The Ramsey Show - App - You Don't Need A Credit Score, You've Been Lied To (Hour 3)

Episode Date: October 10, 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 personality is my co-host today open phones at 888-825-5225 that's 888-825-5225 john is starting off this hour in chicago hey john how are you doing well good what's up uh so i was a sucker and I bought a motor home when I got a remote job that paid a lot more. And, of course, I traveled all over the United States the last couple of years. But I realized that I want to get out of debt.

I want to get away from that. And, of course, I want to get rid of the motor home. And that seems to be hard without, you know, just trying to sell it. So I'm just seeing what my options are. What do you owe on the mobile home? $70,000. And what's it worth? It's worth probably about between $60,000 and $65,000.

Okay, that's not too bad. Do you have any money? Don't have much money. How much do you have? I have about $5,000 that I could put towards it. So you could close the gap and sell it?

Yeah, and that was my first initial thought too. I had thoughts about just letting go back to the bank, but I wasn't for sure what to do with that. No, you don't want to go back to the bank but i wasn't for sure what to do with that no you don't let it go back no no don't turn it in no here's the problem okay if it's worth 65 and you voluntarily repossess it you're going to have a reposition on your record number one number two they're going to sell it for 40 on the repo lot and they're going to sue you for the difference so you control the sale price and you

cover the difference you'll get a lot more for it and you won't have as much difference to cover or as much hassle so now what you've got is the hassle of selling a 65,000 70,000 motor home which is a pain in the butt to do but you can do it oh definitely you can do it and it's a whole lot less of a pain in the butt than having a repo and having them chase you around for $40,000. Yeah, because that's a funny thing you say that because surrendering a car or turning it in sounds a lot better than repo. But really what it is is a repossession. Oh, it's a voluntary repossession. And let me tell you, if they come and hook a wrecker and steal it in the middle of the night or you take it down there and hand them the keys, it shows exactly the same on your record.

Both are a repossession. Okay. So one's voluntary and one's involuntary, but the credit report does not distinguish between the two. And people ask, have you ever been repossessed? They don't ask, have you ever been voluntarily repossessed? That's right. That's a very good point.

Have you ever filed bankruptcy? Yes. Period. Or no. It's not, there's not a you ever filed bankruptcy yes period or no it's not there's not oh well sort of there's not a middle answer you did or you didn't right and so that's that's the problem with this and so yeah please folks sell your stuff and cover the difference with a loan sell your stuff and cover the difference with cash uh control the price of the sale of something you're in the hole on that you're upside down on like an RV. I'm really shocked pleasantly, John, that that thing's worth as much as it is. You

must have put a lot down on it to only $0.70 and it'd be worth $65 after you've driven it around all over the place. Well, hey, let me ask you a guidance question because some people might be wondering this that are listening. Let's say you've got, whether it's an RV or a vehicle, you're upside down and maybe you found the cash to fill the gap, but it requires you to do a personal sale, like you're going to for sale by owner. Yeah, that's fine. But I guess the question I'm asking is how long would you stay on sale for sale by owner before you would go to a dealership to sell it or you know go through a dealership well here's the thing if the data indicates from kelly blue book that the car is worth twenty thousand dollars and you put it on the market for twenty thousand dollars

and it goes a month and you get zero nibbles cars probably not worth twenty thousand dollars yeah drop it turns out kbb was probably wrong so So the car's probably $18,000. So you're going to drop your price. But the dealer's going to give you $15,000. Right. So we can do a series of price drops and resets until you get down to dealer. And if the dealer will give you $15,000 and the public's going to give you $15,000, then I'll deal with it. Then you know it's worth it. You know that's the real price. It's an easier transaction to do it with a dealer, but it's very seldom because dealers, if the car really won't sell for $20, a dealer really doesn't want it for $15.

Yeah, that's right. Because their job is to resell it and make the spread. Yeah. They're buying to inventory to make a profit on it. And so they're not evil. They're not doing anything wrong. Yeah. But they're buying it wholesale to sell at retail. And if you can't sell it at retail, they probably can't either.

I think a lot of people avoid selling their own vehicle because they're thinking oh this is a hassle this is something i've never done before you know but we go do a side hustle and we make a thousand bucks or we can go through this hassle and save five thousand dollars i agree so yeah let's do the hassle it's worth it it's worth it it's a it's a nice part-time job to go sell your RV. Right. You set the hours. You make a lot more on that than you will delivering pizza. I can tell you that. Caitlin is in Fargo.

Hi, Caitlin. Welcome to the Ramsey Show. Hi, Dave. How are you? Better than I deserve. How can we help? So I'm graduating this December with my master's debt-free, and I just kind of want to be wise about income that I'll be getting after I graduate. Congratulations.

What's your master's in? Thank you, and social work. Good for you. Okay. So what will you be making? Hopefully around $60,000. It kind of just depends where I get a job. And I don't even know where to begin with investing.

Okay. And you're 100% debt-free begin with investing. Okay. And you're a hundred percent debt-free. I am. Yep. No car debt. Nope. Just paid off my car a few months ago. Okay. So you have an emergency fund? I do. I currently don't have a job because I'm in college. So I'm using my emergency fund right now. So the first thing I need to do is build that back up. Okay. That's your first investment to do. And then after that, depending on where you're working, we're going to say do retirement plans.

Start putting 15% of your income away for retirement. And then I would start doing additional savings for purchase of your first home. Okay. Awesome. That's pretty easy. Pretty simple, right? There's not much to it. You need to be on a budget and watching what you're doing and um if i were you i would want to get a head start on the job search okay because six months from today you want to be working there yes yeah that's hopefully the goal yeah so i'd want to know where there is

and what they pay, and I can start to do a little bit more planning that way, and you can find out how tough the hiring market is or isn't in that particular category between now and then. I'd want to be on that for sure. Absolutely, and you made a good point. There's always that question between, do I save for a house first? Do I start investing first? Can I do them at the same time that whole thing so i got a feeling i just had the feeling she's pretty careful yeah she's debt-free 100 education and everything so she's probably a save for retirement and house at the same time and she's single so she's probably got that extra ability to do that yeah Yeah. You can control that flow too.

Yeah. That makes a lot of difference. That's good. Very good. Fun. Fun. Good stuff. Debt free master's degree. I love that.

Yeah. Love it. Well, free, pay debt free, debt free. That's it. Yeah. Excellent. Good stuff. This is the Ramsey Show. Dr. John Deloney's book, Building a Non-Anxious Life, has now been out for one week.

You can get it at anywhere great books are sold. It will be a number one, I'm sure. It will be a second number one when we get this, when we get the numbers in in a couple days here. And in the meantime, you can pick it up at RamseySolutions.com. There are six daily choices to make to not eliminate anxiety from your life, but to greatly reduce it and deal with it properly when it does come your way. Everyone has anxiety about some things. Anxiety is a good thing. It keeps you from running into traffic.

Right. And, whoops, yeah, oh, I have anxiety now. Yeah, well, don't run in traffic. It's a good thing. So you have to prepare your life, build your life in such a way that you have a lower probability of living in it perpetually. And we've built such a crazy world that now nearly half of the U.S. population reports their lives are affected by anxiety, stress, burnout. It's everywhere. Building a non-anxious life, Dr. John Deloney's brand-new book, RamseySolutions.com.

Ana is with us in Dallas. Hi, Ana. Welcome to The Ramsey Show. Hi. Hi. What's up? So I do not need to get a car loan, but I want to get one so that I could build a good credit line, and I was just wondering what you'd suggest. How old are you, Ana? I just turned 20. Okay.

Why do you think it's important for you to build a good line of credit? What do you plan to do with that? Good credit score. I plan, I have some other credit score just from like, I've kept up with like credit cards and such. I only have two and my credit score isn't great, but do plan on buying a house so that I can rent it. Maybe a duplex or even building a duplex if I am in that industry. And I do plan on renting it out to people so that they can pay for the mortgage. What do you do in the real estate industry? I am an architectural designer for a custom home builder. Very cool. So all the talk about the credit score,

so the ultimate use for you is you're wanting to buy a house. We actually teach a way that you can buy a house without a credit score, which is a safer way to deal with money in general, because you're not having to enter into debt in order to do the things that you want to do. You're not having to put the risk of debt on your life and that stress in your life in order to do the things that you want to do. So I would say to you that if you have the money to buy a car in cash, buy the car in cash or save up until you can. The idea of building up a credit score and when you really look at what a credit score is, it's simply how you interact with debt, how long you've had debt, how much debt you've had, what percentage of debt that you're using.

That's all that they're looking at. They're not looking to see if a person can actually manage the money that they have in their bank account, in their pocket. Does that make sense to you? Yeah. So what would you recommend for someone, like in my instance, it's a smaller bank, so it's kind of more personal-ish. Like, what would you recommend?

Because I know that I do plan on developing and then building my own spec homes in the future. So I kind of want a relationship with them. If not, I would have to get in touch with some investors that I know of. Let's talk about one goal at a time. Cause right now you're just like, I want to do, I want to do this. I want to do that, that, that. And I love the idea that you have goals going to the words of future. But the first thought is your first thought is ultimately, how want to do that, that, that. And I love the idea that you have goals going towards the future. But the first thought is, your first thought is, ultimately, how can I get the house that I want to get? That was your first question.

And so my thing is I'm going to teach you how to do it without a credit score. So I would contact Churchill Mortgage when the time comes to do. Let's get that house, and let's get you living in a house that you own before we start talking about doing a spec house at 20 years old right first things first yes sir okay so i actually plan to live at home until i'm married just to be more traditional because i do plan on getting married from now don't plan on having any bills really until like i get the car if i do it on a car loan so i think that you should pay cash for the car. That's thing one.

Because you understand you don't need a credit card to buy a house. You don't need it. You've been lied to. You understand that. It's called manual underwriting. I did it. Dr. John Deloney did it. George Campbell did it.

We've all done it. So it's not just a theory. It's manual underwriting. And all they're doing, you're walking through a lot of the same processes. They're just looking at your actual money, how much income you have coming in, as opposed to your debt. That's the only difference. That's the only difference. So if I'm you, I'm buying my car in cash simply because I need a car. And then if you have any other debt, I'm clearing it up. Go ahead while you're living with your parents, save up three to six months of expenses not for your expenses at the moment but what you think they will be once

you move out of the house so you've got that ready moving out of the house and living in an apartment will actually help you get that it will that's right though and here's the thing because they're gonna they're not going to count your income like you count it uh because they're not going to count people that have zero expenses because that doesn't exist in the real world. And so, you know, go ahead and setting up your life as a young woman, independent woman, is not a bad thing. It's not an immoral thing either, by the way. But it does cost more money, and you'll have your own space, your own place.

And, yeah, I think that's the direction I would go. Courtney is in los angeles hi courtney welcome to the ramsey show hi guys thanks for taking my call sure what's up uh my question is should we sell our home to purchase one that's bigger and has lower monthly payments um but my husband would have to commute about two hours to work no no way he's gonna hate that okay he's gonna hate you can i elaborate a little bit if i may you can but i don't you can but you're not talking me into commuting two hours not a chance i would do that right no it wouldn't be an everyday

thing it would be so he's in law enforcement so he has chunks of days where he's working where he could be staying with his mom and then on his stretches of days off he would be commuting up to us i don't like it i'm just being honest with you you're a part-time husband yeah yeah i mean i'm kind of used to solo parenting with him being gone if you want to do it you do it you called and asked if we would do it we were both unanimous and i know what did he say when you when you guys have talked about it when you suggest that he lives with his mother instead of you so that you can get this house what did he say um i mean he's he's open to it he's very cautious we've looked at the area and the housing

And everything looks good But we're just doing a lot of thinking A lot of praying I think you're prioritizing the size of the house And the housing situation over the quality of your life Of your family And I think it's a bad choice I'd agree with that

I mean that's the way she framed it up A bigger house And a lower payment But I lose control of our family relationships they're all over the place you've scattered brain the whole place yeah that's not a chance not a chance i live eight minutes from my house and there's no one there but my wife and my dog but i'm still going home in a few minutes wow that would drive me bananas i couldn't do it in two hours i can almost be in Knoxville, Tennessee.

And is it two hours going and two hours coming home? Yeah, she said a two-hour commute. That's four hours. Oh, no way. Life's too short for all that. Yeah. I mean, I understand in Los Angeles, you're going to have longer commutes than we have in Nashville. Sure.

We have a better quality of life than you do. That's right. But it's just the same. Two hours is not sustainable in a relational context for your kids. Your kids need their dad more than that. And more than they need their dad living with his mom part-time so you can have this house. Not a chance. Yeah.

I'm not doing it. No, no, no, no, no, no. So it's, here's the other thing um if if both answers suck you have you don't have enough options if the answer that that two-hour commute sucks and staying where we are it's super expensive sucks there's always a third choice you know what's the what's another option yeah there's a fourth option and a fifth option a sixth option uh maybe we don't live in that area of california at all that's right maybe he takes a job in law enforcement in a different place uh that is more affordable yeah we can live in i i mean you know maybe you don't make enough to live in that area that's a fact

and so then you're forced into other decisions. People have done that for centuries in the United States of America. It's what causes people to move to other areas all the time. There's always a migration in this country, and a lot of it is driven by economics. So, yeah, that's a possibility. But, yeah, those aren't the only two options in your life, because both the options you gave me suck. You need more options. This is The Ramsey Show. Jade Walsh, our Ramsey personality, is my co-host today.

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Also, share the show. Some of the services have a share button that you can push and you easily share the link and send that around we'd love to have you do that and of course the um also leave a nice five-star review uh and for those of you that didn't know we are on this show's broadcast on tbn as well and jade i pulled up the tbn app the other day and you and rachel were on and it's beautiful yeah i mean it really looks good y'all look great and the show looked great and the quality of the delivery it's a crystal clear it's a beautiful the set and everything i didn't realize how good we looked yeah we look pretty good nice stuff in the lobby of ramsey solutions on the debt-free

stage mark and hayaley are with us. Hey, guys. How are you? Hi. Great. How are you? Better than we deserve. Welcome.

So where do you guys live? Upland, California. Cool. Now, where's Upland? It's about 30 miles east of L.A. Oh, okay. All right. Cool.

Well, welcome to Nashville. Good to have you. And all the way across the continental United States to do a debt-free scream. How much did you pay off? We paid off $474,000. I love it. And how long did that take? About three and a half years.

Good for you. I love it. And your range of income during that time? We started at $174,000 combined, and we ended at $296,000. Wow. What do you all do for a living? I'm a detective with a law enforcement agency. And I work in accounting. Ah, very cool. Very cool. Very cool. So what kind of debt was the $474,000? We had our mortgage. Yes. You paid off your house? Yes. In freaking LA?

Yes. Oh my gosh. And the lady just called from LA. Her husband's in law enforcement and she wants to move two hours away i know you just are sitting there shaking your head listen to that you had to be i felt bad following that up oh man yeah with a success story of how not to do it this is the right way way to go what in the world how long have you guys been married going on 10 years okay and what's this house worth about a million come on millionaires how old are you two 32 and 34 and you're millionaires yeah that's crazy wow no i mean that's just with the house we didn't even ask about your investments yet oh man well what are those how much in the investments about 200,000 way to go you guys way to go i'm so proud of y'all how's it feel to have no payments in the world

totally liberating yeah in california in california and that the house was about 390 of that and then the rest we also had a helot because we had an emergency hvac replacement and then two car loans and solar panels or solar panels oh man what happened three and a half years ago what was the wake-up call and how'd you get connected to us so that all came from a friend of mine at work he uh i remember someone told me oh you should talk to to vicente he's paying off his house and i thought someone had just spoke to me in a foreign language. So I had to figure out what was going on. So I picked his brand.

He said, it's Dave Ramsey. I said, what is that? I figured it was some magical Bitcoin or something I could jump on. And he said, no, it's just hard work and paying off your debt and having a budget. And I thought, oh, that doesn't sound like me. And here we are three and a half years later. So he read the total money makeover book. And then he pushed me to read it.

It took me probably about a month. And then I read it. And then I was like, okay, I'm doing FPU. So I ran through that. And then we were full steam ahead. Wow. Okay. So it goes from a friend recommending it, speaking in a foreign language.

To thinking Dave is a cryptocurrency. That's the ultimate right there. I love it. That's perfect. And then you get the book. Both of you read it. Somewhat force fed. And then we go from that headlong into Financial Peace University.

Wow. And you did that on your own? We did. All right. Very good you thank you well done how does it feel to be completely free you said it already liberating liberating yeah wow still unreal it still hasn't like fully hit me yet yeah i mean and and it's kind of i mean at your age you say i'm a millionaire that just and i don't feel different no you know it's strange i still just i gotta get him go to work it doesn't change anything you know it does have a nice ring to it though i'll take it i love it i love it so during this three and a half years did you was this just taking extra income you know

from your normal jobs and saying hey we're going to be intentional about paying this off. Or did you kind of put the pedal to the metal? Did you pick up any extra hours? He got promoted during the time. Um, and then because he got a work vehicle, we decided to sell his truck. So that was about a little over $52,000. And we just put that all towards the house. Cause at that way, at that point we had paid off everything else oh wow and then he worked a ton of overtime wow yeah i think i averaged at minimum about 40 to 50 hours every two weeks of overtime wow and on top of his 80 hours oh okay so yeah y'all went hard in the paint very much wow hardcore yeah so what can you get paid an hour on overtime in that kind of situation? So it's time and a half for us.

Oh, it is. So it's not necessarily side work as an officer. It's not doing something for the local church or whatever, that kind of thing. It's your actually overtime at the force. Yes, so ours would be there. And ours is more of like a medical transport for inmates that are in custody and take them to and from the hospital and back to the facility. Okay. Wow.

It's time and a half. Ooh, that's sweet. That's a lot that's not bad that's that's a serious side hustle yeah yeah cool yeah that that adds up and you got a goal and you're getting traction so it the weird thing is is you're tired but you're not burnt right and i think the snowball really gave us momentum i think we started small and we progressed and we both felt that that momentum start and it was like hey we got to get this done we're already this is in progress and it's so close it's at hand so let's get it yeah let's finish it finish it and finish it i like it well done you guys i'm proud of you who was cheering you on i think each other we were probably our biggest cheerleaders yeah and de santos yeah I'm sure is that his name

is that what you called it which your work buddy your work oh Vicente not the governor of Florida right okay I'm sorry but completely screwed up there yeah okay he's like what DeSantis is his last name yeah what I was running for president. But yeah, I'd love to just do a shout out to Vicente because honestly, I was, I give a lot of pushback and I did not want to go down this path. And he, every day he would come in, hey, have you read the book? And I'd tell him, no, not yet. I'm going to get to it. And in my head, I'm like, no way. And then, you know, about a month later I decided, you know, I'm going to read this just to get this guy off my back. And next thing you know i'm reading and i just this makes way too much sense i don't

understand how i didn't know any of this before now i think you guys owe him a real nice steak dinner oh yeah i think so you're millionaires because of this guy that's very cool yeah because he wouldn't let up on his buddy you know that's good stuff it's amazing very cool i'm so proud of y'all. What do you tell people the key to getting out of debt is? I think probably the budget is the big thing. You don't realize how much money you're spending until you put it down on paper, and then it's like, oh, no.

And then I think keeping each other motivated, keeping the angle in mind. Yeah. And yeah, the little one right here, just thinking about his future. I'll go ahead and bring you in. What's his name? This is Rhodes. All right. Rhodes is going to, he's going to scream with us for sure. That's right. yeah and uh yeah the little one right here just go ahead and bring him in what's his name this is roads all right roads is gonna he's gonna scream with us for sure that's right we're not sure if it's debt free but he's all right that's good good you good job you guys proud of you guys

yeah that's fun wiggle worm baby steps millionaires book total money makeover book and financial peace university maybe you can give it to one of your other officers, and you can be to them what your friend was to you. Very good stuff. We're going to send all that with you. Congratulations. We're very proud of you guys. Thank you so much. You changed that young man's life right there, and he doesn't even know it yet.

His whole family tree's changed. His mom and dad are millionaires. Baby Steps Millionaires. Mark and Haley and Rose, Upland, California. $474,000 paid off in three and a half years, making $171,000 to $296,000. House and everything and Baby Steps Millionaires in their 30s. Count it down. Let's hear a debt-free scream.

All right. Three, two, one. We're debt-free! Yeah! Yeah! Woo-hoo-hoo-hoo! Yeah! He'll be all right i promise you this is the ramsey show our scripture of the day luke 14 11 for all those who exalt themselves will be humbled

and those who humble themselves will be exalted. A peacock that rests on his tail feathers is just another turkey. Dolly Parton. Of course she would say that. Dolly Parton. Well done. Gotta love Miss Dolly. All right, Marianne.

It's like state law in Tennessee, by the way. That's true. Marianne is with us in Richland, Washington. Hi, Marianne. How are you? I'm doing great. Marianne is with us in Richland, Washington. Hi, Marianne, how are you? I'm doing great. Thank you so much for taking my call. Sure. What's up? My husband and I are in a bit of a disagreement. We wanted to find out how much we should have in our emergency fund as contract workers. Okay. Are you freelance or do you contract that contracts have extended time on them? I work as a travel ultrasound tech.

And how long is your contract? 13 weeks. They can be longer than that, though. Okay. And what is the probability of some kind of a renewal or stepping into another one? Like 100%, right? Yes, pretty high. Yeah. That's why you're willing to do that rather than taking a job doing it, right?

Right. Okay. What about him? What's his contract? Well, he's a welder, so he travels with me and then just gets work in the area we're in and there's always a demand for welders is there not yes there is okay but his is his is basically a bit work it's um freelance side work right correct yeah all right um well three to six months of expenses is what we always say you would be on the six month of expenses is what we always say. You would be on the six-month of expenses side. What are your monthly expenses? Just typical rent. No, how much?

Groceries. How much money? Does it take for you to operate your house in a month? I would say $4,000. Okay. Six times that. What was the argument about? Well, we're also still trying to pay off my student loans.

No, you're not doing anything. You have a $1,000 emergency fund then. You don't have three to six months of expenses. $1,000. Oh, I see. Does that make sense? It does. So even if we need a deposit for our next rental when we move.

Why would you need a deposit when you move? You get your deposits back, do you not? Typically. We just started this this year. Typically, the only reason you wouldn't get a deposit back is if you didn't fulfill the terms of the lease. Okay, yes, I see. If you don't tear up the place and you abide by the lease, you get your deposit back, right? Yes.

Yeah, so typically it would be, yeah, you will, period. And so that's how you arrange your move. You don't sign a lease that's – I was going to say, are you signing? You don't sign a six-month lease when you have a three-month contract, right? No, we're just month to month. Yeah, okay. Good.

So you'd get your deposit back. You give them 30 days notice. You don't tear up the place. And boom, we're gone. So if you need to – if you're coming towards the end of a contract and you think you're going to be moving, you would put into your budget the deposits for the next place because you're going to have to cash flow those before the last place returns them to you. You're going to have a cash flow bind, but you're not going to ultimately be out of pocket that money. It's just for a short, you know, like you may be a month off.

You follow me? Yes. Yeah. So you've got to prepare for that. But how much is your student loan debt? $37,000. Cool. Yeah. So for you right now, you're in baby step one. You've got the getting in the thousand dollars saved. And then from now on until you get that $37,000 paid off, you're listing your debt smallest to largest and your student loan. Is it one loan or is it one loan broken to a lot of small pieces? Broken to a lot of small ones.

So probably right now your minimum payment is satisfying the minimums of all those little loans. So you've got to make the minimum payment to satisfy those. And then whatever money you have left over, you're going to throw out the smallest of those little loans. And you've got to call in. You've got to call in and say, hey, I paid my minimum payment, but I've got this extra money here. I want it to go to this specific loan. Because if you don't do that, they're going to take that extra payment and they're going to divide it over all those little loans again. And you're going to wonder, well, what happened? I'm not seeing any of the loan balances change. so you've got to call in to do that. You have to make sure it goes on that one smallest loan.

Yeah. When it's gone, it's going to get that snowball rolling for you. So what's your household income, Marianne? This year, it was $130,000. Okay. Then you should be debt-free in under a year. Yay. Way to go. Awesomeness. Thank you. Yeah, way to go. You're doing great. Yeah, that's000. Okay. Then you should be debt-free in under a year. Yay. Way to go.

Awesome. Thank you. Way to go. You're doing great. Yeah, it's good. I'm not sure who won the argument, but you're doing great. Johnny is in Cincinnati. Hey, Johnny, what's up?

Hey, Dave. Not much. Quick question for you about public service loan forgiveness and my current student debt situation and mortgage situation. So I have 96 payments on this public service loan forgiveness with the goal being 120 for the program. I kind of had that planned for since I graduated in 2014. Didn't think too much about it. Had a bunch of life changes take place and now I have almost enough to pay off the student loans and I'm considering paying those off now instead of waiting for the public service loan forgiveness well yeah

yeah did you say you graduated in 2014 correct so this is nine almost 10 years of just well maybe they'll do it 10 years of your life yeah pay them off yeah Not to mention. Johnny, so here's the situation. So far, 97% of the loans that followed the student loan forgiveness program have not been forgiven. They've only forgiven less than 3%. And so if you have a 97% chance that your plan's not going to work. The reason i was son i just told you three out of 100 don't argue with this three out of 100 it works for you actually think you're one of those pay off your loan right yeah right that's what i'm thinking do you owe? What do you owe on it? $86,000.

I'd write a check tomorrow, hon. I'd be free. Listen, you don't want to sit around and wait on the government to make your life awesome because you're going to be waiting the rest of your life and you're going to be disappointed. Yeah. The secret to happiness is low expectations. Lower your expectations of what the government's going to do for you because it all amounts to nothing yeah 10 years making minimum payments he could have been done seven years ago well he's got the money now so today you know either you're going

to be sitting there 96 payments from now disappointed because you're not one of the three out of 100 that actually gets the forgiveness or you will have spent the last 10 years building wealth because you got rid of this crap by writing the check today so the student loan forgiveness program is a scam it's a lie anything that 97 of the people don't get what was promised to them is called a scam yeah it's a lie it's a government lie. Okay. Another one. Just like the Biden student loan forgiveness was. It was a lie. He knew it was a lie.

He knew the Supreme Court was going to throw it out. And he played it at the midterms anyway just to get people to vote for Democrats. It was a lie. We told you when he did it, it was a lie. I've told you this was a lie. So it's a lie. Don only reason for another government lie democrat or republican you can't wait on those morons to fix your life yeah and the thing is you're hearing a lot more about it lately you know you'll see somebody pop up my student loan got forgiven and they're doing these it's a little pop-up forgivenesses to try to keep people hanging on the line right it's a lie yeah when you actually

look at the statistical evidence of the number of people who got rid of their student loans because of the government doing anything it's almost zero you guys less it's almost zero like you know one of my buddies said the other day, Biden forgave $9 billion out of $1.7 trillion on a plan that already existed. Exactly. It wasn't him. He just took credit for a plan that was in place before he was in office. Typical politics moron. It's a lie.

God. All right. Hope I'm through now. That puts this hour of the Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, what's up, guys?

It's Jade. Look, if you like what you heard in this episode and want to know more about getting started on the Ramsey Baby Steps, go to RamseySolutions.com and click the get started button. We'll help you figure out the best next step for you based on your specific situation. That's ramseysolutions.com and click get started.