I'm low-income, but I don't owe anyone or any institution a dime, not one red cent. I sleep like a baby and feel fantastic compared to these people calling in who have massive debt.
I’m low income as well but have a mortgage and car note that is 25% of my monthly income. I could pay off the car but is waiting until the balance goes down some more. But I’m glad I can sleep like a baby compared to the many callers on this show especially those making over $150,000.
This guy was 100% operating a loan shark business - probably fraudulently from banks without telling them he was going to shadowlend to somebody else. If this guy declares bankruptcy there’s a good chance they’ll actually look into him and will file fraud charges against him. I see why he is freaking out…he is in deep and really can’t engage the legal system for help or he may well end up in jail.
@@barnabusdoyle4930doesn’t matter it is illegal. You can’t do a private loaning business, taking loan and giving it out for higher loans. Loan shark if is terrible
I became debt-free on September 1st. And I am not kidding, my heart also tightened listening to this call. The dude sounded like he had the mafia coming after him.
I totally agree. I think she’s the best Ramsey personality. Because she’s so expressive and great at notifying people there’s a serious problem, but doesn’t harp on them like an angry parent. She’s actually pretty funny too
She asked him if he could sell them and he said yes, so went with that. She and her husband paid off almost half a million of debt. That's some serious expertise and knowledge.@@chuckmay6563
DUDE...I was about to say the same thing, except I'm WAY worse than you! I have a grand total of $893.78 between two credit cards (Visa & Master)...and I'm freaking out, cause that is over my paycheck for the next pay-period lol! 😶😳😱😯😲😮
NEVER lend anyone any money unless you're prepared to NEVER see it again. This goes for everyone. Your best friend, your brother, your sister, your parents, EVERYONE. Unless you're running a ruthless racket where you are kidnapping family members or severing fingers and such NEVER lend anyone any money.
@@RUBY-zi2ug There is a place for a more nuanced discussion but it is a good rule of thumb that I still follow to this day. It just keeps life simpler. It is better to be called stingy or whatever then to be possibly ostracized from your family or overall avoids TONS of awkward moments.
Yes, i made that Mistake. Once. My brothers owns me money ( 500$ i also have debt to our sister( 2 years later nope not one Cent paid he paid me back. And he did asked again. I said: Go and ask your girlfriend or a Bank or someone. I have to pay my sister back. BUT she the gave me time to pay her back. And finally i am debt free and free to tackle my debt for my sister. Every cent she will get back. Thats not even a question for me.
These calls blow my mind - how on earth do you get in that much debt. I'm 44 but if my 79 year old mother found out I was in any kind of debt apart from a house, then she would take her slipper off and beat me black and blue.
He sounds like a foreigner. I think he is probably supporting a lot of family back home -- in addition to his immediately family. He is the person everyone is depending on. Plus, I think he has expensive taste and is trying to live "the American dream."
I thought that woman years ago that called Dave being half a million dollars in debt from all the shopping and vacations and cars and luxury items was the worst. I think this might have just trumped that off.
He doesn't have any good choices. He's about to lose everything, he has a huge debt and not enough income to pay for the car, loan and house. He must of used the house as collateral for the loan.
@@enhancedutility266dumb but student loans are not worse than luxury shopping. The guy who bought a campground for like a million with a 25% early payout fee is the real idiot
Nah isnt the craziest. 70% of the debt can be erased by selling the home, car and everything in it. Then you have a family in 300k debt with a more than six figure income. We have definitely heard worse on the Dave Ramsey show
@@Shortballa11did you watch this? The only thing they can sell is the house and car. The house is 462k and the car is 42k that’s like 500k they get “rid” which is not really because they will rent same price as thier mortgage. He is 500k plus of pure cash debt!(credit card, and installment) he is bringing 10k a month btw him and his wife! His monthly debt payment is wayyy over 10k a month even just minimum payment, as majority is credit card and loans which have ridiculous interest rate. And he still has to pay rent, feeding, take care of kids. He is suffocating!
@@Shortballa11 Nah this is absolutely the worst one. As many commenters have pointed out, his debt doesn't appear to have been "legitimately obtained" which if the amount of debt wasn't toxic enough, this will kill him. It's not like he made high-end purchases and can return or re-sell those items at a slight loss, it's not that he used the money to buy other tangible assets. It's not like he took a loan to gain another type of investment (eg prestige education leading do high-earning career) that he can use to help navigate him out of this. As others have clocked, it's likely this dude is a wheeler dealer and was running a loan shark business, but stupidly. Using cash advances to borrow money, lend that money at what only had to be stupid-high (probs higher than payday lenders) rates to "friends". One of the replies to your comment called it that he only has his house and car to sell, and that's it. As regards their income, hopefully the income this guy counts did not majority come from his "business", otherwise he's really f***ed. And any bankruptcy proceedings will be made complicated if there's any evidence of fraud ...
@@shachede6828He said the house was worth like 600k with 150k equity or something. Even if they take a loss on the solar panels they get rid of that debt. Chicago is super expensive bt assuming they downsize. The need to be in a two bed room apartment which would be cheaper. ALso if you have a 600k house there should be plenty to sell. Sure im giving the benefit of doubt but if you are desperate all this is attainable for breathing room.
It always amazes me how many "smart" people find a way to absolutely bury themselves financially ! This guy has a doctorate degree in " I know what I am doing" . You can just feel the stress in his voice, his depression, his nervousness, just all of it. Large financial pressure can just be soul crushing. Always live within your means, build your 6 month emergency nest egg, invest smartly for the long term, drive a 5-8 year old car with good maintenance, and other things as well, etc. Hope he takes their advice. Time for a scorched earth campaign. I agree.
Most of the time, college degrees have nothing to do with being smart. Have you actually seen how easy it is to get a degree? You basically just need to be alive.
@@Silidons91That's not what the data shows. Most people don't have an degree and many people who try to obtain one, they drop out. This anti education narrative is largely from people who don't have a degree/marketable degree and massaging their egos. And angry because they are broke and stuck making mediocre money. The vast majority of Americans with an HS diploma don't make over $41,000. Pretty pathetic and understandable why they demonize education....especially when a bachelor degree more than doubles their incomes. Hell an associates degree gets nearly $200 more a week than a HS grad. 🤷🏾♂️
@@Silidons91 Yes mock others who get degrees because you couldn't. And what do you mean "most of the time". Where did you get that "statistic?" Why did you put a comma after "time"? Maybe you need to go to college.
@@drn13355 Oh come on, he's not wrong and I have a degree. Employers know it too. Having a degree on your resume is pretty much pointless now in many fields. Mine is certainly one of them. We've seen way too many kids come of out college completely incapable of doing the job at hand. We've also seen many self-taught success stories. Colleges are just selling a social experience now, and they throw in a political indoctrination as a bonus.
Not really, sell the house that is worth 600k and the solar panels. Auction everything in the house and the car and he is down to 300k debt with a six figure income and him and his wife arent even working to their full potential yet. We have definitely heard worse and if they took it seriously they could be out in 10 years.
“Don’t agree to guarantee another person’s debt or put up security for someone else. If you can’t pay it, even your bed will be snatched from under you.” Proverbs 22:26-27 NLT Persons need to start applying biblical principles to their decisions . I guarantee if they do, they won’t find themselves in these situations…May the Lord have mercy on this caller…
This guy single-handedly ruined his family for potentially forever because I don't see them ever being able to pay this off. He thought he could be slick and take out loans at 15% and loan that money to other people probably at 30% and it obviously failed. Also it sounds like he's doing illegal things as well such as fraud and could face prison time for his stupid actions. If he were to try and file bankruptcy that's where he would get caught up revealing all of the debt and where its going and where its from. So if he does that he will probably be arrested and if he doesn't he will be in debt forever. Smart guy he is
This guy is an expert at borrowing money. Got that masters degree. Children ! Stop spending money on anything but staying alive. Every meal is eaten at home, no new clothes for a few years. No going to movies, no subscriptions to anything ! Sell everything that is not welded to the floor or walls. Stop living like royalty !!!
Agreed! He has wheeled and dealed himself into 1 000 000 of debt. I will be surprised if he can work his way out of this ie OT, delivering pizza, wife working full time, etc etc etc. I hope he calls back in a year either way.
This call gives me goosebumps because a lot of pple in these types of situations commit suicide and if they have kids their lives are ruined both parents will never be around because they will have to work so hard if he doesn’t kill himself or honestly maybe go totally missing and get a new identity I cannot begin to imagine the stress if he loses a job in the upcoming depression this is the level of stress that kills
He's not going to change a thing. He's in too deep, and the only solutions he thinks are viable are home runs that produce big payoffs. That's how he got in this mess to begin with. 0% chance he switches gears and plays the long game now to eliminate this debt.
I wonder how people fail to realize that if you make $100,000 in a year as a family, you cannot afford a $450,000 house. But the same applies also to people who buy 70,000 or $80,000 cars. Being able to buy is not equal to being able to afford.
Dear It's Sid, Your illustration is not so outlandish depending on location, state or city. Many could cut back on the price of a car, but in this age, if in SF or NY a 450K dollar dwelling is not so disconcerting.
The servicing ratios are 0.35, and sometimes they wiggle them up to 0.4... meaning that if you got a $500k home at 2%, $10000/yr in interest and another $20000/yr in principal paydown (like a lot of people in 2020/2021), then that only requires $85k in income to service it. Where I live, if you don't pay $3000/mo for a mortgage.... you pay $2800/mo for rent. But then $2800 goes to the landlord, rather than $1000 to the bank and $2000 to yourself. If you can't afford a house at those ratios, then you can't afford to rent or even be there either. But since you are there, I guess you can afford it. Just cut everything else that doesn't matter... live like a monk on the mountain top. Who needs holidays, anyway? If you have a nice home, it can be your refuge from the crazy world.
@@mikeberardi3985 I don't know why you're addressing that rude comment to me. My point is that if all three children are young enough to require daycare, the wife might not earn more than the cost of the daycare. I thought that was obvious, but I guess I should have explained it.
@@NYNC88 I paid seven years and three children in daycare just for the right to show up at work just like Dave Ramsey says I live like nobody else then so I can live like nobody else now there are no shortcuts my friend I wish you all the best in life 😀
@@mikeberardi3985 : NYNC 88 was just making a true statement regarding people who gamble with others' lives, bringing them into a father's house of failure. NYNC wasn't the one who knocked up these three kids.
This guy may have more problems than the debt. Looks like homeboy was running an illegal loan sharking scheme. He could be facing jail time if the banks do an investigation. Can't believe he would just admit this on the internet lol
He was very general about what he was doing regarding the lending, and who he was lending to. He may be in a family culture where the big money breadwinner gets pressured to "help out" relatives, some of whom may be deadbeats.
@user-mv9tt4st9k Doesn't make it any less illegal. He was taking out loans to then lend that money to someone else at a higher interest rate. That's fraud cut and dry. Just saying that if the banks investigate and get the feds involved he could be in a world of trouble. I'm simply pointing out that he shouldn't be admitting this on the internet that's all.
I think this guy is holding back on information. Whether there’s legality issues and he doesn’t want to disclose soemthing because this is beyond ridiculous and it’s not making sense
I definitely think you're right in that he's not disclosing the full story, but I wouldn't be surprised if he's not doing anything legally shady per se. This man's entire situation sounds like deep financial and business illiteracy. Like, deep. He tried to function as a *lender* by taking out loans for others and didn't calculate the stupid risk he'd be taking on, or wondering they the only people that succeed in that are indeed predatory loan sharks who operate outside the law, enforce repayments with violence and even *they* don't exceed certain financial limits per borrower (victim). Or properly regulated financial institutions that have their own capital, business and risk controls with qualified staff overseeing everything. And then on top of this, despite a business crisis that's likely been years in the making, he mortgages a $600k home (unsure whether this is a HOCL area to take into account) 3 years ago. I highly suspect he wanted a "get rich quick" scheme that seemed a tad legitimate, and his overconfidence and immaturity on financial matters is what got him in this mess.
Solar panel salespeople are slick. They will promise to qualify you for more than what you need and argue away the cost benefit you have already done to show how solar will cost far more than the energy costs it will save.
Probably these "loans" were cash advances on credit cards. He probably took them out at 25% and was likely charging his "friends" something like 35% in his loan shark business he was apparently operating.
I hope this is the wake-up call he needed to fix his life. He needs to do it for his family and show them how strong he can be. This is a mess, but I believe he will prevail!
You are delusional, this dude will never recover from this. This might be one of the truly bleak unfixable calls that occasionally come on this show (like the woman that is 64 and has nothing saved for retirement). Dude was committing financial fraud and because of that he cannot declare bankruptcy (unless he wants to go to prison), he is trying to lazily and easily get rich - he doesn't have the discipline to get out of this without breaking the law. You write that kind of comment for the 45 year old man going through a divorce and having to declare bankruptcy, not a loan shark trying to lie, cheat, and steal his way to wealth.
I would like to have seen Dave's reaction to this caller. I think it would have been a 4 minute call and he would have seen the unethical moves made by this guy. This guy is a real loan shark.
@@happydogg312apparently nor do you. She called him out as a loan shark, although, as she has sense, the accusation was not outright. Too serious of an accusation to make on air like that.
My goodness! Just listening to this call gave me anxiety! I hope he listens and start paying off his debts.. even though it will take years and years to do so! For his family’s sake. I feel for him but specially for the wife and kids! Best of luck to them!🙏
I was shaking my head while listening to his other debts, but had a stroke when they said that about the solar panels. Here I am putting every damn dime towards extra mortgage payments, and other people are living lavishly on debt.
I don’t know.. That’s crazy. If it was $1M in mortgages and he could afford to pay it at a normal rate then fine but not with loans on different things..
How did he qualify for even one loan? In 1999, I started my job as a state police officer, bought a used mobile home for $12 k and then applied for a used car loan and was declined with no bad credit.
I agree. Usually when people have a mil in debt, they have all these rental properties or at least it's in their business. And then selling some of the stuff will lessen the debt. But this guy has a mil in debt with zero to show for it and no income to pay it off. This is a frightening call. I think this is one of the worst calls on this show when it comes to debt vs income.
Exactly. He paid $50k for them installed, the panels themselves are worth $20k new. The used panels sell for 1/8th the price of new, add the cost of the removal. . . and now he owes and extra $3k and has an electric bill to pay monthly lol. Not to mention depending on if the loan is secured or not, you would have to satisfy the loan before you can sell your house. The Ramsey team do good work, but they really should get into the details of things before making suggestions.
Some possible ideas: Instead of selling the house, *keep your house but rent a bedroom / suite to a responsible person.* I agree with other comments to stop any additional spending. Eat all meals at home, take the kids out of after school activities that cost money like taekwondo, dance, etc., no more loan shark deals 😉, go to the church clothing closet or Goodwill for everybody's new clothes, have the kids help mow the lawn with a push mower, share a vehicle (if possible), and allow the kids who are old enough to get small part-time jobs to help fund their "wants." Also, ruthlessly cancel all subscriptions that are not absolutely necessary ... these really add up. The final thing I can think to suggest is when dealing with the repayment of student loans (which is starting again this month), request your student loan servicer to grant you a forbearance until your household debt is cleaned up. Even Clark Howard talked about that a little on his podcast today.
I remember a few years ago, not bei g able to sleep because i had 30k of debt plus a mortgage. It was horrible. Today, on baby step 7 i honestly feel so distraught for this family. The mental weight of whet they are under must be almost damning.
I think it's important to note that this guy knows he's in trouble and took the time to reach out to the Ramsey Team. He and his wife have put together a budget. They really don't have a choice but to do something drastic if they want to survive. If they are reading this, please know that tens of thousands have gone through this painful process but it's worth it to have financial freedom!
To Tiffany M. 4020: No: Tens of thousands wouldn't be incurring monstrous debt as abysmal as this, amassing a negative one million, waiting for the zeros to align on a negative slot machine -- then, turn to Lord Ramsey. I doubt this.
This guy got into debt thinking he could get rich quick being a loan shark. He’s not looking to work hard and long to get out of debt. He’s looking for a trick or shortcut to somehow magically get out of debt. I see bankruptcy in his future.
Yeah, I was thinking the same. It's risky to go bankrupt in his situation though because they may investigate his finances and find out about the shark loaning thing..
@@ciobalina7445the same way he got into the debt is that same way he's trying to get out : by doing tricks. This guy hasn't learned his lesson unfortunately
Nobody is buying used solar panels. Really stinks when the hosts just start suggesting the caller start selling stuff that is nearly worthless and won't move the needle on a million in debt.
Many in the off grid community buy them. Depending on brand, some can be repaired. I have a few used ones on my lake cabin. A simple volt meter will tell you if they have output or not.
People do buy them because they are SUPER cheap, like 1/8 the cost. Which means the company removing them will give him even less. . . he will probably end up owing money for them to be removed and his roof repaired :(
Well, this guy is essentially screwed. He was operating a loan shark business with personal debt. He probably lied to the lenders he took money from about it. He can’t file bankruptcy, as that’ll likely land him in prison. He actually has to work through this lol. Advice: don’t commit mass fraud!
He can file bankruptcy and go to prison. It just depends if serving the time would be worse than working off a million in debt (and we don't know anything about the wife either.)
@@nicodimus2222 Yeah, but he'll still probably go to prison and still owe a large chunk of that debt because a lot of it won't be dischargeable based on the illegal nature that he did with i.
Banks and wall street are a funny breed. I've often wondered the same myself. They seem happy to lend nearly infinitely once you prove yourself capable of managing it... in their eyes, anyway. It's easy to hang yourself by borrowing to the max.
I’m freaking out with my $28k card debt ( but lowering already ) I don’t get how someone can see a debt increase and increase and living like everything is fine
Well the panels basically replace the electric bill and based off how much power your panels make and how much power u consume it could be cheaper to get panels
@@bantizzle79how much is his current electric bill ? The price of electricity is going up in some places . He could have 20 year loan . How much to uninstall panels ? Then how much would he get for used panels
@@bantizzle79Not really, considering it’s replacing his electric bill. If his Solar payment was 250 for example and his electric bill used to be 250 it makes way more sense to have them because he is guarding himself against inflation, and also after the pay out period he has free power as opposed to being in perpetual debt to the utility company. People don’t think of a utility bill as debt but it effectively is debt that never ends, because he’ll never cancel his electric bill.
Yes, but the problem is, a lot of it he can't likely bankrupt because it sounds like he was doing some shady (likely illegal) loans to friends. Those can't be discharged and he's also looking at possible incarceration because of it. He's really got himself into a deep hole.
He can go bankrupt for the house at least and get an apartment. He may even be able to add the credit cards to it. But yeah when they run the financials they’ll probably see everything and he would likely be in dire circumstances.
Agreed. It's easy to sleep well when you have $3m in assets backing your $1m in debt. He has *$100k* in equity to his $1m in debt. He's nearly $900k in the negative. On a $100k income. That's nuts.
There aren’t enough hours in a day or health in a body to get this guy and his wife out of this mess. It’s completely unrealistic to think side hustles can earn you an extra $5000 a month. Unless he works in the medical field where he could work 100 plus hours a week and double his income with 60 hours a week of OT. This guy is totally…. F
Not impossible. The wife already doesn't have a full 40 hours. If they both add on some 30 hours on top of 40 hours, it can be done, but they will be burned out.
@@sblijheid I agree not impossible. But pretty far over the line of unlikely, and in the neighborhood of impossible. It sounds like she’s basically a stay at home mom. Only working sporadically. Unless she has a degree, her job prospects aren’t the greatest. Especially with child care expenses eating into that salary. It would be interesting to know the ages so we would know how much that might be. My comment might be way off. But that’s cause there was a lot of info not discussed. I personally think they knew there was no way they could help him. But they can’t admit that on air. So they try to push their product and treat him like a normal caller. He isn’t. He probably can’t even go bankrupt because his “business” sounds like it could cost him some jail time. And the bankruptcy would investigate that. Like I said… I could be wrong. Maybe the Ramsey plan could help him out of it. It’s just hard to see a way out.
Its rlly not impossible. Sell the house and solar panels. Plus the car and auction everything inside. Now they are down to 300k on six figure income and they haven't even started working to their full potential. If he could put all that shady energy to something ethical he probably will make a lot more money.
Not selling the house. 2.5% interest. Renting is not going to be much less than the mortgage payment. Focus on paying of or selling off anything else that you can sell….
Selling the house and using the equity to pay off additional debt as well as selling the car gets rid of over $600,000 in debt. Still has a bunch more to pay down but it would be much more manageable.
Thats exactly what I was saying. In a 600k house I am sure they have plenty to auction off too. This is not the worst situation we have seen. And if he is already a $90-100k employee I am sure he is smart enough to make more money ethically, and his wife start working full time. Now you have a $130k or more household with about $300k debt.
But can he sell the house with solar panels attached to the roof and he owes on the solar panels? There's probably a clause in the solar contract prohibiting transfer of the account. If that's the case, he'd have to pay off the solar loan first and then find a buyer who wants a house with solar panels. In California, maybe, but in Illinois, I'm not so sure..
@@Shortballa11 Maybe things are different now, but it hasn't been that long ago that buyers didn't want to mess with a house with solar panels, or they didn't want the 'old' panels that were on the house because technology is better now. Either way, I don't think the solar contracts are transferable so he'd have to pay them off first, yeah?
@@AllynHinNo I get what you are saying. Im just saying if the house is worth 600k, they may be able to sell for 615 or 625 if buyers know they aren't going to have a utility bill
This is the scenario where bankruptcy is your only way out but ironically, he may not qualify because of the shady loans to friends (loan shark stuff). He's screwed.
Wtf does he do then? All that interest is going to be piling in. Dude has kids too, I really hope they pulled it around somehow regardless of his bad actions.
Greed & stupidity got him to where he is...nothing else. I find people like these are there own worse enemies... they know what they need to do but cant because they're addicted to spending. He should be thankful hes still got a wife by his side. Most women would've left years ago!
He doesn't see that he's enslaved himself with stupid decisions. Rather than make smart decisions, his solution is to work harder and keep the debt. Good luck with that!
My neighbor stopped by about a year ago trying to talk me into getting solar panels like she did. I said, I’m not taking out any loans and she said, “oh, you don’t need to take out a loan…… they do it for you!” 😆🤪🤪🤪🤪🤪 Long story short, she pays over $200 a month for these things, they’ve never worked right and now she just found out that the company went bankrupt and she’s still making payments 😂 she and her husband are stupid on steroids ! I’m really surprised they haven’t been foreclosed on yet. And yet she’s always trying to give me financial advice. I finally said “no offense, but we have no debt except for this one cheap used car which will be paid off in a few months. And that’s it !”
@@michelarosier1918 Well, like Dave R always says, “don’t take financial advice from broke people”. And I also don’t take health and fitness advice from people who smoke or are obese etc. And I’ve had those people try and give me advice. I just smile.
They're not all like that. Here in BC, Canada, the government will lend up to $40k at 0% for 10 years for a solar panel install. There's a $6000 grant/rebate too. We pay quite a bit for electricity, even though we generate it cheaply from our hydro dams. The Solar program pays out at wholesale rates (low ROI), so it only makes sense to offset 80-100% of your own use. They've structured it to bank kWh in the summer and then hand them back to you in the winter, which allows you to drop $800 winter electrical bills down to a miserly $250/mo flat loan payment for 10 years. It's a big win, and you own the panels, so you get the tax deductions/depreciation boost, and increased resale value if you sell your home.
In a word, human nature can be boiled down to greed. Old boy in this video was trying to play Chicago "gangsta," and it bit him in the butt hard. Like too many these days, he is looking for a get-rich-quick scheme to bypass the hard work required for wealth and security, and one doesn't exist. That said, he nor his wife have what it takes, determination, and self-discipline to get out of the hole they have dug themselves into. They wouldn't be in the situation they're in now if they had an inch of either. Just saying.
I gave him benefit of doubt. He may have fallen for family/friends' woe-is-me tales and saw an opportunity. The thing is, friends/family do not always keep up the payments and there is generally no recourse or way to get back the loaned money.
Sell the solar panels? Really? I highly doubt he will be able to sell that. Ken said sell the house? Unless you're in the south side, houses and rent is expensive.
Guy hasn't met a loan he wouldn't take. Just file bankruptcy going to take over a decade to get out this mess. Unfortunately he likely just do this again. Common sense really is in short supply these days. But if doing something illegal he might have to suck it up and pay off a bunch of debt.
As my grandfather used to say "Nobody's useless, you can always use them as a bad example."
lol he was right
Grandfather was wise
the same way he got into the debt is that same way he's trying to get out : by doing tricks. This guy hasn't learned his lesson unfortunately
Wow I’m writing that one down
That's a great saying 👍
I'm low-income, but I don't owe anyone or any institution a dime, not one red cent. I sleep like a baby and feel fantastic compared to these people calling in who have massive debt.
If you owe nothing to no one you are already doing better than most people.
You can live comfortably on a low income with no debt.
I’m low income as well but have a mortgage and car note that is 25% of my monthly income. I could pay off the car but is waiting until the balance goes down some more. But I’m glad I can sleep like a baby compared to the many callers on this show especially those making over $150,000.
You have a higher net worth than this poor sod lol
Mortgage maybe? Or rent?
This guy was 100% operating a loan shark business - probably fraudulently from banks without telling them he was going to shadowlend to somebody else. If this guy declares bankruptcy there’s a good chance they’ll actually look into him and will file fraud charges against him. I see why he is freaking out…he is in deep and really can’t engage the legal system for help or he may well end up in jail.
Yeah this dude is in huuuuge trouble
He’s probably going to leave the country eventually
Aaaand he seems to have fallen for the solar panel scam/scheme
He shouldn't Volunteer the information for lending out that money just file for bankruptcy.
💯
This guy sounds shady AF. Did we even determine if he has a job? Or is his job un-professional loan shark?
Is it really being a loan shark if it’s only a 35% rate? That’s pretty much a credit card
Just by the way he speaks, one can know he is crooked, he's mumbling a whole lot. This only leads me to believe that he's not fully truthful
He works in “waste management.”
@@shapri1115 You can hear the accent in the voice, mumbling probably because its his second language
@@barnabusdoyle4930doesn’t matter it is illegal. You can’t do a private loaning business, taking loan and giving it out for higher loans. Loan shark if is terrible
Holy cow. I have tightness in my chest listening to this guy breakdown his milli debt. Insane
My first thought was .....Holy Crap!!! This guy is doing something highly illegal. 😮
I had the same feeling. I can’t imagine how they are feeling.
😂😂😂
I became debt-free on September 1st. And I am not kidding, my heart also tightened listening to this call. The dude sounded like he had the mafia coming after him.
@@jaredroussel He said $120-130k,
Ken: "his life sucks already"
lol brutal 🤣
He's just being honest if someone was honest with him before this then maybe he wouldnt have got to a million dollars in debt!!!
I really like this woman as an addition to the show. She does not want to scold people. She focuses on the solution.
Watch more, she's one of the worst personalities they've had. She likes the sound of her own voice and has a serious superiority complex.
@@thecarrots5 personal opinion. We are all entitled to it.
Now if she only had actual expertise and knowledge. " sell the solar panels" 😅 It is tougher to get out of solar panel contracts than time shares!
I totally agree. I think she’s the best Ramsey personality. Because she’s so expressive and great at notifying people there’s a serious problem, but doesn’t harp on them like an angry parent. She’s actually pretty funny too
She asked him if he could sell them and he said yes, so went with that. She and her husband paid off almost half a million of debt. That's some serious expertise and knowledge.@@chuckmay6563
He forgot that he has to break the legs on the first dude that stops paying
Doubt it if you loan money online via lending tree. 😂😂
😩😩
@randomswedishdude - That's it, sends a message to any of the others who think they don't have to pay.
He contracts that out.😊
Amateur.
I was looking at my Visa balance of $650 dollars and freaking out. This guy is about to go out in a blaze of glory.
Right lmao
DUDE...I was about to say the same thing, except I'm WAY worse than you! I have a grand total of $893.78 between two credit cards (Visa & Master)...and I'm freaking out, cause that is over my paycheck for the next pay-period lol! 😶😳😱😯😲😮
I have a balance of $17 dollars from my credit card and I’m annoyed already to have debt from the bank
@@bratzboyzSELL YOUR CAR IMMEDIATELY
@@VintageStereoCollectorbeans and rice
NEVER lend anyone any money unless you're prepared to NEVER see it again. This goes for everyone. Your best friend, your brother, your sister, your parents, EVERYONE.
Unless you're running a ruthless racket where you are kidnapping family members or severing fingers and such NEVER lend anyone any money.
I’ve heard this growing up! And it’s absolutely true! Even if it’s 20 dollars
@@RUBY-zi2ug There is a place for a more nuanced discussion but it is a good rule of thumb that I still follow to this day. It just keeps life simpler.
It is better to be called stingy or whatever then to be possibly ostracized from your family or overall avoids TONS of awkward moments.
You must really have some shitty family and friends. Or at least some irresponsible ones.
Yes, i made that Mistake. Once. My brothers owns me money ( 500$ i also have debt to our sister(
2 years later nope not one Cent paid he paid me back. And he did asked again. I said: Go and ask your girlfriend or a Bank or someone.
I have to pay my sister back. BUT she the gave me time to pay her back. And finally i am debt free and free to tackle my debt for my sister. Every cent she will get back.
Thats not even a question for me.
@@can1687 Wow! I'd never talk to him again lol, he just sees you as someone he can take advantage of.
This is literally INSANE. One of the craziest calls I’ve heard in awhile.
This call made me feel better about my life. I feel for this family.
Statistically- when his kids are 18 he will manipulate them into signing for a loan for him
@@JDAfrica: To JD Africa: I agree. It is Sad when a wife and family have to suffer the embarrassment of the household leader.
This is nothing compared to the people that call in with a million of student loan/consumer debt. Like nothing to show for million crazy
I agree. Every time I watch these I feel much better about my situation.
Meh this guy is an actual loan shark
These calls blow my mind - how on earth do you get in that much debt. I'm 44 but if my 79 year old mother found out I was in any kind of debt apart from a house, then she would take her slipper off and beat me black and blue.
He sounds like a foreigner. I think he is probably supporting a lot of family back home -- in addition to his immediately family. He is the person everyone is depending on. Plus, I think he has expensive taste and is trying to live "the American dream."
@@chocolateangel8743 He doesn't sound like a foreigner to me.
😂😂
@@chocolateangel8743foreigner? Supporting family? You made this assumption based on what exactly?? Zero indication of this but nice try
@@chocolateangel8743Wow! You must be a founding member of the keystone cops
I like these two fielding questions, they're both so matter of fact but with a caring tone.
I thought that woman years ago that called Dave being half a million dollars in debt from all the shopping and vacations and cars and luxury items was the worst. I think this might have just trumped that off.
No there was actually a guy who came in with a million dollars in debt over student loans as he wanted to become a dentist
The worst was the chiropractor. Go watch “Was it worth going $435,000 in debt for THIS degree?”
He doesn't have any good choices. He's about to lose everything, he has a huge debt and not enough income to pay for the car, loan and house. He must of used the house as collateral for the loan.
@@enhancedutility266dumb but student loans are not worse than luxury shopping. The guy who bought a campground for like a million with a 25% early payout fee is the real idiot
@@enhancedutility266 oh that's right! haha gotta find that video now lol
This is the craziest debt story I’ve heard on this show so far. This is most definitely keeping him up at night.
Dave would've exploded on this guy. He's fortunate he got Ken instead.
Nah isnt the craziest. 70% of the debt can be erased by selling the home, car and everything in it. Then you have a family in 300k debt with a more than six figure income. We have definitely heard worse on the Dave Ramsey show
@@Shortballa11did you watch this? The only thing they can sell is the house and car. The house is 462k and the car is 42k that’s like 500k they get “rid” which is not really because they will rent same price as thier mortgage. He is 500k plus of pure cash debt!(credit card, and installment) he is bringing 10k a month btw him and his wife! His monthly debt payment is wayyy over 10k a month even just minimum payment, as majority is credit card and loans which have ridiculous interest rate. And he still has to pay rent, feeding, take care of kids. He is suffocating!
@@Shortballa11 Nah this is absolutely the worst one. As many commenters have pointed out, his debt doesn't appear to have been "legitimately obtained" which if the amount of debt wasn't toxic enough, this will kill him.
It's not like he made high-end purchases and can return or re-sell those items at a slight loss, it's not that he used the money to buy other tangible assets. It's not like he took a loan to gain another type of investment (eg prestige education leading do high-earning career) that he can use to help navigate him out of this.
As others have clocked, it's likely this dude is a wheeler dealer and was running a loan shark business, but stupidly. Using cash advances to borrow money, lend that money at what only had to be stupid-high (probs higher than payday lenders) rates to "friends". One of the replies to your comment called it that he only has his house and car to sell, and that's it. As regards their income, hopefully the income this guy counts did not majority come from his "business", otherwise he's really f***ed. And any bankruptcy proceedings will be made complicated if there's any evidence of fraud ...
@@shachede6828He said the house was worth like 600k with 150k equity or something. Even if they take a loss on the solar panels they get rid of that debt. Chicago is super expensive bt assuming they downsize. The need to be in a two bed room apartment which would be cheaper. ALso if you have a 600k house there should be plenty to sell. Sure im giving the benefit of doubt but if you are desperate all this is attainable for breathing room.
It always amazes me how many "smart" people find a way to absolutely bury themselves financially ! This guy has a doctorate degree in " I know what I am doing" . You can just feel the stress in his voice, his depression, his nervousness, just all of it. Large financial pressure can just be soul crushing. Always live within your means, build your 6 month emergency nest egg, invest smartly for the long term, drive a 5-8 year old car with good maintenance, and other things as well, etc. Hope he takes their advice. Time for a scorched earth campaign. I agree.
Most of the time, college degrees have nothing to do with being smart. Have you actually seen how easy it is to get a degree? You basically just need to be alive.
@@Silidons91That's not what the data shows. Most people don't have an degree and many people who try to obtain one, they drop out. This anti education narrative is largely from people who don't have a degree/marketable degree and massaging their egos. And angry because they are broke and stuck making mediocre money. The vast majority of Americans with an HS diploma don't make over $41,000. Pretty pathetic and understandable why they demonize education....especially when a bachelor degree more than doubles their incomes. Hell an associates degree gets nearly $200 more a week than a HS grad. 🤷🏾♂️
Smart people do not end up in such situations. Smart people understand basic math and that is all finances are.
@@Silidons91 Yes mock others who get degrees because you couldn't. And what do you mean "most of the time". Where did you get that "statistic?" Why did you put a comma after "time"? Maybe you need to go to college.
@@drn13355 Oh come on, he's not wrong and I have a degree. Employers know it too. Having a degree on your resume is pretty much pointless now in many fields. Mine is certainly one of them.
We've seen way too many kids come of out college completely incapable of doing the job at hand. We've also seen many self-taught success stories. Colleges are just selling a social experience now, and they throw in a political indoctrination as a bonus.
If you gave him $1,000,000 he would end up with $0.
Allen Iverson made $165 million in his career, and he spent $168 million. People are people and are capable of dumb decisions regardless of income.
Iverson has a trust with Reebok that he get’s when he turns 50. Somebody on his team was looking out for him
@@christianwilson8301 I hope he is better with it than he was with the rest. Holy cow.
Absolutely
Fact… add as many zero’s as you want
This guy will need to spend a lifetime to get out of this mess. Good luck, you're going to need it.
Not really, sell the house that is worth 600k and the solar panels. Auction everything in the house and the car and he is down to 300k debt with a six figure income and him and his wife arent even working to their full potential yet. We have definitely heard worse and if they took it seriously they could be out in 10 years.
10 years is a lifetime to some people lol @@Shortballa11
“Don’t agree to guarantee another person’s debt or put up security for someone else. If you can’t pay it, even your bed will be snatched from under you.”
Proverbs 22:26-27 NLT
Persons need to start applying biblical principles to their decisions . I guarantee if they do, they won’t find themselves in these situations…May the Lord have mercy on this caller…
I still remember to this day how my bar exam teacher described a surety (a co-signor on a loan)... He called them, "an idiot with a pen."
And charging interest to your countrymen and those living among you
Praise Jesus but please use KJV or NKJV.
You can hear the depression in his voice. How on earth he got himself in this mess? Thank God im debt free🙏🏾
I wish Dave took this call. lol!
I wonder how Dave would’ve proceeded with him. I think once he heard all this shady stuff he would’ve told him he can’t help him
Yea, and it hurts !
Yes, I agree Dave
This guy single-handedly ruined his family for potentially forever because I don't see them ever being able to pay this off. He thought he could be slick and take out loans at 15% and loan that money to other people probably at 30% and it obviously failed. Also it sounds like he's doing illegal things as well such as fraud and could face prison time for his stupid actions. If he were to try and file bankruptcy that's where he would get caught up revealing all of the debt and where its going and where its from. So if he does that he will probably be arrested and if he doesn't he will be in debt forever. Smart guy he is
I thought I was dumb but this guy.....respect.
there are levels to this 😀
😭
😂😂
😂
This guy is an expert at borrowing money. Got that masters degree. Children ! Stop spending money on anything but staying alive. Every meal is eaten at home, no new clothes for a few years. No going to movies, no subscriptions to anything ! Sell everything that is not welded to the floor or walls. Stop living like royalty !!!
Agreed! He has wheeled and dealed himself into 1 000 000 of debt. I will be surprised if he can work his way out of this ie OT, delivering pizza, wife working full time, etc etc etc. I hope he calls back in a year either way.
Boom !! Preach that gospel brother !!
That stuff doesn't work for people like this. People who love money can't suddenly live beans and rice lifestyle
This.
And in know time he’ll,,,, be with his wife with 3 kids ,, at Dave studio,,, doing we are debt free screams,,,,
People perplex me. Like surprise I’m a million in debt and more than half non mortgage, wow.
This call gives me goosebumps because a lot of pple in these types of situations commit suicide and if they have kids their lives are ruined both parents will never be around because they will have to work so hard if he doesn’t kill himself or honestly maybe go totally missing and get a new identity I cannot begin to imagine the stress if he loses a job in the upcoming depression this is the level of stress that kills
That’s exactly my first thought is that he will
Take his life especially if he’s investigated and arrested
He's not going to change a thing. He's in too deep, and the only solutions he thinks are viable are home runs that produce big payoffs. That's how he got in this mess to begin with. 0% chance he switches gears and plays the long game now to eliminate this debt.
Buying $50k solar panels is basically signing up to pay for 10 years of electric bill savings UP FRONT. Unless you MUST be off grid, it's DUMB!
Can he even sell the solar panels? Don't think that's possible
@@tkidd250 at a huge loss. The markup on solar installs via debt, is INSANE!
You can make up a lot of it by taking the tax credit. Depending on which year they were installed, he could have a credit up to $15k.
The electric bills in CAlifornia are insane. I love my panels and solar owned does boost the value of your home
Would be better off diy with cheap solar for like $10k to 15k cuz solar will improve in a matter of months
I wonder how people fail to realize that if you make $100,000 in a year as a family, you cannot afford a $450,000 house. But the same applies also to people who buy 70,000 or $80,000 cars. Being able to buy is not equal to being able to afford.
Dear It's Sid, Your illustration is not so outlandish depending on location, state or city. Many could cut back on the price of a car, but in this age, if in SF or NY a 450K dollar dwelling is not so disconcerting.
On a 100k income you can definitely afford a 450k house, thats a stupid mentality you have there.
No you cannot. House should be twice your income. Not 4 times your income. Location doesn't matter because the numbers are the same.
The servicing ratios are 0.35, and sometimes they wiggle them up to 0.4... meaning that if you got a $500k home at 2%, $10000/yr in interest and another $20000/yr in principal paydown (like a lot of people in 2020/2021), then that only requires $85k in income to service it.
Where I live, if you don't pay $3000/mo for a mortgage.... you pay $2800/mo for rent. But then $2800 goes to the landlord, rather than $1000 to the bank and $2000 to yourself. If you can't afford a house at those ratios, then you can't afford to rent or even be there either.
But since you are there, I guess you can afford it. Just cut everything else that doesn't matter... live like a monk on the mountain top. Who needs holidays, anyway? If you have a nice home, it can be your refuge from the crazy world.
@@ddo920 Says who? What a stupid mentality lmao
The wife fell off the couch when she heard she hast to work 40 hours a week 😂
They have three children and we don't know how old they are.
@@NYNC88 maybe you should get off the couch as well lmao 🤣
@@mikeberardi3985 I don't know why you're addressing that rude comment to me. My point is that if all three children are young enough to require daycare, the wife might not earn more than the cost of the daycare. I thought that was obvious, but I guess I should have explained it.
@@NYNC88 I paid seven years and three children in daycare just for the right to show up at work just like Dave Ramsey says I live like nobody else then so I can live like nobody else now there are no shortcuts my friend I wish you all the best in life 😀
@@mikeberardi3985 : NYNC 88 was just making a true statement regarding people who gamble with others' lives, bringing them into a father's house of failure.
NYNC wasn't the one who knocked up these three kids.
no matter how bad you think your financial situation is; there is ALWAYS going to be someone(s) in a much worse situation than you.
And they usually make more
I need to save this one so if I'm ever feeling like a financial idiot, I can come back and listen to this....
😮
This guy may have more problems than the debt. Looks like homeboy was running an illegal loan sharking scheme. He could be facing jail time if the banks do an investigation. Can't believe he would just admit this on the internet lol
He was very general about what he was doing regarding the lending, and who he was lending to. He may be in a family culture where the big money breadwinner gets pressured to "help out" relatives, some of whom may be deadbeats.
@user-mv9tt4st9k Doesn't make it any less illegal. He was taking out loans to then lend that money to someone else at a higher interest rate. That's fraud cut and dry. Just saying that if the banks investigate and get the feds involved he could be in a world of trouble. I'm simply pointing out that he shouldn't be admitting this on the internet that's all.
I think this guy is holding back on information. Whether there’s legality issues and he doesn’t want to disclose soemthing because this is beyond ridiculous and it’s not making sense
He is in huuge trouble
I definitely think you're right in that he's not disclosing the full story, but I wouldn't be surprised if he's not doing anything legally shady per se.
This man's entire situation sounds like deep financial and business illiteracy. Like, deep. He tried to function as a *lender* by taking out loans for others and didn't calculate the stupid risk he'd be taking on, or wondering they the only people that succeed in that are indeed predatory loan sharks who operate outside the law, enforce repayments with violence and even *they* don't exceed certain financial limits per borrower (victim). Or properly regulated financial institutions that have their own capital, business and risk controls with qualified staff overseeing everything.
And then on top of this, despite a business crisis that's likely been years in the making, he mortgages a $600k home (unsure whether this is a HOCL area to take into account) 3 years ago.
I highly suspect he wanted a "get rich quick" scheme that seemed a tad legitimate, and his overconfidence and immaturity on financial matters is what got him in this mess.
Absolutely he’s fraudulently being a loan shark.. he’ll go to prison or either try to evade the country within this year guarantee
Yes. I do not trust what he is saying. He thinks that he is an operator.
Well he couldn't get a word in edgewise. Ken and Jade kept interrupting him.
Best advice this show will give you is “ Sell Everything & Get an Extra Job “ which is common sense in most situations ( Not all ) But Most.
It seems like he's looking for a quick solution to a huge amount of debt . Like he doesn't seem ready to commit to an actual plan.
How can someone be allowed to go this far in debt? 50K in solar panel loans?!!😮
the same way he got into the debt is that same way he's trying to get out : by doing tricks. This guy hasn't learned his lesson unfortunately
But but but tax deduction? That fixes everything, right?
Solar panel salespeople are slick. They will promise to qualify you for more than what you need and argue away the cost benefit you have already done to show how solar will cost far more than the energy costs it will save.
You can't just get rid of solar panels. Those are most likely leased. Even if not, moving them is not like moving other stuff.
He's a role model. Don't be like that guy.
More like a cautionary tale. Some people on this earth exist to be them for others.
How did this guy get approved for these loans in the first place? His debt-to-income ratio is WAAAAAAY out of line.
Subprime loaning is back in vogue.
Maybe he did a typo and added a zero, and they didn't check. Or messed up gross and net when they ask?
@@buddykerr1😢
Probably these "loans" were cash advances on credit cards. He probably took them out at 25% and was likely charging his "friends" something like 35% in his loan shark business he was apparently operating.
@@1981lashlarue Thanks, I wondered how he owes so much and was still loaning to others. Crazy.
I hope this is the wake-up call he needed to fix his life. He needs to do it for his family and show them how strong he can be. This is a mess, but I believe he will prevail!
You are delusional, this dude will never recover from this. This might be one of the truly bleak unfixable calls that occasionally come on this show (like the woman that is 64 and has nothing saved for retirement). Dude was committing financial fraud and because of that he cannot declare bankruptcy (unless he wants to go to prison), he is trying to lazily and easily get rich - he doesn't have the discipline to get out of this without breaking the law. You write that kind of comment for the 45 year old man going through a divorce and having to declare bankruptcy, not a loan shark trying to lie, cheat, and steal his way to wealth.
Felt kind of bad for him until he was doing a stupid scammy side business. Lol.
I would like to have seen Dave's reaction to this caller. I think it would have been a 4 minute call and he would have seen the unethical moves made by this guy. This guy is a real loan shark.
And the female keeps interrupting
If he were a real loan shark he wouldn't be in this mess! He's an amateur playing at high finance and losing his shirt.
@@stud6414 Usually we call them "women."
@@happydogg312apparently nor do you. She called him out as a loan shark, although, as she has sense, the accusation was not outright. Too serious of an accusation to make on air like that.
@@stud6414The woman, Jade, was not interrupting. She was trying to clarify information in what is a short amount of time.
My goodness! Just listening to this call gave me anxiety! I hope he listens and start paying off his debts.. even though it will take years and years to do so! For his family’s sake. I feel for him but specially for the wife and kids! Best of luck to them!🙏
He borrowed 50k for solar panels...
That's more than I paid for my condo a few years ago.
I was shaking my head while listening to his other debts, but had a stroke when they said that about the solar panels.
Here I am putting every damn dime towards extra mortgage payments, and other people are living lavishly on debt.
Solar Panels. Did he even think of how he was gonna pay it off!? Ridiculous.
I just noticed that I stopped breathing listening to this. 😮 How does someone do this?
I don’t know.. That’s crazy. If it was $1M in mortgages and he could afford to pay it at a normal rate then fine but not with loans on different things..
Gambler's mindset.
Get rich quick mindset.
How did he qualify for even one loan? In 1999, I started my job as a state police officer, bought a used mobile home for $12 k and then applied for a used car loan and was declined with no bad credit.
Right..this us weird
I think it’s his high income that got him the financing
He.. makes a lot of money and banks are greedy? Happens all the time
Maybe getting it in wife’s name under her income?
alot easier to get debt in recent years vs 25 years ago be my guess
OMG. I just assumed there was a lot of asset-backed business debt in this $1M, but no. Man, people make a mess of their lives.
I agree. Usually when people have a mil in debt, they have all these rental properties or at least it's in their business. And then selling some of the stuff will lessen the debt. But this guy has a mil in debt with zero to show for it and no income to pay it off. This is a frightening call. I think this is one of the worst calls on this show when it comes to debt vs income.
Who tf goes 50k onto debt for solar panels man some people just dont get it
And in Chicago no less. Those work so well on cold, dark January days in Chicago lol
@@econdude3811😂😂😂 right
@@econdude3811 solar panels work if there's any light, and better when cold.
I mean w.e if you have the money its nice and could increase your houses vaule overtime. But if you have 500k plus of debt thats insane
Listen, they make it seem like that they are doing you a favor. I think I got quoted more and I just couldn't sleep with myself. I had to deny it.
A fool and his money will soon be separated. Bankruptcy is his best option. He will be in the same spot a few years later.
Yes he will, particularly as he is hanging out hope that he’ll get money back next year…..
can't as he has been running a loan shark "business". Moment courts review his bankruptcy all his illegal dealing will come to light.
Who would want to buy someone’s used solar panels, pay for taking them off and re-installing them?
@Minimalist-Lifestyle Over the cost of new? Many people who live off grid would
Exactly. He paid $50k for them installed, the panels themselves are worth $20k new. The used panels sell for 1/8th the price of new, add the cost of the removal. . . and now he owes and extra $3k and has an electric bill to pay monthly lol. Not to mention depending on if the loan is secured or not, you would have to satisfy the loan before you can sell your house. The Ramsey team do good work, but they really should get into the details of things before making suggestions.
@@hollyburnside83 Not seeing them , I could guess under 5K if all the equipment was thrown in as well. Panels alone 1K tops.
cant sell them ...even if someone wanted them youd have to completely redo the roof to remove them and make it water tight again
Not to mention the possibility of damage during the removal process.
This is my favorite call, this is beautiful karma and I hope this loan shark never financially recovers.
Wow. I have alot of anxiety hearing this list of debt
Some possible ideas: Instead of selling the house, *keep your house but rent a bedroom / suite to a responsible person.* I agree with other comments to stop any additional spending. Eat all meals at home, take the kids out of after school activities that cost money like taekwondo, dance, etc., no more loan shark deals 😉, go to the church clothing closet or Goodwill for everybody's new clothes, have the kids help mow the lawn with a push mower, share a vehicle (if possible), and allow the kids who are old enough to get small part-time jobs to help fund their "wants." Also, ruthlessly cancel all subscriptions that are not absolutely necessary ... these really add up. The final thing I can think to suggest is when dealing with the repayment of student loans (which is starting again this month), request your student loan servicer to grant you a forbearance until your household debt is cleaned up. Even Clark Howard talked about that a little on his podcast today.
Thanks to the caller I feel much better about my life.
I remember a few years ago, not bei g able to sleep because i had 30k of debt plus a mortgage. It was horrible.
Today, on baby step 7 i honestly feel so distraught for this family. The mental weight of whet they are under must be almost damning.
Rob is a write-off. He will never pay that off.
Ken is fed up with this guy 😂😂😂
So then go make more money! Jobs paying over 100k are just falling out of the sky! Open a rice and bean importing company
This fella needed DAVE Ramsey himself for a good scolding!
I think it's important to note that this guy knows he's in trouble and took the time to reach out to the Ramsey Team. He and his wife have put together a budget. They really don't have a choice but to do something drastic if they want to survive. If they are reading this, please know that tens of thousands have gone through this painful process but it's worth it to have financial freedom!
He owe 1 million.... I don't think that can be fixed if he owes that much money because at 5% it is 40K per year in interest!!!
To Tiffany M. 4020: No: Tens of thousands wouldn't be incurring monstrous debt as abysmal as this, amassing a negative one million, waiting for the zeros to align on a negative slot machine -- then, turn to Lord Ramsey. I doubt this.
@@eddyvideostar Ramsey believers have very interesting thoughts.... I agree 1 million is equal to many people's lifetime expenses.
@@donaldlyons17ya mean 50?
@@robertvalinsky9804 Yeah I did mean 50K!
Wow he only earns 100k a year and has 1M in debt!! He needs to sell his house way too much for his income!
I'd live in a box until I paid it off haha. You shouldn't take this risk ever but when you have kids... Dude is insane
This guy got into debt thinking he could get rich quick being a loan shark. He’s not looking to work hard and long to get out of debt. He’s looking for a trick or shortcut to somehow magically get out of debt. I see bankruptcy in his future.
Yeah, I was thinking the same. It's risky to go bankrupt in his situation though because they may investigate his finances and find out about the shark loaning thing..
@@ciobalina7445the same way he got into the debt is that same way he's trying to get out : by doing tricks. This guy hasn't learned his lesson unfortunately
Whew 😳, feeling much better about my financial situation after listening to this.
Same here
Ditto!
Telling a family of 5 to get out of their 3% mortgage and sell the only hard asset that's keeping them off the streets should be CRIMINAL.
Nobody is buying used solar panels. Really stinks when the hosts just start suggesting the caller start selling stuff that is nearly worthless and won't move the needle on a million in debt.
Many in the off grid community buy them. Depending on brand, some can be repaired. I have a few used ones on my lake cabin. A simple volt meter will tell you if they have output or not.
People do buy them because they are SUPER cheap, like 1/8 the cost. Which means the company removing them will give him even less. . . he will probably end up owing money for them to be removed and his roof repaired :(
@@hollyburnside83 He is cooked either way!
Well, this guy is essentially screwed. He was operating a loan shark business with personal debt. He probably lied to the lenders he took money from about it.
He can’t file bankruptcy, as that’ll likely land him in prison. He actually has to work through this lol.
Advice: don’t commit mass fraud!
He can file bankruptcy and go to prison. It just depends if serving the time would be worse than working off a million in debt (and we don't know anything about the wife either.)
@@nicodimus2222 Yeah, but he'll still probably go to prison and still owe a large chunk of that debt because a lot of it won't be dischargeable based on the illegal nature that he did with i.
I don't even understand how he got all these loans and credit on a relatively low income. Banks giving $1M worth of debt to a dude making $120K/yr??
Banks and wall street are a funny breed. I've often wondered the same myself. They seem happy to lend nearly infinitely once you prove yourself capable of managing it... in their eyes, anyway. It's easy to hang yourself by borrowing to the max.
I’m freaking out with my $28k card debt ( but lowering already ) I don’t get how someone can see a debt increase and increase and living like everything is fine
I freak out cause I owe $1,200 on a charge card🫨
Dave would've ripped him a new one
At this point, Dave might’ve pulled an “Old Yeller” on him.
Yup, and he would have sniffed out any illegal activity. He may have even called the Feds on him. 😆
I don’t know what people are thinking of when taking such amount of debt. This is crazy.
Doesn't want to get rid of the solar panels because he doesn't have to pay an electric bill lol 😂
Well the panels basically replace the electric bill and based off how much power your panels make and how much power u consume it could be cheaper to get panels
@@truebengalsfan 52k in panel costs would take decades to break even
@@bantizzle79how much is his current electric bill ? The price of electricity is going up in some places . He could have 20 year loan . How much to uninstall panels ? Then how much would he get for used panels
@@bantizzle79Not really, considering it’s replacing his electric bill. If his Solar payment was 250 for example and his electric bill used to be 250 it makes way more sense to have them because he is guarding himself against inflation, and also after the pay out period he has free power as opposed to being in perpetual debt to the utility company. People don’t think of a utility bill as debt but it effectively is debt that never ends, because he’ll never cancel his electric bill.
@@CalebDoggett but its a loan hes paying interest on and cant pay off
This is a situation that bankruptcy makes sense.
Yes, but the problem is, a lot of it he can't likely bankrupt because it sounds like he was doing some shady (likely illegal) loans to friends. Those can't be discharged and he's also looking at possible incarceration because of it. He's really got himself into a deep hole.
He can go bankrupt for the house at least and get an apartment. He may even be able to add the credit cards to it. But yeah when they run the financials they’ll probably see everything and he would likely be in dire circumstances.
Jeez…I could never imagine have even a fraction of this debt. How do you sleep at night owing a million dollars?
Agreed. It's easy to sleep well when you have $3m in assets backing your $1m in debt. He has *$100k* in equity to his $1m in debt. He's nearly $900k in the negative. On a $100k income. That's nuts.
I'm a Californian that lived in Chicago for 4 years, dude, you didn't need solar panels. It sounds like he's never said no to any deal so 🤷
There aren’t enough hours in a day or health in a body to get this guy and his wife out of this mess. It’s completely unrealistic to think side hustles can earn you an extra $5000 a month. Unless he works in the medical field where he could work 100 plus hours a week and double his income with 60 hours a week of OT. This guy is totally…. F
Not impossible. The wife already doesn't have a full 40 hours. If they both add on some 30 hours on top of 40 hours, it can be done, but they will be burned out.
@@sblijheid I agree not impossible. But pretty far over the line of unlikely, and in the neighborhood of impossible. It sounds like she’s basically a stay at home mom. Only working sporadically. Unless she has a degree, her job prospects aren’t the greatest. Especially with child care expenses eating into that salary. It would be interesting to know the ages so we would know how much that might be. My comment might be way off. But that’s cause there was a lot of info not discussed. I personally think they knew there was no way they could help him. But they can’t admit that on air. So they try to push their product and treat him like a normal caller. He isn’t. He probably can’t even go bankrupt because his “business” sounds like it could cost him some jail time. And the bankruptcy would investigate that. Like I said… I could be wrong. Maybe the Ramsey plan could help him out of it. It’s just hard to see a way out.
on the other hand... if he prioritizes those student loans first... the rest is bankrupt-able.
Make a big effort for 2 years. Prioritize student loans because you can’t bankrupt out of them ever. There is no quick way out of this.
Its rlly not impossible. Sell the house and solar panels. Plus the car and auction everything inside. Now they are down to 300k on six figure income and they haven't even started working to their full potential. If he could put all that shady energy to something ethical he probably will make a lot more money.
Sometimes I come to this channel just to feel better about my shitty situation
That’s what happens when you get greedy and try to rip off others.
Thank you 🙏
Not selling the house. 2.5% interest. Renting is not going to be much less than the mortgage payment. Focus on paying of or selling off anything else that you can sell….
Can't sell solar panels if they're already installed! They are already outdated. No buyers.
Selling the house and using the equity to pay off additional debt as well as selling the car gets rid of over $600,000 in debt. Still has a bunch more to pay down but it would be much more manageable.
Thats exactly what I was saying. In a 600k house I am sure they have plenty to auction off too. This is not the worst situation we have seen. And if he is already a $90-100k employee I am sure he is smart enough to make more money ethically, and his wife start working full time. Now you have a $130k or more household with about $300k debt.
But can he sell the house with solar panels attached to the roof and he owes on the solar panels? There's probably a clause in the solar contract prohibiting transfer of the account. If that's the case, he'd have to pay off the solar loan first and then find a buyer who wants a house with solar panels. In California, maybe, but in Illinois, I'm not so sure..
@@AllynHinim sure the solar panels boost the value of the house. It will likely make up the difference
@@Shortballa11 Maybe things are different now, but it hasn't been that long ago that buyers didn't want to mess with a house with solar panels, or they didn't want the 'old' panels that were on the house because technology is better now. Either way, I don't think the solar contracts are transferable so he'd have to pay them off first, yeah?
@@AllynHinNo I get what you are saying. Im just saying if the house is worth 600k, they may be able to sell for 615 or 625 if buyers know they aren't going to have a utility bill
This is the scenario where bankruptcy is your only way out but ironically, he may not qualify because of the shady loans to friends (loan shark stuff). He's screwed.
This is the scenario where you don't deserve to get out.
Wtf does he do then? All that interest is going to be piling in. Dude has kids too, I really hope they pulled it around somehow regardless of his bad actions.
Bro done came to America as an immigrant and messed his life all up taking them loans out. Damn.
Holy shit, i am in a difficult financial situation right now, but after see this video I feel in paradise. I am not kidding. 🤯
New boss level in debt achieved
They have to declare bankruptcy. No way they get out of this
Greed & stupidity got him to where he is...nothing else. I find people like these are there own worse enemies... they know what they need to do but cant because they're addicted to spending. He should be thankful hes still got a wife by his side. Most women would've left years ago!
agreed
He doesn't see that he's enslaved himself with stupid decisions. Rather than make smart decisions, his solution is to work harder and keep the debt. Good luck with that!
My neighbor stopped by about a year ago trying to talk me into getting solar panels like she did. I said, I’m not taking out any loans and she said, “oh, you don’t need to take out a loan…… they do it for you!” 😆🤪🤪🤪🤪🤪
Long story short, she pays over $200 a month for these things, they’ve never worked right and now she just found out that the company went bankrupt and she’s still making payments 😂 she and her husband are stupid on steroids ! I’m really surprised they haven’t been foreclosed on yet. And yet she’s always trying to give me financial advice. I finally said “no offense, but we have no debt except for this one cheap used car which will be paid off in a few months. And that’s it !”
Yea, I don't think anyone who buys solar panels actually does the math!!
Good for you, your plan and goal was in place for your family, not letting anyone force you to go into debt.
@@michelarosier1918
Well, like Dave R always says, “don’t take financial advice from broke people”. And I also don’t take health and fitness advice from people who smoke or are obese etc. And I’ve had those people try and give me advice. I just smile.
@@cjhoward409 I totally agree 👍.
They're not all like that. Here in BC, Canada, the government will lend up to $40k at 0% for 10 years for a solar panel install. There's a $6000 grant/rebate too. We pay quite a bit for electricity, even though we generate it cheaply from our hydro dams. The Solar program pays out at wholesale rates (low ROI), so it only makes sense to offset 80-100% of your own use. They've structured it to bank kWh in the summer and then hand them back to you in the winter, which allows you to drop $800 winter electrical bills down to a miserly $250/mo flat loan payment for 10 years. It's a big win, and you own the panels, so you get the tax deductions/depreciation boost, and increased resale value if you sell your home.
In a word, human nature can be boiled down to greed. Old boy in this video was trying to play Chicago "gangsta," and it bit him in the butt hard. Like too many these days, he is looking for a get-rich-quick scheme to bypass the hard work required for wealth and security, and one doesn't exist. That said, he nor his wife have what it takes, determination, and self-discipline to get out of the hole they have dug themselves into. They wouldn't be in the situation they're in now if they had an inch of either. Just saying.
They’re Gona take the easy way out and file for bankruptcy. And even then they might not get away with it.
I gave him benefit of doubt. He may have fallen for family/friends' woe-is-me tales and saw an opportunity. The thing is, friends/family do not always keep up the payments and there is generally no recourse or way to get back the loaned money.
Honestly, neither of these cats are qualified to help this guy. He might need a lawyer.
Mrs. Jade’s whistle had me rolling!🤣
Loan Shark detected. Have fun with all that debt bro, zero sympathy from me.
Solar panels in Chicago??! WTF!
Would have loved to hear Dave's reaction to this call. Feel like it kinda went over KCs head
It’s Jades face for me at 2:57! 😂😂😂
Sell the solar panels? Really?
I highly doubt he will be able to sell that.
Ken said sell the house? Unless you're in the south side, houses and rent is expensive.
I have a rural cabin. I’d buy a used set of solar panels for it. But yeah not pay any sort of premium for them
Solar panels are a huge scam, just like timeshares!!
Sell it or lose it. Your choice…
@@briandfallon74 do they just come take them off the roof like a repossession or how does that work?
I don’t see the point in selling the house and panels either. It’ll only increase your expenses and only marginally decrease their debt.
Guy hasn't met a loan he wouldn't take. Just file bankruptcy going to take over a decade to get out this mess. Unfortunately he likely just do this again. Common sense really is in short supply these days. But if doing something illegal he might have to suck it up and pay off a bunch of debt.
Why? He sounds like a loan shark.
He must have done some kind of lending tree loaning to people online to make money off of them. 😂😂😂
He is.
She called him out, he was a loan shark
He is a loan shark. Unfortunately those people did not repay the loans as it seems.
A loan shark without teeth.
At least he is a “negative” millionaire
LOL...never forget there's a silver lining in everything.
LMFAOROTFLSM 🤣