The Ramsey Show - App - You’re Gonna Lose Your Butt on This (Hour 3)

Episode Date: March 6, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss:  "Should I finance a vehicle from my employer?" How to save for a child with disabilities, "Am I house poor?" Update on real estate trends in 2023, from the blog: 2023 Real Estate Trends: What You Need to Know, Getting out of a financed vehicle. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Take our FREE 3 minute assessment: 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

Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studios, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. The phone number is 888-825-5225. Thank you for joining us. My co-host today, Jade Warshaw, Ramsey Personality. We're here to answer your questions about your life and your money, 888-825-5225.

Colby's with us in Las Vegas. Hi, Colby. Welcome to the Ramsey Show. Hey, how you doing? Great, man. What's up? So, I just recently graduated high school, got a job as a car salesman. I still have yet to buy a car. I'm just using like a hand-me-down my dad gave to my brother, gave it to me,

then I'm going to give it to my sister in about eight months or so. So, my dealership, if they'll pay, if you buy a car, they'll pay your payment. They'll pay $500 of your payment every month for 36 months. And I was planning on buying a car cash, but I was just curious if I should take advantage of this and just put as much money down to get 500 bucks a month and obviously have the money to pay it off if I need to. But yeah, free money, is that something I should do or shouldn't do? Have you asked them if they will give you money towards you buying a car in cash from them? No, it's just they just do a payment that the owner of the dealership I work at will give you the money. No, I'm not going to do it.

Yeah, I have about $40,000 saved, and I was just planning on just buying some cash, and if not, doing the payment. Where did you get $40,000 while you were in high school? I never spent it, really. I hustled. I've got as many jobs. Every year since I've started working, I've pretty much tripled how much I've made at every job. What was your best job?

What's the thing you made the most money at? This one. I'm making about $7,000 to $10,000 a month, give or take. Okay. So you're already selling some cars. Yes. Yeah, I've got a smiling face, I guess. And you graduated from high school last spring?

Yeah, about, yeah. Good job. So you're 18 years old? Yeah, about, yeah. Good job. So you're 18 years old? Yes, sir. Wow, very impressive. And I was just planning on buying something, probably a truck, something nice, not too, and they give you crazy money off on trucks. Yeah.

Well, here's, the way I ask these ask these, we answer questions like this is which of the answers puts me in the best position giving, given anything can happen 10 years from today. Okay. 10 minutes from today. If that's all you're thinking about, you do this deal, right? Cause it's really juicy. It really sounds appealing 10 years from today um you work there another year and a half and something bad happens to the dealership or

whatever and they just decide they don't want you anymore and you get to leave for whatever reason you've still got 18 months of $500 payments left because they're not going to pay these payments if you're gone. Yeah. Yeah, I was just planning on just saving the rest of the money I have and having them pay the payment, and I could pay it off cash or something like that, get fired or quit or find something better. Yeah, and I assume this needs to be a new car for this deal, right?

It does, yes. Yeah, so you're going to lose your butt. They go down in value like a rock. If they really wanted to help you? No, they're trying to get him to be a part of what he's selling, a part of what you're selling. Yeah, of course. You can talk about you just bought the same thing the same way.

And that's the reason for this. It's not necessarily to be a blessing. Um, the, uh, so now I, I, I,

if you were, uh, like one of my nephews or something, I would tell you not to do this. I, I, I, I understand the appeal of it.

It sounds kind of fun. It sounds kind of cool. It sounds like there's nothing could go wrong, but number one one we don't tell people to buy new cars unless they have a million dollar net worth because you can't absorb the loss you're going to lose your butt you buy a forty thousand dollar truck whatever it's going to be worth half of that in 36 to 48 months and so you need to be buying things that are going up in value, not down in value. This is your largest asset, and it's going the wrong direction. And that's the problem with the scenario.

So you're being tempted into something that you're not financially really ready for, even though you have the money to pay cash for it. But you don't have the net worth to absorb the loss of value that you're going to experience here. And so we tell folks not to buy a new car unless you got a million dollar net worth. So that would be the answer to the question. And in this case, you're signing up for car payments. I know they said they're going to pay them, but not if you're not there or they're not there. That's true. And so you're on the hook and you're going to find out when things go sideways the way this stuff looks it's not good so no i i don't

want that um you know at all if you were going to write a check and pay cash for the car today i would tell you not to do it too by the way same thing right brand new truck you know and and i'm glad you're making money selling cars i'm glad you're're helpful to people, and there's nothing wrong with that. I appreciate that. I appreciate a good salesman. I really appreciate that you're doing this. At 18 years old, you're really pulling this off well done. That's good.

Just go make yourself a big old pile of money, man, and don't get sucked into owning a new car. And that's exactly what I would do in this scenario. Now, if you want to get rid of the little dinky car and get you a ten thousand dollar truck and you pay cash for it out of your money that'll be fine that'll be fine but um if uh if the only way you get to work there is you have to be a customer that's a problem that's a problem so i agree open phones at 888-825-5225. Alex is in Baltimore. Hey, Alex, how are you? How are you doing, Dave? Good. Good.

How can we help? My wife and I currently, we're taking your piece, University at our church, currently on step two, but we are kind of looking ahead at the college plans for our two children. We had a small savings account for each of them. We moved our daughters over to a 529, but our son, he's 6 years old and he's autistic. And we're not quite certain about his college future, so we're very hesitant to set up a 529 for him

and just kind of wanted to get your input about whether there's any other options or should we just kind of take the chance and go with the 529 for him uh i wouldn't set aside for his future yeah i wouldn't i would just i would just have a mutual fund that's in your name and your wife's name and you just put a little label on that file with his name on it but he doesn't own any of it he has no rights to it it's just your money you're saving for him the same amount you're saving for your daughter for college but we're going to help him with uh maybe he's able to maybe he's high functioning able to go going to help him with maybe he's high-functioning, he's able to go to school, higher education,

or maybe he's going to go trade school, or maybe he's going to study code or whatever. I don't know. But you'll have some money earmarked for him, but that has no constraints on it. The only disadvantage to that is you've got to pay taxes on it as it grows. But whoop-dee-doop-dee, you need the control of it. You don't need it dropping into his name

um and he has legal rights to it and then uh you know make some bad decisions that's not good for him or you so this is just a taxable brokerage account it's just simple invest in a mutual fund open a mutual fund and that's yours yep but you just kind of write his name on the outside of the file in your file drawer so you know that that's little Henry or whatever his name is, right? That's his deal, right? And he's got access to it whenever he needs it. There's no penalty for that. No, none whatsoever.

But you'll pay taxes on it as it grows. This is The Ramsey Show. Have you ever met a natural-born leader? Well, let me answer that for you. No, you haven't. I've been to the hospital. It's a boy. It's a girl.

They never come out and say, it's a leader. Leaders are built. They're not born. The great thing about it is you get to decide what kind of leader you're going to be. You can be loud and crazy like me. You can be quiet and very detailed and still be a leader. There's lots of ways to be a leader. If you want to take your leadership to the next level, join us and the thousands of business leaders who have already grabbed their seats for Entree Leadership Summit this May 30th through June 2nd in Nashville. You're going to learn from some of the best minds in leadership,

like Malcolm Gladwell, Dr. Jordan Peterson will be speaking, Manit Chauhan will be speaking, Willie Robertson of Duck Dynasty will be speaking, I'll be speaking, Ken Coleman, Dr. John Deloney will be speaking. It is quite a lineup for the week, and we'd love to have you. My friend Brian Buffini is joining us, too. Yeah, you don't want to miss this. It's going to be incredible.

Entree Leadership Summit, total game changer for leaders and business owners. RamseySolutions.com slash summit. We've got just a couple tickets left. It is basically sold out, but if you want to come in, that's it. Entree Leadership Summit at, what way did you get your tickets? Let me try one more time. RamseySolutions.com slash summit. That will get you there.

So, Jade, I just got this at the break from our real estate team. Inventory on real estate is increasing year over year at a higher rate and is still well below historical averages we still have a housing shortage even though number of homes for sales increased 67 percent over last year the total number of unsold homes including homes that are under contract has increased only by 13 percent interesting newly listed homes are well below historical averages and we are at 15.9 percent fewer homes being listed compared to last year the median price of homes for sale has increased 7.8% in February, lower than January's growth rate. Okay.

But we're up housing prices nationally, up January, up February, much like we predicted. Yes. When we did the real estate live stream last fall, we told you there was going to continue to be a shortage. We're going to see a 7% to an 8% increase in prices in 2023, and we are currently tracking for 7.8%. And homes are spending 67 days on the market, which is 23 days longer than last year,

but still shorter than most times in history when they run 90 to 120 days. I mean, if you want to compare the market to crazy town which was 2020 and 2021 were things i remember when we sold our house i mean the timing to be a ramsey personality and move from miami was incredible well our real estate agent was apologizing because we only had eight offers yeah I mean, that's just slacking off right there. You know, it's like, sorry, we didn't get, you know, that day, the day of the open house. Sorry, you know, we only had four today and only four the next day.

So translation, if you're not putting your home on the market because you think the market is slow, you're statistically speaking wrong. if you're not putting your home on the market because you're thinking the real estate market is down statistically speaking on a national average you're wrong so you mean the sky is not falling great time to sell a house when the house when the when there's a housing shortage. We have more houses for sale than we did this time last year. But again, we're still coming out the back of crazy town last year, right? So we're returning to a more normal level of inventory with still more buyers than sellers.

Still. than sellers still even with high interest rates but the interest rates do not drive the market as much as supply demand drives the market meaning meaning the prices are going to go up as long as there are more buyers than sellers there's a housing shortage you're always going to see price that's why we've got an eight percent seven point eight percent price increase or schedule i mean that's what we're tracking for annually now it's not 32 percent during crazy town right and that's what people can't get used to so um i was on megan kelly's podcast the other. She's been a friend a long time. And she said, so what do you mean? I said, well, Megan, it's like if you're driving your car like 90 or 100 miles an hour and then you slow down to 45, it feels like you're crawling.

Yeah. And she goes, I've never had that feeling. That's funny. I think she obeys the law. But yeah, there you go. I just feel like we have short memories as as as American people. Our memory is is so short. We compare not to historical distance. You're right.

But to what the last thing I felt less like Friday. That's what it is. We're basing it on pure emotion. And are we you know, what are we hearing on the God awful news channel? Right. Yeah, that's what it is. Just telling on the uh god awful news channel right yeah that's what it is just telling us the world's coming to an end world's coming to an end if you didn't know the world's coming to an end and you're gonna die of a tornado too by the way i just think that's a problem though when we we're listening to a talking head tell us something contrary to what

our own experience is telling us what our own memory should tell us and the reason i put these this data out when i got the email at the break i thought you know john delaney talks about facts yep are your friends yep when you have fear or you're worried or whatever facts are your friends in the middle of an emergency situation stop and analyze the facts. Facts are your friends. What's the real situation here? And what you most of the time run into when you do that is it calms you down and you say, I'm not going to sweat the small stuff. And most everything that I'm worried about is small stuff in the scope of your life.

Yeah. In the scope of your life. Yeah, that's it. So there you go. Kelly is with us in Chicago. Hi,lly welcome to the ramsey show hi dave hi jade thanks for taking my call no problem how are you doing good how are you guys good how can we help so i'm just calling just calling with a question um so i purchased a house one year ago we We closed on April 29th of last year. Purchased this home for $320,000.

I currently still owe $298,500. And I'm just calling. So I originally purchased this home with the intent of living here with somebody. That relationship is no longer there, and he never even ended up moving in with me. So I make these payments by myself. So I work full-time, and then I also have up moving in with me. So I make these payments by myself and I'm feeling, so I work full-time and then I also have a part-time job

and I'm feeling like maybe I'm a little house poor and was considering selling, but I'm wondering if selling this soon would be a mistake. How much are your monthly payments? $1,800 for just the mortgage. And how much is your monthly income? It varies.

I pick up a lot of overtime. I make $42 an hour full-time as a nurse, and then part-time I work like 20 hours. How much money are you bringing in a month? About $4,500. Yeah, you're starving to death. Mm-hmm. It's not fun, is it? No.

I was like, I think it might be time. As long as you guys think it's wise, I think that's probably what I'll end up doing. Why wouldn't you? Because you're feeling the pinch already. And it's tied to a negative relationship as well. So what would keep you staying in it? Do you foresee your income going up drastically?

Is there something that we don't know about that's giving you hope? No. Well, I contemplated renting out a room because it is a three-bedroom home and just me living here. So I contemplated renting out a room. But I'm thinking with all of the fees and you never know what's going to go wrong with the house, I just think that I would be blindsided. I'd be better off selling and, like, backpiling money and paying cash for one, you know,

in the next year or two. I like that. In the short term. Yeah. In the short term, I would be moving back home, which I don't love that idea, but temporary.

So I would get out of the home. I'm not really sure why you've got to move back in with your parents if you take some if you I mean you're making an income you can't rent in your area I could I just thought that would be the cheapest easiest way I mean I would pay rent there too so I got to be the same thing yeah I think I'd get me an inexpensive rental and sell it and the moral of the story ladies and gentlemen is never buy a home with someone you're not married to. Well, it's a committed. You're not married.

If you were married, it'd be committed. This is The Ramsey Show. Jade Warshaw, Ramsey personality personality is my co-host today chad and tracy are with us on the debt free stage in the lobby of ramsey solutions headquarters hey guys how are you great doing fantastic welcome welcome where do y'all live columbus ohio cool welcome to nashville And how much debt have you paid off? We paid off $218,000. All right. How long did this take? Just around eight years.

Okay. Way to go. And your range of income during that time? We started off making about $119,000, dipped down to maybe $109,000, and now we're about $149,000. Cool. What do you all do for a living living i am a recruiter at a manufacturing company and i'm in procurement in the automotive industry ah very good okay

218,008 years what kind of debt was this a variety of student loans credit cards, line of credit. HELOC. Yep. You pay off the whole house or just the HELOC? So you're debt-free house and everything? Yeah, everything. I love it. Look at it, weird people.

Good job, y'all. Cool. So what's the house worth? The house, I think I just saw the other day, is worth about $430. All right. I love it. Good for you guys. When you guys said you paid off the house, somebody to the side over there got really,

really excited. So these two, Jeff and Julie Reyes, are our mentors because they taught us our debt, or I'm sorry, our class that we took. Our first FPU class. Oh, wow. We are, they're just awesome. So they really motivated us to take the class, to get debt-free. So we owe a lot of our story to them. That's exciting. Where did you take the class?

We took the class at our church, which is Discover Christian Church in about 2014, I believe it was. Yes. Excellent. Dave, if I could, if I may for a second, tell you a little bit of history. I started to get into real estate investment. Not a little bit of parallels to you. In 2008, 2009, everything crashed. We couldn't find rentals. And I had to file bankruptcy in 2012.

And so that was quite a bit of strife. In fact, I filed the paperwork on my birthday, which is pretty exciting. But, you know, I asked Tracy if we could take financial peace. I've been wanting to take it, wanting to take it. And finally, in January, the Reyes's over here were teaching a class, and that started our journey. Oh, wow. Very cool. Very cool. So really from the bottom all the way up then.

Yes. For sure. Yeah. That's a long trek. It is. Congratulations, y'all. Thank you. We have two boys that have some debilitating diseases,

and that's our motivation. Yeah. Get you where you can take care of them instead of paying some bank. Amen. Exactly. Amen. Exactly. Amen and amen. Well done, y'all. How's it feel to be completely free?

It feels amazing. Yeah. We haven't been able to walk on the grass yet because it's been wintertime, standpoint of us being debt free uh to uh now having uh wills and special needs trust set up for our boys absolutely um and knowing that if something happens to me or something happens to tracy we're gonna be okay yeah and they're gonna be okay they're gonna be okay everybody's taken care care of in the family tree that we started. Amen. And just very blessed, and I'm so thankful that God uses the Ramsey solution to reach people like us,

that we are able to now take care of our family tree. And subsequently, we've taught about five or six FPU classes. Yes, wow. Okay. We've taught smart money, smart kids. Wow. Thank you. Very good.

We're all in. Doing it all. Excellent. Well, thank you. Paying it forward for sure. Thank you. Thank you. Thank you.

So when you're teaching a class or when you were going through, what do you think most often is the light bulb moment where someone says, all right, I'm doing it. You see the light come on over their head, right? You see their faces change. When do you think that happens most? What do you think drives that? I think when they start to pay off,

you know, the smallest at first, and they can cross that off the list. So the snowball effect, I think that really, they're like, wow, I got this paid off. I'm going to move to the next one. I think that's very very motivating and I think that's where I see a lot of the students in our class um get really excited and uh for me you know what I've heard recently or a lot of when people have had that I've had it moment when they've when they reach that I've had it moment when when they when preparedness and opportunity meet and and a lot of our folks heed that and carry on their journey. So what was your I've

had it moment? I think we got so tired of like we would use the whole what was that like debt consolidation loan and now I look back and I laugh going why would you think that would work and you know after after you've like you know took the class taught the class it's just not gonna work because it's you have to you don't just move the debt you have to get rid of it you think differently you have to change your whole life to think about Dave's principles and use them and I look a lot like fitness to me that's the same thing like when you go on a diet, you can't just lose the weight and it stays there. You have to think differently. So it's similar with money to stay out of debt. So for me, I think we were just so tired of,

oh my gosh, we have this to pay and we would fight about money. And it's like, what can we do? So when Chad said, let's take the class at church, I'm like, you know, it can't hurt. Let's try it. So we did. And here we are. And we did treat the HELOC like a pet. We kept it around for a long period of time. It's not a good idea.

So if anyone's listening, just not a good idea. So what you're saying is behavior matters. It's not just about mathematics on paper. Right. Change your habits. Yes. If you can't, if you don't, as you can't if you don't as dave says if you don't have the money don't buy it put those words into action for sure way to go you

guys i'm so proud of you thank you thank you you look like a power couple man i mean it's pretty incredible well done very well done and thanks for teaching the class oh yeah university to others you've had a huge impact on other people's lives, I'm sure, like your mentors did on yours. Right. So very, very well done. And I do have to say, if it's okay, my youngest son, who's 15, Noah, we actually had all of our debt paid except for our house probably in 2016, Chad. Is that right?

So we were excited to be debt-free in 2016 without the house being paid off. And Noah would remind us, Mom, we're not debt-free until the house is paid. paid off and noah would remind us mom we're not debt free till the house is paid there's one in every family yeah i like it way to go dude i like it yeah he picked up on the podcast for sure very fun love that hey we got the live and give bundle for you uh that includes the total money makeover book to give to somebody baby steps millionaires book to give to somebody you're probably right there or on your way to that as well. And another Financial Peace University membership. You'll be able to give that away because it's the world you all are living in now.

Way to go, you guys. Very cool. Well, let's get the gentleman to, do they want to come around front of the stage there? And we'll work this out or up on even. He's going to come up on. That'll work too. Works for me. Good stuff.

So their names and ages? This is Noah on the left with the orange shirt. He is 15. And this is Jacob on the right. He is 23. All right. Very cool. All right, guys.

Here we go. I love it. $218,000 paid off in eight years, making $119,000 to $149,000. Count it down. Let's hear a debt-free scream. Paid off in eight years, making 119 to 149. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free!

Yeah! Love it! Way to go, you guys. That's how it's done. I love it. There's a domino effect there. And you see it with the first coordinators they taught them and then they've coordinated over five six classes and it's just a domino effect of financial peace yeah it's very cool and your class that you started up has got you had a limit of a thousand people we had to cut it off had to cut it off you got it

full it's full we had to cut it off we Had to cut it off. You got it full. It's full. We had to cut it off. We've met twice. So for anybody asking, because I've had several people come in and say, can I still sign up for the class? We had to cut it off. But don't worry. We'll do it again. Yeah, we're going to do it again.

Bet you. You got to, you know, and you know, I don't know. Y'all may, y'all may find out Jade is tough. I had to get on to some folks the other night. She might be a tough coordinator. Did you get on somebody? I had to get on somebody about their credit cards the other night. There you go.

I'm telling you, don't be messing around in that class. You've got a tough coordinator. The real deal right there. Oh, yeah. We're getting some folks out. Man, that's such a great story. Way to go, you guys. You're amazing.

Good stuff. This is The Ramsey Show. Our scripture of the day, Luke 11, 8. I tell you, even though he will not get up and give him anything because he is his friend, yet because of his persistence, he will get up and give him as much as he needs. What version is that? Okay. Wow. It's not even recognizable.

Okay. what version is that okay wow it's not even recognizable okay andrew andy andrew says i believe persistence is a major key to success in any great endeavor i want to remind folks to persist in whatever they're tackling at the moment good stuff jade warshaw ramsey personality is my co-host today open phones at 888-825-5225. You jump in. We'll talk about your life and your money. Roshanda is with us in Boston. Hi, Roshanda. How are you?

I'm great. Thank you. Good. How can we help? So I am in a little bit of, I have a current stressor right now concerning some past debt. I incurred when I was in my early 20s. I'm 27 now. And I'm learning very quickly after my 25th birthday,

I am paying dearly in my late 20s for a mistake I've made financially in my early 20s. My current stressor would be my car debt, my car loan. It's my second vehicle. And I got it a year ago from February, from Valentine's Day. And I am wondering if I don't have the limiting options because I rolled over negative equity. And right now I'm looking at roughly $31,000 for the payoff on this car. It's a Lexus. It's a 2016 Lexus. And I am wondering, I know you say not to get what you call fleece,

but I'm wondering if just to kind of cushion and alleviate some of that stress right now. Have you looked up what the car is worth i did a kbb yeah on what the mileage is for now and it's roughly 16 650 on a private sale or trade-in on a trade-in okay so private sale be 20 $20,000. And you're $31,000. Did you say you leased this? No, I initially financed. I've never leased it. Oh, you financed. Okay. So your actual payoff is really $31,000?

Correct. You're sure of that? Correct. Last time I checked. What is your interest rate? My interest is like almost 9%. Now, when you said this was your second vehicle, you're meaning that you had a vehicle and you rolled the negative equity into this, not that you own two vehicles, right?

Correct. Okay, just double-checking that. What's your income? I just started a new job. I'm a student, so it's kind of choppy. I earn like $15 an hour. I literally just started that job. But I've always had a job. On a normal month, how much money do you bring home? On a normal month, I'll say right at $4,000. And I assume you have no money.

Correct. Is this the only debt you have? Or is there more? No. I have credit card debt before the loan. How much? I'll say that is about $13,000, $14,000. Well, there's no question mathematically this is killing you. Mm-hmm.

And I feel you. I made some very stupid decisions. Well, I feel you. Me too. I've done it too. But, I mean, I feel the math pinch in these numbers. This is a real problem. It's a real struggle for you.

And so what happened is you had a car that you're upside down in and then you bought another car and you're further upside down and yet and so we've double dipped we've got a double hole you know that's where ten thousand dollars comes from because you're roughly ten thousand dollars in the hole um you don't have money saved anywhere do you no she doesn't we already asked no oh yeah yeah yeah i was my my question was i thought i would have the option i researched it i don't think that's an option my question because i mind you i've exhausted as much as i can in terms of just looking at my bank and then other i thought well if i, if I try to lease it, or if I don't lease it, could I try to sell it privately, put that money towards the debt,

and then get my credit, or not the debt, my credit card, get the credit score up, and then try to get a consumer loan and put that towards. I said no, because I think that's technically illegal, because I don't have the title. If I try to sell it privately. Well, you won't be able to get the title unless you pay it off. Who's got the loan? Who holds the loan?

My bank, NFCU. Have you talked to them about, do you have a local branch there? No, the closest one is about 70 miles away, Newport, Rhode Island. Okay. I would try to get someone on the phone there and discuss with them the idea that you sell the car they release the title and you sign a note a personal line of credit a personal loan for the difference the ten thousand dollar difference um because that's really where they are today anyway they're not fully collateralized on this loan they only have have a $20,000 car as collateral against a $31,000 loan.

And by selling it, they have a better chance of getting their money. You follow me? Okay. And so, but it's long distance on a phone call with a bank like that. I give you less than 50% chance you pull it off. But if you can talk them into it, that is your best case scenario. Your next best case scenario is find a credit union, a local bank just to loan you $10,000. Again, very difficult. But you've got to cover the $10,000 hole to get out of this, either with the current bank accepting a note for that amount or you

coming up with a cash by signing a note somewhere else. But I would rather you be $10,000 in debt somewhere else, even on a credit card. If you could get a $10,000 credit card, I would rather you be that than be $30,000 in debt on this car. Now, of course, that leaves you carless. Right. She's got to get something to drive. And so then you've got to work like a crazy person and scratch together a thousand two thousand dollars and pay cash for a little

garage sale car something that's pitiful you need a pitiful car that you pay cash for with no payments pitiful and no payments and then that breaks the back on this cycle but there is no lease on it there's no leasing it that's not going to work because all of it's going to be rolled into that anyway yeah the 31 000 is going to be rolled into that and it's still it doesn't go away your payment is your payment is your payment and your lease payment might actually be higher and so um that's easier so yeah but the trick is uh working your tail end off taking like 8 000 hours of work i mean you just work until you're about to drop you know go go work six jobs whatever you've got

to do scratch together some money and or borrow that some portion of that ten thousand dollar hole that you're in put that and then if someone comes along and gives you twenty thousand dollars for the car you put the ten thousand dollars from the loan or the work with it. That gets the car paid off, and you can give the title to them, but you're going to have this other loan over to the side. You see what I'm saying? Okay. But you can't sell the car to someone unless you can give the bank $31,000,

or they will agree to let you sign a note for the difference. Okay. And release the title. The title let you sign a note for the difference. Okay. And release the title. The title's got to be released in the transaction. It's not illegal. It's just the buyer won't do it. Okay. Because nobody buys a car, you don't get the title.

Okay. It's pretty scary in Massachusetts. They don't play games about, like, people's back. Yeah, well, they shouldn't. They shouldn't. I mean, you shouldn't sell a car. You can't give the title. I mean, so you've got it, but you can get it all set up to where it's perfectly legal. What I'm describing is perfectly legal in any state because if you give them $31,000 or they agree to let you sign a note for the difference, doesn't matter. They're going to, you know, you've now got a way to release the title to the buyer and that's what you have to do that yeah because once she comes up with the difference

they don't know the difference i mean she's just giving them the money for the car so of course they're going to give her the title so if you find somebody to loan you 10 and you put it on the market for 20 you know and you can get joe to buy it for 20 joe gives you 20 you give him a bill of sale and you know you put the other 10 with it, and now you've got a clear title to hand to Joe, and that's the process that you'll use.

But yeah, that's what, you're going to have to scratch and claw to get out of this because it's a deep hole. I'm so sorry. I've been in that kind of mess. It's no fun. That's a tough hole to get out of,

but you can get out of it, and you will get out of it. Absolutely. Good show today, gang. 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 ramsesolutions.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 ramsesolutions.com and click get started.