They might not even need to. At that income and that debt payoff rate especially with that low balance mortgage, they’re probably still overspending on fun stuff like eating out etc. If they went crazy and cut their lifestyle a lot (shop only at Aldi, no vacation, no eating out, no Amazon orders) they could easily pay the debt in a year even with the insane interest rates.
Dave's an idiot. Why give up a car that works? She has a 30 minute commute each day (likely one way, so technically 1 hour) and when the junker then breaks down within a couple months now she has to buy another one. At that point she is at $10K. Half of what was left on the new car.
Exactly those things. I have international family. In 3 countries! If I want to visit them at all I need to plan thousands of dollars a year. They can’t fly here even to visit. US immigration says no, nor could they afford flying here anyway on third world incomes
I live very simple. But I vacation for my health, literally, mentally and physically. I have very ACTIVE long vacations hiking and biking, beach and mountains. No way am I giving that up. I always have a car payment. Every 6 years I get a new one, shortly after the loan is paid off. I trade it in while it is still worth big money. I have no costly car repairs, not even new breaks, and do not have to worry about break downs. So there is more to life than just making dollars stretch, if I am not truly living my youthful retirement years. I watched my husband die. Life is short. I try very hard to make my monthly budget stretch other than the above, but with this darn inflation, it is nearly impossible.
because the more money you think you have the more you spend. It doesn’t make difference when you have a thousand and spent thousand.. you have a millon you spent a million,,
It is certainly difficult but i am learning that i have to stop being cynical and negative about what can be done. I see evidence that it is true that you can accomplish most things you set your mind to.
Is it an 'excuse' or a 'blinder'? Blinders create roadblocks in the mind, making it difficult to understand the 'advice'. Removing blinders isn't the same as 'not giving an excuse.' Excuse is 'no way out'. Blinders take time/understanding to remove. 🤔 (Just thinking out loud.)
My encouragement is, to find who in your life will support your baby step goals for when it gets hard and you need a word of encouragement. It helps to have a buddy that also has the same goals or supports your goals and has been where you are. Best wishes!
Love Dave, but he really doesn't understand the price of used cars right now, and hasn't for the last few years. I've bought two cars for my kids in the last year and I negotiate like a Arab trader in a bazaar. You are not getting a decent car that you can expect to run for more than a year or two for under 8k....forget about freaking 5K. One of his staffers should really tell him to stop with the advice about going to get a 4 or 5k " beater".
100% since COVID especially used cars have skyrocket. If someone is selling a used car for $5k alarm sirens should be going off that you are about to put more than $5k in it over the next 6 months
$4800 2003 Honda CRV, $4000 2010 Hyundai Tucson, $3900 2010 Toyota Camry, $3900 2012 Nissan Versa. All these are available in my area (Phoenix, AZ) as of right now and will last you more than 2-3 years with no problem. Yeah they don't look very flashy but you do what you got to do.
@@t206kid depends, I have a 2010 civic that only gets driven occasionally the recent years, it has less than 75k miles on it. I probably can sell a good amnt base on what I see here
@@t206kid also tbh, there's nothing wrong with driving 15-20 yr old japanese cars. It's usually the lower income ppl who really cares abt driving a nice car, justifying they have to have a reliable car to go around the town. I know plenty of ppl with high income(they are directors in high tech companies) driving 20 yr old camry, they feel there's no need to buy nicer cars cause cheap old cars can get u to the same destination
For people saying Dave doesn’t know the price of used cars, we bought a 2009 Honda civic in august of 2022 from a private seller for $7k. Has worked phenomenally and have not have to put much money into the car as of now. And this is in California. So keep searching and quit complaining!
For a man whose pre tax income is 73k, that's a lot. She makes 40- something thousand a year when she doesn't work overtime. Yes they can clean up this mess, but it will take determination
@@Mikey-w9q it's less than 10% of their income, less than 15% of just his. And he is responsible for the child, it's not some stranger he's forced to provide for.
As a nurse, you must be familiar with the concept that we can't help patients who don't want to be helped. There are people who have an excuse for every scenario. You tell them to eat healthy, exercise, take prescrption meds, go to their appointments etc. and they come up with a bunch of reasons why they can't. Then when their health crumbles they say they had no choice. Of course they had a choice... they just chose not to prioritize their health. I'm sure you know there are inconveniences and sacrifices that need to be made to live a healthy life. The same is true for becoming financially independent; you need to make sacrifices you don't want to make. However, if you keep coming up with reasons why you and your spouse can't make those changes, then it shows that financial independence really isn't a top priority in your life.
Dave being on is such a game changer. He makes people see things from a personal accountability standpoint vs when it’s 2 personalities. Life happens and Dave gets that, but it’s about taking ownership of what you can control.
He’s so rude! She’s obviously nervous and is asking for help. He makes lots of money “helping” people just like her who call in. Is him giving a little respect too much to ask?
I’m very surprised Dave isn’t asking “where is the rest of your money going?” Because if they’re making 140k annually and have a mortgage with 128k left and 2 normal car payments then they should have no issues at all. Something is missing here.
Gotta love how Dave goes for the: "Oh Honey you're doin' this alone, aren't ya?" Caller: "Um, no. My Husband is going full throttle with me on this..." Producer: ***PIVOT!!!***
You guys are in La La Land. I run a used car dealership and we sell plenty of reliable cars. There are inspected ready to go for $5000. You are trying to keep up with the Joneses and want the $30,000 Camry when the 2010 Impala with 80K miles that just passed inspection is fine for you.
If you need to get out debt, you need to focus and your family needs to be on board. Stop buying soda, drink tap water. Stop everything that is not absorbed necessary to survive.
$4800 2003 Honda CRV, $4000 2010 Hyundai Tucson, $3900 2010 Toyota Camry, $3900 2012 Nissan Versa. All these are available in my area (Phoenix, AZ) as of right now and will last you more than 2-3 years with no problem. Yeah they don't look very flashy but you do what you got to do.
@@paulinoaz Here in the Northeast, at those prices, the cars probably have 250,000+ miles on them, which means they are going to have major mechanical issues every year. I agree with Dave when he says to get a car that gets you from Point A to B with no bells and whistles. But you also can't get too sh*tty of a car because you'll make up for it in the thousands of dollars you regularly have to spend fixing it.
the average age of cars on the road is almost 15 years, there are many older cars that run perfectly fine. You just have to do a little research and have a 3rd party inspect the car before you buy it and you'll more than likely get 3 or 4 years out of a 5k car at least
You missed the point. When it was 20k, they got a 20k loan. Now they might have 15k left on the loan, and say the car is worth 12k. They sell the car for 12k, borrow 3k, and pay off the original 20k now 15k loan. Now they are net 3k in debt by borrowing the difference. No car in the end but they're better off with 3k debt than 20k.
@@ashkara8652they'd end up with less if they use the money they sell on the car to buy a used car. They don't have to make an additional borrow of money.
Awesome video🤩 Also just wanted to mention there are other investment options too-like Elizzarda, make money on gamblers and get steady 1.5% daily return
Don’t sell the car. Keep working overtime and pay it off. If you buy a cheap car, you’ll have nothing but issues. A 30 minute commute is not something you want to do in a junk car.
The way she was talking you’d think they’re taking home 50k a year combined. I think they are talking about a budget but haven’t done any work. They haven’t given up the cars, the hobby purchases, or stopped eating out several times a week. They diagnosed the problem and are surprised a diagnosis hasn’t fixed the issue.
Yes, but he only needs to drive it for maybe 18 months, until they're out of debt and he can upgrade to a $9000 car. And probably sell the old one for $2500, What's he going to to get fired because his car is rusty? It doesn't have to be pretty, it has to get him to work and back.
@@GuruChaz Just counting on the repair expenses being less than the payments would be, which is usually a pretty good gamble. If not, you have to by another inspection sticker with the remains of a car attached, and probably spend an extra year driving it.
Making touch with financial advisors like Elizabeth Regina Nelson who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
Unfortunately, not all of us were financially literate early. I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but I'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling!
I had problem comprehending trading in general. I tried watching other RUclips trading channels, but they made the concepts more complicated. I was almost giving up until when i discovered content and explain everything in detail. The videos are easy to follow
I've been making a lot of looses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?
I stopped putting money in my retirement during baby step 2. It took me almost 3 years to clear my mess.. the part that sucks was I owed additional tax money when I quit putting in 401k through baby step 2.. This caused a new debt two years in a row to the IRS. I would not recommend pausing your 401k. I missed serious buying opportunities during the Obama years when stocks were low by following the baby steps.. I understand the reasoning behind it, but disagree completely.
You have until April of the following year to contribute to an IRA and still claim it on the previous years taxes. My husband and I always contribute to an IRA to keep from paying federal taxes.
Exactly. Dave's way loses compounding and opportunity costs you can not 'catch up' unless you age backwards. Also, a 100% return from an employer match always beats paying off a mortgage, credit cards or other debt unless the interest is greater than 100% or one of the creditors is the IRS
Yes it can get out of control if you use this method and don’t get rid of the debt FAST. Timing is everything in investing, so this strategy is great for getting out of debt with one income. But you have to be disciplined and focused. It’s tempting with the extra money from not contributing, but during this time of debt payoff you can’t buy the things you want, can’t upgrade anything, can’t go on trips, can’t do Christmas gifts, NOTHING. Otherwise, it’s a sh*tstorm. Debt is there after a few years and you missed out on investing opportunities.
cars are such a money drain. just get a used camry, accord, or whatever. save your money, live debt free, then get a nicer car with cash if you wish. not a soul cares what you drive, doesnt maker you better or less than someone whos got a fancy car
Love some Dave Ramsey, although when we went through FP 14 years ago we continued contributions to our 401k’s at minimum getting our company match, it took us a couple years to get everything cleaned up & that worked well for our family, we could see the progress and celebrated when we paid off each debt along the way!
But where in the world are we finding reliable 5,000$ cars? I looked a few years ago and even the rust buckets were 10-12,000 I decided to just pay off the rest of the loan on my newer car. I'll get years out of it.
What is considered a rust bucket? Autotempest shows 2018 Nissan Rogue with 140 000 miles in Orlando FL for 8,000$ or 2017 Ford Fusion with 90 000 miles for 9,250$ How are they rust buckets?
@@GertieYTube both those cars are huge gambles. Especial the Ford if it's a hybrid. Transmissions in those can fail at 75k and can cost over $7k to fix. Ask me how I know...
$4800 2003 Honda CRV, $4000 2010 Hyundai Tucson, $3900 2010 Toyota Camry, $3900 2012 Nissan Versa. All these are available in my area (Phoenix, AZ) as of right now and will last you more than 2-3 years with no problem. Yeah they don't look very flashy but you do what you got to do.
Where Dave gets it horrifically wrong: 1. The only car you can get for $5000 these days is "as-is" with a motor or transmission about to die on you. Add $3000 for repairs. So its really $8000-$10000. And no question asked about how much they owe on it. 2. High interest rates are a fact of life for the self-employed and those with sub 600 credit. You can't just tell someone they made a terrible choice making that deal. I negotiate like an FBI agent trying to get hostages rescued, and the bank approves what they approve. 3. The whole "beans and rice" think is flat-out wrong. This lady (and 99% of Dave's callers) need to change what's going on subconsciously. That's their road to freedom. Once they change their belief systems, their financial life changes. But that doesn't sell books or allow you to put on Amway-style rallies, now does it? I have listened to Dave for quite awhile. I lost respect for him when he fired a female employee for getting pregnant out of wedlock. He's a fundamentalist Christian.....good for him. Why not offer adoption assistance and counseling, ole Dave?
The car part of this episode is jacked up on so many levels. First of all, they owe $20k, doesn't mean it's worth $20k. Second of all, they have to add $5k to their debt to get a beater, which is a total of $35k (not $25-30k). Third of all, Dave is completely delusional if he thinks $5k will get you anything in today's used car market
Dave asks a question- answers with too much info, too many explanations, too much justification. Humans overthink way too much. We are our worst enemy. Really. ❤
It’s very interesting to see the difference between Canada and the states. 100K a year in Canada is enough to pay bills and that’s about it. Used cars15-20 years old, barely run and need a bunch of work will start at 5-7K.
Can you sell a vehicle if you don’t get what you owe out of it? If you sell the vehicle but still have a balance on the loan how can you transfer the title?
Either way, whatever your car may cost. People out here are still buying cars just based on looks not even bothering to look online to see if they're even reliable
Shes a RN and he's just a this and that he makes around the same with no degree but no debt. Dave hunting down a way to blame the husband. She really is focused on him being a single dad and titles and superficial 🐂💩 isnt she. I mean what did she expect Dave to say her to quit and the husband to wave a magic wand.
It is hard to remove luxuries you have become used to. It is much easier to keep an older vehicle than it is to give up on Bluetooth, navigation, heated seats, remote starting, etc. However, if you want to increase the rate you are paying off debt or accumulating wealth, sacrifices must be made. The caller didn't seem too keen on the idea of downgrading their vehicle.
Im high as fuck dave Ramsey and i wanted to doordash some sushi but I knew it was a bad financial decision so I ate canned chili at home because I had it at home man. I hope you're proud of me. You're doing the lords work man you're the fucking best man.
There's that joke about cars going down in value as soon as you leave the lot, but a $5k beater will go down to the mechanic shop as soon as you leave the lot
Approx $80k net after taxes and child support. Then- where do they live? Is $1000/month going to housing, or $5000? We all can always find a cheaper rent/home. I live in north Dallas where avg home costs $600-700k, but we chose to buy a 1000 sq ft condo instead, so property tax, hoa, utilities is all less than $1100/month. Next- vehicles? Is it necessary for 2? Some families of 4 can share one vehicle, with a schedule for drop offs and pick ups. Someone in your neighborhood today does it, so you can too. Food- with 4 people, you can buy and cook for $1000/month, and not struggle. Walmart, Aldi, Trader Joe's have budget friendly groceries. ❤❤
Proof that passing a class, financial literacy, doesn’t mean you learned anything or that you’ll apply anything that you learned. The similar to the obesity and diabetes epidemic. Most folks in the comments understands that cutting calories, removing added sugar and moderate exercise resolved this epidemic but most of us don’t apply what we know.
Something wasn’t adding up but then she said “special needs”. Parents of special needs children think they have a license to spend irresponsibly. But then she admits she spent irresponsibly in her 20s and they bought cars with predatory loans. So special needs isn’t an excuse.
14% on a personal loan with 50k balance and 20k balance car loan, they might need to take from retirement to get out from under this mess, they just aren't attacking the principal enough with minimum payments. She needs to put her head down for the next 5 years and do a lot of overtime if she can get it, then maybe they can get out from under this without taking from retirement.
He big mistake was to marry a single father with a $12,000/year liability for who knows how long, not the mention the coming and going with his son. Before things get serious, a math nerd should approach dating by figuring out how much debt he/she has, what the debt is in, and how long would it take to pay it off. If the debt is too high and would take years to pay it off after getting married, he/she should be dumped; too much trouble and effort when he/she can find somebody else without so much financial bagge.
Everybody complaining about the car thing. I drive a $4100 Toyota Camry and I have driven it 9 hours one way, 3 dozen times. It runs like a top. Completely reliable. Costs nothing. You people saying you can't find a reliable $5k car are just nuts. Go buy you a Camry or Accord!
I never understood the obsession with vehicles. Who really cares what kind of car you drive? I have never lost any sleep thinking about what someone else was driving. If the car can get you to your destination, great!
We Dialed Back (for two weeks) but are still struggling (after two decades of misbehaving) Livin' big loco American in Texas with first world problems and a family and thinks they aren't ahead already. Pay off your debt, you're already ahead, your debt is just now catching up to you lol
$20,000 car for a 30 minute commute? Lol. I have a salvage 05 Honda CRV with 235k miles on it for a 40 minute commute to work. My car is so worthless Kelley Blue Book won't even put a price on it yet it gets me to and from work, all thanks to God!
This is why I've kept my 2020 camry and dont care how plain it looks. Having money in savings and investments is way more gratifying than a brand new car in my driveway.
people think there is no issue taking out TONS of debt... you will work the rest of your life for nothing if you overspend
You will work the rest of your life for SOMEONE ELSE…the credit card companies and banks.
They dont really have a ton of debt, 50k is like someone elses decent car lol
"I'm a RN" --- proceeds to take on mountains of debt and marries a dude that pays $12,000 a year in child support. Healthcare providers are a joke.
Who's willing to bet they're NOT selling that car?
Selling that car would be stupid
Refi it
No because dude needs a commuter plus he can’t get a job because he gets off at the late hour of 6 PM*eye roll
They might not even need to. At that income and that debt payoff rate especially with that low balance mortgage, they’re probably still overspending on fun stuff like eating out etc. If they went crazy and cut their lifestyle a lot (shop only at Aldi, no vacation, no eating out, no Amazon orders) they could easily pay the debt in a year even with the insane interest rates.
They should be able to pay off the stupid car in a few months the question is where is their money going
They should just go home after work sit in the dark and eat rice and beans .tell me who Is going to that ?
Dave’s not playing around today. Lol!
Dave's an idiot. Why give up a car that works? She has a 30 minute commute each day (likely one way, so technically 1 hour) and when the junker then breaks down within a couple months now she has to buy another one. At that point she is at $10K. Half of what was left on the new car.
@@joshuastephens2133Yeah I agree doesn’t make too much sense. Refinance the car for sure. 20k isn’t that crazy but that interest sure is.
Vacations and Cars are the biggest obstacles to Getting Ahead.
For the middle class
Exactly those things. I have international family. In 3 countries! If I want to visit them at all I need to plan thousands of dollars a year. They can’t fly here even to visit. US immigration says no, nor could they afford flying here anyway on third world incomes
And school loans.
I live very simple. But I vacation for my health, literally, mentally and physically. I have very ACTIVE long vacations hiking and biking, beach and mountains. No way am I giving that up. I always have a car payment. Every 6 years I get a new one, shortly after the loan is paid off. I trade it in while it is still worth big money. I have no costly car repairs, not even new breaks, and do not have to worry about break downs. So there is more to life than just making dollars stretch, if I am not truly living my youthful retirement years. I watched my husband die. Life is short. I try very hard to make my monthly budget stretch other than the above, but with this darn inflation, it is nearly impossible.
@charflorida5433 if those cars aren't making you money it's a liability and keeping you in the middle class.
$150k a year with two ppl but you can’t find a way to get ahead? Why is it always ppl that make more than enough that say they can’t get ahead?
They either don’t make as much as they say, or don’t disclose all of their spending and debt.
Because they have too much debt and aren't good at saving/allocating money.
Because they feel entitled to luxury
because the more money you think you have the more you spend. It doesn’t make difference when you have a thousand and spent thousand.. you have a millon you spent a million,,
Because it's always the dumbest people who call into this show 😂
It is certainly difficult but i am learning that i have to stop being cynical and negative about what can be done. I see evidence that it is true that you can accomplish most things you set your mind to.
When someone who you are calling for advice, gives you advice. Don’t give an excuse on why their advice won’t work.
Is it an 'excuse' or a 'blinder'? Blinders create roadblocks in the mind, making it difficult to understand the 'advice'. Removing blinders isn't the same as 'not giving an excuse.' Excuse is 'no way out'. Blinders take time/understanding to remove. 🤔 (Just thinking out loud.)
@ this is a good response. Thank you!
They want the proverbial cake and eat it and you know the rest
"I've used credit cards to repair my credit." Dave may not be able to help this caller.
keeps saying interest rate too. interest rate has nothing to do with Baby Steps
My encouragement is, to find who in your life will support your baby step goals for when it gets hard and you need a word of encouragement. It helps to have a buddy that also has the same goals or supports your goals and has been where you are. Best wishes!
Your behavior is not fixed lady if you refuse to sell a $20k car with a 14% interest.
She's halfway there. Her and her husband will figure it out.
THey need to refi that, a 20k car is very reasonable coming 2025
@@johndone8045
If your financing it, doesn't matter if it's " reasonable"
They can't afford it!
Refinance or pay down the interest
@@johndone8045...yes
She said "We cut back, i feel like we cut back. "
WTF does that mean?
I feel like...
Either you did or didn't. There is no 'i feel'.
It's all about feelings now not actual truth. 🙄😵
The caller means she’s done all that she sees she can do. And she needs help to do more. Why have misogyny over it?
@@sundown6748 you keep using that word. I don't think it means what you think it means.
Most people don’t like their debt, however don’t want to do anything to get out of it.
Isn't that the truth
Car is crazy in their situation. Like so many outrageous cars with even worse payments.
Love Dave, but he really doesn't understand the price of used cars right now, and hasn't for the last few years. I've bought two cars for my kids in the last year and I negotiate like a Arab trader in a bazaar. You are not getting a decent car that you can expect to run for more than a year or two for under 8k....forget about freaking 5K. One of his staffers should really tell him to stop with the advice about going to get a 4 or 5k " beater".
100% since COVID especially used cars have skyrocket. If someone is selling a used car for $5k alarm sirens should be going off that you are about to put more than $5k in it over the next 6 months
$4800 2003 Honda CRV, $4000 2010 Hyundai Tucson, $3900 2010 Toyota Camry, $3900 2012 Nissan Versa. All these are available in my area (Phoenix, AZ) as of right now and will last you more than 2-3 years with no problem. Yeah they don't look very flashy but you do what you got to do.
@paulinoaz 15 year old cars? That what have 200k plus miles on them?
@@t206kid depends, I have a 2010 civic that only gets driven occasionally the recent years, it has less than 75k miles on it. I probably can sell a good amnt base on what I see here
@@t206kid also tbh, there's nothing wrong with driving 15-20 yr old japanese cars. It's usually the lower income ppl who really cares abt driving a nice car, justifying they have to have a reliable car to go around the town. I know plenty of ppl with high income(they are directors in high tech companies) driving 20 yr old camry, they feel there's no need to buy nicer cars cause cheap old cars can get u to the same destination
For people saying Dave doesn’t know the price of used cars, we bought a 2009 Honda civic in august of 2022 from a private seller for $7k. Has worked phenomenally and have not have to put much money into the car as of now. And this is in California. So keep searching and quit complaining!
12k a year in child support is nothing but she seems resentful
Then casually slides in HER credit card and tuition debt.
For a man whose pre tax income is 73k, that's a lot. She makes 40- something thousand a year when she doesn't work overtime. Yes they can clean up this mess, but it will take determination
@@russianrobbie1000 a month in this economy hurts
12k a year is not nothing. Her husband is also spending weekend with the kid.
@@Mikey-w9q it's less than 10% of their income, less than 15% of just his. And he is responsible for the child, it's not some stranger he's forced to provide for.
I do NOT feel bad for these people. They don’t know what real struggle is.
Hold up, they make 150k, only have a 128k mortgage, 49k in debt.... where is all the money going?
As a nurse, you must be familiar with the concept that we can't help patients who don't want to be helped. There are people who have an excuse for every scenario. You tell them to eat healthy, exercise, take prescrption meds, go to their appointments etc. and they come up with a bunch of reasons why they can't. Then when their health crumbles they say they had no choice. Of course they had a choice... they just chose not to prioritize their health.
I'm sure you know there are inconveniences and sacrifices that need to be made to live a healthy life. The same is true for becoming financially independent; you need to make sacrifices you don't want to make. However, if you keep coming up with reasons why you and your spouse can't make those changes, then it shows that financial independence really isn't a top priority in your life.
Exactly
Dave being on is such a game changer. He makes people see things from a personal accountability standpoint vs when it’s 2 personalities. Life happens and Dave gets that, but it’s about taking ownership of what you can control.
I agree
$150k income and only $1k per month for debt means there are spending and budget issues.
Dave's face when he asked what else and she kept on about things that didn't matter.
The accountability deflect.
After he asked her what else, she said that behavior is fixed blah blah, then proceeds to say they won't sell the $20k car with 14% interest lol.
No, they do matter.
@Primitive_Code, We all watched the same video. No need to repeat it.
He’s so rude! She’s obviously nervous and is asking for help. He makes lots of money “helping” people just like her who call in. Is him giving a little respect too much to ask?
Her spewing off the interest rates tells me she doesn’t watch the show.
My first thought. She isn’t getting it
She isn’t financially literate. That’s why she started viewing the show.
I’m very surprised Dave isn’t asking “where is the rest of your money going?” Because if they’re making 140k annually and have a mortgage with 128k left and 2 normal car payments then they should have no issues at all. Something is missing here.
Dave and his one-size fits all plan 🤣🤣
Why doesn't he tell people to cut the cable. That's an extra hundy or so a month, right? We don't have cable or a tv.
The plan that works for people in debt? Dave makes millionaires out of regular people.
Alot of people have a 30-minute commute M-F😆 Alot have it even worse
"Alot" is not a word, FYI.
They are spending way too much money on other crap. Likely toys and eating out. They make enough money to get out of this crap.
$5k in 4 months sucks. They aren't sacrificing enough.
Given their $150,000 income, paying off $5,000 of debt in four months is not impressive.
Did she say 13% on a car?!
Personal loan created to pay off, I mean move debt to other debt.
It can get way worse than that.
13.95%
gosh these car dealships are greedy nowadays, I still remember tv advertisement of 2% on car loans just few yrs before pandemic
@@Jane-rh7tc They still do that, but bake the difference into the sales price. A good rate today is like 6%
I’m just here for the rant 😂🤦🏽♀️
This caller needs a rant.
Gotta love how Dave goes for the: "Oh Honey you're doin' this alone, aren't ya?"
Caller: "Um, no. My Husband is going full throttle with me on this..."
Producer: ***PIVOT!!!***
TWO HUGE CAR LOANS WAS NOT A GOOD IDEA.
IT IS MORE THAN LIKELY BOTH CARS ARE UNDERWATER.
Truth
20k car loan is no where near huge.....
I want Dave to go out and see what $5000 will get for a car in 2025
Dave lives in LA LA land
That should be a segment. Or I could George Kamel doing something like that
You guys are in La La Land. I run a used car dealership and we sell plenty of reliable cars. There are inspected ready to go for $5000. You are trying to keep up with the Joneses and want the $30,000 Camry when the 2010 Impala with 80K miles that just passed inspection is fine for you.
Exactly get a 5k car, and by the end of the year, you'll end up having to put 5k into it
@@lowkeylogic303 I just did a 10 second search on Craigslist and there are 458 vehicles under $5000 in my area.
30 minute commute? Yeah consider that a lucky and short commute. I would go back to a cheapO car if mine was that short.
"HE GETS HOME AT 6PM....SO HE CAN'T GET A 2ND JOB WORKING NIGHTS SOMEWHERE"
If you need to get out debt, you need to focus and your family needs to be on board. Stop buying soda, drink tap water. Stop everything that is not absorbed necessary to survive.
WHY DID THEY BUY A HOME WHEN THEY ALREADY HAD 50 K IN DEBT?
The 50k may have accumulated after the home purchase. If their mortgage is sitting at 125k, they've likely had it for awhile. Just a guess, though.
Dave cars are not 5000 unless it’s junk
$4800 2003 Honda CRV, $4000 2010 Hyundai Tucson, $3900 2010 Toyota Camry, $3900 2012 Nissan Versa. All these are available in my area (Phoenix, AZ) as of right now and will last you more than 2-3 years with no problem. Yeah they don't look very flashy but you do what you got to do.
@@paulinoaz Here in the Northeast, at those prices, the cars probably have 250,000+ miles on them, which means they are going to have major mechanical issues every year. I agree with Dave when he says to get a car that gets you from Point A to B with no bells and whistles. But you also can't get too sh*tty of a car because you'll make up for it in the thousands of dollars you regularly have to spend fixing it.
the average age of cars on the road is almost 15 years, there are many older cars that run perfectly fine. You just have to do a little research and have a 3rd party inspect the car before you buy it and you'll more than likely get 3 or 4 years out of a 5k car at least
Selling a 20k car isn’t going to wipe out a 20k debt cos the car isn’t worth 20k once it’s been used for months/years!
You missed the point. When it was 20k, they got a 20k loan. Now they might have 15k left on the loan, and say the car is worth 12k. They sell the car for 12k, borrow 3k, and pay off the original 20k now 15k loan. Now they are net 3k in debt by borrowing the difference. No car in the end but they're better off with 3k debt than 20k.
The sound in her voice when he said sale the car, was like I love the car
@@ashkara8652they'd end up with less if they use the money they sell on the car to buy a used car. They don't have to make an additional borrow of money.
@@cynthiapreston937 Chances are good they won't sell the car I'm thinking.
@@Sheryl777 and if they was tired of debt they would but they are not tired enough of it
Awesome video🤩 Also just wanted to mention there are other investment options too-like Elizzarda, make money on gamblers and get steady 1.5% daily return
hahaha scam
Then dial back more!
We didn't get the whole story on this one for sure.
Don’t sell the car. Keep working overtime and pay it off. If you buy a cheap car, you’ll have nothing but issues. A 30 minute commute is not something you want to do in a junk car.
The way she was talking you’d think they’re taking home 50k a year combined.
I think they are talking about a budget but haven’t done any work. They haven’t given up the cars, the hobby purchases, or stopped eating out several times a week. They diagnosed the problem and are surprised a diagnosis hasn’t fixed the issue.
I only make $3,600 a month net and don't have these kinds of problems.
Stay away from credit cards and over spending and you will save a lot of headaches.
A $5000 car today is like a $1000 car pre-Covid. It'll be a total s**tbox.
Yes, but he only needs to drive it for maybe 18 months, until they're out of debt and he can upgrade to a $9000 car. And probably sell the old one for $2500, What's he going to to get fired because his car is rusty? It doesn't have to be pretty, it has to get him to work and back.
@ I understand but you’re counting on that car to not have repair expenses over 18 months.
not quite, but guess what, if you're broke, then you have to drive sh!tb0xes.
@@GuruChaz Just counting on the repair expenses being less than the payments would be, which is usually a pretty good gamble. If not, you have to by another inspection sticker with the remains of a car attached, and probably spend an extra year driving it.
Downright wrong. I bought a 2005 Acura TL with 189,000 miles for $4800 in 2021. Im still driving it. Currently 230,000. Cant wait to get to 300.
I'm glad you made this video it reminds me of my transformation from a nobody to good home, $34k monthly and a good daughter full of love
My advice to everyone is that saving is great but investment is the key to be successful imagine investing $15,000 and received $472,700.
wow this awesome I'm 47 and have been looking for ways to be successful, please how??
Making touch with financial advisors like Elizabeth Regina Nelson who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
Unfortunately, not all of us were financially literate early. I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but I'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling!
I had problem comprehending trading in general. I tried watching other RUclips trading channels, but they made the concepts more complicated. I was almost giving up until when i discovered content and explain everything in detail. The videos are easy to follow
I've been making a lot of looses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?
Refinancing the loan of the car would make a good difference
Dave talking facts at 6:23.
I stopped putting money in my retirement during baby step 2. It took me almost 3 years to clear my mess.. the part that sucks was I owed additional tax money when I quit putting in 401k through baby step 2.. This caused a new debt two years in a row to the IRS. I would not recommend pausing your 401k. I missed serious buying opportunities during the Obama years when stocks were low by following the baby steps.. I understand the reasoning behind it, but disagree completely.
You have until April of the following year to contribute to an IRA and still claim it on the previous years taxes. My husband and I always contribute to an IRA to keep from paying federal taxes.
Exactly. Dave's way loses compounding and opportunity costs you can not 'catch up' unless you age backwards. Also, a 100% return from an employer match always beats paying off a mortgage, credit cards or other debt unless the interest is greater than 100% or one of the creditors is the IRS
Yes it can get out of control if you use this method and don’t get rid of the debt FAST. Timing is everything in investing, so this strategy is great for getting out of debt with one income. But you have to be disciplined and focused. It’s tempting with the extra money from not contributing, but during this time of debt payoff you can’t buy the things you want, can’t upgrade anything, can’t go on trips, can’t do Christmas gifts, NOTHING. Otherwise, it’s a sh*tstorm. Debt is there after a few years and you missed out on investing opportunities.
What? Lol.
Yes you’re correct that’s absolutely terrible advice.
cars are such a money drain. just get a used camry, accord, or whatever. save your money, live debt free, then get a nicer car with cash if you wish. not a soul cares what you drive, doesnt maker you better or less than someone whos got a fancy car
Thank you Dave
Love some Dave Ramsey, although when we went through FP 14 years ago we continued contributions to our 401k’s at minimum getting our company match, it took us a couple years to get everything cleaned up & that worked well for our family, we could see the progress and celebrated when we paid off each debt along the way!
But where in the world are we finding reliable 5,000$ cars? I looked a few years ago and even the rust buckets were 10-12,000 I decided to just pay off the rest of the loan on my newer car. I'll get years out of it.
Dave lives in 30 years ago
What is considered a rust bucket? Autotempest shows 2018 Nissan Rogue with 140 000 miles in Orlando FL for 8,000$ or 2017 Ford Fusion with 90 000 miles for 9,250$ How are they rust buckets?
Right. A $5000 car will last you 2 weeks.
@@GertieYTube both those cars are huge gambles. Especial the Ford if it's a hybrid. Transmissions in those can fail at 75k and can cost over $7k to fix. Ask me how I know...
$4800 2003 Honda CRV, $4000 2010 Hyundai Tucson, $3900 2010 Toyota Camry, $3900 2012 Nissan Versa. All these are available in my area (Phoenix, AZ) as of right now and will last you more than 2-3 years with no problem. Yeah they don't look very flashy but you do what you got to do.
Where Dave gets it horrifically wrong:
1. The only car you can get for $5000 these days is "as-is" with a motor or transmission about to die on you. Add $3000 for repairs. So its really $8000-$10000. And no question asked about how much they owe on it.
2. High interest rates are a fact of life for the self-employed and those with sub 600 credit. You can't just tell someone they made a terrible choice making that deal. I negotiate like an FBI agent trying to get hostages rescued, and the bank approves what they approve.
3. The whole "beans and rice" think is flat-out wrong. This lady (and 99% of Dave's callers) need to change what's going on subconsciously. That's their road to freedom. Once they change their belief systems, their financial life changes. But that doesn't sell books or allow you to put on Amway-style rallies, now does it?
I have listened to Dave for quite awhile. I lost respect for him when he fired a female employee for getting pregnant out of wedlock. He's a fundamentalist Christian.....good for him. Why not offer adoption assistance and counseling, ole Dave?
The car part of this episode is jacked up on so many levels. First of all, they owe $20k, doesn't mean it's worth $20k. Second of all, they have to add $5k to their debt to get a beater, which is a total of $35k (not $25-30k). Third of all, Dave is completely delusional if he thinks $5k will get you anything in today's used car market
you can get a car for 5k, but it will be a old barebone one.
when she mentioned the car, i knew Dave was gonna say, sell it LMAO
Keep on working 🤷♂️
Dave asks a question- answers with too much info, too many explanations, too much justification. Humans overthink way too much. We are our worst enemy. Really. ❤
Keep the car but pay it off. Dave never considers the cost of repairs when buying a beater.
Yes agreed, and also they are likely to be under water on it, meaning they dont have 5k to go buy a car with.
….. “What else?” … “What else?” 🤣
With their high interest rate on that car they owe 20k on, they are likely upside down on it. They may have to save up money just to sell it.
"He doesn't have a degree or anything" 😅
What’s wrong with that?
71K and no degree is p solid
And she’s making 80k (working extra)
lol 😂
@@HOLDXSTEEL Absolutely nothing. Did that fly over your head or what. 😅
@ what’s wrong with flying over your head?
It’s very interesting to see the difference between Canada and the states. 100K a year in Canada is enough to pay bills and that’s about it. Used cars15-20 years old, barely run and need a bunch of work will start at 5-7K.
A target approach to paying it all off except the mortgage and it’s gone in a year. Including keeping the car
Can you sell a vehicle if you don’t get what you owe out of it? If you sell the vehicle but still have a balance on the loan how can you transfer the title?
Either way, whatever your car may cost. People out here are still buying cars just based on looks not even bothering to look online to see if they're even reliable
It’s easy to say sell the car but they are probably 5k in negative equity. No easy to get out of High Interest Loan
I always cringe when people start talking about interest rates. Dave doesn't give a crap about rates.
Shes a RN and he's just a this and that he makes around the same with no degree but no debt. Dave hunting down a way to blame the husband. She really is focused on him being a single dad and titles and superficial 🐂💩 isnt she. I mean what did she expect Dave to say her to quit and the husband to wave a magic wand.
Hopefully she can find a job that will utilize her fluency in Yapanese
It is hard to remove luxuries you have become used to. It is much easier to keep an older vehicle than it is to give up on Bluetooth, navigation, heated seats, remote starting, etc.
However, if you want to increase the rate you are paying off debt or accumulating wealth, sacrifices must be made. The caller didn't seem too keen on the idea of downgrading their vehicle.
Cars, Credit Cards, Student Loans, and Vacations will never allow people to get ahead
Im high as fuck dave Ramsey and i wanted to doordash some sushi but I knew it was a bad financial decision so I ate canned chili at home because I had it at home man. I hope you're proud of me. You're doing the lords work man you're the fucking best man.
Jesus loves you!
I love Dave, but as someone married to a car salesman, there’s no such thing as a somewhat decent $5,000 car.
My 13 year old car with 115k on it is probably worth over $5k and so many things are going wrong I nearly sold it for spares last month.
My 2009 Chevy cobalt has 170k miles and doesn’t burn oil. This thing may last another ten years
Correct. That’s why you don’t buy them from a used car salesman.
There's that joke about cars going down in value as soon as you leave the lot, but a $5k beater will go down to the mechanic shop as soon as you leave the lot
34 year old sounding like a 54 year old
Sell the dog.
Approx $80k net after taxes and child support. Then- where do they live? Is $1000/month going to housing, or $5000? We all can always find a cheaper rent/home. I live in north Dallas where avg home costs $600-700k, but we chose to buy a 1000 sq ft condo instead, so property tax, hoa, utilities is all less than $1100/month. Next- vehicles? Is it necessary for 2? Some families of 4 can share one vehicle, with a schedule for drop offs and pick ups. Someone in your neighborhood today does it, so you can too. Food- with 4 people, you can buy and cook for $1000/month, and not struggle. Walmart, Aldi, Trader Joe's have budget friendly groceries. ❤❤
Proof that passing a class, financial literacy, doesn’t mean you learned anything or that you’ll apply anything that you learned. The similar to the obesity and diabetes epidemic. Most folks in the comments understands that cutting calories, removing added sugar and moderate exercise resolved this epidemic but most of us don’t apply what we know.
She is not listening..... just keeps repeating herself
Old cars cost money too tho.... repairs. Breaks, AC, transmission, etc. Not worth it.
My wife and I have paid off 55k in our first 18 months of marriage. We are $5,400 away from being debt free. We make $125k a year combined.
Almost 1 million people are homeless (out of 350 million). I worry about this couple joining them.
Don't agree with stopping the 401k. You're missing out on tax advantage & free money.
"we dialed back" you in fact did not LOL
Something wasn’t adding up but then she said “special needs”. Parents of special needs children think they have a license to spend irresponsibly. But then she admits she spent irresponsibly in her 20s and they bought cars with predatory loans. So special needs isn’t an excuse.
So many parents use that label as an excuse for EVERYTHING.🙄
She`s more into the interest rates, than taking care of just paying off her debt.
Good grief. These people and car payments
14% on a personal loan with 50k balance and 20k balance car loan, they might need to take from retirement to get out from under this mess, they just aren't attacking the principal enough with minimum payments. She needs to put her head down for the next 5 years and do a lot of overtime if she can get it, then maybe they can get out from under this without taking from retirement.
You’re both 34 and 35 years old, you can still save for retirement but pay off your debt first. Both of you earn 150K / year.
He big mistake was to marry a single father with a $12,000/year liability for who knows how long, not the mention the coming and going with his son.
Before things get serious, a math nerd should approach dating by figuring out how much debt he/she has, what the debt is in, and how long would it take to pay it off. If the debt is too high and would take years to pay it off after getting married, he/she should be dumped; too much trouble and effort when he/she can find somebody else without so much financial bagge.
Everybody complaining about the car thing. I drive a $4100 Toyota Camry and I have driven it 9 hours one way, 3 dozen times. It runs like a top. Completely reliable. Costs nothing. You people saying you can't find a reliable $5k car are just nuts. Go buy you a Camry or Accord!
I never understood the obsession with vehicles. Who really cares what kind of car you drive? I have never lost any sleep thinking about what someone else was driving. If the car can get you to your destination, great!
We Dialed Back (for two weeks) but are still struggling (after two decades of misbehaving)
Livin' big loco American in Texas with first world problems and a family and thinks they aren't ahead already. Pay off your debt, you're already ahead, your debt is just now catching up to you lol
It's not a "beauty and a blessing" to work overtime as a nurse, dear. So many nurses become burned out working regular hours.
$20,000 car for a 30 minute commute? Lol. I have a salvage 05 Honda CRV with 235k miles on it for a 40 minute commute to work.
My car is so worthless Kelley Blue Book won't even put a price on it yet it gets me to and from work, all thanks to God!
This is why I've kept my 2020 camry and dont care how plain it looks. Having money in savings and investments is way more gratifying than a brand new car in my driveway.
The $5k car is going to break down constantly and will cost a lot more money.
There’s a reason a car is only $5k!
My Honda accord 2000 SE says otherwise. $550 dollar car no issues.
Well, if they're going to keep that car, it sounds like she should be putting every extra penny toward the principal.