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Use a Machete to Get Out of Debt, Not a Chisel! (Hour 2)

2019-12-10 | 🔗

Budgeting, Debt

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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Live from the headquarters of Ramsay Solution broadcasting from the dollar Carmelo Soria debts that day, Ramsay show that is dumb casual king and mortgage has taken the place of the Bmw, those status symbol of choice on day Ramsay. Your host. Thank you for joining us. Open phones AAA eight to five five two to five, that's AAA eight to five. I two to five, my guess whether in Arizona hey, my power, you
and I do indeed better than I deserve. What's up a so. My question is about my daughter. She's, thirteen years old, he's, got a settlement that show the account right now and when she turned came the money ass hers, she lost her mother about nine years ago, a car accident, and my question is really how do I The white, however, about the money now in China, grimmer along the way, were in my concern, is that you turn they came in she went to the lottery now, how much is in there it's about name? Well, what's an investment, really conservative, neutral bonds? Good, ok, perfect well the answer, and it shall was she harmed in the accident. She was her mom asked way.
And the next time they awarded the money- that's interesting around, so that any She on the ash, your wife, it was my ex wife, Oh! Ok, that's why you didn't get the money I'll cut that out Emily would go to the husband, that's what I was thinking. Ok now start to makes right. Ok, ok! Well, in our house, we approach it through the lens of faith because were of family fate. Questions, and so that's one way you can approach it if you're not a family affair than you can approach it from a nobility kind of standpoint, but the way we about it- is this is a responsibility, a privilege. It is not a lottery ticket and so having wealth.
Ah you know when you say you Sunday, you say so and so a personal privilege, and what that means is they have the privilege in our house of handling money, for God, the handling money for the good of others and to use some of it for you, but you will get your best life If you view this as the opportunity to man this for the good of your future children, to manage this for the good of the community in the income you can create off of it and that kind of thing off. You can be one of those sad stories. It's written up in a magazine where you live. There of your life with regret because you dealt with us like you were four years old you eight too much candy and the candy store, and you threw up People feel like when they go through this kind of an inheritance, and so we start conceptually about all of that and then ass. They approached the age that,
would be managing the money we should revealing the amounts, but we didn't you speak that on them at adulthood, And so you said she's thirteen now yet again, she's aware there is money there I'll ask you know now, there's my college. She had knowing amounts or anything. Ok, that's what I mean then I would just start. A conversation sounds like this. The money is there for college and there's some other money there. It represents enough money. I am concerned for you if you don't have a proper view of it, because money will hurt people when they don't have a proper view of it. Whenever proper view of it, it becomes a tool in their hands. Ok and saw thirteen is great time to start from this discussion, and it's not a father too little.
All discussion. It's a father to a woman discussion, your growing her up into the woman. You want her to become ok, she trusts you already from your raising her right. Yes, ok so you're. The badge already looks up to you. That's a good thing, even though you're not perfect, they just the nature of how especially daughters with dads and just we want those you start talking about. You know honey. When you get some money that that's a responsibility, it's not a it's! Not the responsibility is to manage it well and our case we say in our managing this, for God got owns it worth. Managers were stewards, that's all christian lingo, of course, but
deciding what the lenses you talk about this through, but the idea the idea, simply being it's not all about you. If it's all about you, you're a child adults have other people in mind their other centred. You think I can tell her is anything aren't you should tell her today that there are some money there and that it represents to her. If she doesn't handle it well, it could harm her and we need to over the next three or four years start talking about how to handle money, and you need a regularly in rhythm of life talk about like here. You know she's thirteen June start talking about how to have. If you have an already had a properly- analyze. The young man, that's at the front door is your worst. Is he a jerk earlier prospect right right now again ass? He got the three on blood,
saving their younger than is that you got a real good, that's good framework, that's a good framework and just go. I what I my job for in our teenagers about this when they were thirteen, eleven and twelve and and fifty my job is not to make you look good day. My job is to grow you into a an adult that looks good. I don't want good kids. I want kids that become good. Adults sometimes are the same thing, but by in my job is teacher, critical thinking, skills module. For you to have a philosophy of life of theology of life that will serve you into your future and just keep it out, ha plain like that and then begin to unfolded in to what you know and you put more and more and more weight on this discussion, the closer we get to a teen in that I would say somewhere around sixteen. We tell her how much it is over to where she no, but by then there shall foundation laid. It is not
surprise right, and I can't wait two years until my dad's out of the way- and I can go, do whatever I want to do now- yeah anytime, you want, What do we do TAT was. I showed him some examples get a financial calculator. Jump online use one of ours and go you know if you took a thousand dollars at eighteen years old, going to thirteen year old, is, if you like, without isolating. There's only invested it forty here's, how much it be at age, sixty her how much at bay a hundred thousand hours can make you worth. Ends of millions of dollars. If you didn't spend at all, if you instead invested it in giving is part of the great you got. Three ample ups give save spent all honey should have some giving some gives saving and some spending and the trick is to not let this you surprise her where that it'll probably will go well, I gradually later so by the time our kids render twenties when we opened up actually how much money we do make and what our net
earth. Wasn't they be responsible for asthma? measures when we die they I feel like they hit the lottery. They felt the weight of the responsibility, which is what want to have happened. This is that I am shocked, guns about one point: six trillion dollars in student loans at one point: six trillion. If your drowned, student loans that there are options. I want you to consider refinancing your high interest student loans to a lower rate, fixed loan from splash financial alone
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Why I love of Christmas? Merry Christmas law. I love this time of year. I love the generosity that it represents a love people giving I like to be one of the few. That's giving of having a blast right now. Sometimes the smallest gift or act of kindness ends up big bring magnified. We call the generosity effective fact: you've not seen my blog post on it. It's more popular ones. Now ten million people have read it. I took off error by one, about general generosity effect, collect the butterfly fagged another butterfly flapsy wings. In two years
or four thousand miles away a hurricane cars right. Sometimes you begin twenty dollars, the person that you blast remembers. It years later they give away millions of dollars in a sense. In your name getting stories like this when the generosity effect from all over the place and We just want to spread the idea that generosity is not a one in done thing. When you give, it affects people more than just the money and ass. We ve been taking some calls from some of you to tell your. Having stories Janeiro, in California with a great or osity story. Hygiene nail Merry Christmas, Thanks for having, on the show, absolutely tell me your generosity story. So it is about
I think it was like the week before Christmas. I was laid off for my job unexpectedly and it was fine because the those terrible, but it's just you know the timing of the holiday season. Sure you know what you're going to do for Christmas and far bills. The time we had an eleven. All that we need to pay for a day care and things far, and so I was able to get an employment and handle things and restored. Little bit shore or what we would have needed for the day care for that coming month in January, well all be did was really active in our church, though we had, our admin send out an email just asking for parents for us for me in the job hygiene and then following One day We were at church and later we went home with her cleaning out our diaper bag and and the deeper
We found an envelope and it was just playing on the outside, and I ask my husband is a do you know who this is wrong and he said. Oh no, I didn't even notice and we opened the door. It was the latter and it happened scriptures and it was a thousand dollars cash hand we have no idea who was farm. There is nothing identifying the person whatsoever, so So don't know to this day who gave us that money that it was what we needed to cover for our fine day care so and then there was a little their actual to you So I just me the holidays and everything just way: lush, for not having to worry about that expands. Yeah, I mean that takes out, takes up huge lift. All of you. The burden off of your very, very cool, now go with them
three years ago. I yet, and so your financial should do better. Now, I know: well, maybe Sab two, so we had heard about you by the did stay there, so we're yourselves on. Boards, and now we have our budget were working- are snowball good for you well done well you'll, be in a position to leave a thousand dollars anonymously in someone's diaper before you know it, and I bet you will do it. That's I'm hoping, for about maybe like ten times tat exact. Tat will be a lot of fun when and why now cool! Well, congratulations as very need. I appreciate the young the generosity story, that's a great one. It doesn't require. A lot of thought doesn't require a lot of work now earning the money they give away does require
thought and work. Obviously, but when you ve earned some money and you have a pile of it- and you see a couple like that- leaving a thousand dollars in their diaper bag anonymously in cash is just straight up. Fun and generous people make us smile. Generous people make my eyes leak sometime I love generous people and they come in all kinds of packages. They don't look the same. They don't walk the same. I don't think the same, except about generosity, so this is really good stuff. Time of our question of the day comes from blinds dot com out for yourself. Why blinds? Not com is the number one online retailers of custom window coverings. You get free samples, free shipping. And with the new promos that they run every month. You're save even more use the problem
Ramsay to get the best possible deal, rules and restrictions apply question goes from MIKE in Colorado. Dave, I'm looking to make a Christmas purchased for my wife on some Drury wish together to find the right gift and the stores offering an option to save some money by opening a credit card with the door. We don't intend to keep this card, but we could save a few hundred dollars with this purchase or the potential downfall or things we should be aware of before opening this line of,
I would tell that story that if they do not give me the discount, without opening the credit card, that I will buy, a piece of jewelry somewhere else gets a manager in front of you and go. You have got to be kidding me. You've got to be kidding me you're, going to hold me hostage to give me a discount, no you're, not you're, going to give me a discount or I'm going to walk. No, I'm not opening a credit card to get a discount ever if you Why was snakes? You will be beaten. You open that card up. Somebody steals your identity and all of a sudden has a big How and on it- and now you just the next two years screw around, where there is trying to get your identity theft mess straightened out that she would never. If you didn't try to screw around with some store credit card offer where you got discount. Listen these companies. These retailers make more on credit card interest
do on the sale of the stuff. All of them do Victoria secret makes much more on their store card than they do on their undies. They are not in their underwear business there in the credit business with some underwear out front, this jewelry store is not the jewelry store business there in the credit business with some stuff out front to get you into this deal, don't fall for it down. Lay their game. Well, I won't tell me anything then Tom, the stick it and go back somewhere else not do business with some by the treats me that way that you're gonna blackmail me in the getting your stupid store card down offer me a discount. If I sign up for your card, does then I'm gonna demand the discount anyway,.
Not going to be abused by you, retailers, I'm your freaking customer. Besides that, a mall jewelry store is not the best place to buy that, probably anyway jewelry has the most markup on it about anything out there other than furniture. So it's a good idea to think about, maybe by somewhere else to start with, but you can get one shot if you want gimme the discount anyway, no, I am not taking out a credit card. No, I'm not putting my family a risk for a little bit of a discount on something you should have given me a discount on to start with. Guys, when you are in the best more on extended warranties on credit than I do on the sale of the merchant ass best by actually is a good bye.
Have a lot of margin in their flat screen tvs, there's no huge, markup they're, not big big, don't have hundreds and hundreds of dollars on one thousand dollars item. It's just a few dollars! That's why they, when you go up to check out at best, buy me if you're buying a pencil they'll put warranty on an infant answer for you, because they want you to be in death of them in the bother extended warranties where they make all their money translate you shouldn't do either one Ramses Chris
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In the lobby, Ramsay solutions on the debris stage, Jeremy and then Yo R, where those guys are already very you better than I do. Sir. Merry Christmas welcome merry Christmas. What are you gonna live but LUCA can our very cool, what's good to have you got All the way here to do a dead, free scream, how much of you paid off a hundred and sixty thousand wow how much of you paid twenty seven months, good for you. The state run at twenty seven months, good for you and your range of income during that time, startle out around one, forty ended up round one. Ninety, ok vereker. What I'll do for a living? I work for a barge line in operations in and
what kind of debt was the one hundred and sixty thousand dollar everything Adele we didn't like we loved it all we have. Seventy nine items were first, that's noble wow, lawnmower credit card, soon, loans, furniture, you name it. We had a euphemism the lawnmower, we're not. You borrow on your lawnmower five thousand. Nice lawnmower wow car loans, loans is the house on this loans, not everything but the house. Yes, sir I'd you didn't twenty seven months, very impressive, familiar story, what happened, but when I was nineteen years old, my dad gave me your book total money makeover and I'm already bought into a hook line sinker, and I put it back on the shelf and done stupid stuff. And fast forward. The several years on me Ben were a couple months away from gettin married him I'll, let you David repair and then we would
two way from gettin married em, I'll, let you do for repair, and then we went to a conference of yours and I and Rollin now we're standing alone just had notably tickets. We are so excited. I remember making silly faces each other and its Rachel Reims II. Nowhere I who you're like high- and she said I will give you front row tickets and two hundred dollars worth of merchandise. If you just tell how much that you have in front of the whole auditorium yeah. Of course will do that, so we did We have kept these lanyard ever since all why I gave you too, dollars worth stuff. Ants are an front rosy while she's generate Amazon is pretty often, but it took a seven years to really get on board fast forward. Baby number four come along was tat. We all want a rally. You went home and didn't do it from the front row see earlier I knew you just go out, you know kicking and we had a pretty are severe got wrenching I've had a moment. We,
fabric we eight hours to West Virginia visit family drop out We saw many man. We course we need a new van so we we drove eight more hours to Chesapeake Virginia said we financing Marianne and they said gray, Yogurt alliance or call you will do it. Of course, I had to go to tar, While we are waiting for the phone call and our card got declined for fifty dollar purchase. But for the phone call and our car got declined for fifty dollar purchase, oh yeah and added. No. I didn't do that, but I don't know anything about it and I was like what's going to happen, so I We have fifty dollars with foreign one and, of course our credit cards maxed out. There was not no other option and in about ten minutes later, we are causing hey. We can't violence, you guys, and so we had no
money to get home, we're sixteen hours away from our home. So we had to call his mom and Estralla my home, and we said we were done. We make too much money to be as broke. Steel springs Pretty Edward and not many people know that story, because it's only twelve me We will now that's a well, but you know I am the embarrassment is motivator and sixteen our ride home with a midwife. Ok, where I was partially my fault because I won involved, but from that time one involved in here we are today because we took a seven years ago to read your book. She deal I was in trouble. We are so that that target decline was twenty seven months ago. Yes and so you come home. You ok front. Rota gives book whatever together.
Name all. We thought everything with all the bow. We saw the car but a day room to detail on the back. Everything with all the boat. We saw the car but a day room to dig out the back, this format of Asian and ever put it on our selling. Him never want that feeling now again, never again of not living now again, never again of not knowing what's going on and of having the rug jerked out from under man. I'm standing there embarrassed and scared that your very never again, with four little faces like an honest sand, eels Banana Father, that was, it was just sobering and no one on never have to worry about. That again is the best absent. Important percent discipline. I guess I had to marry the discipline of I have had now a thousand thing. Anyhow, you were here there's knowing in and then there's doing it. That's the difference. Wow I. This is amazing, great job, I'm proud of you. It sank allow that we got it
on the last point. Seven months will call a success I'm not sure where we let you down, but oh my gosh amazing. The book didn't do at the front it gets. You didn't, do it that free merchandise did you have decline and target for half an hour ago, art that effective, effective as a matter of legumes, humiliation. While we're congratulation job in Kiev how's, it feel now that you're there
yeah for that twenty seven months to people like you lost your mind or to give her later, we had a future leaders, and my mom was obviously our biggest. I help me get the gas to get back home at night. She didn't want do any more than we have friends family long way in our church members you once we got into a good home church in producing, went to move their started tagging. That's when things really picked up for us begin out, give God is just dollar is to a name, and we started been faithful in that lives. When this these debts noble. I'm sorry been faithful in that lives when this these debts noble, I'm sort of get knocked out while white ago, very, very cool, very go, and you brought the kiddos with your ring on my parents. Four Levi, a six and Jack, is he said the liberty of Jack achieved. Good lookin Gaza ready for Christmas. Aren't that ready to see Santa Claus
I've done guys very hold on war. Congratulations, we got a copy across organs book for you, day millionaires that'll be the next chapter in your story that we need to do so. Keep playing keep lion, don't put the book on the shelf, Cape Rock it You guys well done all right. It's Jeremy, Daniel Charlotte Levi, Emily and Jack from producer Kentucky, a hundred and sixty thousand dollars paid off in twenty seven months. Making two hundred and forty two hundred and ninety count it down. Let sera debt Why is good luck as running three? Two one my mom. Wow world. You guys very well done proud of you. You know,
I look back on when we were going broken. I had so many of those moments where I was we embarrassed, but at some, but at times how ashamed I number I went into Sears, which is of course bankrupt now closed. But I'm going to everybody have a Sears card in my generation is when the first card you got, they give you a Sears card when your fourteen and I went into shares when we were gone broke. We're Hi Non assures carb at Christmas time, and I walked up to Boston but the counter standing in line with a guy went to high school, where this year's among neighborhood, where I went to ride grown up my whole
go where the shirt was a man named referred where I went to ride grown up my whole. I shall people around me. New may stand in there and I go up to use the card and the lady says sure I have to say that cars decline. She said the cards decline us ok way outside now, just gonna walk out. She should not have to take the Cardiff confiscate the card will that embarrassment and finally people standing there humiliate me. I got mad and I wouldn't give it to her. I should get a store manager out here. You're amount give you this card at all, do what you're gonna do with it. I won't see somebody You know I never went back into shares again for the next thirty years on their went back in a shares, our so angry with him for the way they treated me, and you know There was a mine. Does I wouldn't have pushed up on credit and couldn't pay it
by the way they held a situation. I was done with them forever ever ever as what happens in these situations, ve done for ever never go on back. This is the diver amnesia Have you thought about selling your hope of, or you're probably heard this from your know it all neighbour? The markets will have no problem selling, but what you,
but I tell you: is that not even a good? real estate market can guarantee your home cells for what it's worth than that it actually closes. The biggest for the goes into selling your home for what it's worth, isn't a hot real estate market. It's your choice to work within it, various to agent. Who knows how to actually sell houses, and this means that price, your home right. They know how to properly marketed. They get the right kind of buyers in the door. Are they actually done this before this? Isn't some monkey with a licence? is counting on the market to do the work for them and collect your commission from you. This this a pro a professional who knows how to leverage a good market and cares about you getting one hundred percent of your homes value as fast as you possibly can don't lose money by choosing an amateur agent
sure agents cost you money doing it yourself, cash. You even more get a high octane high protein real estate agent LP endorsed local provider. Someone we added, and we endorse at Dave, Ramsay dot com just Is in Georgia. High jam welcome to the dive Ramsay Show. Are you do it better? deserve. What's up, I would add a question earlier this Basically, in January I was our unemployed and began. My job search basically ran up credit card that probably the first four months of twenty nineteen on the next three months. I thought aspects etc and the land we might as well as external, and that, alas, said about the tenor of this year. Had you fall behind on my mortgages?
please don't I gotta rob. I do now yeah. I do now. Ok, are you make now? Well now that the other side, I was make one body now making Beverly those people have doing what but how do you do an accounting and make an one? Forty yeah, ok I'll, be waiting gavel, although that level at the calendar mustards was well. Let me back in the first quarter of this year. I was Para: hang around the company. The two things: they want a bad position now child these things will turn around and there are thirty billion up. I started and current credit card that man after I've gotta get through that I've studied selling off ass there
eventually got a job, but I'm at the point now where I eventually got it, entered into a long modification by around whether the mortgage lander and Al Qaeda at a kidney atomic. This moment prepared about it basically got it all non essential utilities. Life insurance policy basically use your hard utility that you in the chair at that time I'm out of point now, where what is your house it? It's the two ladys burden on the left in it
guy problem allowed foundations fairly accurate? What are you oh yeah right? What are you o one and how far behind our you I'll be all right now and now, you're paying a payment, a quarter or payment have to get current. Well now I will get back to their current order to Ebay do bankruptcy and the work of the magical came along with me. I thought you had a payment plan worked out with your mortgage company. Well, I went to pool their jobs. What am I a guy in four? There has been. I went through the forbearance what a mandate in all their speed and went through the forbearance did not have a job at the time, and I had like none. Ninety thousand in the banquet about. I was down to accept Paypal like China,
contact them and let him the or actually blasting contact them, and let him know that I had a job miserable. That's great. Let's get you to allow modification programme, and when I'm I'm done, I've done my budget for basically just my my car mortgage jobs or other than the mortgage. How much debt do you have in your out much beyond the car as forty thousand? Why are you still have it? Well, I out, when going back to do my credit was about very fifty seven eighty, seven in June and when I started hold back To the credit card obviously took a here and then when I went through, the forbearance programme would be more each company circuit aggression, forty thousand out on a car, how much credit card that? Do you have twenty? Nine that twenty eight thousand
We are and what other down you have other than your house. Your car, in the credit card, nothing poker in a chapter. Seven, all unsecured dead becomes zero, all secure dat. U turn in the ash, sat or you agree to bring its current and pay the payment. And so, if you kept the car and kept the house and a chapter, seven bankruptcy, you would only be found bankruptcy on twenty, eight thousand love or the credit card, which is ridiculous right. Ok, in a chapter thirteen you pay payments on everything. If you could paper
John everything we wouldn't be having this discussion about that double I saw myself bankruptcy does not do anything for you. The only thing is going to do something for you selling the house and selling the car, which is what you need to do so with the car by the collar. I grant ended it earlier that, ok, with my credit, which is about five fifty now obviously buying a used car and taking on too about now
but the negative equity. For my current color, it gonna put basically put me up around five hundred dollars per. Came it nothing anus, their own state and legislation on the Arusha thing. Your problem is that you are a little bit too smart with numbers and you're trying to trick your way through this there's no trick. You need to take em. There's no scalpel gonna work here at the stage we need to use the machete. This is blunt instrument, time, not new watched calculations, so you have got to not have a forty thousand dollar car payment when you make seventy thousand earlier, it was asinine when you made a hundred and forty that you did that
it's, it's just triple crazy that you still even own this car under any possible scenario. So, yes, you have to borrow the money to cover the negative and get you a one thousand dollar car, and then you can work. Your way out of that debt- and you said Your house and you move into an apartment and you'll get your life back now. What This was the prior praying paying for not working for a year while you try to screw around with this company that was broke. You got your shovel over my hand, you can catch up. Do you remember? How did the house, if I go to an apartment, they're, gonna alone, credit, maybe a credit, or maybe you can find the landlord soldiers work with you in Siam Account number seventy thousand dollars a year
down through losing some things. I've got some things on my credit if you bullet, but position now that I can afford to pay your apartment bill, and I can show you my budget. Not all apartments require credit score, the rat new rationalize, the crap out of keeping our stuff. If you want, but you're not gonna make it. If you keep all this stuff, this stuff is gonna leave Only voluntarily other don't start taken it. If you don't have them I need to pay these bills, that's what you call me about. If I'm you I'm happy to take the crap out of some stuff and get your life back, then you can get your career back in order and start rebuilding from there. Sorry man, I'm sure you're going through this, but you ve got to take some action for the first time in this whole story They ran Felicia paid,
Thompson, senior, executives, police or for the show illicit war watched the anywhere with gave way, and you shall have your smartphone catch, the full show or watch the highlights and check out days upcoming, guess how did he asked or download it today? you ve got questions about retirement, investing becoming an everyday millionaire, go beggar and broader with my man, Chris Open on the crucial genscher. I am excited to be able to talk to you all weekend and we go we're gonna focus on your calls and it's going to focus on building well investing and how to become an everyday millionaire subscribe to the Christian, ensure wherever you listen about gas, hey, it's just. Producer of the Dave Ramsay show this
Transcript generated on 2019-12-19.