200,000. My goodness. How long did that take? Just around four years. Okay, cool. And your range of income during that time?

It started out about $47,500. And then Sarah and I got married and ended up just about doubling. Okay, so about $90,000 now. Yes, sir. Okay, cool. What do you all do for a living? Well, I'm an engineer, and Sarah's a stay-at-home mom. Oh, very good.

Okay, good. Fun, fun, fun. So what kind of debt was this $200,000? I had $30,000 in student loans. Sarah had $50,000 in student loans, and then we had $120,000 in a house. You paid off your house? Yes, sir. All right.

I'm looking at weird people. Way to go, you two. How old are you guys? I'm 29. I'm 26. Oh, and you're a paid-for house, and you're not even 30. Yes, sir. That's whacked.

That's just completely crazy. Does it feel weird? A little bit, yeah. Do you know anybody that's 30 years old or less that has a paid-for house? No. You're it. You know one. I know one.

Well, good for you guys. Well done. What's the house worth? Right at about $120. Good for you guys. Very smart. We actually cash flowed 20 of the house, and then we actually ended up selling it. And there's a little bit of a story that goes into that.

You sold it? Yes. Okay, so you don't have it now? No. We're in a different home, but it's also paid for. Oh, okay. I got you. All right.

I'm catching on. Good. Well done. So tell me the story. What happened four years ago that began this journey? All right. So we actually just celebrated our third anniversary on Wednesday. And the year before Chase met me, he paid off his student loans and then bought our first home.

And then he met me. We got married and I added to our debt and he married me anyway. And during the time that we were paying off my student loans, we had Samuel. So I had to pause during that. Um, and then when we paid down my loans last year, um, we started paying down aggressively on our mortgage. And then of January this year, and we went on our first family vacation since our honeymoon. And, um, our son who was seven months old at the time actually got sick the first day, caught a really nasty stomach virus.

Chase got sick too. So he had to cut short and come home. Um, and Samuel got better after about three days, but Chase got worse. So he ended up going to the hospital for about a week and was able to come home, but never really got 100% back to normal. And then at the end of February, he started exhibiting some of the same symptoms. So we took him back to Vanderbilt and they admitted him for an overnight stay. The next day about noon, he got up from a nap and his back was hurting. And so he got up, walked around trying to ease the pain and nothing really helped. By 4.30 that afternoon, he was in unbearable pain. And then by 6.30, he could no longer feel or move anything below his waist.

Whoa. So within about two hours, he became paralyzed. Whoa. And so that definitely has affected us. Yeah, you think? Yeah. Wow. And he actually has lupus and it attacked his spinal cord is what ended up happening.

Oh, okay. So we were at Vanderbilt for two weeks and then went to Atlanta to do rehab at the Shepherd Center down there. Stayed there for two months, came home in May, and Chase was able to go back to work at the end of July. And then while we were in Atlanta, we started looking for a new home that would be more friendly to wheelchair accessibility. Right. Because our first home had little extra room and steps to get into the house.

And so we were able to find a home and we were extremely, extremely blessed by our family, our friends, our church, and our community. And we were able to purchase the new home and extensively renovate it to make Chase's life easier from a chair. So how long ago was it again? It was this February. This February. Okay.

So this all happened this year. Yes. Oh my gosh. Wow. Now, I don't know anything about lupus. So is that a permanent diagnosis or a permanent situation then? Yes. Basically, lupus mimics several other diseases usually, but it presents in everyone who has

it differently. And it was fairly mild until February. Okay all right okay so this is your life going forward? Yes. Okay all right cool wow wow I mean yeah we're getting out of debt too while we're doing all this oh my gosh so when did you pay off the last debt? We closed on the sale of our first home on October 20th. Okay. Completely debt-free. And then that turned it around and moved you to the other house, and that cleared the rest of it? Yes.

Okay, just the other day. Wow. So you've had all kinds of cheerleaders in your life, but not many of them are really concerned about debt. They were just concerned about you guys taking care of you through all these transitions and all this attack and everything that you've been through. Unbelievable. And in the middle of it, you get out of debt. Oh, my gosh. That's kind of like a sidebar almost.

Wow. Wow. Very cool. It was really lucky. We actually had our three-month emergency fund built up before all this started. So without that, it would have been a lot rougher. Yeah. That was one less thing we had to worry about.

Well, money wasn't on the list of things to worry about right then. And it made it a lot easier. Good thing, too. Wow. Wow. Well, I'm so sorry you guys have been through this, but obviously you're fighters, and obviously you've turned this situation into a positive in your lives.

So congratulations. Thank you. Absolutely amazing. Wow. Obviously, you've turned this situation into a positive in your lives. So congratulations. Thank you. Absolutely amazing. Wow. And Samuel is how old now? 18 months. All right.

And you brought him with you. We did. And you brought some cheerleaders with you. Who are the cheerleaders? Those are my parents. Your parents. All right. Very cool.

Are they from the area here? They actually just moved up here. Oh, good. Okay. Very fun. Perfect. There you go. Well, it's good to have people on your team. That's for sure. Well done. Good job. Wow. What a story, you guys. All right. It's Chase and Sarah and Samuel. We've got a copy of Chris Hogan's retire-inspired book

for you. And that'll be the next chapter in your story to be millionaires and outrageously generous along the way. You got quite a journey behind you and quite a journey ahead of you. You guys are impressive. Very well done. Chase and Sarah and Samuel, $200,000 paid off in four years, making $47,000 to $90,000. Count it down. Let's hear a debt-free scream. Three, two, one.

We're debt-free! Wow! Yes! Not even 30 years old. Amazing. What a story. You do not know what curveball's life's going to throw you. You just don't know when they're coming.

Man. Amazing. Open phones this hour as we talk about your life and your money. You know, sometimes I recoil after hearing stories like that when someone says, oh, that stuff that Dave Ramsey teaches, it's primitive. It's just for broke people. That stuff Dave Ramsey teaches only works, you know, if you're not sophisticated. Let me tell you why.

If you go through what they've been through, sophisticated isn't something you worry about. It isn't. And the interesting thing about the things that we teach, having no debt, having an emergency fund in place, those things work when your life is going well, fabulously. It will accelerate your prosperity curve. But those things also work when life comes at you and everything's not going fabulously. You heard him say say it's a good

thing we had an emergency fund didn't you good thing they weren't using something stupid like a home equity loan for their emergency fund they'd be up a creek right now wouldn't they you ever read that article in cnn money written by some broke journalism student with student loan debt coming out their ears. Dave Ramsey's an idiot. You don't need to have real cash set aside for an emergency. You just use your home equity line of credit.

And yeah, that's what you need to do. You need to go further in debt when you have a crisis in your family. Absolutely. That was sarcasm for those of you that can't hear it. God, man. The stuff we teach works in good times and bad times. God's ways of handling money. Grandma's ways of handling money. Common sense for your dollars and cents. This is the Dave Ramsey Show. Thank you. One question I get asked all the time is, do I need life insurance?

Listen, the whole point of life insurance is to replace your income for someone who counts on you. So if you have a spouse or you have kids, yes, you need term life insurance. It's the only way to protect them until you're out of debt and have built up your wealth. You're only digging a deeper hole if you waste money on cash value plans since it robs you of the ability to make real progress. And that's why I send you to Zander Insurance, and I have for 20 years. That's where I get all my insurance, and they only offer the plans I recommend. It is not expensive.

It's not complicated. And Zander will be there as your guide every step of the way. Visit Zander.com or call 800-356-4282. You need to get this taken care of. I can give you the advice and I can tell you where to go, but it's really up to you to take that important step to get your family protected. That's Zander.com or 800-356-4282. In the lobby of Ramsey Solutions, Colin and Jill are with us. Hey, guys. How are you? Hey, Dave. How are you doing?

Welcome. Good to have you. Thanks so much for having us. Well, we're honored to have you. Good to be. Good to have you with Hey, Dave. How are you doing? Welcome, welcome. Good to have you. Thanks so much for having us. Well, we're honored to have you. Good to be, good to have you with us. So you guys are from where? Erie, Pennsylvania. Wow, and all the way to Nashville to do your debt-free screen.

Oh, yeah, nine-hour car ride. Love it. Fabulous. Good job. So how much have you paid off? We've paid off $53,000. Good, good, very cool. And how long did that take you?

It took us 23 months. Good. And what kind of range of income did you have during that time? We started out about $90,000 and ended up just over $100,000. Good. What do you guys do for a living? I work in commercial sales. I'm a second grade teacher.

Awesome. Very cool. What kind of debt was the $53,000? Majority of it was my student loans. We had quite a few different credit cards, leases. And two car payments. Yeah, the car payments. So we were pretty normal.

Just a little bit of everything. Wow. Okay. All right. How long have you guys been married? Eight years. Okay. So what happened 23 months ago that flipped the switch and you went, I want to be weird.

I don't want to be normal anymore. Well, we bought a brand new house about two and a half years ago, and it was a big old house. So with the big old house comes bigger bills and, of course, a lot of renovations. We had to keep up with the gym. Totally. And so our solution to that was to finance everything. So new appliances, charged it, paint on the walls, charged it, everything down to the carpet, on the floor, we charged. And after a little bit, I remember one day just standing at my kitchen sink, washing dishes, worrying about how much water I was using.

And that was the point that I thought, enough is enough. I need to find a way for us to get control of our money. And that's where you came in. And I found the Total Money Makeover, read it in a day, and talked nonstop about it to Colin. Nonstop. And then he got on board as soon as we got the audio book for him. And that was? I got the audio book from the local library and listened to it in the car on the way to and from work every day until I was done with it.

Cool. Yeah. So from there, we had never combined finances before, but we had been married almost six years. And so that was one of our biggest struggles was just getting started. So we combined finances before, but we had been married almost six years. And so that was one of our biggest struggles was just getting started. So we combined finances. We figured out everything, got on a budget. And from there we took off. Cool. Yeah. Well, way to go. You two. Very well done. 23 months later, boom, you're done. You kept the house. We kept the house. Good. Yeah. And now it can be a blessing to us instead of a curse and we love it and it's the house that we'll raise our children in and so

we just needed to make some changes to get to that point so what do you tell people the key to getting out of debt is you pay off fifty three thousand dollars in 23 months what was the secret for us i think it was setting the priorities so at first our priority was fixing up the house and making it look good and then our priority was getting out of debt and now our priority is building our future so it's just setting those clear priorities and another big thing was just communication communication was huge just staying focused too you know we knew what the goal was and we knew we wanted to work hard to get there. So we did what we had to do to get there.

Yeah. That's a big deal. Very well done. Good. Very, very cool. What was the hardest part for you guys? I think it was combining finances. I am definitely the saver, and he is the spender.

Absolutely. And so we were both a little embarrassed. I was kind of hoarding money for security and he was spending money freely. So it was a challenge for us to finally put it all together to see how much debt we had actually accumulated. What was that meeting like? A long, drawn out, not so happy meeting. A little bit of stress in there.

Yeah. Yeah. But I have to say. Embarrassment, anger. It was. It was. Condemnation, everything. Once we got on the same page, though,

Dave, we haven't had an argument about money since we got on that same page. And just for our relationship, what it's done for us to be on this plan and to be on the same page, it's just made all the difference in the world yeah really it improved our marriage our communications much better um it's just been been a blessing you know um just just paying everything off and and not having to worry

anymore so yeah yeah well way to go you guys congratulations thanks very very proud of you excellent excellent job did you have people cheering you on or did you have people detracting? We had a little bit of both. So I think at first we were pretty private about it and we didn't tell a lot of our family and friends. So when they saw us making these big lifestyle changes, I think they just thought we were broke. And we were, but not in the sense that everyone kind of thought we were. You chose to do differently. Yeah, but now we have a lot of people cheering from us all over the country.

So we have a lot of cheerleaders now. Well, that's good. I want you to win. It's easy to cheer. Yeah. Yeah, everybody cheers the winner. Yeah. Well, congratulations, you guys.

Thank you. Very, very well done. Thank you. We got a copy of Chris Hogan's retire-inspired book. Awesome. And, of course, we want that to be the next chapter in your story, that you become not only debt-free, but now millionaires and be on the Millionaire Theme Hour one of these days. Absolutely.

That's our goal. And outrageously generous along the way. You brought the kiddos with you. We did. Names and ages. This is Gavin. He's five. And Haley, she just turned three.

All right. Very cool. Well, way to go, you guys. A good-looking family. Congratulations. Thank you. Proud of you. All right. Colin and Jill, Gavin way to go, you guys. Good-looking family. Congratulations. Thank you. Proud of you. All right.

Colin and Jill, Gavin and Haley, Erie, Pennsylvania. $53,000 paid off in 23 months, making $90,000 to $100,000. Count it down. Let's hear a debt-free scream. Ready? Three, two, one. We're dead free! Way to go, you guys.

Way to go. Awesome. Very, very, very well done. Well, that's how you do it right there. There's no magic to it. Isn't it amazing how many marriages, after eight years of marriage, she's hoarding money, he's spending, and they're both ashamed. You know, there are very few things that people are ashamed about unless they're secrets. That was profound. There's very few things that are out in the open, in the light, that you are ashamed of. Now, they may be recently into the light and you're ashamed of them, but they used to be

a secret. You see what I'm saying? Stuff that happens in the dark, stuff that happens when your spouse doesn't know what it is, when you're not communicating, or worse than that, you're just straight up lying to your spouse. One of you doesn't know what the other one is doing. Shame and secrets go together. You know, I never thought about that that much until the way she said that.

It just came through. There is so much freedom when everything is open in your marriage and everything is laying there. All the bills are open. All the spending is open. All the savings is open. Everybody's on the same page moving towards the same goal. There's so much freedom in that. So much liberty in that that it's incredible.

Some of you have been married 25 years. You've never had that feeling. Maybe it's time to change. Maybe it's time to keep listening to the podcast or the radio show here on your local radio station. Maybe it's time to get a copy of the Total Money Makeover audiobook from the library like he did. Maybe it's time to go through Financial Peace University and get on EveryDollar with EveryDollarPlus because that's included in FPU now and it's all wrapped in there together. That would be pretty cool. Because then when you're both doing EveryDollarPlus, that means your bank account's hooked to your EveryDollar app on your phone.

And both you and your spouse can tell everything that the other one is doing all the time. It's built in communication, accountability, no secrets. We're working together towards the same goal. And anything I'm doing with money that's not moving us towards the same goal that we've agreed to together, well, that would be something that I'd want to be held accountable for, right? Mmm. These are things to think about. Check it out.

If you hadn't heard that, that's big news. Every dollar plus for a year is now included in your Financial Peace University purchase for a year. So is the online access to all the videos online for a year now. That's making Financial Peace University. Oh, and shipping is now free on your Financial Peace University kit, too. Wow. This is the Dave Ramsey Show. Thank you for joining us, America. We're glad you're here.

Hey, we want to help you imagine what you could do with your money if you were actually in control of it. One of our EveryDollar users, Jessie, says the EveryDollar budget app changed everything for her family. For the longest time, Jessie and Chris were making small payments against their student loan debt. They've recently paid off $10,000 worth of student loan debt using EveryDollar. We hear stories like this all the time because we find that the people that get control of their money are the ones that win with money. Now, why would that be shocking? Those of you that are in control of your kids are the ones that have good kids, too. Don't be surprised. Oh, look, little Johnny's playing in the traffic. Well, that's because little Johnny's a hellion, and you just let him run around all

over the place. And so maybe you ought to make little Johnny behave. Maybe you ought to make your money behave. That's really isn't hard, is it? You just step on it, man. Then you make every, you give every dollar a name, every dollar a mission, every dollar an assignment before the month begins. The easiest way to do that is use EveryDollar, the world's best and most robust online budgeting app. Yeah. We spent millions of dollars developing this. It's completely free. Go to everydollar.com or just get the app for your iPhone in the store or your Android in the store. It's free. Every dollar. Al is in Orlando.

Hey, Al, how are you? I'm doing well, sir. How are you? Better than I deserve. What's up? So I just started your program, and I'm on baby step two, and I have an issue. I make about $120,000 a year, but I have about $125,000 in debt, and I have a vehicle that is a $910 payment a month.

My question is, how do I get out of this? What can I do? I don't know. I'm just lost with? What can I do? I don't know. I'm just lost with the seals. I'm not sure what to do. Holy crud. $910? What are you driving, dude?

Just a pickup truck. Just a Dodge pickup truck. Okay. What in the world is this thing? Is it a high interest rate? High interest rate, 16%. Uh-huh. 73-month payment.

I've been paying on it now for about probably two years, 29 months. What do you owe on it today? What's the payoff today? I believe it's $29,000. It's worth about $19,000. Okay. Goodness gracious. How much is your house payment? $1,300. Good gosh.

Your truck payment's almost as high. Oh. Yeah, I mean, if I'm in your shoes, I'm waking up. Don't you wake up and every time you get in this thing and start the key on it, you wish it would explode? I mean, you've got to be kicking yourself, like, every time you drive it, right? Yeah, it was an absolutely, I mean it was it was a terrible decision yeah i mean you make really good money congratulations um yeah and really selling this truck is not going to fix the whole 120 000 problem but it helps with cash flow so considerably and i gotta be honest with you if i'm in your shoes i've done a lot of stupid stuff al i mean i've done stupid

with steroids i know what it looks like okay and so when i do something stupid i don't like to be reminded of it every day does that make sense i've got to if dave was in there i'd be selling it just so i didn't have to remind me of it every day i mean i'm not sure it's going to make that big a difference in your short-term finances but i just wouldn't want the 16 i feel like i'm'm being abused every day, which you are, and I'm looking at this thing. It's like pointing stupid arrows at my face every day. I would have to get rid of it for those two reasons. It helps also with the money because the $910 is going to clear a lot of debt for you a month.

That's $1,000 a month towards your other stuff if we can get you out of this. So what I'm going to do is run over to the credit union. Your credit's obviously trashed. And see if you can talk them into borrowing the difference. Where's the loan? Chrysler. It's at Chrysler Credit. Yep.

I didn't realize they did subprime stuff like that to that level. Wow. Okay. Yeah, you've got to borrow that $10,000 that you're in the hole, or you've got to save it up to get rid of it, one of the two, so you can get the thing sold. Where did you get the $19,000 value? What is that? I just tell you Blue Book.

Is that retail or wholesale? That was if I sell to a private. Private sale. Okay. That's probably your real value then. And you probably rolled some negative into this too, didn't you? Yeah, I think it was about two grand, yeah. Two, three grand in it.

That makes sense. All right. Yeah, if I can find the money to cover the difference that you're in the hole, if I'm in issues, I'm getting rid of it because I don't want the reminder, I don't want the 16%, and I need the $900 to clear my debt. It's not like it clears all is only 20 of your debt so it's not doesn't really fix your debt problem short term but it does do those three things and so i am dumping it because it's just the whole deal's just absurd

wow i'm so sorry you're facing this ouch Ouch, ouch, ouch. Thanks for calling in. Open phones at 888-825-5225. William is in Atlanta. Hi, William. Welcome to the Dave Ramsey Show. Hey, Dave. How are you doing? Better than I deserve, sir.

What's up? Yes, sir. I've got a quick question for you. Me and my fiancee are getting married in about six weeks. Good. Congratulations. Yes, sir. Good. Congratulations. Yes, sir. I appreciate it.

And the question is this. She will be going to med school in about a year or two. Is it better for us to go ahead, and we have the money now, to go ahead and put a down payment for a house? Is it better for us to start renting and just rent until you're out of med school and try and pay for med school ourselves, or is it better for us to put the down payment on the house down and a loan for med school? And we figured out it's going to be about $40,000 a year for the first four years.

So what do you think? And you can cover the cash flow on it, huh? Well, as of right now, we think so. I'm in the process of, or I'm starting a startup business, and so I'm not sure how well that will do, but we believe so. Okay, cool. Well, that would be my target with you working full-time to put her through med school. That would be awesome. And, yes,-time to put her through med school. That would be awesome. And, yes, let's rent something as inexpensive as possible, like your broke college students,

because you're broke college students, or at least she is. And let's cash flow med school. Because, effectively, if you think about the columns on what's called a balance sheet in accounting, one column is your assets and one column is your liabilities, right? Liabilities are debts and what you owe in other words and assets are things you own now if you borrow money on a student loan and you use the money that's on the asset side the in savings to uh buy a house mathematically it's almost as if you have borrowed money on a student loan to buy a house, mathematically, it's almost as if you have borrowed money on a student loan to buy a house, isn't it?

Because you would have used that money to not have a student loan. You follow me? Yeah. And we would never borrow money on a student loan to buy a house. I mean, that's crazy. So since you have the money, I'm going to send her to medical school. I think that's a better investment than a house on the short term. In the long term, of course, you're going to be able to get any house you want

because you guys are going to be doing fabulously when she comes out the other side of that. So is she already approved for a certain med school, been accepted? No, sir. We're hoping that she gets in this year or in two years, but soon. Okay. We're both working right now until we get in there. Yeah, my recommendation is going to be to apply to more than she's thinking she's going to because the range on what med school costs is dramatic from one place to another.

Okay. And people don't think anything about it because they work so hard just to get in one place that wherever they get accepted, regardless of how expensive it is, oh, I got accepted. Thank God. I'm in. And they just go pay whatever. And I actually want you to go shopping for how much it costs and go to the least expensive med school.

Gotcha. Because I got to tell you, I'm 56. I've never been to a doctor and asked them where they went to med school. Exactly. Yep. You're right. you're right. Yeah, you're right. Yeah.

The exception might be a rare disease or treatment or something, and so-and-so trained at Johns Hopkins, and Johns Hopkins is where they treat that rare disease. Then I get real interested. But for 98% of what we go to a doctor for or a lawyer for, we don't look on their wall and say, oh, well, you didn't go to school, or I'm not using you. We don't look at their sheepskin and see where they went.

It's just not part of the process. So you get the education, you pass the boards, you go make the money and serve the people. That's how it works. So congratulations. That puts this hour of The Dave Ramsey Show in the books. Hey, guys, it's Kelly Daniel, associate producer and phone screener for The Dave Ramsey Show. Hey, this hour of the show is over, but you can find our podcast on iTunes or Google Play. We're everywhere, for free, here to serve you.