The Ramsey Show - App - Quit Being a Bunch of Spoiled Brats and Be Done With This! (Hour 2)

Episode Date: July 24, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss:  "We disagree on whether or not to sell the house to get out of debt," Bank of America is screwing their customers? Shocker... "How do I get rid of the car I just bought?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Here's an EveryDollar deal just for our listeners: get a 14-day free trial PLUS $15 off your first year of premium. Click the link below and start budgeting today! www.everydollar.com/jade Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving in storage studios, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Jade Washall, Ramsey Personality, is my co-host today. Our phone number is 888-825-5225. Jessica is in Las Vegas to start this hour. Hi, Jessica. Welcome to The Ramsey Show.

Hi. Thank you for taking my call. Sure. What's up? I think I maybe need some advice on our next step. Me and my husband are kind of torn. He's one way, I'm the other way. We have been budgeting for a long time, like five, six years now. But we've always maintained debt just because, I know it sounds bad, but we can afford it. Um, but we're at a place where we don't want to stay in the, in the city that we've been living in, um, for the rest of our lives. Um, and he wants to sell the house, uh, use the equity,

pay off everything that we have kind of make a fresh start, rent for a while, and then use the leftover equity that we have to put as our saving fund and add to it until we're ready to probably build a new house and use almost everything cash. Okay, so you're in Vegas, and you're going to leave Vegas. Yeah, so our jobs are here in Vegas, but we're looking at probably going to Utah. When?

The commute. There's not a set date. Okay, so why not do it simultaneous with this whole thing, if you're going to do that? What was that? I said if you're going to sell the house go to utah now okay why wouldn't you do is there a reason you wouldn't do that she has an option too yeah i know she doesn't want to do that i'm just trying to figure out what they're doing well no i would love to do that but we have uh we have one kid

and we both our job um we work 48 hours straight and so his parents um watch our child for us when we when we do go to work and they live just down the street from us and so you're not going to utah about not until his dad retires and then they would probably pick up and come with us oh when is that and so uh four to five years okay so this is absolute bullcrap the utah thing hasn't got anything to do with you selling your house now because four to five years from now no one knows what's going to happen and so you're not going to rent you're not going to sell now and rent for five years unless you're in a really desperate pickle how much debt have y'all got and why have you been struggling with it for five and unless you're in a really desperate pickle how much debt have y'all got and why have you been struggling with it for five and a half years well we just we've just been paying kind

of minimum payments every time just because how much debt how much debt do you have um we have We have a HELOC and then two cars. So it's about $140. $140 on the HELOC. And what else? No, $70 on a HELOC. Oh, I'm sorry. $70 on the HELOC. Yeah, $70 on a HELOC, about $70 overall for our vehicle. Okay, what do you owe on vehicle number one?

About $40. Okay, and what do you owe on vehicle number two? Around $30. $30. You have no other debt other than two cars and a heloc in a house uh we have one trailer that's at 16 000 and then that's about that's it so you're camping trailer of 16 000 bucks yeah so you've not been struggling with your budget you've been riding you've been riding high on cars and enjoying these cars and had no ability and no idea to pay them off what's your household income uh we make about 200 a year what's the what's the note on these cars car one what's it monthly just curious what's the monthly payment on your cars car one and car two i'm just curious

one is one is about one is i think 700 and the other 600 there it is okay and uh um what's your uh probably about eight to eight hundred and fifty thousand and what do you owe on it 480 okay all right so do you want me to you called and asked i want so i want to double check do you do you want me to tell you the truth absolutely are you sure yes okay i would keep my house and quit being a couple of two hundred thousand dollar a year spoiled freaking brats and i would pay ten thousand dollars a month on this debt and be done in 14 months but you guys spend like you're in congress you buy anything you want to buy whenever you want to buy it. There is zero control at this house. Okay. And you guys have really got a button down.

Are you 28? Yes. Almost like I've done this before. Okay. So, yeah, that's what I was going to, you fit the pattern. Yeah. You fit the pattern. You've excelled in your career, and it made you financially lazy.

Lazy. You make too much money to be this broke. Yeah. That's called skinny fat. Okay. So was that too mean for you? No. Okay.

All right. You can do this, Jessica. You guys are in a really good position you have a good life you have good cars you have a good house you have a good income and yet you're broke yeah and so you're in a really good position to get control of this money monster before it owns you because one flip of the switch on the career one flip the switch the real estate market and this is going to turn and own you guys i know it happened to me when i was exactly your age only i was dumber than you i had more zeros on it than you got on it so you guys really need to get on a

written detailed plan with no eating out no vacations until we get all this freaking stuff paid off. And or we need to sell all of it. Yeah. Not counting the house. Yeah. What's the deal with that trailer? Yeah. I think you can pay it off in 14 months. $10,000 a month.

You make $200,000. You can do that. But this is going to mean you have no life except getting out of debt. But in a little over a year, you could be free. How does that sound? It sounds really good. Would you really go do it? Yeah, I think we could.

I think my husband's just, I think he's more on the, it'd be easier if we just sold and start fresh. It would be, but it wouldn't change you. It wouldn't change the person in your house mirror. In this process of 14 months of sacrifice, y'all are never going to be the same. You're going to be a different level of maturity than you ever dreamed of when you come out the other side of this. You got to be careful with these high incomes. I call it skinny fat because it's that same idea of I've got this high income and it's an illusion that I can do what I want.

It's like when you're thin and you think you can eat McDonald's every day and it's not messing you up because you haven't put on a bunch of weight. But meanwhile, it's messing you up on the inside. Heart disease, high cholesterol, it's messing with your metabolism, skinny fat. Just because it looks healthy and it looks great doesn't mean that it actually is. You got to do the right habits no matter what the situation with your income. Yeah. You got a real opportunity here to turn everything around and keep your house. And I think you'll end up 10 years from now in a better state financially if you do that than if you just sell the house and clean off the debt. Because the debt will grow back because you didn't change. This is The Ramsey Show. Hey, you guys. Health insurance costs are only moving one way, and that way isn't down.

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when they experience a medical event. So listen, y'all, there's no better way to take care of health care costs. CHM programs start as low as $98 a month. So learn more today and join at chministries.org slash budgets. That's chministries.org slash budgets. I've got some shocking news for you. You won't believe this. Bank of America accused of opening fake accounts and charging illegal fees. Federal regulators said Tuesday they found that Bank of America harmed customers by double-dipping on fees, withholding credit card rewards, and opening fake accounts,

all of which are violations of various consumer financial protection laws. Yeah, because it's freaking fraud. And as a result, the Consumer Financial Protection Bureau ordered Bank of America to pay more than $100 million to customers and $90 million in penalties. And the Office of the Comptroller of the Currency also ordered Bank of America to pay $60 million in fines. So let me get this straight. $100 million went to the customers and $150 million went to the government. Some of the charges are reminiscent of the Wells Fargo scandal last decade that involved opening millions of bank accounts without customer authorization.

The CFPB said that Bank of America harmed hundreds of thousands of consumers over a period of several years and across multiple product lines and services. Among them, they found that the bank which normally charged customers $35 for a transaction that was declined due to insufficient funds allowed those fees to be repeatedly charged for the same transaction, resulting in customers being charged tens of millions of dollars in fees on resubmitted transactions. They also said the bank would make special offers of cash and points when signing up for a new credit card, but that it illegally withheld those promised bonuses to tens of thousands of customers. Never even got your credit card points. And from at least 2012, the agency said in order to reach now defunct sales-based incentive goals

and boost their evaluations, bank employees illegally applied for and enrolled consumers in credit card accounts without consumers' knowledge and authorization involved using or obtaining consumers' credit reports without their consent, and it resulted in customers being charged unjustified fees, making hits to their credit reports, and having to make efforts to correct the errors the bank made someone needs to go to jail hello someone needs to go to jail for that hello so yeah when wells fargo did the same thing they um it was too it was like it was crazy it was like

i had to look it up because i couldn't believe, they laid off like 24,000 people. Yeah, I remember that. And it, because I couldn't even believe that, but they had like something like 300,000 people on the payroll. It's hard to get my head around how big these stinking cabals are. They're bigger than most countries. And they apparently think they make their own laws yeah somebody like an actual actual people are opening these accounts absolutely and actual people are charging these fees employees yeah yeah yeah yep yep in order to make their own

bonuses yeah on sales incentive goals right i just want people to understand this is not like a digital error or it was a digital mistake. There was no oops involved. Yeah. These are people doing evil things. They're called crooks. Crooks. They're called banks.

And is no one going to jail for this? I don't understand. If you rob a bank, you go to jail. But if you rob the people, you don't. But if you're a bank, you're allowed to rob. Yeah. yeah banks are allowed to rob the people but people can't rob the banks this is how it works what's going on it just seems unfair oh man it is unfair banks can rob the people but the people can't rob the banks explain this to a five-year-old please okay honey it's called bank of america they're bigger than life yeah okay so bank of america wells fargo among others birds of a feather flock

together why would you continue to do business with a company aside from all this malarkey this complete crookery going on here why would you you do business with Bank of America to start with? I don't know. Honestly, they treat you like crap. They don't even know you're there. No. You should be doing business with your local credit union or your small town bank, or at least at the most, a regional local bank. All of Ramsey Solutions, all of Dave and Sharon Ramsey are at banks located in this area. Yeah. And we actually have human beings that we can call if there is some kind of a problem. Mm-hmm. Mm-hmm.

You know, and so, yeah, don't do, why would you do business with banks? Because I'll tell you why some of you are there, because you opened your account there and you're too stinking lazy to move it. That's what I'm saying. It's right around the corner. I can just drive right over there. You got all this stuff on direct deposit. You got all this stuff on auto draft, and you don't want to shut it all down, and you

don't want to go to the 18, maybe 50 or 100 people you got to contact. You don't want to go to all that trouble, and so you're still doing business with Bank of America and Wells Fargo. Why? That's the only possible reason I can come up with. Yeah. Well, at the very least, and I'm preaching to a person who used to be a member of the choir myself, don't overdraw.

If we can get our overdrafts, that might have saved us a little bit of money here. Let me just tell you, it doesn't matter with these guys. Apparently, if you just do business with them, they'll pull your credit report and open an account in your name. Yeah, that's true.

That's the extra shady. This is like shade beyond shade. It's shade beyond shade. I'm scared. I can't believe, I just can't believe that people can do this. People can't rob the banks,

but the banks can rob the people. This is how it works because no one's going to jail here. No one's going to jail. And the government got more money than the customers. I'm so shook. I think there's a lot of crooks involved here. The Consumer Financial Protection Bureau got $90 million. The Office of the Comptroller got comptroller got 60 million wow one plus one

is 150 million by the way 90 and 60 and 100 million went back to the customers so wow i get that you find them and i guess you probably couldn't figure out all the money to give to which customers because it's real complicated when you're dealing with a crook of this size. And a monster with this many heads, it's hard to cut them off because another head grows back. I wonder if $250 million, that's a quarter of a billion, did anything to their stock price with this announcement. I bet it didn't.

You don't think so? Not much, because, I mean, the profit that they got was much greater than the cost. They made a lot more than $250 million on all this Crookridge. That's true. Man, this is insidious. They actually got an ROI on Crookridge. Wow.

I'll bet you. I'm not positive. No, what you're saying makes sense. Times $35. And, you know, they're just insufficient and insufficient and insufficient and insufficient. And people don't pay any attention. Well, that's what I'm saying. People, most people don't even know probably that this was taking place, whether it's because

they're not looking at their bank account statements or they're not looking at their credit report to see fraudulent accounts showing up or something. This is just if you're going to do business with crooks, you've got to monitor something. That's the problem with doing business with crooks. Just don't do business with Bank of America. Don't do business with Wells Fargo. I mean, don't do business with these mega banks. Golly.

Fifth third. There's another one. Fifth third. Oh, jeez. What a bunch of crooks. It's the fifth time I've robbed you and the third time that you've paid for it. Oh, boy. The banks can rob the people, but the people can't rob the banks.

This is how it works. That's the moral of the story. That's what comes out of this. That's what I'm getting from it. So they opened fake accounts, tens of millions of dollars in fees on resubmitted transactions. That's just on the NSFs. They opened fake accounts.

And, you know, as big a problem as we have with identity theft now, now you have to worry about your banker stealing your identity. Yeah, and what bothers me here, it's kind of, we talked about this earlier in the show. They said, we voluntarily reduced overdraft fees and eliminated all non-sufficient funds fees in the first half of 2022. Like, that's like...

Well, thank you very much. Yeah. I'm like, what are you saying? You didn't screw as many people. We screwed fewer people this year than in other years. It's right. And did a PR release on it and everyone smiled. Right.

Oh, gosh, this is terrible. Yeah. This this is terrible so what's the lesson we've learned what's the big takeaway Dave don't do business with megabanks period period because you know how many you know how many times they overdrafted me none none I don't do business with them you know how many accounts they opened in my name none they don't have my information because I don't do business with Bank of America. I don't do business with Wells Fargo. I don't walk up into the snake pit and wonder why I got bit. True that. This is The Ramsey Show.

Jade Walsh, all Ramsey personality, is my co--host today if you're ever out running around like on summer vacation or something uh or fall vacation or whatever it is swing by and see us if you're in the nashville area uh we do this show live from one to four central time on the glass and so you can come and watch uh the ram personalities of the day, do the show that day. And Monday through Friday, we do that. We've also got a wonderful guest lobby, a place you can kind of go see the history of Ramsey stuff, a bookstore, free coffee and homemade cookies every morning, all for just to say thanks for being our guest. So we've usually got 50 to 100 folks hanging out, maybe 200 hanging out eating our free cookies

and watching the show every day. We appreciate you. Also in the lobby of Ramsey Solutions is the debt-free stage, and Janelle and Felipe are standing on it. Hey, guys, how are you? Good, good. Thanks for having us. Good to have you, man.

You're more than welcome. So tell me, how much debt have you guys paid off? $74,880. Cool. Where are you guys from? We live in Cumming, Georgia, just north of Atlanta. Yeah, okay. Well, welcome to Nashville. And how long did it take you to pay off $75,000? It took us 16 months. 16, yeah.

Yeah, good for you. And your range of income during that time we started at 112,883 and in 2022 went to 134,275 in addition to that we also sold a property okay cool what'd you sell land in st thomas okay and uh where did that land come from uh property i invested in okay all right fun so what did it sell for 75 000 okay enough to pay the debt but it had debt on it no it did not have debt on it but we didn't pay it off until towards the end of our journey ah we were trying to do it the hard way until you were almost there okay so it funded our emergency fund and yeah and the very end of the payments of our very good so what did y'all what do y'all do for a living i work for prescription benefit management for hospice and i work for a firm that manages uh wastewater plants and water plant okay great cool well good to have you guys very good 16 months you rocked it

so uh what got you guys started on this well um our journey started in 2017 when we lost everything in hurricane irma we everything in Hurricane Irma. We lived in St. John, where my husband and the kids are from. And we came here debt-free. Our whole marriage had been debt-free prior to that. So we had to build from nothing over the years. And after we kind of relocated and got a house and bought items, shopping sprees, lots of them, bad habits were made. And then we looked up and we were $75,000 in debt. So that's what got us there. And then through lots of praying and trying to

fix it on our own for several years, I had been looking for some sort of solution. And a friend of ours one day mentioned you. And I was like, you need to tell me more. So she did. And that was it. Yeah. So we had a trip planned down to his brother's wedding. And we were like, okay, September 1st, when we get back from that trip to St. John, we are starting. We're cutting up all the cards. We're doing this thing. And we did. We did. We stuck to it.

Yeah. We had a rough start. Two weeks into our journey, we lost his brother. Oh, my. And then four weeks later, we lost my dad. Oh, my. And then four weeks later, we lost my dad. Oh, my goodness. So we were from Florida to Virginia with $1,000 for the first time in our savings than we could ever remember. And somehow we just kept our faith and we pulled through.

And we never, ever used a credit card since September 1st. Wow. Again, we had five prior. And they were still active. But we were determined. And so we did not use one. So when your friends told you about Dave Ramsey, the Ramsey show, what did you get plugged into? Was it FPU? Did you read the Total Money Makeover? What was that catalyst?

She said, you need to talk to Felipe and see if he'll do this with you. You have to do it with your spouse. I wasn't bored right away. I was sold. Yeah. He said, whatever you want to do, honey. That's what he said. So Financial Peace University. So she said, read the book first, Total Money Makeover, said whatever you want to do honey that's what he so financial peace university so she said read the book first okay total money makeover and then do fbu and that's what we did okay so you did both okay yes very cool congratulations y'all very cool thank you so felipe you were really standing there going uh we're in debt i don't like this oh yeah let's get out i'm with you let's go absolutely it was that easy it's a team yeah it's always been it's the only way it's going to work amen there's something you guys said that stood out to me you're like we moved here we had these bad habits right but then you said early on

you said we wanted to do it the hard way can you he had been talking about we can sell the lot for a long time and i was like no no no you know it's like it's going to be worth more later we need to save hold on to that it's one of the last things we had left and then um so we just we were like we're going to buckle down and figure out how to do this and he worked like a hundred million hours basically to get us through the harder parts he was working like 78 or 80 hours a week and then I was like after several months of that i realized it wasn't worth missing him in our life every day working that many hours in a week and i work from home so i was there you know able to be with the kids but then he was never there so then i was like okay after like 12 13 months i was like we need to sell the lot okay so on the tail end of it you boom and that that bus shown through baby step three then yes yeah it put us through baby step three and now we're in four five and six yeah good for

you and you'll never go back to death no that is a closed chapter you got two teenagers watching you guys oh she's eight okay two kids watching you do all this stuff um you realize that they watch their parents become heroes it's pretty pretty impressive you two yeah we preach to them also we yeah and we preach to them yeah and very involved in that process too and learning how to budget and trying to teach them so that they never have to feel that weight of that backpack that we put down yeah it's it's no way to live it's no way to live it's no way to live that's a story that they'll tell their grandkids the time that mom and dad changed their family tree dad was working like 70 hours a week we never saw him mom said sell the lot yeah they'll

tell their kids that when their little grandkids back in the day yeah that's exactly how it goes i mean this is what happens when you change your family tree it's not just about getting out of debt because you guys are permanently reshaped as a family it's it's a complete new look i mean you had two horrible losses you got through that you know you work through this whole thing you work like crazy hours then you do this it's very important very well done it's about wanting to change the pattern you know yeah exactly exactly you did you reset it congratulations thank you a couple of heroes very well done what do you tell people the key to getting out of debt is you got to believe you got to believe in yourself you got to know that your actions today are what where you're where you are

a year from now so where you are today is because of your actions a year ago so you have to just stay with it we talked about it every day we listened to your podcast every day we cried on debt-free screams yes and most importantly as partners do it together listen to each other do it together so what your friend said was a big deal you gotta do it together yeah yeah you gotta talk to felipe first you gotta do it together. Oh, that's true. Yeah. You've got to talk to Felipe first. You've got to do it together. That's what she said. Yeah, because I always handled all the finances, you know, and just tried to buffer a lot, you know, for us.

Because, you know, through all the rebuilding, we also had to find jobs and relocate. We didn't have anything. She just sends me out to work. I bring home the bacon. That's it. Yeah, I think it's more than that but yeah it's a lot more than that it is at least that though yeah yeah well done you guys very well done okay the kiddos

names and ages Adriana is eight and Dante is 15 all right very cool congratulations hey we've got the live and give box for you the baby steps millionaires book uh which will come out and sign at the break and uh that's where you're headed that's your next stop for you the baby steps millionaires book uh which will come out and sign at the break and that's where you're headed that's your next stop for sure be baby steps millionaires total money makeover book you can give that away to some friend that's asking you about it financial peace university another membership to that and since you've been through you may want to do it again or you may want to give it away it's the live and give so you got to do whatever you want to do with it thank you for coming to nashville from cummings georgia to do your debt-free scream we're very proud of you felipe and janelle dante and adriana from cummings georgia 75 000 paid off

in 16 months making 112 to 134 count it down let's hear a debt-free scream we're debt-free free! Yeah! Woo-hoo-hoo-hoo! Well done, well done! Man. It is so interesting to me that some people just look in the mirror and say, I'm changing. That's right.

They did it. Just like that, I'm changing. Just like that, I'm changing. Just like that, I'm changing. I'm just going to decide right now. I'm changing. And their kids will never be the same. Oh, definitely. Completely changed everything.

Powerful. Yes. This is The Ramsey Show. jade washall ramsey personality is my co-host amanda is in baltimore hey amanda welcome to the ramsey show. Thank you for having me. Sure, what's up? So, I need some direction here. Back in October, I got rid of my beater vehicle because it was costing me too much money to maintain. And I ended up suckering myself into buying a new vehicle. Two weeks after I bought that vehicle, I was hit and the driver drove off, which is minor cosmetic damage. Well, it's $1,700 for paint, so it's not great. I don't know where

to begin because Tele Blue Book, based on my VIN, doesn't have a Blue Book value for my vehicle since it's a 2023. And then obviously I'll be upside down and don't know what to do about that as well as moving forward to getting us do you not have insurance to fix the car i do have insurance but i did not want to place a claim through my insurance at the time just because my my insurance is already crazy expensive for the vehicle. So my car payment is almost $500 plus $170 for insurance as it is, and I just didn't want to go that route. Plus $2,000 because you didn't turn it in.

What's that? Plus $2,000 because you didn't turn it in. Correct. That's what insurance is for. That's what expensive is. Okay, so what kind of car is this? It's a Volkswagen Cals. It's one of their newer SUVs.

And what does Kelley Blue Book say it's worth retail? It won't. So I put in the VIN for it, and it says Kelley Blue Book does not have a value for your vehicle. So I've looked at comps like other vehicles in the area near Virginia, and they're going anywhere from 24 to 27. But obviously with the damage, you know, take some off of that. Yeah, and what do you owe on it? They'll be eating right around 28.

You have any money? No. No savings. I have like a thousand, like a thousand. Yeah. No. Okay. Just a thousand bucks.

How bad is your credit? Great. Actually. Who's your loan with um uh huntington bank i believe yeah just you got it at the car dealer i did yeah nine percent it was right during the micro chip micro chip shortage and i was looking at used cars and they were marked up and i was like well what if we buy new yeah. And then I have the guilt and regret with that, so. Okay. I'm sorry.

What do you make a year? With everything combined, 84. How much other debt have you got? Just my house. Okay. How much other debt have you got? Just my house. Okay. Why don't you pay $3,000 a month and be done in 10 months? Keep it.

Pay how much? $3,000 a month. No life. I can't afford that. No life. Yeah, you can. If you quit eating out and going on vacations to stop your 401K. I don't even have money going to that. Then you need to get on a budget and find out exactly where your money is going.

How much is your tax refund? I owed last year. Okay. I mean, $3,000 a month will get you out in 10 months. Okay. Yeah, I mean, $3,000 a month will get you out in 10 months. That's $36,000 out of $84,000. I only am clearing, like, I'm clearing under five already a month. Do you have kids?

So my take-home, sorry, that's not take-home. There's taxes coming out of that. I know, 84 is your gross, but you don't have a $25,000 tax bill, so something's wrong. What else is coming out of your check? My mortgage. Oh, your mortgage comes out of that. Your mortgage comes out before you get home? No.

Okay. So $5,000 is $60,000 a year. Your mortgage comes out before you get home? No. Okay. So $5,000 is $60,000 a year. $84,000 from $60,000 is $24,000. You do not have a $24,000 tax bill. I do not know where your money is going. You do not get taxed $24,000 on an $84,000 income. It's not. So part of that is child support.

So that would be adding that in. And then so if you consider 68 minus taxes, that's where I'm at for just income straight from work. You're paying child support. No, I receive it. She's receiving it. Additionally. That's where I was coming up with that number but that yeah the from work alone it's just how much is your house payment

uh 1480 okay that's not out of control if i were you i would get on as tight a budget as possible pick up some extra income and just pay this car off. Okay. You don't think it's worth trying to sell it and take a loan out on a cheaper vehicle? Nope. That doesn't solve the problem. So unless you just hate the car anyway, not hate the regret that it represents, but hate the actual vehicle. Sure. Yeah, it's kind of a piece of junk.

Oh, is it? That's not great either. I can tell you to get rid of this car but you're going to have to go okay here's the thing if you go borrow four thousand bucks and you sell the car and you write a check for four thousand dollars and you borrow another four thousand or five thousand dollars and get you a used car uh you're ten thousand dollars in debt give or take instead of twenty eight thousand dollars in debt and you're going to pay that off very very fast and then you're going10,000 in debt, give or take, instead of $28,000 in debt. And you're going to pay that off very, very fast, and then you're going to save up and buy a better car. That's another route you can go.

But you've got to cover the amount that you're upside down, which is somewhere around $4,000, and you've got to go buy a $5,000, $6,000 car for cash. So we're going to have about $10,000 debt over the credit union to pull this deal off. And are there, for those types of loans, I mean, I've looked at a couple of the, like I've looked into a few different loans, and some of them have different rates based on what they're using them for. Are there certain types of loans I should be looking at? You should be looking at a small town bank or a credit union

and just be looking at a loan because your credit is good and you make $84,000 a year. They should loan you $10,000. It's not that big a deal. The rate doesn't matter because I want you to pay this off by Christmas. Right. You want to be done with this. The rate becomes irrelevant.

You want to put money towards the house. Yeah, you've got to play all the way through and clear this mess up and then save up and move up in car to a better vehicle, a $20,000 vehicle that's not out of line for you. clear this mess up and then then save up and move up in car to a better vehicle a twenty thousand dollar vehicle is not out of line for you if you pay cash for it and do better research and slow down and don't fall victim to the chip marketplace or the used car marketplace all of that was bull crap in your ears and you believed it enough to go buy some impulse thing and so you've learned your lesson on that never to do that again but you are going to re-in, you're going to get back into approximately a $20,000 car when

the story's over that you've paid cash for, but you need to step all the way down to 6,000 maximum budget for the car. That's your maximum budget. And then you're going to drive that for about a year while you save up the money to pay cash and move up and that's what i would do in this situation but um but if you love the car and you want to keep it and just roll up your sleeves tighten up your budget and lean in and clean the mess up she does not love that car i think for her that is a reminder of a dumb moment in time yeah i've had i've had stuff in my driveway that i was paying payments on stupid and paying payments on stupid is painful yeah i've done it it's just like every time you write the check it just yells at you yeah stupid stupid i hate it man i run rings in my ears i i've paid so much

stupid tax in my life it's unbelievable i mean dumb things i've done i heard dr john deloney talk about it's another book and i'm not going to be able to remember what it's called, but it's about the idea that your things speak to you every time you walk by them. And so when you have that car in the driveway or those things, every time you walk by them, they're yelling something at you. And if you use debt to get them, hey. They're not yelling nice words. They're not yelling. It's explicatives. Nice words. My car says nice words to me. Yes, mine does too.

It says, I'm paid off. Yeah. I was bought in cash. Mine says, don't get another ticket. Oh, that's funny. Slow down. That's funny. That's funny. That's good.

Yeah. Hey, he's right, though. Your stuff talks to you. It does. It talks to you. It reminds you of bad times or good times. And, you know, it's one of the reasons we get attached to things. Yeah.

Is that right there. So, it's fun. You're going to get through it, Amanda. If that's the dumbest thing you ever did, you're a smart person. You're a smart person. This is The Ramsey Show. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone.

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