The Cat Next Door I disagree. I love Chris Hogan, Anthony O’Neal, and John DeLoney(sp). Dave is awesome, but the advice will stay the same and they will continue to grow!
Respectfully, when the caller said that her total interest rate was 29%, I was baffled on how she came to the conclusion. Then with Dave's remark, I realized she just added all the interest rates up. Is this what math education has come to? Overall, I've concluded the primary reason why mathematics... simple math... and basic logic is devoid in public schools is allow for the enslavement of the masses via debt.
She literally added together the interest rates of the 3 loans because she thought that's how it's calculated. At least she got an education with all that debt. 🤦🏻♂️
Many get a high school and four year degree in this country and don't understand interest, because that's how little of a priority personal finance is in our curriculum...
If you add the interest rates of your 3 debts, then you shouldn't even be in charge of your pocket money. That means if a company offered her to consolidate her debts at 20% she would have accepted...
You’d be surprised how many college students that don’t know this. I just graduated with a engineering degree and most of my classmates couldn’t tell you how debt, taxes or loans worked.
"One of the most depressing things about educated people today is that so few of them, even among professional intellectuals, are able to follow the steps of a simple logical argument." John Searle, philosopher
I was one of these people. Not once in school was anything regarding loans, taxes, finances, etc taught. Many of our parents didn't bother to teach. So I simply didn't know that these were things that I needed to know. I learnt the hard way by getting thrown in with the sharks, getting gypped, and looking like an idiot. Now I have a much better understanding, but it would have been great and saved a lot of lost money and time if home ec was not removed from schools and if parents would actually teach these things to their kids. Hint hint to current educators and parents.
I remember learning about compound interest in 8th grade at public school in Stockton, CA. If we learned it there they certainly taught it in every other district
The fact that they used their tax returns to pay off four credit cards is an indication that they’re willing to get out of debt and be serious about it. So with 29k plus interest I think she’ll manage to pay it off and be debt free.
One thing I'm really thankful for here in South Africa is with my bank , the interest in student loans stop the moment you stop studying, so then you have a fixed amount that you need to pay off.
Dave's very patient with her. My god, it's terrifying to think kids are paying this much for education and still have no idea how the loans actually work. No wonder things are so dire!!
That is so incredibly sad that she actually went to school and doesn't know how interest rates are calculated and you don't add them all together to get the rate. SMH.
@Larry Byrd problem is, you are not tought to think logically at all. Logical thinking is not hard for someone who thinks withing our (space) of things. Notice the brackets around the word SPACE....some do not....people are just too smartphonified nowadays
Went into debt to go to college. Didn't learn that you don't add the interest rates together. I wish these people could sue their colleges for misleading them about the value of a degree. It would never happen again, I'll tell you that much.
These calls can be frustrating to listen to, but isn’t it why Dave started his business in the first place? She may not have had financial guidance growing up. I certainly didn’t and had to learn the hard way. I hope she can get her situation ironed out.
Her situation is not as sad as all the people attacking her in the comments. People come to Dave for help because they need it. She may have not been able to control what she learned or didn’t learn growing up, but she’s ready and eager to get her life straight now and that’s something to COMMEND her for, not condemn.
Good analogy. The only time it actually makes sense to consolidate loans is if it actually moves the needle. The loans themselves don’t decrease. Still gotta pay them off.
It is simple weighting to find your effective interest rate: r_eff=(r1×bal1+r2×bal2)/(bal1+bal2), where each r is the interest rate and each bal is the associated balance. If the interest you're quoted is less than r_eff, you have effectively lowered your interest rate.
the thing with Dave is you better know your numbers before calling in...cause he will call you out on it...I got scared for her when he corrected her about that 29%...I was stuttering too...and it's not my debt.
This is one of my reasons as to why I started my youtube channel and paying aggressively my student loan debt. I have 6 figures of it, and I want them gone...fast. Rice and beans it is ✌
No no no no no! Don’t ever ever ever ever consolidate your student loans! Ever! Keep your student loans federal and let them age. Student loan consolidation is a scam meant to remove your ability to be grandfathered in to PSLF (public service loan forgiveness) which forgives your entire principle balance plus interest and it doesn’t count as taxable income! Consolidation creates a NEW loan and will prevent you from being grandfathered into full forgiveness!
Can we all just take in for a moment she went to college and thinks that you should add up each of the individual interest rates into one. 29% interest rate would be like the worst credit card ever
Why would she not just consolidate the loans that are above the consolidated interest rate and keep the ones below? Then proceed with the debt snowball? I was confused that he would advise her to calculate the net difference even if that would mean paying a higher effective interest rate on a portion of the balance.
@@thecatnextdoor12 0:42 she says she got 2 questions. Her massive miscalculation of interest rates is the 1st question, unless you think her saying "is it worth it", as the 2nd. To me, it comes across as part of the 1st question. I think she was going to ask something else.
The first thing we need to have happen is that school loans are no longer backed by the government. Second, if they are brankruptable, there would not be as many student loans given to people, especially to those who do not even know how interest is calculated.
You would think that teaching kids about financial decision making, taxes, interest rates and student loans would be part of the curriculum considering how relevant it is to their near futures and how important it is for their whole future
It really sucks that young people are allowed to take out these mountains of debt without being able to demonstrate they can complete their degrees or if their degrees will be viable for getting a job and an income that can support repayment. The colleges teach little employable skills and are predatory with tuition, and there are plenty of predatory student loan lenders. The students ultimately have a responsiblity to understand what they're doing, but it also doesn't mean they need to be taken advantage of so blatantly without their parents, their govenment having some responsible oversight. The US has 1.5 Trillion in student loan debt right now and many students are on a 20 year repayment schedule and can't be approved for even a relatively small mortgage $200-$300k home.
Definitely go to whatever community college is close to you. Pay out of pocket if you can (try to work 25-30 hrs so you can pay for classes). Avoid loans. If you need a car loan try to avoid paying over $360 a month. And SAVE MONEY.. that was my biggest regret growing up. I didn't save and I was unprepared for any kind of car issues, tickets, etc...
This gave me so much anxiety. She was saying she had 29K in student loans, not 29% interest rate. She didn't know the rate of Navient. I don't think she could hear him very well.
![Summer Walker - Heart Of A Woman [Official Lyric Video]](http://i.ytimg.com/vi/SFddctbZzw8/mqdefault.jpg)
I like it better when Dave is all by himself giving advice to people
Unfortunately, not gonna happen. Therefore, I’m waiting until Dave retires and I’m gone from this channel, this is going to be terrible without Dave.
At least we’ll always have the old videos to watch, once he’s gone won’t be worth watching anymore.
I love John
The Cat Next Door I disagree. I love Chris Hogan, Anthony O’Neal, and John DeLoney(sp). Dave is awesome, but the advice will stay the same and they will continue to grow!
I like Chris Hogan. His voice is gold.
Respectfully, when the caller said that her total interest rate was 29%, I was baffled on how she came to the conclusion. Then with Dave's remark, I realized she just added all the interest rates up. Is this what math education has come to? Overall, I've concluded the primary reason why mathematics... simple math... and basic logic is devoid in public schools is allow for the enslavement of the masses via debt.
A fantastic example of how student loans enable morons to take on more debt than they even know how to calculate properly
Bless her heart, thank God she called Dave...
Dave handled it well, she simply didn't know. Some people could have made fun of her, but he was nice as he should have been.
Not a single person who works in my department could tell me what the square root of 100 is 🤣🤣
There are a lot of people who are really bad at math, yeah.
She sounds super lost but it's good she's asking for advice
That's a much nicer way to say how I would describe her.
TheQuickyouknow Dave usually calls people like her “sweet.”
Bless her heart, thank God she called Dave...
She literally added together the interest rates of the 3 loans because she thought that's how it's calculated. At least she got an education with all that debt. 🤦🏻♂️
probably on the dean's list, too.
She said she didn’t graduate
Many get a high school and four year degree in this country and don't understand interest, because that's how little of a priority personal finance is in our curriculum...
Dear God! No wonder America has been taken over by a Marxist, communist regime 😔
If you add the interest rates of your 3 debts, then you shouldn't even be in charge of your pocket money. That means if a company offered her to consolidate her debts at 20% she would have accepted...
And she went to college.
@@triad6425 lol thats scary
Funniest comment I've seen in a while and very true
Calm down kiddo, everyone has to learn at a different pace - let’s not play judgmental hide and seek
You’d be surprised how many college students that don’t know this. I just graduated with a engineering degree and most of my classmates couldn’t tell you how debt, taxes or loans worked.
"One of the most depressing things about educated people today is that so few of them, even among professional intellectuals, are able to follow the steps of a simple logical argument." John Searle, philosopher
Did she say 29 percent all together, oh lord.
Dave: it’s not calculated like that
I was one of these people. Not once in school was anything regarding loans, taxes, finances, etc taught. Many of our parents didn't bother to teach. So I simply didn't know that these were things that I needed to know. I learnt the hard way by getting thrown in with the sharks, getting gypped, and looking like an idiot. Now I have a much better understanding, but it would have been great and saved a lot of lost money and time if home ec was not removed from schools and if parents would actually teach these things to their kids. Hint hint to current educators and parents.
Remember those kids that ever said "this math class will never help me!"
😂 right
I said that and that was really hard math. Still haven't used it.
How did she even get to college with that IQ is beyond me 🤦🏼♂️🤦🏼♂️ it’s pretty incredible
People need to be taught this stuff in highschool
If you paid attention in math classes you would remember doing compound and simple interest formulas. We definitely do this in highschool in the US.
I remember learning about compound interest in 8th grade at public school in Stockton, CA. If we learned it there they certainly taught it in every other district
kids are taught health in high school but somehow everyone's overweight and vaping TCH
Education do not stop once you step outside of school! Information like these are available FOR FREE. Quit blaming.
The fact that they used their tax returns to pay off four credit cards is an indication that they’re willing to get out of debt and be serious about it. So with 29k plus interest I think she’ll manage to pay it off and be debt free.
👍🏾👍🏾👍🏾 good for you.
One thing I'm really thankful for here in South Africa is with my bank , the interest in student loans stop the moment you stop studying, so then you have a fixed amount that you need to pay off.
You shouldn’t be able to qualify for student loans unless you can pass a test on interest rates and how they work.
You’re obligated to yourself to research the subject before you act on anything.
@@thecatnextdoor12 crazy talk...no teen is going to do that...you didn't either...
Jason Harris I actually did. I never had a loan and research everything for as long as needed before I decide. I was always more mature than my age.
Dave's very patient with her. My god, it's terrifying to think kids are paying this much for education and still have no idea how the loans actually work. No wonder things are so dire!!
That is so incredibly sad that she actually went to school and doesn't know how interest rates are calculated and you don't add them all together to get the rate. SMH.
School doesnt teach us any of this. The Education system wants to keep us broke
@Larry Byrd problem is, you are not tought to think logically at all. Logical thinking is not hard for someone who thinks withing our (space) of things. Notice the brackets around the word SPACE....some do not....people are just too smartphonified nowadays
so you're saying she's not a finance major?
@@EDGEx369 actually I learned a lot of that stuff my first semester, but I guess that doesn't happen if you're a liberal arts major.
Get your personal information in order before calling in 🙄 he can’t help if you don’t even know your numbers.
Love Dave’s response when he realized she didn’t know how to add up the interest percentages. Truly the heart of a teacher!
Went into debt to go to college. Didn't learn that you don't add the interest rates together. I wish these people could sue their colleges for misleading them about the value of a degree. It would never happen again, I'll tell you that much.
That’s a good idea. It’s like false advertising.
These calls can be frustrating to listen to, but isn’t it why Dave started his business in the first place? She may not have had financial guidance growing up. I certainly didn’t and had to learn the hard way. I hope she can get her situation ironed out.
Her situation is not as sad as all the people attacking her in the comments. People come to Dave for help because they need it. She may have not been able to control what she learned or didn’t learn growing up, but she’s ready and eager to get her life straight now and that’s something to COMMEND her for, not condemn.
True, that’s why people are afraid to ask, if they don’t know something.
Totally agree! None of us is born with this knowledge, life is a learning process. We shouldn't condemn her for learning a new skill xx
Pushing around your debt is like pushing around the vegetables on your plate. Time to eat.
Ha! Great analogy!
I used to hide what I didn’t want to eat under mashed potatoes.
Beans and rice lol
Good analogy. The only time it actually makes sense to consolidate loans is if it actually moves the needle. The loans themselves don’t decrease. Still gotta pay them off.
Yep! I avoided paying for years but finally womaned up and started paying and I’m on the right track
Bless her heart
Oh Great Lakes, I remember the joyful moment when I paid that loan off! We can do this!
The “evil” Naviant 😂
It is simple weighting to find your effective interest rate: r_eff=(r1×bal1+r2×bal2)/(bal1+bal2), where each r is the interest rate and each bal is the associated balance.
If the interest you're quoted is less than r_eff, you have effectively lowered your interest rate.
dboozer4 excel?
What a fantastic show. Keep it up Mr Ramsey, fantastic advice.
I could feel my brain hurting from the brain cells I was losing listening to this call😱😱
Got all those student loans and didn't even graduate. 😕
the thing with Dave is you better know your numbers before calling in...cause he will call you out on it...I got scared for her when he corrected her about that 29%...I was stuttering too...and it's not my debt.
This is one of my reasons as to why I started my youtube channel and paying aggressively my student loan debt. I have 6 figures of it, and I want them gone...fast. Rice and beans it is ✌
I've been using these CESB payments to pay off my credit card debt and I'm down from 6k to 2k. I'm almost debt free!
Smart decision. Many Canadians collecting the CERB should be able to pay debt especially if they're just living at home.
No no no no no! Don’t ever ever ever ever consolidate your student loans! Ever! Keep your student loans federal and let them age. Student loan consolidation is a scam meant to remove your ability to be grandfathered in to PSLF (public service loan forgiveness) which forgives your entire principle balance plus interest and it doesn’t count as taxable income! Consolidation creates a NEW loan and will prevent you from being grandfathered into full forgiveness!
Haven't they changed this? I was told that because mine aren't direct loans that they don't qualify for PSLF and that I'd have to consolidate them.
Thank you for sharing
I'll say this... they moved mine from great lakes to Nelnet. I hate Nelnet. I'd rather have great lakes.
Can we all just take in for a moment she went to college and thinks that you should add up each of the individual interest rates into one. 29% interest rate would be like the worst credit card ever
clearly not a finance major...
Going to college and getting a degree doesn't make you smart, at least she's looking for help. We all start somewhere you only know what you know!
Consolidating doesn't necessarily save on interest. Refinancing does
Student loans are one of those dangerous things that can really help or really hurt and most of the time it’s the latter
Why would she not just consolidate the loans that are above the consolidated interest rate and keep the ones below? Then proceed with the debt snowball? I was confused that he would advise her to calculate the net difference even if that would mean paying a higher effective interest rate on a portion of the balance.
What was the 2nd question? He muted her before she could ask it.
If she should take the 24% consolidated rate on the total amount instead of the 27% on three she is paying now.
@@thecatnextdoor12 0:42 she says she got 2 questions. Her massive miscalculation of interest rates is the 1st question, unless you think her saying "is it worth it", as the 2nd. To me, it comes across as part of the 1st question. I think she was going to ask something else.
How can you call Dave Ramsey and not know the interest rate? Be prepared before you call
She had the sum ready to go 😂
She knew, it was 27%.
The first thing we need to have happen is that school loans are no longer backed by the government. Second, if they are brankruptable, there would not be as many student loans given to people, especially to those who do not even know how interest is calculated.
You would think that teaching kids about financial decision making, taxes, interest rates and student loans would be part of the curriculum considering how relevant it is to their near futures and how important it is for their whole future
It really sucks that young people are allowed to take out these mountains of debt without being able to demonstrate they can complete their degrees or if their degrees will be viable for getting a job and an income that can support repayment. The colleges teach little employable skills and are predatory with tuition, and there are plenty of predatory student loan lenders. The students ultimately have a responsiblity to understand what they're doing, but it also doesn't mean they need to be taken advantage of so blatantly without their parents, their govenment having some responsible oversight. The US has 1.5 Trillion in student loan debt right now and many students are on a 20 year repayment schedule and can't be approved for even a relatively small mortgage $200-$300k home.
Are there any good companies or non profits that help with consolidation of student loans
Whatever you do stay away from splash financial
He is finally not better than he deserves
Oh you endorse slash financial? They’re great. I refinanced my sallie mae loans from 10.5% with splash to 4.1%
Currently I’m 18 years old but no debts to my name yet but what should I do to prepare?.
Don’t go in debt, buy a car with cash and go to a small city/community college if you plan on going to college!!
Definitely go to whatever community college is close to you. Pay out of pocket if you can (try to work 25-30 hrs so you can pay for classes). Avoid loans. If you need a car loan try to avoid paying over $360 a month. And SAVE MONEY.. that was my biggest regret growing up. I didn't save and I was unprepared for any kind of car issues, tickets, etc...
Adds interest rates, gets 29%, went to American college - she did not get her money's worth. She cannot do simple arithmetic.
Exact reason why student loans shouldn’t be given to everyone
It's called a weighted avg
Been there done that🍻
She apologized for interrupting Dave Ramsy then she does it again like ten seconds later!
Well that is the best way she could of used her tax return.
Wow , this is what a collage education gets you these days 😂 . Durk a durrr duh 29 durrr durka
She didn’t graduate.
This girl shouldnt have gone to college.
You go to school to learn.
Larry Byrd she sounds like a serous airhead...couldn’t even get her point across to the Splash rep she previously talked to...smh
Anyone know where I can get a good deal on a timeshare in Las Vegas or Atlantic City? 🤔
You can buy a house for $15,000 in AC.
Omg I've never loved a caller so much 🤣😂 I've added them all up and it's 29% 🤣😂 I've totally done stuff like this
I feel bad for her. No 18 year old should be allowed to throw themselves in debt before understanding the financial part of it.
Can my student loans be forgiven if I consolidate?
So she did not get her degree but she got all of the dept!!!!
Ian Mowbray no she got debt.
Debt***
This gave me so much anxiety. She was saying she had 29K in student loans, not 29% interest rate. She didn't know the rate of Navient. I don't think she could hear him very well.
She went to a college, but doesn't know how to calculate interest. 29% literally made me lol. Where is the world going?
I’m definitely trying to get my student loans forgiven. 🙅🏽♂️
Wouldn’t bet my life on it.
I’m trying to get my mortgage forgiven too
Good luck. Im supposed to qualify for $5000 in teacher forgiveness, but was rejected because I was on the wrong payment plan.
@@jrivera345do you have to redo the 10 years?
Why would you take a pay cut to get loans forgiven? It doesn't make sense...
She actually added up all the interest rates.... LOL
She does not sound college ready at all.
Wow. Were all those student loans to get partially through 9th grade?
Hello I need help
She sounds as bright as a 20 watt bulb.
it is so sad this girl does not know the basic math and how interest rate works and she is in college.
Fine-Nancing
O M G
This chick goes to college? She sounds like she couldn't handle high school!! Adding interest rates together? OMG!!
She doesnt know how to average out interest between 3 loans, why did u go to school?
College don’t teach you about loans, they just take them
@@TheTbabylati College definitely teaches you about loans if you pick the right major
TheQuickyouknow unless it’s accounting or business. They do not and that’s coming from an engineering major
Trevor J true. That part through me off
She didn't graduate, that's a surprise 😆 basic math was a challenge.
Ahh the typical princess entitled voicee
If you stupidly used sallie Mae and took out 8%-11% loans consolidation is your best friend.
Wow
I will never consolidate. Don't want to lose the federal benefits and who knows a new administration might forgive part of them lol 🤞🏾
I wouldn’t hold my breath on that one lol
Good luck buddy, my cousin is still waiting for her 50K in student debt to be forgiven, I cringe every day.
I guess she didn’t learn any math after taking out those student loans
this woman is lost
1st