The Ramsey Show - App - Set Your Target, then Set Your Plan (Hour 2)

Episode Date: May 2, 2019

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I am Chris Hogan filling in for Dave and we are folks Hello, America. You are listening to The Dave Ramsey Show. I am Chris Hogan filling in for Dave. And we are focused. We're focused on taking your calls, your questions, because it's your life and your money. So we're here for you. So what I want you to do is reach out and let us know if you've got a question that's on your head or on your heart. That number to call is 888-825-5225. Again to call is 888-825-5225. Again, that's 888-825-5225.

We'd love to hear from you. Also, if you are plugged in on all of the social media networks, you can find us on there as well. It's at Ramsey Show, and you can send us your question that way also. Now, I'm going to dive in here first and take a question from Twitter. Adam asks this, what are your thoughts on debt relief agencies and defaulting on current credit cards and loans to get out of debt? Well, Adam, here's a couple things. The debt relief agencies that are out there, ultimately, their plan is to tell you to let them handle it.

They will advise you, most of them will advise you to not take the calls from the creditors that they will handle it for you. And you send them money. And in reality, what they end up doing is trying to negotiate or trying to get to some kind of settlement, and they end up sending money then to the credit card company.

The issue is, is that now, they also charge you a fee for this. So Adam, in my mind, why would I pay someone to do something that I can do for myself, that I can and should do for myself? So these debt relief agencies are actually not giving you any kind of relief. It's more of a move and a switch. So what I want us to do is to be big boys and girls and we take care of business ourselves. Now, defaulting on something intentionally is never an option either, right? The way to get out of debt is to attack it. You signed on, you took on the money, you took on the debt, you've got to pay it back. I mean, you've got to take care of your business

and your obligation. Now, there's a difference between someone that's not able to pay versus someone choosing not to, right? Someone that's unable because of a health issue or a loss of income. That's where you even then contact the creditor and let them know you've had some life happen. And you explain to them that, hey, I'm not able to make the hundred and fifty dollar standard payment. I can send you 50. Right. And they'll bark at you and try to growl and scare you. No, we're not scared. Why? Because I'm rooted in reality and I know what I need to do. And that's when you take care of it. So no, Adam, I don't want you defaulting on it. I want you to take care of your obligations using the debt snowball. And I don't want you using the debt relief company. You are the person that can bring

yourself relief by getting serious budgeting and attacking debt. Thank you very, very much for that question. I'm sure a lot of people out there have had that on their mind. So no debt relief. I want you to use the debt snowball. All right, I'm going to the phones. I've got Janelle on the line. Janelle, how can I help you? Hi, thank you for taking my call. Well, thank you. How can I help you today? Well, I'm tired of living paycheck to paycheck and being broke. Yes, I had the epiphany that I'm going to actually put action behind it for the amount of money I make. And by the time I pay out my bills, I only have $200 to go towards my $17,000 debt that I had over my head. So I purposely listened to Dave's single mom's victories over their debt finances.

And I actually signed up for a part-time job and just got all the information yesterday to where I can start tonight. So I'm super excited about that. But my question is, is how long am I going to be working this part-time job? Because I do have a three-year-old in which I pay child support by myself for about $900, not child support, but daycare, about $900 a month for her to go to daycare. So, you know, I can pay out my bills, but I just don't have enough to hit that $17,000, and I'm done. I want to get rid of it. When I tell people I'm getting a second job, they give me the big eyes. I'm like, why? You work for a software company.

Why do you need another job? I'm like, I'm tired of being broke. I have $20 in my account to my next check. So I'm just trying to see how long will I need to work this part-time job in order to knock out this debt. Okay. Janelle, first and foremost, I want to tell you something. I hear in your voice, someone that's made a decision, right?

I like that. You are going to, this $17,000 is on the clock. Like, it's going to, it's leaving you, isn't it? Yes, it's going away. I hear it in your voice. Now, here's, because see, that's the first step. That's how people get serious about making changes. Sorry, so tell me this.

What's your household income? My household income is $62,000 a year. Okay, $62,000 a year, and you've got $17,000. What kind of debt is the $17,000? So my car payment, I actually reached the maturity of the loan at the beginning of the year, but because they have those, you can skip the payment for the holidays and skip the payment here. I skipped too many payments, Chris, so the maturity date came, but I still owe a balance of $5,400. Okay, so you've got $5,400 on a car. Yes.

Okay, what else? $5,200 in medical bills, and my daughter will be four, so that's really sad. They're from when I had her, and those are in collections. Okay. $3,500 is from a previous divorce. We had something together in my name that he was paying, but I'm responsible for it because it's in my name. Okay. And two cable bills, which is, again, something that's in my name that I wasn't paying.

All right. These medical bills, how much are you paying on those each month? I'm not. They're all in. I can't pay on any. That's the thing. Yeah. I'm just not able to.

Okay. And how much is the car payment? The car payment is $433.06. Okay. What kind of car is this? It's a Toyota Camry. Okay. All right.

All right. So looking at this, that's the $17,000 all total. Here's what you're going to do. All right. This second job, I agree with you. You make that sacrifice and you bring that on to be able to attack and take care of business. Looking at this, this $3,500 thing, you know, we teach people smallest to biggest is how you want to attack that. So you've got the $3,500 debt that you had with your former husband, right?

That's debt that's in your name. Then from there, you've got, I would go car and then to the medical. All right. Then to the medical. Okay. And so looking at this, if you think about it, the side, the options you have, you know, the second job that you're looking at starting, which is, that's great. It shows the effort that you're willing to take to get out and do it.

But to also think about this, you told me you work for a software company. You begin to think about ways that you could also earn extra money using your primary skill set. Okay. And so thinking about that is something to look at, but how long, I mean, I'm going to tell you this based on the debt that you've just laid out. I mean, you could have this done in 2019. Okay. Yeah. This is not something that you need to feel like you're going to have to do for the next five years. Not at all, Janelle. And so I'm proud of you making the decision, you know, as a single mom, you're right. Those daycare costs, those are real expenses. But this thing is temporary with the 17,000. The decision you've made about how you're going to move forward. That's the thing that can have a permanent, lasting impact on not just you, but also your three-year-old. Because, see, you're taking a stand. You're taking a stand financially. And this little brief period that you're going to sacrifice, you don't need people to understand.

It's okay. Yeah, you're not doing it for them. You're doing it for your three-year-old. You're doing it for yourself and your peace of mind. And so I'm very proud of you, Janelle. I'm actually going to send you two things. We're going to send you Financial Peace University, which is a nine-week course that will help you continue to walk this path

and to understand what you're doing and why it's so important. And I'm also going to send you my new book, Everyday Millionaires, How Ordinary People Built Extraordinary Wealth, because you're going to be well on your way. See, you're a motivated person, and there's nothing that can hold back a motivated individual. We get to make decisions about our lives. We get to make decisions about where we're going and why it matters to us. And that gets me excited. And I'm the product of a single mom. So I'm here to tell you something, what you do, Janelle, the decisions you make and

how you talk and how you work, your child is watching you and you've got a great opportunity to show them what's possible. This is the Dave Ramsey Show. This is big news, guys. You need to stop and listen. The Fed decided not to raise interest rates. That means you've got a small window of time before rates rise again. Here's the deal.

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Call 888-LOAN-200. That's 888-562-6200 or churchillmortgage.com. Hello, America. You are listening to The Dave Ramsey Show here live at the Dollar Car Rental Studio. And we're talking about your life and your money. And I want to hear from you. So if you've got a question about money, you've got a topic on your head, you just want to get it off your chest or find out or get some guidance, call us.

The number to call is 888-825-5225. Again, that's 888-825-5225. I'm here for you. So I've got Ed on the line. Ed, how are you? I'm doing just fine. Thank you very much for taking my call today. Yes, sir.

How can I help you? Well, if you don't mind, I'll give you the background, and I'll ask you the question if that works with you. Is that okay? That sounds good to me, my friend. Okay. I'm 68. My wife is 65. We're both retired. I'm retired military and union, plus we get our social security. By the way, we are FPU

coordinators. We make approximately 80k a year in retirement only. That's all we have for income. Our net worth is about 300k, and we have everything paid off. We're in baby step seven. We've been debt-free since about 2006. The problem is that we depended everything on retirement from these sources instead of having any mutual fund-type savings until about a year and a half ago. And if I die before my wife, she loses approximately 60% of the income. And we have started in the last year and a half putting 15% of our income into mutual funds. But the problem is if I die after eight years,

my life insurance is gone. She'll have nothing from that. And I just want to make sure that I can take care of my wife if I die before her. And if you can give me any suggestions on a better way or point me in a better and a right direction, I'd appreciate it. Yes, sir, Ed. Well, first and foremost, I thank you for your question and thank you for your service. You said you paid off everything, so you've paid the home off as well? Yes, sir.

We're totally debt-free. What is the home worth? Approximately $240,000. Okay, $240,000, making $80,000. So are you investing money each month right now? Yes, sir, approximately 15% of the $80,000. Okay, Ed, when you say, sir, I look for my dad. You call me Chris. Okay, sir. Yeah, you are the sir in this conversation.

But I love your heart, Ed. I love that you're thinking and you're looking at this and trying to figure out, hey, what do we do for the family? What are these next steps? And I think where you are and what you're doing, being out of debt, being very focused, being intentional. I think right now you're at this point of some tweaks. And by tweaks, what I mean is you and your wife talking through the scenario. You know, you said you've got eight years of life insurance left. That's fantastic, because I talk to a lot of people that don't have any. And so you've got eight years on it.

And so what's the game plan, right? If something happens to you, there's a loss of income. But the good thing is that you're out of debt and you've got a paid for asset, right? So it push come to shove. If something were to happen to you, she's got the life insurance over the next eight years, but you also have a place where she's living where the living expenses are basic. You know, you've paid off. You all have worked hard and done that the right way.

What's your biggest concern in your scenario right now? Well, the biggest concern is, like I said, is if I die after the life insurance runs out, what is she going to do as far as, you know, she's going to lose 60% of the income. Right. You know, we want to make sure that she can live a good lifestyle, not have to depend on any other family, but be able to be independent. Absolutely. Okay.

And that's a good thing. And I like the way you're thinking. And so with you being 68 and where you are right now, I'd have a couple of conversations. I would talk to an insurance ELP and try to find out, hey, life insurance-wise right now, what would it look like if you all were to extend a policy to add another 10 years, 10 to 12 years to it? What would that cost? Again, we're just getting numbers, right? We want to be aware and then thinking through, okay, how are we investing this money that you've got coming in?

You said you've got $80,000 that's coming in in income right now. You guys don't owe anybody anything, so how are we setting that aside? Do you begin to bump up the emergency fund to where you have a little bit more cushion for her if life were to happen? And so you're at the spot of tweaks, Ed. Again, having these conversations, talking it through, and making sure you and your wife are on the same page for that game plan, it's a good thing. It puts everybody at ease, and you know exactly what you're dealing with and why it's so important. So thank you, Ed. That's a fantastic call.

I appreciate it. All right, back to the line. I've got Hannah on in Mesa, Arizona. Hannah, how are you? Good. How are you? Oh, I'm focused and not finished. How can I help you today?

So I was just wondering, well, I got a part-time job in addition to, like, my normal full-time job. Okay. And my husband thinks that I'm putting my part-time job over a marriage. And I'm just, like, wondering whether I'm just, like, discontent with my life. Okay. And, like, whether I should quit, like, myontent with my life or, and, like, whether I should quit, like, my job, my side job. Okay.

And just, like, focus on being together on the weekends. Okay, gotcha. So this side job that you're working right now is only on weekends? Yeah, like, it's, like, on my days off. Okay. So, yeah, so I'm usually off on, like, Saturday, Sunday, Monday, and it's, like, a delivery job, so it's, like, only a couple hours a day. Okay so it's like prime time okay but it's not taking up the whole day it's a couple of hours each day yes okay four to eight okay and your primary job is a full-time job yes all right during the week all right now tell me this what baby step are you on? We're just saving up for a house.

We don't have any debt or anything. Okay. But I got the side job, so that way, like my regular job wouldn't affect our goal. Okay. All right. So this part-time job is the help towards saving for the house, or is it to get you out of the house? No, it's just for fun. Okay. It wasn't like anything okay and do you enjoy it i actually do i really enjoy like delivery okay okay uh and is the money that you're on the second job is it going towards

saving for the house no i wanted to kind of like start a side business, so I was going to save up the side job money for it. Okay, okay. And what's the side gig you want to do? The side gig that I'm doing right now is pizza delivery, and I really like it. Okay. And what is the business you want to start one day? So I wanted to actually like start investing in like stocks and stuff like that, and I'm trying to like learn all about it on the side because I don't want to spend additional money to put into it.

I'm not ready to do all that stuff, so I'm just trying to save up money so that way I'll have the option later. Okay. Well, I mean, here's the thing. I like, A, that you're working a second job and you've got some goals. I think the most important thing is to be able to aim that. If you're enjoying the delivery, you know, I think it's a matter of you and your husband sit down and really talking about this. If you were telling me that, Hannah, that you were doing this thing on Saturday from 8 a.m. to 8 p.m., right?

No, no. And you're saying it's just a couple of hours. So that, to me, is something that, you know, you guys can work through. But it needs to, he's got to to your husband needs to get connected with. You're doing this. You're enjoying it. But you're also trying to move forward and either start a business or learn. So it sounds like some communication needs to happen around it and talking through the bigger picture. Right. Everybody, nobody has a problem getting behind and supporting you if they understand it. Now, you mentioned you want to learn about investing and get more knowledge. I'm going to send you my two books. The first one is Retire Inspired that was released in 2016. And

my latest one, Everyday Millionaires, came out January 2019. So, Hannah, I'm going to send you both of those for you to be able to start to read and understand more about investing, but looking and having the conversation. And one of the things that I help people tap into is their dream. What's the thing that motivates you? And if you go to my website, ChrisHogan360.com, I talk about the RIQ, the retire inspired quotient. That's where you can tap in and start to figure out your dreams, but also communicate with your spouse about those dreams as well. And it sounds like I've got a few blogs on there talking about communicating about goals

and dreams that would really help you guys right now. So go to ChrisHogan360.com and check that out. And Kelly will get the information and send you the books. It's important, right? You've got to have people behind you. You've got to have people cheering for you. And it makes such a difference in life. When you get the right people on your team and you're able to think about these goals and work toward them, things start to happen.

But remember, America, if you want to achieve something, you've got to decide to give up some of the other things, right? Everything can't be a priority. So set your target and set your plan. This is the Dave Ramsey Show. Hello, America. You are listening to The Dave Ramsey Show. Your questions have been absolutely fantastic today. If you're out there and you've got a question about money you just want some guidance want a tip give us a call the number to call is 888-825-5225 again that's 888-825-5225 or you can hit us up on social media at ramsey show uh first and foremost i want to let you all know something

we've got our famous 10 sale happening right now at davsey.com. This means you can save up to 56% on our best-selling books and life-changing tools. You can choose from over 50 of our most popular books, audio books, DVDs, the envelope system. Everything is on there. It's just $10. You can get Dave's number one best-selling book, The Total Money Makeover, to be able to help you get out of debt quickly. That's the book that changed the game for me. But you can also learn to teach your kids about money with Dave and Rachel's book, Smart Money, Smart Kids.

So again, just $10. So hurry up. The $10 sale is going to end soon. Go to DaveRamsey.com today or call us at 888-22-PEACE. Oh, and while you're there, I want to tell you about something. You've got an opportunity. You can enter to win our Fuel Your Summer giveaway. This month, we're giving away a $5,000 Ultimate Summer Road Trip.

And you can also win up to $250 in gas money every week for the month of May. Now, there's no purchase necessary, but you must be 18 or older to be able to win. James and Kelly, I like the idea of this. Make sure you sign us up. The three of us could take a road trip. No purchase necessary, but you must be 18 or older to be able to win. James and Kelly, I like the idea of this. Make sure you sign us up. The three of us could take a road trip. James, you're not allowed to drive. You're a control freak.

I will drive us. But anyway, enter to win. You've got an opportunity to grab some great products just for $10, and that is absolutely fantastic. I was doing some research as well. And listen to this credit card issuers boost spending on social media ads. Oh, yeah, yeah, these credit card companies, they're, they're, they're, they're, they're sneaky. Listen, the Capital One, the fifth largest US credit card servicer has been paying Instagram and users with $100,000 to 1 million followers to post photos.

And it's mostly people in restaurants holding or putting their credit card down to show that they've enjoyed this fantastic meal or whatever it is using this credit card. Now, this is interesting to me because people aren't going to catch this if you're not aware. You see, back in the old days, I'm dating myself here, but they used to mail these credit card offers in the mail and they still do. But you have to think with us changing to a more online economy and environment, they're also looking for ways to stay in front of your eyes. So it's not a surprise that they're on Facebook or social media and posting these things. But if you're not careful, you're not looking for it, you can get caught off guard.

And the next thing you know, you've seen someone post a photo of this fantastic meal with this little piece of plastic there that has an interest rate attached to it because it wants to take your money. It's not trying to help you. It's trying to steal from you because that's what happens. And the next thing you know, you become numb to it. So be aware your social media is there for you to be able to enjoy, but also understand credit card companies are thinking and they're looking for ways to stay in front of you because if they can make you feel familiar with them,

they try to act like they're a family member. But you and I know how to count America. We've done this a time or two, especially if you've cleaned up a mess of debt like I have in years past, you know, going backward is never an option. And so just be aware, keep your guard up, understand what you're dealing with and know that they're lurking on social media as well. This is important for us to know as parents and grandparents as well. So we can help our young people be aware of this too. See, the last thing we want them to do is to fall prey on a college campus or fall prey in an airport. I was just flying back. I was out in San Diego for our Entree Summit event, a leadership event. It was fantastic.

We had over 3,000 people there. Fantastic week. But in the airport, I see these kiosks for credit cards all the time. And again, I see people over there, right? And I want to go over and just grab them, but I can't. That'd be like assault and I'd probably get in trouble. But I want people to be aware of what's going on. Don't let your guard down.

Somebody's looking for ways to get your hard-earned money. And I want your financial future to have it. And so we need to think, be aware, educate our young people so they don't fall prey. And tell them about the mess you've cleaned up or the mistakes you've made with money. Make them aware so they can keep their guard up and they can live the best life that they can. All right, I'm going back to the phone. I've got Jeremiah on the line in Pensacola. Jeremiah, how are you?

Hey, I'm doing good. Good. How can I help you? I've got a question. Okay. My mortgage has gone from $7.08 a month to now $11.10 a month. I have the opportunity in my house is on the market because I am going to sell my house with the equity that I could take from the house. I can buy a mobile home and put it on a piece of

land I have and be paid outright cash. I'm wondering if that's a good idea because I can no longer afford $11,000 a month. Right. So when you initially got this, you got an adjustable rate mortgage? No, I did get a fixed rate. What happened is when I got my house two years ago, I bought it in July. So my property tax insurance, when they gave me my mortgage, they said, this is what it's going to be.

Well, when it came around to 2018, they never adjusted. I guess I forgot. And my mortgage company, they never filed for the homestead for me. And so come now to 2019, I get my bill in the mail. It is now $1,100 a month. And then it's going to go down to not $50 a month. The reason it's $1,100 a months is I owe back taxes from last year because my escrow paid more than I had in escrow,

so they weren't billing me the right mortgage to begin with. Now I'm back paying for a year and a half. Okay. Tell me this. How many are in your family? Me and my wife, two kids, so four. Okay. So you've got a total of four, and you own some land.

How much land do you own? Just a half acre. Okay, and so you're asking me, do you sell this house that you're in now? How much is this home currently worth? About $175,000, $165,000. All right, and what do you owe on it? I owe $100,000. Okay, all right.

And so you guys, you and your wife both have talked about this? Yes. And what's your wife feel? My wife, you know, she's supportive of whatever I want to do, whatever she thinks I think is better for the family. Okay. And I think it'd be, you know, I'm not going out buying a $100,000 mobile home. I'm going out and buying, you know, one brand new one we found for like $50,000, three-bedroom, two-bath, all that,

and I'd be able to put another $10,000 back in savings with that also and save up money from there. All right. Have you ever lived in a mobile home before? Growing up, I did. Okay. And I'm asking just for familiarity, so being able to see it. But you guys talking about this, I mean, again, what other debt do you owe on outside of the home?

I have a personal loan. How much? And $2,500. Okay. It's at a 30% interest rate almost. 30%? 28.9,.6%. About two years ago, I really needed some money, and that was the only loan option I had.

I still owe $2,500 on the loan. I have not even touched the loan yet as far as I'm on paying interest. How much is the payment on this? $135 a month. And the balance is still the same? Yes. Goodness gracious. Is that from one of those personal loan places?

It's from someone I think it's called Prosper. Okay. I know who's prospering, you know. All right, what else do you owe on? I owe my grandma some money. How much? Over, down to $3,800, $4,000. Okay.

Was that for a vehicle, for a car, or for the home? It was for a vehicle at the time I had it. Okay. I still have it. Okay. I bought her vehicle from her. Okay. Well, looking at this, I mean, you and your wife talking it through, if you own the land

and pricing this, if that's a move that you all are willing to make and everybody's on the same page, I don't see a problem with it, especially with a move that you all are willing to make and everybody's on the same page, I don't see a problem with it, especially with the equity that you have built up in the home and what you would be able to clean up. And as far as this personal loan, which is absolutely a nightmare, and the balance is still the same a few years later, pay back your grandmother, put some money aside, you got to start to think a little bit different. Jeremiah, you've got an appetite for debt, my friend.

You've borrowed from family. You've borrowed from personal loan places. We've got to shut that down. And you've got to make sure you're aware and keeping your finances on tap. So, again, you and your wife talk about it. Don't rush to make a decision, but don't do anything until you're both in agreement. And when you do this thing, let's move forward for the sake of your kids, right? And your family, your family trees up to you. Start building that thing. Be intentional and don't go backwards. This is the Dave Ramsey show. Hello, America. hello america you are listening to the dave ramsey show where we're diving in and we are

tackling money questions uh i'd love to do research and as i was telling you a little bit earlier about the article where the credit card ads are now uh jumping out in social media and you need to keep an eye on that. And that's important to see and to be aware of as well. But I also ran across something that gave us an updated number on America's credit card debt. Okay? We ended the year and have kicked off the new year in a fashion that is just hard to comprehend. Right now, credit card debt levels are at a record $870 billion.

Okay, $870 billion. And we hear numbers like this all the time, and I think we've become a little numb to it. But I just want to remind everybody out there that a billion is a thousand million okay i mean if we try to try to put that into perspective and we see this it says this article and this was from uh let me look at here this is uh from bloomberg u.s credit card debt closed 2018 at a record 870 billion they say that there are 480 million credit cards in current circulation. It's up by more than 100 million since we hit the bottom after the recession almost a decade ago. This is staggering.

And looking at this and understanding that the industry, that credit card industry is not going anywhere. They're going to continue to look for ways to continue to make their money off of our backs. And the mindset and the change has to come from inside of the homes that we have. You see, when you learn how to count, I don't think you can ever unlearn, right? Like they taught me, and I'm from Kentucky. I mean, and we, you know, and so growing up when they taught me one plus one equals two, I was like, well, that's, that sounds about right. And learn that. And guess what? It still equals that. But the credit card industry is trying to get us to go one plus one equals three,

right? Like it's trying to tell us something that no, no, no, that doesn't make sense. And the mindset shift happens when you look at it and you start to see and understand just how dangerous it is. So what I want us to do is to make a stand for ourselves and our families right where we are. A lot of you, you may be battling debt. You're on baby step number two where you're attacking it, and that's fantastic. But do me a favor. Once you attack the debt, call and close that thing out, right? Like, shut it down. That's when you are truly taking the stand because you don't want to make them money anymore. You're trying to build it for your own legacy and your own future, and it's possible. I'm meeting people of all ages and all stages that are attacking debt.

I'm talking to them on my show, The Chris Hogan Show, where they're calling in and they're telling me about how they're paying it off and they're focused. And I love it. And so if you're out there, if you didn't know I had a show, I'm telling you now, come check it out. We take calls and talk to people and we dig in on this money topic because it's so important. We all need to realize you don't have to stay where you are. Better is available. And we just have to take a stand and work hard. But it's possible. And so be aware of this, that it's going to keep lurking.

They're going to be out there. They're looking to get your money. I want you to keep your guard up and stay focused. All right, I'm going back to the phone. I've got Aaron on the line from Irvine, California. Aaron, how are you? Hey, good. How are you doing? Oh, I'm focused back to the phone. I've got Aaron on the line from Irvine, California. Aaron, how are you? Hey, good. How are you doing?

Oh, I'm focused and not finished, my friend. How can I help you? Sorry about the dog. Yeah, so I've been following Dave Ramsey's money plan. You know, I'm in step two. Okay. Right now, I've got about $1,100 for rent every month. I've got $1,700 in savings.

Well, $700 and a $1,000 emergency fund. Okay. The problem now is I have $2,200 in debt and $7,000 is coming up very soon here, possibly more. Okay. I have $3,000 in surgeon and anesthesia fees probably coming up as well. Okay. I have a surgery that I'm getting on Monday. My question is, how can I maintain all this? Because right now I'm on disability until I get recovered from my surgery. Okay.

First and foremost, Aaron, I'm sorry to hear about the medical situation. Was this from an accident or just health-related? Probably health-related. Okay. What is your household income right now um i'm gonna be making 2800 a month off of the disability okay my girlfriend doesn't have much to pay towards the rent so she takes care of a portion of our electric bill and utilities and stuff. Right. Do you have insurance through your job?

Yeah, my health insurance is through my job. Okay. I pay for it. And so it's going to pay for the surgery, correct? No. I have a $2,000 deductible. And then another $5,191.96 in hospitalible. Okay. And then another $5,191 and $96 or 96 cents in, um, hospital fees. Okay.

And then that doesn't even include what the surgeon or the anesthesia charges are going to be. Right. Well, I mean, first and foremost, this is not an elective thing. This is something you have to have from a health standpoint, correct? Yeah. Okay. All right.

So we're not, we're not talking about, it's not optional. I mean, the surgery is going to happen. I think it's more about what you're doing as you move forward from that. And once you get, get, get better and get in focus, what you're feeling now is that that need to get more in control of the money and, you know, and that's tougher, man, especially because you're going to be recouping and you're, you know, you've got your income that has dropped down because of this health thing. But I think it's just a matter of you reminding yourself that where you are right now doesn't have to be where you end up. You know, you focus on getting healthier and getting back and getting yourself up and going.

This medical stuff, listen, it'll take care of itself. You've got to have the surgery, right? You'll figure it out. And you call them and you let them know what you're able to pay. You know, hospitals and insurance companies, let me say some of them, they're not the best customer relation type situation. They become really unaware that people are dealing with health crises. And so I want you to just stay focused and don't pre-stress on this. Yeah.

You know? I've paid off about $3,000, maybe $4,000 in debt. Okay, good. To get to this point. And I've only got this $2,200 left. Yeah. And I was like, oh, I'm so close.

You are close. And then all of a sudden all this comes up. That's exactly right. And you are close. And I'm proud of you for paying the $3,000 that you've paid. And you're right. You've got that mindset. But this is just a setback, my friend.

You got to get this thing taken care of for your health situation. And I don't want to dig into that anymore. If you wanted me to know, you'd have told me. But you being focused and understanding, yeah, this health situation is a setback. But here's what I figured out, Aaron. A setback can be a setup for a comeback. And that's where you have an opportunity to rally. Do you understand? You've already paid off debt. You've proven you can do it and that you will because you have. This will be the same situation. So right now, don't pre stress on it. You know, contact your insurance company. Make sure everybody's on the same page.

All the paperwork and everything is filled out. You know what you're going into when you have this surgery done, and I'll be praying for you, for your recovery, but you to focus. The same attitude and outlook that you had prior is exactly what you're going to do as you walk this path of healing because this money thing, it's up to us. We can make decisions, and we can help ourselves. We just have to change our mindset and how we look at it. So that's real. And I know a lot of you out there have dealt with some life happening because it does. Or you know someone that has had that happen.

And it's really important that you cheer each other on and you check up on people. Ask them how they're doing. Get some encouragement around. That's why Financial Peace University is so fantastic because you're in a room and you're in a group with like-minded people that are focused as well from all stages. So we're talking baby boomers, Gen X, Gen Y, millennials, doesn't matter why. It's all people that are focused on improving and getting better. And that's the key because we don't have to stay where we are right now. We've got choices.

We've got opportunities. And we can grow forward. It's so exciting. Well, listen, I want to thank all of you for tuning in and listening. I want to thank all of the callers that took the time to be able to call in. I want to thank James Child, the producer, Kelly Daniel, associate producer, and all of you for tuning in. Stay with us. We're going to be back.

This is The Dave Ramsey Show. Hey, it's Blake Thompson, senior executive producer for the show. You know, you can listen or watch Be Anywhere with the Dave Ramsey Show app on your smartphone. Catch the full show or watch the highlights and check out Dave's upcoming guests. Head to the App Store and download it today.