The Ramsey Show - App - Your Giant Car Payment Isn’t Impressing Anybody (Hour 1)

Episode Date: September 2, 2022

George Kamel & Ken Coleman discuss: How to get your credit score to go to zero, If and when you need a prenup, Getting control of debt, Why you shouldn't brag about your huge car payment (TikTok reaction), Selling a car vs. paying it off.   Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6   Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

МУЗЫКАЛЬНАЯ ЗАСТАВКА Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio, it's The Ramsey Show, where we help you get control of your money, get ahead in your career, and get on the path to living well. I'm George Campbell, joined today by my good friend Ken Coleman, and we are excited to take your call about life, money, career, toxic bosses, you name it. We are here to help. The phone number is 888-825-5225. Now, if you noticed there in the intro, Ken, you heard something a little different, didn't you? Yeah, we got a new studio spot.

Broadcasting from the Pods Moving and Storage Studio. We are super excited to pump and pump to partner with those folks. Good people over at Pods Moving and Storage. If you don't know, they are the industry leader in this space. And a lot of people are moving out there. 23 million people moving each year in the U.S. And one in five Ramsey listeners told us they plan to move in the next year. And Pods has been trusted with six million moves now, and we're always looking to partner

with trusted companies. And their leadership team's incredible. We've been working with them for months and months and months. And we have the honor of having now the Pods moving in Storage Studio. So make sure you check them out if you are in that space where you're going, all right, I'm making a move this year. We know there's been a big migration. A lot of Californians have moved to Tennessee and all over the place. And moving can be a difficult thing. And Pods makes it easy. I love the flexibility you have

having the Pods container right there as long as you need it. Yeah. I feel like I'm going to give a little extra, a little free advice today to start the show. Isn't it all free? It is. Thank you for pointing that out, George. I'm going to give some moving advice that is in addition to our good friends at POTS. If you are one of the 23 million people, don't ask your friends for help. Oh, I'm big on this. I feel like there's a boundary here where I think in college is the last time you can ask a friend to help you move

once you're a grown adult uh don't ask your friends don't promise pizza beer whatever you're you're you're don't do it don't ask your friends for help especially as you don't want to help some will say yes because they don't know how to say no uh others like me will make up an excuse uh as to why i can't help you. I love that. Just avoid the tension altogether. Ken would fake a root canal just to get out of helping you move. I wouldn't put it past me.

Well, the reason I don't work out, and the only reason, is that no one asks me to move when I'm just a little lanky fella. Oh, that's your reason for not working out? I even have offered, and they look at me up and down. They go, nah, I'm good. I'm good. True story. Last time i asked friends to help stacy and i move uh it was in the atlanta area and one of my friends showed up true

story with one of those old school leather weight belts to support his back like that was gonna help you gotta watch out for the back these days ken you gotta protect the back well you're the kind of guy that i would call if i needed like a gluten-free snack and a latte as i was moving james is on it james is snapping back already this hour. He's right, though. We don't call you to help with the couch. The cushion's bigger than you. We haven't gotten to a single call.

We call you for snacks. Not a single call has been taken, and it's already become the roast of George Campbell, guys. We love you, George. This is a true Friday show. All right, let's help Greg out. All right, Greg joins us up first in Fort Collins, Colorado. Greg, welcome to the show.

Hello, fellas. Thank you first in Fort Collins, Colorado. Greg, welcome to the show. Hello, fellas. Thank you very much for taking the call. It's an honor to speak with you guys today. We're honored to take the call. How's it going? Oh, not too bad. I've been a longtime listener. Myself and my new wife have been married since February,

and I converted her over to the Dave Ramsey plan. I've been, uh, uh, on the program, uh, 10 plus years on bait. We're both on baby step three, saving our, uh, our, uh, uh, down payment for, uh, I'm sorry, our emergency fund. Next step is down payment for a house, but I'm calling today because, uh, I came in with a little bit of baggage. Essentially, I had over 27 lines of credit that, thanks to you guys over the past couple years, I've paid everything off. There's no open accounts. I go on my credit report. All of my lines of credit are closed, but I went from

having an excellent credit score to it's been slowly trickling down one or two points per month over the past. The last line of credit was closed in 2020. And when I called both TransUnion and Equ off your debts and closing your accounts, they're essentially my credit score is not even going to go to zero. And what they're telling me is the only way that it goes to zero is if there are negative reports on your account. So I don't have any derogatory issues. All of my payments were paid off in full. And I guess, I mean, we're almost at the point of I'm about to make a contradiction

and start opening up lines of credit just to be able to afford it, or not be able to afford it, but be able to apply for a loan. So I guess my question is, what do I do when I went from an 850, I'm sorry, a high 800 credit score to sitting at 600 and you're telling me that my credit score isn't going to disappear? Well, they're in the business of keeping you in debt, number one. So not the most trustworthy folks to ask about your credit score. Now, when you say going to zero, that is true. Your credit score will not go to zero. I mean, when you look at the FICO score, the lowest you

could go is 300. And when we say we want a zero credit score, what we really mean is we want it to disappear. We want it to become indeterminable. So no, I don't think your credit score is going to go from 600 to 500 to 300 and then maybe hopefully go away. What will happen, how long have you, what's the last account that was closed? How long ago was that? Like July 2020. That was the final, you closed that line, all payments were made? Correct. Okay. And you've contacted every single one of the lenders, the trade lines you had open and said, hey, I want to verify that these accounts are closed? Yeah. TransUnion Equifax also clarified that everything was closed on their end. So I haven't seen any debt collectors showing up at my door. So that's the confusing part.

Well, I mean, for sure you're debt free. I'm not saying that you still have open debt sitting out there. But normally it takes about six to 18 months for that credit score to become indeterminable. So that if you tried to pull your credit score, it would say, no history found. And so I don't know if it's just because you had so many lines of credit that it could be taking longer, but you're saying July 2020. So we're sitting here at two years now, and you're saying it still hasn't disappeared. Correct. And those were student loans house car handful of credit cards yeah so all of my lines of credit everything is the the car and

the student i'm sorry the car and the house were the last two things and everything was closed off in like 2018 so there were no there weren't even any credit cards open at that point so you're saying the last thing that you the very last thing you closed was July 2020, and since then there's been no open lines. Well, I mean, I would keep going with the baby steps, save the emergency fund. It's going to take a while to save up that down payment, and I can't imagine that it could be much longer until the score drops off. And so I would continue checking every few months with those credit bureaus to see if that drops off. You can contact Churchill Mortgage and ask them what this process looks like when you are ready and say, hey, what do I need to do in order to do manual underwriting? Because that's your true question, right? You want to get into a home without a

credit score. Well, I can tell you for sure it can be done. I've done it myself and it didn't kill me. I'm here to tell the tale that I survived, Ken, and I'm proud to say it. So stay the course. I wish I could help you figure out what's going on with all these credit lines, but pull all your credit reports and you double check them to make sure they're all officially closed, zero balances, everything. And hopefully within six months, you're continuing on in the baby steps and we have an indeterminable credit score. Check out episode seven of The Fine Print, where we talk about the dirty truth behind your credit score. If you want more info on that, appreciate the call. This is The Ramsey show I'm Ramsey personality George Camel host of the fine print and entree leadership podcast joined today by Ken Coleman host of the Fine Print and Entree Leadership Podcast, joined today by Ken Coleman,

host of the aptly named Ken Coleman Show. And we are taking your calls about life, money, career, you name it. The number to call is 888-825-5225. Andy joins us up next in Wyoming. Andy, welcome to the Ramsey Show. Hi, dude. How you doing gentlemen? Doing great. How can we help? Um, yes, sir. Uh, I found Dave's, uh, program, uh, about four or five months ago. And, um, I'm considering popping the question and asking my girlfriend to marry me. And, uh, I just want to know, um, more or less your teachings or your thoughts on when a prenup is appropriate. What made you consider that as part of this? Well, I currently do pretty well. Looking at what Dave says, how you configure your networks, I'm, um, pretty much

almost there at a, at a, at a millionaire. Um, and my girlfriend, um, she, I think she's just a little concerned when we get married, uh, that she doesn't want to feel like she's mooching off me. So I'm going to be bringing a little bit more to the table financially, like when we purchase a house together. So let me ask you a question. Did she bring up the idea of the prenup, or she was sharing maybe some of her insecurities

because she's not bringing much income to the marriage, and then you thought, well, maybe if I do a prenup, she was sharing maybe some of her insecurities because she's not bringing much income to the marriage and then you thought well maybe if I do a prenup she'll feel better I want to know more about whose whose idea was behind this question um I think it was kind of us both um when I found Dave's thing I had a little bit of debt and I got it paid off but I'm kind of in a weird spot because I was already in baby step seven. And I had my, my house is paid for what I have in retirements is, is almost close to a million. Plus I got about $80,000 in the bank. And after I paid off my debt, which was about 10,000, um, you know, I make about 120 a year and she makes pretty good income because she's a nurse. What does she make?

I think right now she's almost close to 100. How much do you worry about her marrying you and then divorcing you to take half of your income? Well, I know most of my money is more or less in real estate um my daddy left me a house when he passed so um i make a pretty good living i i'm got about no no i asked you i asked you how much do you think about or worry about this woman who's your current girlfriend who you're thinking about popping the question to how much do you worry about her marrying you to then take half of your assets? I really don't think about it a lot. I guess there's just that always what-if factor.

We've only been dating about six months, but known each other for about 10 years. Well, do you find her to be a trustworthy person? You've known her for 10 years. I do. So she's known you before you find her to be a trustworthy person you've known her for 10 years i do so she's known you before you had any money really yeah and and she was previously married before for a few years and when they got divorced um you know she didn't she didn't take anything as weird as it sounds i think the fact that she brought up a prenup because she's insecure about how much money you have versus what she's bringing to the marriage. George, it doesn't feel like a person who's going to try to take you. I just don't think you need one in this situation.

No, we usually say if you have substantial assets, and we're talking you make a million dollars or you have $2 dollars worth of assets or more. And all of a sudden she shows up in the picture. And I'm not seeing that with this. I mean, you guys have about the same income. Yes, you are further ahead financially, but I don't see this as a scenario where I'm worried about this. So I would continue on without one. And I think you're going to be just fine. And you said in this previous marriage when she was divorced, there wasn't this angle of I'm going to try to get as much as I can out of this. No, sir. No, she doesn't get any child support or any other financial help from her ex-husband,

especially because they have two kids together. You've known her for 10 years. You can't hide crazy for a decade. No, sir. I don't believe she's crazy. I just think, I guess I'm just trying to do the right thing to make sure she's comfortable. Well, make her comfortable another way. I think this is a cry for validation. That's what I think. And I think you got to validate her. And there could be some baggage from a previous divorce

that she's carrying through this. And so what I would say is you don't need a prenup, but I would pause and take this slow. And, you know, you've been officially together now for six months. So take some right steps. Go through Financial Peace University. Do some premarital counseling. Have some hard conversations so that you're both confident going into this. And whether or not you can get her to reveal it to you or not, but even through a professional counselor, George is right.

What is at the root? The question that you need to help her answer is what is at the root of this insecurity, this financial insecurity in comparing our incomes or our savings? There's a root. There's something deeper. It's manifesting itself in this conversation this way, but it's a much deeper issue. Get to the source of that. Get some healing around that source, and I think everything's going to be awesome. Thanks for the call.

Appreciate it. Jason joins us up next in D.C. Jason, welcome to the show. Hey, guys. How are you? We are doing great. How can we help today? Well, basically I need some guidance and some reassurance that everything will be okay.

I'm about $60,000 in debt. I have a wife and soon to be two kids. Our next one is due this weekend. Congrats. No, thanks. Basically, we're living paycheck to paycheck. I'm the only one working because my wife basically stays home with the kids because it's going to be cheaper that way.

But I'm not sure how to navigate this. How much money, Jason? Let's simplify this because you sound really scared, my man. Yeah. And I want you to know, first of all, everything's going to be all right. That's what I first want you to hear. So I literally want you to take a deep breath right now. All right.

I mean, literally, you're going to be okay. Now, how much money, let's simplify this, how much money, let's give me a real number, would make a difference between you being paycheck to paycheck and would give you a sense of, okay, I can dig out of the 60, but I'm not going to be stressed out of my mind in digging out. What would be a number, if we could give more income right now, that would make a real difference? How much more money? Probably double what I'm making now. Give me a number. I need a number.

About $100,000. You're making $100,000, and you need $100,000 more? You make $50,000? Oh, no. I make $1,000 a week before taxes. Okay. Okay. That's what I'm looking at. All right. So what I'm trying to do is I'm trying to simplify this because it's really scary right now, isn't it? Yeah. Okay. So here's the deal. You're making $1,000 a week. Is that gross or net? That's gross. That's your gross. Okay. So here's my point. If you brought in an additional $1,500 to $2,000, that would make an enormous difference every month, wouldn't it?

Yes. My friend, right now in this economy, and you're in the D.C. area, there are so many part-time jobs that you can do. You're going to be tired, but at least mom is going to be home with the babies. But right now you could get easily 20 hours a week and making $20 an hour. And you just start running the numbers on that. But right now, the quickest way for you to get some relief is more income while you're working the baby steps. The baby steps are going to work, but what you need for relief is more money coming in. So if that's Walmart, Target, your stock in shells, whatever, you go find you a good 20 hour, 25 hour a week, part-time job paying you 18, 20, $22 an hour. And those are there.

I talk about it every day on the Ken Coleman show, and that's going to make the difference. Do you feel me? Yeah, I hear you. Can you do it? Yeah, I can do it now. You better do it. Well, I drive for food delivery services. I have to work sometimes. That's not enough money. It's not enough money.

I know. My friend, go get you a job where you don't have to drive all over the place and put wear and tear on your car. Go get you a $20-an-hour job at one of those big retailers or whatever, doing anything you can. Listen, more income is the play right now, and it's out there. The best job economy we've ever seen. The August jobs report just showed it. Go get some more money by working longer hours. Jason, hang on the line. I'm going to gift you Financial Peace University. Watch lessons one and two. It's going to help you get a kickstart on budgeting and getting out of this mess, man.

We're hoping for you. This is The Ramsey Show. I'm George Campbell, joined today by Ken Coleman. This is The Ramsey Show. If you've been watching the news or been on the car lot lately, you know that car prices have been insane. And with that comes some insane decisions. And then with that

becomes a new average monthly car payment of $733 according to Kelly Blue Book. Wow. Ken, that is insane. Wow. That's the average?

That's the average. Wow. And interest rates, of course, rising. So the average? That's the average. Wow. And interest rates, of course, rising. So the average car loan interest rate starts at 4%. My chest is getting tight, George. It's too much. Wow. Because cars are getting more expensive, of course, the car payment goes up

because that car that you used to pay $35 for is now $45 or $50. And so here's another, I don't want to give you a heart attack on there, Ken, but the average price paid for a new vehicle is up to a new record of $48,000. Wow. That is nuts. And so we like to react to some videos here,

and so the producer sent us this one that makes this number look low. You ready? I'm going to about take your breath away. Is that right? Yeah, you ready for this? Ken has not seen this video. I've not seen this.

This is not method acting. This is true. We're going to get Ken's true reaction. Roll that beautiful bean footage. Sir, what is your car payment? Mine is $1,325. And what kind of vehicle is that? It's a 22 Ford Raptor. Okay. You have another payment?

I do actually. My wife's, hers is $1000. It's a 22 Ford Expedition. Perfect. Hey ma'am, what is your car payment? $2300. $1386. And what kind of car requires a $1,386 payment? A 2022 Grand Wagoneer Series 3. Hey, sir, what is your car payment?

I got a couple of them, but the first one's $1,445. What kind of car is that? That's a new GMC Sierra 2500 Denali. What's the other one? It's a wide-body CTS-V. That ctsv that's 1161 i don't even know what that is wide body something oh okay wow so here's what we just witnessed for those of you listening on radio those people work at a car dealership yeah and that's the real numbers okay i was gonna ask you where they're from because they did you see the gal that struck out to me stuck out to

me when she said he said it was the setup and she literally went like it like just laughed it off like it's uh you know like uncle larry and his gout and we hear about every thanksgiving you know it's like well here here it comes i gotta go to thanksgiving at the coleman's yeah well i don't actually have an uncle larry and and gals nothing to joke about. But it's true. But but then she was just so like, well, this is what it is. Right. I mean, it's like there's so cavalier about.

Oh, yeah. Here it comes. Like she knew the video was coming. She's like, all right, here's your thirteen hundred eighty six dollar car. I got to tell you, I have heartburn and I haven't had anything to eat today. I need a Tums right now. There's some in the in the studio bathroom. OK, I'll get those during the break.

So let's recap what just happened. These are folks that work at a car dealership revealing how much their car payment is. And of course, if you work at a car dealership, you get the latest and greatest. Yeah, all of those were brand new cars. The 22 Raptor, $13.25 a month. We got the GMC Denali's $14.45.

And it hurt my brain, Ken. It hurt my heart more than my brain. Yeah. That first couple, when he talked about his wife's car, with his $2,300 a month in car payments. And what's crazy about this is that nobody thinks about this payment as going towards an asset that is devaluing. That's right.

Every mile you drive it, it's losing value. It's not like a house. Well, and we've got stats on this, Ken. We know that the average car depreciates at an insane rate. That's what I want to know. I mean, we're talking 40, 50, 60% depreciation after five years. Oh, boy. So let's walk through depreciation, and then I'll do some other math that will make you never want a car payment again so the minute you drive the car off the lot already nine to eleven percent depreciation so let's say you get a car for 35 grand one minute later it's worth 31.5 dude i would literally be the guy with that in my back of my head i would be exiting the car dealer parking lot and i would just be like stuck i i couldn't press the gas anymore they're like sir we need you to leave

the lot i'm like it's gonna drop nine you to leave the lot. I'm like, it's going to drop. 9, 11%. Imagine just having four grand in your pocket and throwing it out the window when you leave the car lot. And that's not even with your interest rate. So you are paying interest on a depreciating asset. So one year later, the 35 grand car, now we're at 28. Two years, 24. Three years, 21.

Four years, 18. Five years later, the 35 grand car is worth $15,000 on average. So I did some math, Ken, as you know, I like to do. And if you invest that payment, let's say you got a reasonable car that was maybe $10,000 instead of $48,000. And you instead invested that 1400 bucks with compound growth, let's say at a 10% rate of return over 20 years, that $1,400, that's monthly, so we're talking $1,600 a year, that turns into almost a million dollars. How do you like the car, friends? That car after 20 years ain't worth nothing. You could have had a million bucks. Now, if it was 30 years, would have 2.7 million dollars does that not make you

go maybe this is a bad financial decision yeah okay but that makes too much sense george you're right i'm sorry ken uh i gotta my buddy's got the denali and so i gotta get the dually to impress this is the deal so we think that we deserve to drive a nice car that's the first problem this is this is inherently human stuff i'm serious about great like you can't make sense with numbers because that that doesn't that doesn't uh help us with our humanness because our humanness goes well look i gotta have a car and if i had to gotta have a car gotta have a nice safe and reliable and everybody's got a new car and if i get the new car it's got a warranty on it so i'll take it down to the old gmc and get it fixed it's all this reasoning and we kind of talk

ourselves into this narrative that goes yeah i don't want to hear that okay that's great george but i gotta have a car and this is and this is really the problem that's the root of it and a lot of it is comparisons if we're going to be honest. And you want to have a facade that you're successful and you're doing well. I've never owned a new car. Same. Never done it. And, you know, I like old cars.

You're an old soul. But let me give you another little thing here, all right? So I've driven older cars, you know like just late you know just normal stuff but then i recently had the opportunity to get a uh a volkswagen convertible karmann ghia that is worth about 24 grand easy 24 grand that's big time it's 48 years old no it's 50 some years old right that's older than you it is just barely thank you george what are? I'm an antique? You could be if you were a car. Yeah, my point is if you're going to buy something and you want a car, then get something classic that actually has some value.

But all these new fancy cars aren't worth crap. It's like buying an iPhone. Two years later, you want to trade it and get a new one. It's gone. And a lot of this, Ken, I'm going to throw the guys under the bus here because men are susceptible to this, the trucks. Truck guys are a certain breed, and Dave Ramsey's a truck guy himself, and of course he's paying cash.

He's not making payments. He's not paying interest. But there's something about truck guys and wanting to impress the other truck guys. Yeah, my truck's bigger than your truck. There it is. And Dave always uses the joke, if your truck payment is bigger than your mortgage payment, you might be a redneck. Oh, listen, I was listening to that Comedy Roundup channel on SiriusXM, because our show's on

SiriusXM, and it was Jeff Foxworthy, and he said, if you are making out in the back of a truck that is being towed to the repo, you might be a redneck. That's brilliant. You know, and that's your problem. That's quite the visual. Yeah, I know. Well, I cleaned it up a little bit. It's just one of the things causing America to be broke.

Because you add that with the student loan crisis and living off of credit cards because you need the rewards and the airline miles. That's right. Then you tack on the giant mortgage payment because you wanted to get into a home because you were throwing money away on rent. Yeah. Now we're talking thousands and thousands of dollars going to lenders so they can have big buildings downtown while you remain broke forever.

So I want to set some people free, George. Please. Nobody cares how big your truck is. Nobody cares- Say it louder for the guys in the back. Nobody cares how big your truck is. Nobody cares how nice your truck is. Say it louder for the guys in the back. Nobody cares how big your truck is. Nobody cares how nice your truck is. Nobody cares how nice your car is.

Nobody cares how old your car is. Nobody cares if your car backfires when it pulls into the parking lot. At the end of the day, everybody else has got their own you-know-what going on in their life, and they're trying to deal with it. They don't care. So why do you care what they might think? I got news for you. They don't care. So why do you care what they might think? I got news for you. They don't care.

Pastor Ken just dropped a sermon right there, folks. And if you're embarrassed by your car, guess what? There's always spaces in the back. So here's the deal. Not caring what other people think is a superpower. And when you gain that, you can gain financial freedom. That's what we're here for. And riches.

Boom. This is The Ramsey Show. I'm George Campbell, joined by Ken Coleman. We're taking your calls, 888-825-5225. Right now, folks, you're hearing a lot of talking heads in the news stirring up fear about the real estate market. And here's the deal. If you believe them, you think the housing market's going to crash. It's going to be a repeat of the 2008 housing crisis, but you're not hearing the truth. And you can't make decisions based on fear. You need the facts, and here they are. In 2008, there was a huge supply of homes, but not enough buyer demand, so home prices dropped. That's not what's happening in today's market. Right now,

there are half as many homes for sale and twice as many buyers. That means home prices aren't going down anytime soon. They're growing at a slower rate. We're seeing these overinflated asking prices come back down to reality. So if you're ready to buy or sell a home, you don't need to wait any longer. You can still win in this market, but you've got to work with a pro, an experienced real estate agent. And we've done the hard work for you vetting agents who know your local market and have the transactions to back it up. So if you want to connect with a Ramsey trusted agent for free, go to ramsaysolutions.com slash agent and check out our endorsed local providers program. Again, that's ramsaysolutions.com slash agent. Well, Kent,

I see that the team has got you some Tums. Well, our last segment, you were breaking down the fact that the average car payment now in America has grown to $733 a month. And then you showed me a clip of people that have over $2,000 a month in car payments. And so I made a joke about Tums and then here they are here they are and so that gave me a little bit of heartburn i'm gonna try a couple here you know these are different colors ken might choke oh there we go we're gonna witness this oh we got it which one do you think i'm gonna do two i think the orange is the best orange the green one's gross to me we can all agree on that right yeah they're very fruity so i gave ken heartburn talking about these are not

your granddaddy's tums please Please keep chewing into the mic, Ken. Let's just run this thing into the ground and have James take us off the air. We love it. We're here for it. These are the tropical flavors. Oh, good. Assorted fruit, it says. I'm glad that the team sprung for the tropical flavors.

I feel much better, but I'm going to tell you something. You ought to be grabbing for the Tums, too, if you have over $1,000 a month. $733 a month in car payment. With that kind of heartburn, you're going to need a stronger antacid than that. I'm going to need a swig of water. Well, let's go to the phones. It's a free call, 888-825-5225. Caleb joins us in Cincinnati.

Caleb, welcome to The Ramsey Show. God bless you, gentlemen. How are you all doing? Good. What's your car payment? $550. There we go. All right. You're below average. What are we celebrating this now? I'm so confused. How can we help today? Well, my main question, I own $19,000 left on my car. It's my one transportation to work. Do I just take this punch and just get it paid off and never make this

mistake again? Should I look to refinance? Should I look to get it off my hands? How much is it worth? They say at the auction it's a lot less. It's a 2019 Toyota Corolla. How many miles? 80,000. What's the Kelly Blue Book on that? I honestly don't know. You need to know. There's some homework you got to do. And check for private sale. We're not going to take this thing to auction.

If you want to get the best bang for your buck, it's going to be through a private sale. You can also check sites like Carvana and Vroom and those kinds of online car buying sites. What was the year? 2019. 2019 Toyota Corolla, 80,000 miles. Ken is doing his due diligence here, doing the research for you to be a good guy. Well, I mean, this takes just moments. Well, he does that.

Help him out, George. I'll do some research. Caleb, what's your income? $32 a month. $32 a month. Is that take-home or is that gross? That is take-home. Okay. I mean, it's a lot of car for your income. It's not outside the bounds. We say that we don't want more than 50% of your

income tied up in things with motors. I've got an update, George. All right, give us the update, Ken. This is Carvana, a national brand, and they've got a used 2019 Toyota Corolla, 79,000 miles. It's right about where you were at, 21,500. All right. That's what they're selling it for. That's what they're selling it for. But, again, if you sell this privately and you come in a little bit under what the car dealers are asking for,

you can move this thing and not have to go to auction. That's all I wanted to tell you. It's an option as George walks you through. Do you have any money saved? How much do you have in cash? I don not have to go to auction. That's all I wanted to tell you. It's an option as George walks you through. Do you have any money saved? How much do you have in cash? I don't have anything saved, yeah. Okay. How quickly could you save up a few thousand dollars?

You're getting side jobs. We're selling other stuff. How quickly could you save up five grand? If I go back to my second job, I can make it in a month. Okay. I like that. How quickly could you pay off the car, the 19K, if you really hustled? Realistically, if I really, really pushed, a year.

How much other debt do you have? I have, it's like $30,000 total. Seven of it is tied up in student loans. I don't know what I'm going to do with that. And then the other stuff is like medical. Me and my wife got married, so my silly young butt put rings on there. I got $2,000 worth of rings. Just silly stuff.

Is your wife working outside the home? No, we have a nine-month-old daughter. Oh, congratulations. Thank you. Well, this one's going to be on you. Is your wife working outside the home? No, we have a nine-month-old daughter. Oh, congratulations. Thank you. Well, this one's going to be on you. We're going to get back to that second job. We're going to get the income up.

I'm okay with you keeping it, but I want you to have a very aggressive goal of how quickly we're paying it off. What's her car worth? Does she have one? She does not. Okay. Then that means we're within the parameters here. My plan was to stay with this one and pay it off and save on the side and get her something that is safe or whatever,

even if I had to get a little Honda Civic that I can take to work and let her and the baby use this car. I wanted to get a second vehicle, but I just, every time I hear $19,000, and I mean, I've been have you done the research on what you can get for five thousand dollars um i have um as far as like um what is it let go or whatever you know the facebook marketplace, a private little thing like that. But is that what you would suggest? I am suggesting you research it. I don't disagree with George. I think that you can go work your tail off and make some really good money

and begin to pay all of the debt down using our debt snowball. I mean, the $19,000, I think, is your largest debt. But as it relates to $550 a month, I believe you said, if that were to come off of your budget, you would feel a lot better. In a year, you'd have close to seven grand. Yeah. So I look at things like that and I go, okay, if I can quickly come up with five grand and then I can sell this car and I can go get a decent car. I mean, it's an older, it's going to have higher miles, but I can get a car that's going to get me from point a to point b and it knocks out a huge chunk of debt man i do i have some wind in my sails i'm always for fast forwarding the relief and the peace especially when you got a newborn yeah you got

a you need a second car pretty soon the newborn doesn't care how nice the car is all right he you know and and quite frankly it doesn't have to be fancy it just needs to be dependable and if it does need mechanical work something that doesn't cost you a ton it's it's out there so i that's what i would be doing because i could feel the pressure on you right now and i think if you were to relieve 550 a month it would be massively huge for you. So, Caleb, how much does the second job make, if you went back to it? It's $14 an hour. It's part-time, three days a week, so I make like $250 every week. Okay, so we're talking $1,000 a month. What's that job? Fast food. Yeah, bro. I started fast food when I was a kid, so that's just something safe and easy to go back to. I look

into retail right now, too. I would, too. I would would too. Even if you got to schlep some tables, I'm telling you, man, the opportunity to make 20 bucks an hour or more right now is right in front of you. Okay. Well, I make 20 an hour at my first job. Should I look to make more? Yeah. Increasing income and selling stuff. Well, fast forward this really quickly. What's that job? the $20 an hour? I'm a welder. Oh, cool. Yeah. I mean, I know we're big and I know that there is a very high ceiling for welding, but I'm fresh out of school and I'm trying to get that six months on my resume. I love it. I'm trying to be patient, trying to let God do his thing. Good man. Caleb,

listen, if I'm you, I'm talking to everybody I know in the welding industry and I'm trying to be patient, trying to let God do his thing. Good man. Caleb, listen, if I'm you, I'm talking everybody I know in the welding industry, and I'm looking for side jobs because I think you getting side jobs as a welder, even though you're young and inexperienced, is going to pay you better than the $14 an hour fast food thing. And more experience. I'm here for it. We're pushing for you, man. You got this.

And the way you've been talking, I think we're getting rid of this car. We're saving up buying a cheap beater right now. And that'll get you debt free a whole lot faster and get you to financial peace. That is the goal. Thanks for the call. That puts this hour of the Ramsey Show in the books. My thanks to my co-host, Ken Coleman, all the folks in the booth, Austin, Ben, James, Zach, and Andrew, and you, America. We appreciate you listening in. We'll be back with you before you know it. Do you love a good day, Brandt? Want to see the latest Ramsey Show videos going viral?

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