The Ramsey Show - App - Think About 20 Years From Now, Not 20 Minutes From Now (Hour 2)

Episode Date: September 6, 2023

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Jade Walsh, our Ramsey personality, is my co-host today as we answer your questions about your life and your money. Open phones at 888-825-5225. That's 888-825-5225. KC starts off this hour in Charlotte, North Carolina.

Hi, KC. How are you? Good. How are you guys doing? Better than I deserve. What's up? So I'm an Army recruiter, and I recruit for active duty in the Reserve. Thank you. And thank you. I appreciate it. But when I talk to kids about active duty, it's easy when we're talking about college because the Army will just pay 100% tuition and give them a paycheck. Absolutely.

But when I talk about the Reserve, it gets a bit more complicated. And part of the incentive for the reserve is that we have a student loan repayment up to like $50,000. And I don't know what advice to give to these young men and women when I'm sitting down with them. So right now I'm telling them, Hey, take out this student loan and the army will pay it back for you, but put it in a CD and keep it safe and then use it as like a I'm getting out of the Army bonus after it's been paid off. But I don't know if that's good advice because I don't like to give advice that says, hey, take on debt, but I don't know what else to tell them

because it's free money for them. I appreciate that. Well, that'll work only if it works. And, you know, you're asking an 18 year old to be smart um and you're you're in the army you know better right and a lot of times it's a i sit down with the parents and i know and i tell i know but you know what you know what i'm saying and so uh yeah now the uh we do some work with the Air National Guard and the Army National Guard both, and they have a $10,000 tuition program. Does the Reserves not have that too?

So we do. We actually have this $4,000 a year of tuition assistance, and we also have a monthly stipend that goes up to $1,000 a month as well, and that has nothing else added to it. But the $1,000 a month, that stipend is just a reserve stipend. That's not for education only, right? No, that's for education only. Oh, really?

And they also have their regular paycheck as well. Okay, so they got their regular paycheck, and they get $1,000 a month if they want to go to school, stipend, and a $4,000 reimbursement. So $4,000 tuition assistance, they pay the school directly up to $4,000 a year. Per year. Per year. And the $12,000 goes how long? How long can you get the $1,000?

How many years? As long as you're getting your first degree. Okay. So you could do four years, which would be $48,000 okay so you could do four years which would be 48 000 and you could do four times so 16 000 well it'll be um yeah they only get the paycheck while they're in school the extra thousand a month while they're in school so in the summertime they don't get that pay okay oh so it's not a full 12 000 a year right. So it would be $9,000 a year. So let's call it. Yeah. So we call that $38,000, right?

Or $37,000 and $36,000. I'm sorry. And then we get $16,000 on top of that, which is the four years of $4,000. Correct? Mm-hmm. That's more than $50,000, dude. Right. And they don't have to take out the loan okay i just like to give them as much

money as i can i appreciate that i i would not ask them to step up on the uh so here's here's here's my principle number one i don't borrow money you know that principle you knew that for your call and again thank you for your service and for what you do okay but want the principle But the other principle it's violating for me is almost every time that you borrow money, it only works if it works. And life doesn't always work. And so you've got this plan. I'm going to open a business, and I'm going to borrow $10,000, and I'm going to make $100,000 until you fall off the tractor, break your hip, and you lose everything, and now you've just got the debt, and you don't have the business, okay? Or until, you know, it works if I buy a car on payments until I lose my job, and I can't

pay the payments, and it gets repo. It works if I do this until, until, until. It only works if it works, and in our minds when we analyze using debt it we only analyze the if it works part not if it doesn't work part the risk part and uh the second thing that i another principle we use around here is uh i like to put my life on wise autopilot and avoid stupid autopilot autopilot mean that it automatically is going to be smart, even if I leave it alone. And I don't have to assume that an 18-year-old suddenly is going to be,

with the help of his parents or without, wise and keep in control until he's 25 and not screw this up. I mean, you're just asking for trouble here. I mean, you recruit these guys every day. I know. I'm just trying to give them the best advice I can. I know, but I'm just saying. I don't even get a say if they take the money out or not.

I'm not going to ask. I've done youth ministry, and I'm not going to ask those people at that age with that level of brain development to take on the level of discipline and leave their hands off of this and not go to Hawaii with their girlfriend using this money. I'm just not going to ask them to do that because it's going to get screwed up. It'll never happen. It's going to get screwed up.

So, man, I think you guys got a great program with the stipend. I knew there was about $10,000 like the National Guard has, but I didn't know exactly what it was. So $12,000, no, $9,000 if you take the summer off. But if you go to school all summer, do you get the stipend still? Yeah, as long as you're pursuing school, you get the stipend. Okay, so if you just went to school 12 months a year, if you went to school 12 months a year for four years, you'd get $48,000.

Plus the 4K a year. Maximum is 36 months. Oh, okay. Oh, so it does max out at four years on nine months then. Okay, so you might as well not. Okay, so we'll do the four years of nine months. Get the $36,000. I'll get the $16,000 reimbursement as well.

And so that puts me at, what 000 bucks right yes sir yeah and that's a great benefit a kid that doesn't is trying to figure out a way to go to college you can go to college by joining the reserves they can still get fast fun they can still get all the other scholarships as well. Yeah, we just gave you a great commercial. I appreciate that. But I do. I believe in it. I mean, we endorse the National Guard and the Air National Guard both. They're some of our sponsors on different things because of this subject.

This is the reason they come to us, and the reason we like to endorse them is because we freaking hate student loans. And you do too, Casey. You're a good man. Thank you. He's got a great heart. He wants to make sure these kids get all they can get yeah i mean but i i i wouldn't i wouldn't go with the risk on the on the loan no you can't you can't trust 18 year olds to i wouldn't trust me at 18 and i was a little nerd me too i was a goody two shoes and i would have

i wasn't goody two shoes but i was a math nerd and i was i would always trying to scheme a scam figure out a way to make it work I would have been the guy that did that yeah you and then I would have been the guy went to Hawaii too I was gonna say I would have had a new purse in Hawaii yeah that's it well I wouldn't have had a purse but there's that thank god yes that was long that was long ago there were no mercies in those days oh my goodness gracious. No man bags. Help us, Jesus. This is The Ramsey Show.

Jade Walsh, our Ramsey personality, is my co-host today. Landon is in South Bend, Indiana. Hey, Landon, welcome to The Ramsey Show. Hey, how are you doing? Great. How can we help? Hey, so I'm a new home buyer or homeowner and I just, I did get it financed and I'm basically in a situation where the money that I make I am spending on my bills and paying for mortgage. And I am just curious, what is the best way to get to financial freedom from where I'm at?

It sounds like you maybe bought too much house. You don't have margin. Is that what I'm hearing? Well, basically, long story short, I was renting from my employer, which is also my brother-in-law. I'm sorry. That sounds like a horrible situation, but keep going. Well, it's not a horrible situation, but basically they offered to finance a house for me because I wanted to put that money towards a house versus just renting. And so they I didn't have anything to put down. So they financed it 100 percent and it's at 7 percent interest. So basically, I was able. The payment's eleven hundred. And how much do you make every month

uh right now my bring home is 36 yeah yeah you're gonna feel that yeah so yeah here's what we need to do if we need if we're going to make this work long term because it's in the house is still in your name? They just gave you the money for the down payment, right? Correct. Okay. If you're going to make this work long haul, we need to get this to where it's no more than 25%, right? Just so you can breathe. Do you have any other debt? I have about $3,000 I owe on my truck and and that is through them as well, but that is interest-free. Why do you keep borrowing money through your workplace? Like I said, it's family, and they were just trying to help me get basically a leg up and get started.

I was in a bad situation. How old are you, Landon?inda 22 what do you do for a living uh i'm a i'm a maintenance manager at their shopping center okay all right um they are trying to do a nice thing for you but they have done it in such a way that it is a curse and not a blessing because you called because you can't breathe right and you owe all this money to your brother-in-law who also is your employer and so if you screw up uh making a payment it affects your job if you screw up your job it affects whether you keep your truck it's all linked this is also intertwined that it is you're walking around carrying three or four hundred pounds on your back all day long trying to breathe i'm so sorry and again i don't think they did this to harm you they were trying

to be helpful but but but sir you you have you have a curse on you yeah and so um and the reason let's just get this going moving forward the reason that you had to borrow money for a truck is because you couldn't afford a truck and the reason that you had to borrow the money to buy a house is because you couldn't afford to buy a house you bought a house that you really can't afford, and you're 22 years old. Man, my heart's hurting for you right now because, I mean, you've got a lot of pressure on you, man. And so now the house was theirs, and they sold it to you, right? No, it was actually a private sale oh you went they went and bought a house or you went they went they gave you the cash to go buy a house and they financed the whole thing yeah

okay so what do you owe on this house um right now i owe right around i think it's $158,000. Okay. All right. Do you have any, when did you buy it? I bought it in, I guess I would have bought it in May. What do you think it's worth? $158,000. It appraises for $ it appraises for 180 sell it

okay dude you can't breathe let me ask a question i have a question about this if you turn around and sell this house are you worried about what they're gonna think that you just use them to get this house so that you could turn a profit not not really just I mean I'm not I would be lying if I said that wasn't on my mind I would go in and sit down with your brother-in-law and say I made a mistake I can't pay this payment and the truck payment on my income. I can't breathe. The stress is killing me. I'm going to sell the house and I don't want you to think I'm doing it

because I tricked you and I don't want you to think I'm ungrateful. I am not ungrateful and I didn't trick you. I can't breathe and I'm putting the house on the market. That's what I would do. That's the conversation. I don't think you're going to do that because I don't think you're in as much pain as I think you should be. Well, if he can find $1,000 extra a month, if he can find a way to permanently get his income up, get rid of this truck payment, he would be able to continue on considering that's his only debt. We didn't get far enough into it. Let me just tell you, it's a bad idea to owe your house payment to your employer. Who's also your brother-in-law. It's a bad idea to owe your house payment to your employer. Oh, who's also your brother-in-law.

It's a bad idea to owe your house payment to your brother-in-law. It is a triple X bad idea to owe it to your brother-in-law who is your employer. Man. There's so many things that can go wrong with this that have lifetime implications. Thanksgiving dinner tastes like copper. That are not a blessing. And again, I don't a the brother-in-law is a bad guy i think he's just dumb and he was trying to do a nice thing in a and he did it in a dumb way without thinking about he made the assumption that this young man needs to own a

house and he's wasting money when he's renting and we're going to get him a house and we did him a favor and that's what's going through this guy's mind but he's wrong he made a mistake i mean it's the equivalent all of that co-signing i'm going to buy my kids a house all these things i'm going to buy land and then the kids can live on the house all those ideas where you're you're um you're trying to manipulate someone else's financial situation they can't afford it that's why they don't have it and if if you don't accept that. The reason your grandson needs a cosigner for the Raptor is because he's too broke to buy a Raptor. He can't afford it. Hello. Yeah.

This is not hard. And Landon, that's you. You're too broke to have bought this house. You shouldn't have bought it. And you bought a house you can't afford. It's not a super expensive house. And it sounds like the good news is you can get out of it and with your skin intact. I don't think you're going to sell it, though'm talking to you well he's 22 he doesn't need to have a

brand new house and a brand new truck it's not or or a used house and a used truck yeah it's okay it's um i would get the truck pay i sell the house i pay off the truck and i start piling up money and i start working on my career goals and what am i going to be when I'm 32 yeah and what am I going to be doing that I make 60 80 100 000 when I'm 32 and and because you don't want to be doing exactly the same thing no matter what you're doing when you're 22 when you're 32 so the way he has that conversation though is key yeah you got to go in there just play the cards and say what happened but if you got to believe that too I'm not sure he believes that no i yeah i don't know that he believes it's the right answer but he did say it was bothering him look if i i if i was a certain type of person and i said hey i'm going to help you get in this house i would never do that but i could see how they might go oh you just wanted us to flip this house

for you yeah yeah yeah and i think it's okay to say out loud this is i'm scared to death and uh and does and they don't get to talk you out of it you're still going to sell it right but you just let them know two problems you know one is i are two things i didn't buy it to flip and two is i'm not ungrateful but the reason i'm selling it is i'm so scared i can't i'm scared spitless and this is killing me i'm carrying 300 pounds around on my back. Yeah, that's connected to my job and my family. Yeah, exactly. Exactly. Which is like a triple X.

Oh, my gosh. Extra large. Extra, extra, extra large problem. A triple X problem. Bricks in the backpack. Extra large. Extra, extra large. This is The Ramsey Show.

Thank you for joining us, America. Jade Walsh, our Ramsey personality, is my co-host today. Open phones at 888-825-5225. She and Rachel Cruz and I will be co-hosting each other or whatever you call it all together on a live stream this coming Tuesday. That is September the 12th at 7pm Central Time. It is completely

free. It is student loan debt in America. How we got here and how to get out. There is a lot of extremely bogus programs coming out of washington right now that are really misleading and scary and um we we want to not just beat up on washington although that's a lot of fun but uh aside from that we what we really want to do is just show you guys some hope some actual facts of people that got out jade got

out of 260 280 000 280 000 i keep trying to call it 260 don't don't shortchange me don't shortchange that 20 all right 280 000 she and sam worked their tail ends off 465 000 total in debt that they cleared up it took them a long time it took them seven years yeah it's not going to take you guys that long because most of you a don't have four hundred sixty five thousand four hundred seventy five thousand dollars in debt b um you know you probably are in a different place than they were when they started this so there's a whole story there she's going to tell you that story but we're also going to show you story after story after story of people who did just like you single moms people who uh lost their, people who couldn't get a job in their career field, and they still figured out a way to do this. And we'll help you. We're going

to show you how. I know it's confusing. I know it's scary. And so sign up, go to ramsaysolutions.com slash student loans, sign up for the free live stream. It is this coming Tuesday night. Do not miss it. It's free. What do you got to lose? Your student loans. Oh! That was an underhand pitch.

It was. Tiffany is with us from Chicago. Hi, Tiffany. How are you? I'm good. How are you? Better than we deserve. How can we help?

I have a question about my car. I am upside down in my car loan, but it is my only primary source of transportation and I have two children that I have to take care of. So I don't know what to do. You're single? I am. Okay. How much is the car worth? The car is worth five thousand dollars give or take a hundred um and the car loan is 20 grand what how in the world wow how'd you get so far upside down um well when i bought the car it uh was at like one of those like buy here pay here shops and i really just needed a car because i had to get back and forth to work and take care of the kids so you got screwed pretty much pretty much i now know that now like a year after i paid for it or i'm paying for you overpaid for it did you

trade a car that had negative equity into it no wow you just really overpaid. You overpaid $10,000? Yes. Really? Yes. I really wasn't knowledgeable enough to know what I was getting myself into, and like I said, I just really needed a car. Okay, let me stop you a second. Is the note still at the note lot?

Yes. Okay, the payoff they're giving you is not the payoff okay that's what's called there's two ways to calculate a rip-off car loan okay and this is a rip-off car loan no doubt about it okay sub subprime lending what what one way they calculate is they you ask them what what's your loan balance and the way they keep the loan balance on the books is called top total of payments which is a total of all your payments over the whole time including the ridiculous butt interest rate that they're charging that is 20 000 okay you do not owe 20 000 on the car though that's just if you pay every payment and add them all together. Interesting.

Okay. That's a TOP calculation, and that's the account balance. That is different than the payoff balance. Now, in a regular car loan, they're the same thing. Payoff and the account are the same thing. They just keep your account balance. Your principal balance is all they give you. But on a rip-off loan, on a subprime loan, they'll put it on the books as a TOP.

And what that does is it takes all your hope away and you feel stuck, which is why you called. So the good news is the payoff on that car is, what's the interest rate, $17, $15? I think it's like $23. Yeah, okay, good. Wow. Okay, so that's even better news because that means that the 20 includes all that. Okay. So that tells me the payoff on this car is probably closer to 10. Really?

Yeah. Yeah. So if you just call them and say, I want to know. So how bad's your credit? It's pretty bad. Pretty bad. It's like. Horrible.

High fours. Like. Terrible. Couldn't be any worse. yeah and so uh your single mom what do you make um i bring home probably like 3100 a month what do you do um i'm a retail supervisor how old your babies um my son is going to be 12 tomorrow and my baby is nine months. Who watches the baby during the day? They go between my mother and their father.

Okay, good. So do you have any other debt besides this car? Yes. Can you go through that? I have probably maybe about $6,000 in credit card loans or credit cards. I have about $73,000 in student loans, and I probably have about $5,000 in regular loans. And then I probably have, I think, another $13,000 in a car that I totaled. What was the insurance from that? Oh no insurance. Yeah no insurance. Hey what's your degree in?

Um I didn't even graduate. Okay. I just kind of floated through school and then how old are you? End baby i am 33 okay all right girlfriend we do have a mess and um everything you told me told us in that list adds up to chaos absolutely there's a lot of chaos in your life and there has been for an extended period of time. In order to clean up the finances, we also have to clean up the chaos. Yes. Because the chaos is causing you to feel desperate and stuck. And right after I get desperate, I get stupid. And so have you a time or two. Yes.

You feel stuck and desperate and you go to a car and tote the note lot and get ripped off because you didn't feel like there's anything else you could do because you were desperate right yeah okay all right so we got to calm down back up and say all right a couple things we're number one uh tiffany one of the things i discovered because i grew up without any money did you grow up without money? Yes. Yeah. And I found out that rich people think different. They think every time they make a decision, how does this affect me 10 years from today? When I grew up, we thought about how Friday was going to be. Exactly. Thank God it's Friday.

Oh, God, it's Monday. Right. And we turned up the music about 4 o'clock Friday afternoon and tried to forget that Monday was coming. And that makes you broke. When your planning window is short, you make dumber decisions than if you have a long-term planning window. Rich people think when they buy a car,

how's this going to play out in 10 years? You thought, I've got to get to work tomorrow. Exactly. And so what I want you to slow down is with every decision you make from the day forward about money and about your career i want you to think about 42 year old tiffany and how she's going to like this version of tiffany this 32 okay so we're going to think like rich people we're going to think like rich people. We're going to think long term. And then that'll draw you up out of the mud of the chaos slowly. And this is going to be slowly. Does that make sense?

Absolutely. Okay, so let's do two steps that I can think of, and then you jump in, okay? I've got to get these out of my system before I do. Keep going. Number one, I want to do – oh, I'm out of time. Go ahead, Dave. Hang on through the hang on hang on through the break hang on through the break can you absolutely because you need some help girl and we're we can't just dump you into a commercial break so you hang on we're going to come back and give you some actual

marching orders okay okay thank you we'll be right back this is the Ramsey Show. Jade Walsh, all Ramsey personality, is my co-host today. We're talking with Tiffany in Chicago. She has a 9-month-old, a 12-month-old. She's making $3,100 a month. She has a car that is valued at about $5,000. We think the payoff is around $10,000 with a tote-the-note lot. She's got a lot of other miscellaneous debts and has had, and we established early, a lot of chaos and disorganization in her process,

and we're discussing what her next steps are. So Jade, I'll let you jump in. Yeah, I think right now, obviously, we've got a bit of an income problem, and I want to try to find where we can find some of this money. So my first question to you, Tiffany, is what's your living situation? Are you living with anybody? Is anyone living with you? Tell me about that. Oh, well, let me try picking up the line.

That'll help. Okay. Now, go ahead, Tiffany. Oh, I'm sorry. It was our fault. I didn't pick up the line. Can you hear me? Yes, ma'am. We can now. Oh, okay. I was like, what fault. I didn't pick up the line. Can you hear me? Yes, ma'am.

We can now. Oh, okay. I was like, what's happening? What happened? What happened? So, yeah, I live alone. It's just me and my kids, and I rent. And my rent's probably like $1,200.

Uh-huh. Good. So $1,200 rent. I want to know, are you getting a tax return every year? A little bit. I've adjusted that to not get one because I have been trying to get out of thissey and I bought the total money makeover. And I was like, oh, my gosh, this is such a light to my eyes. And I feel so much less stressed. So I have adjusted that to make sure I do get if I do get anything, it's very minimal.

So I can make sure I can pay my bills. And how many hours a week are you working? I work 80. And if they offer overtime i am the first one to volunteer you work 80 or 40 dollars i'm 40 hours okay okay that's okay i was about to say we need a different job if that's what it's getting you um but at 40 and i know you've got the kids it sounds like you've got some family in the area that'll help you. You got it. At this point, it's an equation, right? We got it.

We got to make a bigger shovel because you have a big hole, right? To fill up. And that's going to look like you looking for employment that at the core earns more, right? So I want you to start, you know, beefing up the resume. I want you to start looking for jobs that you can transfer your skill set. And so before we get off the line, we're going to get you hooked up with Ken Coleman stuff.

I'm sure you've seen it, but we'll make sure you have that because I want your core income to be bigger. When Sam and I were paying off our debt, when we started, we were making 30,000. That is unsustainable. We could do all the side hustles in the world and it wouldn't have made a difference. So you got to get the core income up and then in the meantime while you're working towards that you do need the side hustles also yeah so basically those two things together will double your income on the short term on the short term and you can do that and then we can start

cleaning this up now you said you had a repo debt of how much um thirteen thousand okay and what was the other debts other than the five thousand or the ten thousand on the car uh six thousand dollars in credit cards um probably uh another six this is off the top of my head i'm sorry um probably like another six in loans, 73 in student loans. I think that's it. About 100,000. So you're not paying on the student loans yet. No. You're not paying on the $13,000 repo at this point, are you?

No. Good. Okay. So you've only got the credit cards and the other loan that you're paying a little bit on. We're going to cut up the credit cards. You've already probably done that after reading Total Money Man. Absolutely. So here's the thing. One of the things I discovered, I told you I didn't grow up with money.

One of the things I discovered was I could learn from anybody about anything by reading. You read the Total Money Makeover, and it helped you. Agreed? Yes. So if I stack books on you right now, will you read them? Because I'm going to give you a bunch of them if you'll do it. Absolutely. All right. So we're going to send you Ken Coleman's book, From Paycheck to Purpose. We're also going to set you up with his assessment, because I want you to aim at a long-term career.

Right now, we're going to get the core income up and the side hustle, like Jade said. But I want you to think about who Tiffany's going to be when she's 42. And what are you going to be doing? You're going to be an executive sitting in an office, corner office somewhere, smiling, making a hundred grand doing what? I don't care. You go get, go to code school. I don't care what you're going to do. All right.

But you figure that out. All right. Then the second thing I want you to do is I want you to go to, let me see here. I'm going to get this up. Go to this, go, go to, uh, listen to go to, let me see here, I'm going to get this up, go to listen to this podcast, Craig Groeschel, and the last name is G-R-O-E-S-C-H-E-L. He's a pastor.

He has a leadership podcast. The guest on the podcast like three or four episodes back was an African-American lady, came from where you are. She's now the president of the Dallas Mavs. Oh, my gosh. And she was the CEO of AT&T at one point. She's a force to be reckoned with. I thoroughly enjoyed listening to the podcast.

She was inspiring to me, and she will be to you, because I want her future, I want her situation to be your future. Okay? Okay. I want you thinking like that, because I want you to break this cycle for your nine month old and for your 12 year old it stops with you okay okay and um then we're gonna give you ken coleman's book paycheck to purpose i gave you the uh that to listen to now then i i

the first thing we can scratch money together i don't want you to pay anything on student loans just don't pay them right now forget them okay even though they come up in october just don't want you to pay anything on student loans just don't pay them right now forget them even though they come up in october just don't pay them just forget them don't do the on-ramp though no don't do anything just ignore them no if you ignore them it'll put you on the on-ramp and the interest will accrue okay okay go go in and do the stupid safe thing yes and do the 30 dollar or whatever it is it'll be zero it'll be zero for you yeah and just don't don't you don't worry about paying on the student loan but pay the minimum you can get in the safe the new save program it's a horrible program but we have a plan at the end this is we're gonna pay it off later but right now i'm minimizing your

outflow because i need you to gather up a couple thousand dollars for a car when you got a couple thousand dollars for a car i want you to walk in to this tote the note dealer and tell them you talked to your financial counselor who said that they should talk to you about taking this car back with no repossession. You've already paid enough on it. Give them the keys. Have them sign a paper. You owe nothing. Don't give them the keys unless you get this. Sign the title over to them and wash your hands of this car and walk away.

They will do that deal because they do it every day. It's their whole game plan. Their business model is overpriced cars, over-interest cars, so they take them back and resell them. It's how they function. And so you've already paid enough on it they've made profit on you and and if they say we won't do that say my financial counselor told me i should talk to an attorney should i do that or do you guys want to do this because your financial counselor is me and i just told you that right okay so you see what we're doing we're scaring them because the

contract that they have is probably bustable with a lawyer but i don't want to spend money on a lawyer i just want to bluff these rednecks into taking the car back okay and they take it back no repo and no deficit they don't get anything on you and then you go buy a two thousand dollar car with cash and not from there and not not cash. Not from them. Just go find one in the freaking Craigslist. It's a garage sale car. Who cares?

Okay. It's a short-term thing. We're going to get a better car in two years anyway. We're not going to drive this car for very long. Okay? Then you're going to get the loan paid off and the credit cards paid off, and then we're going to reach over and do the same thing with that student loan with that deficit on that car repo.

You can settle that $13,000 debt for about $2,000 or $3,000 if you call them up with cash in your pocket and say, well, I can settle this right now. I'm a single mom. I'm a bankruptcy looking for a place to happen. Are you guys sure you'd want this on the books or do you want to take three grand of settlement in full? Settlement in full is your big word. use that with the with the uh tote the note dealer when i give you this car back it's settlement in full and i want a statement a paper showing that otherwise i got to go talk to my attorney and i don't want to do that please let's just take this deal and be done with it same thing with these guys are the repo okay so a couple grand here or there we got you a car and got rid of most of your debt

right this is pretty cool yeah i mean i'm talking i'm talking this time next year girl you have no debt oh my gosh that would be amazing if you do this stuff i just told you to do like that would be amazing it will be amazing you understand what i just told you to do you have any questions about it i do not i wrote everything down okay and you to do? Do you have any questions about it? I do not. I wrote everything down. Okay. And you call us back if you're in the middle of this and you've got a question. I know.

That's right. And if you want me to call the Tote the Note guy, I will. Give me a call. And if you need a lawyer. That would be fun. If you need a letter from a lawyer, you better call me because my brother's a lawyer. I'll get you one in two seconds, girl. That could be fun.

That could be fun. We're helping her. We're doing this. You're going to turn this around. This ends with you. The cycle breaks with you, Tiffany. We're helping her. We're doing this. You're going to turn this around. This ends with you. The cycle breaks with you, Tiffany. And so hang on. We're going to send you every bit of that stuff.

This is The Ramsey Show. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.